BluSky ESG Report

A Message from our CEO, Drew Bisping

of an ESG Committee made up of board members and BluSky executive leadership. The ESG Committee meets regularly and is tasked with strategic direction and oversight of ESG related initiatives. Early in the year, we completed a comprehensive materiality assessment to better understand and align priorities and opportunities among BluSky’s internal and external stakeholders. This assessment helps ensure time and resources are devoted to the areas and topics that matter most. We were also able to complete our very first Greenhouse Gas Emissions Scopes 1 and 2 Audit with Ernst & Young, which was then independently reviewed and assured by FORVIS. Lastly, we made great strides in Diversity, Equity and Inclusion with the establishment of a DEI Ambassador program which is already doing great things for our organization.

I am very proud to share BluSky’s first inaugural Environmental, Social, and Governance (ESG) Report demonstrating our commitment to this important work. Since opening our first office in Colorado in 2004, the BluSky organization has been constantly growing, evolving, and improving. We now have over 50 office locations and 1,350 people serving a broad range of residential and commercial customers across the nation. With the growth of our business comes tremendous opportunity to have positive and lasting impacts on the lives of our people, the communities in which we live and work, and the environment we all share.

To advance our commitment, last year in 2022, we formally embarked on our ESG journey with the creation

In 2023, we will remain dedicated to advancing ESG at BluSky. Some of the things we will be working on include increasing our focus on safety and hiring a devoted full-time Director of Safety; developing new and improved policies related to environmental stewardship and corporate governance; and further understanding our energy use and emissions with an eye towards reduction.

Our commitment to ESG practices at BluSky reflects our belief that we have a duty to operate in a way that benefits not only our company but also the communities and environment in which we operate. We look forward to partnering with all of our stakeholders as we continue to build a sustainable and responsible business.

Thank you to the entire BluSky team, including our Board of Directors, for not only recognizing the importance of ESG, but working each day to carry out its purpose of improving lives and making the world a better place for us all.

Drew Bisping Chief Executive Officer

About Us

Founded in 2004, BluSky is a leading national provider of commercial, multifamily, residential, industrial, and governmental restoration, renovation, environmental, and roofing services. We fix broken buildings.

With an emphasis on commercial and large properties, at BluSky, we don't build things; we rebuild them. The BluSky team offers years of project management and experience across restoration, renovation, environmental services and commercial roofing, and our team is recognized as objective experts within the restoration industry. We have deep industry-leading experience in mitigating complex chemical contaminants, and our internal environmental specialists are certified to work

Fast Facts

under these extremely hazardous conditions. While keeping safety at the forefront, at BluSky, we fix broken buildings and help people get back to their lives, homes and businesses as quickly as possible.

Our services and work comply with industry standards, local and national building codes, OSHA regulations, and EPA guidelines. We serve a wide range of property owners and managers and have built a reputation of reliability, first-class customer service, and high-quality work with property owners and their insurance carriers alike.

2004

10,200

50+

1,390

50+

50

Founded in Approximately Locations and Growing States

27,500

Employees 40+

Licensed in All Customers Projects

Working in States at Any Given Time

Our ESG Approach

Our ESG Strategy

BluSky’s environmental, social and governance (ESG) strategy is anchored on our company credo: to create an exceptional BluSky customer experience through our actions, teamwork and genuine caring for the customers’ personal needs. Our vision is to create an industry-leading ESG program scalable with the growth of our organization, driving significant value and benefits for both internal and external stakeholders.

While this is the first time we are sharing our ESG approach publicly, the practices and programs included in this report have been ingrained in BluSky’s culture since the beginning. We are pleased to share our 2022 ESG Report that highlights our progress along our sustainability journey in the areas fundamental to our business, as follows:

ESG Priorities

The safety of our employees and trade partners is paramount to how we run our business. We aim to strengthen qualification, management and oversight practices to improve consistency in the quality and performance of trade partners and labor as well as minimize and mitigate risk and liability.

We strive to create a diverse workplace that embraces and incorporates a variety of perspectives, backgrounds and experiences, leveraging the positive impacts of diversity for a competitive business advantage. We continue to strengthen the communities we operate in by growing the BluSky Foundation, increasing the dollars donated, diversifying the ways it contributes to society, and expanding reach and recognition.

We are committed to identifying operations and byproducts of business that most impact the environment. We aim to measure these impacts and determine those we are able to address to reduce negative effects, implementing strategies and key performance indicators for improvement.

As part of our commitment to responsible governance practices and ethical conduct, BluSky expects all employees to demonstrate the highest degree of integrity and professional conduct by adhering to our core values, credo and employee promise.

ESG Governance

Our Board of Directors and Executive Leadership Team (ELT) recognize and support the idea that strong ESG principles that align with business strategy start at the top. The ESG and Risk Committee of the Board maintains oversight of our ESG strategy and programs,

with the ELT responsible for implementation. The Board receives updates on a quarterly basis. The day-to-day implementation is managed by our vice president of Legal and Compliance.

Materiality Assessment

We conducted our first materiality assessment in 2022, led by an external sustainability expert, to better understand the ESG factors most relevant to both internal and external stakeholders. The results of our materiality assessment will guide our future ESG strategy and roadmap to ensure that we allocate resources to the areas that address the long-term financial sustainability of our business and are most important to our stakeholders.

The assessment considered key ESG ratings, frameworks and standards as well as industry and peer best practices to represent the external landscape. An internal survey was conducted to understand what ESG factors are viewed as most important by our internal stakeholders based on their impact on our business strategy, financial success and reputation.

The survey was completed by a broad group of internal stakeholders, including members of the Board of Directors, senior executive team, senior leadership team and other team members.

As a result of the materiality survey, 17 factors of priority were identified, with six factors identified as the most important to both external and internal stakeholders, including:

• Business ethics

• Workforce health and safety

• Product and service quality and safety

• ESG products and innovation

• Environmental impacts of project development

• Employee engagement, training and development

These factors and how we manage associated risks and take advantage of opportunities are discussed in detail throughout this report.

2022 ESG Report | 1. Introduction 1.3. Our Esg Approach

Stakeholder Engagement

Our stakeholders play a critical role in the work we do. The table below depicts BluSky’s primary stakeholder groups, how we engage with each group, and which ESG topics intersect.

STAKEHOLDERS WAYS WE ENGAGE

• Company-wide in-person meetings

• Virtual employee meetings and regular communication by email and social media

KEY ESG TOPICS ADDRESSED

• Talent training and development, career planning and retention

• Internships and entry-level recruitment

EMPLOYEES

• Annual engagement surveys, management review of results and action planning

• DEI Ambassador Team

• Annual BluSky Day of Giving

• Employee health and safety

• Compensation and benefit programs

• Mental health and wellness

• Diversity and equal opportunity initiatives

• Employee volunteering and community engagement

INVESTORS

• Regular meetings with investors

• Participation in industry association and investor conferences

• Business strategy and long-term financial sustainability

• Corporate governance and board oversight

• ESG strategy and goals, such as climate change, workforce health and safety, and diversity

• Community engagement through BluSky Foundation

CUSTOMERS

SUPPLIERS /TRADE PARTNERS

• Surveys conducted after projects to measure satisfaction

• Education and training on property damage response and management (https://www.goblusky.com/training)

• In-person and virtual meetings, emails and calls, industry conferences, and site visits

• Assessments and questionnaires on labor practices, safety, licensing, required insurance, anti-bribery and compliance, environmental impacts, diversity, and human rights

• Vendor quality assurance

• Product and service quality

• Community engagement

• Safety

• Training and education

• Quality assurance and vendor management

• Subcontractor qualification process

• Supplier diversity

• Human rights and labor practices

• Subcontractor safety

• Ethical business practices

• BluSky Vendor Code of Conduct

LOCAL COMMUNITY

• Community meetings

• Collaboration, community partnerships and employee volunteerism

• Philanthropic donations and investments through BluSky Foundation

• Strategic relationships

• Industry organizations that make an impact on restoration industry

• Work as prime contractor and subcontractor for federal, state and local governments

• Community development and support in areas of access and affordability, healthcare, wellness, and improvement of the lives of children

• Volunteerism and corporate donations

• Community engagement

• Employment and labor conditions

• Regulations and compliance

• Safety and security

• Environmental impacts and sustainability

• Community engagement

About This Report

This report illustrates progress related to our ESG strategy and goals and covers what we have determined to be most important and relevant to the long-term financial sustainability of BluSky.

We have aligned our report primarily with the Sustainability Accounting Standards Board (SASB) standards for the engineering and construction services industry to ensure we address the ESG factors seen as most relevant to our industry by investors. We also have identified several United Nations Sustainable Development Goals (SDGs) that we believe our business activities and key priority areas support. Both are included in the appendix at the end of this report.

Unless otherwise noted, all quantitative company data provided throughout this report covers our fiscal year 2022 (FY2022), reflecting data for the period from January 1 through December 31, 2022. We have also included certain subsequent initiatives that occurred after the end of FY2022, as noted in this report. Throughout the report, we guide readers to additional sources of information on our corporate website and other website references for convenience. Please see our forward-looking statements at the end of this report for more information.

2022 ESG Report | 2. Responsible Business Operations

2.1. Workforce Safety and Health

2. Responsible Business Operations

Workforce Safety and Health

The safety and health of BluSky‘s employees, subcontractors and others who may be within or around our projects is paramount. It is our policy to work in the safest manner possible, consistent with our Safety and Health Program and Employee Safety Handbook and according to all governing laws and regulations. Managers at every level are charged with the task of translating these policies into positive and productive action.

Our pledge to each employee is to communicate potential health and safety hazards as well as provide protective equipment, training and other measures that minimize the possibility of accidents, injury or illness on the job.

Our Safety and Health Program is dynamic, and we constantly look for ways to improve the identification, evaluation and prevention of workplace hazards.

Safety and Health Program

To advance health and safety across BluSky, all levels of employees and management have defined roles and responsibilities in the maintenance of a healthy, safe and environmentally friendly workplace. Aspects of our Safety and Health Program include hazard communication, vehicle safety, fall protection, subcontractor safety, excavation safety, respiratory protection, hearing conservation and more. Every employee pledges to create an accident-free environment and is empowered to stop and resolve unsafe working conditions immediately.

Risk Department and Safety Committee

The Risk Department, led by the director of Risk Operations, maintains oversight of BluSky’s overall safety program and regulated compliance (including OSHA and EPA), with regular reporting up to ELT and the Board.

Employee Safety Training

Our safety program provides opportunities for training at all stages of employment: new hire-specific courses, toolbox talks with subcontractors at individual jobsites to address relevant hazards, monthly safety meetings and trainings, and annual company-wide training.

All newly hired field personnel are trained on the firstfive issue areas during onboarding. These areas include:

• Defensive driving

• OSHA 10

• Asbestos awareness

• Lead awareness

• Sexual harassment

All BluSky employees are assigned individual, taskspecific health and safety training based on the hazards they may encounter while performing their specific line of work for the company. All employees attend monthly safety training on a variety of relevant topics, and on occasion the company conducts a companywide all-employee safety stand-down to highlight the importance of safety.

Training Stats - 2022

371,590.5 hrs

Monitoring Safety

Identifying hazards while out in the field is critical to keeping our employees safe. Our monitoring processes include a focus on the following areas:

Performance and Measurement

At every BluSky office and on every project site, we aim to:

• Maintain the very best safety and health conditions possible

• PRE-JOB HAZARD ANALYSIS

• ENVIRONMENTAL JOB REQUIREMENTS: Properly complete and document all regulatory protocols, particularly those related to asbestos, lead, mold and other hazardous materials.

• OSHA COMPLAINTS INVESTIGATION: Investigate OSHA complaints, and cooperate with OSHA and any other authorities.

• DEPARTMENT OF TRANSPORTATION AND HAZARDOUS WASTE HAULING: Comply with hauling procedures and perform random drug testing of drivers and motor vehicle records checks for employees.

• LICENSING: Obtain licensing and renewals at city, county and state levels.

• SUBCONTRACTORS: Follow application and qualification procedures for new subcontractors, with routine compliance audits.

• COVID-19: Comply with and communicate to customers and vendors about applicable federal, state and local COVID-19 guidelines.

• FLEET MONITORING AND VEHICLE SAFETY: Reinforce good driving habits for employees operating any company-owned vehicles through fleet monitoring. Record vehicle accidents and incidents, including minor damage to company vehicles, and submit reports to the Risk Department.

• SAFETY AUDITS: Externally audit our locations based upon performance to mitigate safety risks throughout the organization.

• Prevent or minimize potential for accidents or injury

• Prevent fires, vehicle accidents, or property damage losses

• Maintain zero permanent disabilities

• Maintain zero environmental accidents

• Maintain zero fatalities

Managers and supervisors are accountable to upper management for the successful achievement of these targeted safety and health goals.

Incidents and Injuries Reporting

BluSky takes incidents and injuries seriously and encourages all employees to report hazards, near misses and other incidents using BluSky’s safety reporting systems that align with OSHA standards and regulations. We report incident rates up to the Board on a monthly basis.

Labor and Human Rights

In providing a safe, healthy work environment, we are committed to ensuring that all employees and trade partners are subject to fair working practices and are treated with respect. We uphold the highest standards when it comes to human rights. We have no tolerance for child or forced labor and have a minimum age of employment policy.

Vendor Management

We have a strong commitment to upholding the highest ethical business standards, following the spirit and letter of the law, caring for the safety and well-being of our employees, and acting responsibly within the communities in which we work. We choose subcontractors, staffing providers and vendors who share our commitment to good ethical practices. In return, we strive to be fair and honest, firmly believing that relationships built on our core values will be sustainable and beneficial for all. We commonly refer

to our vendors as trade partners because we truly treat these relationships as partnerships and have found that doing so benefits not only the respective businesses but also BluSky’s customers.

We require everyone working on a BluSky project to follow our core values and maintain the standards set forth in BluSky’s Vendor Code of Conduct, which includes a focus on safety, ethics, labor conditions, human rights and compliance with laws.

Vendor Selection and Quality Assurance

In the vast majority of our projects, BluSky is the general contractor — commonly referred to as the captain of the ship — in control and responsible for the management of the overall project. On each project, we utilize qualified trade partners who undergo a thorough screening process. Common trade partners include framers, electricians, plumbers, painters, and both semiskilled and general labor. Our possible trade partners are regularly evaluated before, during and at the completion of projects as part of BluSky’s Quality Assurance Program.

Before a trade partner is approved to work on a BluSky project, they must submit to a rigorous application process, including ongoing reference and safety checks, verification of all insurance and licensing requirements, and mandatory compliance with all federal and state laws and regulations.

Key elements of our selection and monitoring process include:

• A prequalification and certification process

• Random audits to ensure that workforces are being paid fairly, accurately and on time

• Unannounced jobsite checks

• Annual BluSky quality assurance certification of trade partners and staffing providers

• Ongoing review by BluSky Risk Management to ensure that OSHA, EPA and all other regulatory checks are performed with independent verification of trade partner references

• Suitability evaluation of trade partners to work on certain projects based on experience

• Review of daily accountability reports on jobsites, including time cards as well as communication expectations

Delivering consistent, high-quality work for our customers with the utmost concern for safety drives our business. Year after year, approximately 96% of our customers report that they would hire us again. We are proud of our strong retention rate that demonstrates our commitment to our customers. To view specific customer success stories, please visit: https://www.goblusky.com

We pledge to create an exceptional BluSky customer experience through our actions, teamwork and genuine caring for customers’ personal needs. An exceptional customer experience results in a successful project. BluSky ensures successful projects by providing our customers with quality workmanship, safe jobsites and operational excellence. We want every customer to have full confidence in BluSky. Quality is our culture.

Supplier Diversity

To help BluSky build a diverse base of suppliers and subcontractors, we actively seek and track this information through a diversity classification form as part of the subcontracting process.

QUALITY ASSURANCE PLEDGE

BLUSKY

“I would hire BluSky again“

96% of clients say

Environmental Impacts of Project Development

Restoring, rebuilding and safely remediating environmental hazards is the essence of what we do. We manage hundreds of hazardous environmental remediation projects annually, including mold remediation, asbestos abatement and other biohazard cleanup for both residential and commercial properties.

We have the expertise, tools, equipment, resources and skilled labor to fulfill the needs of these projects safely and efficiently to get our customers back to business as usual in a healthy environment.

As a restoration contractor, we have little to no control over project design and instead focus on restoring and rebuilding sites to their original condition, and we effectively manage environmental risks and mitigate damage for our clients through that process.

Environmental Considerations on Site Water

Most of the work we do for our customers is associated with mitigating ongoing damage to a building or structure and is not typically associated with high water use. We are highly experienced in responding to waterrelated disasters, mitigating related damages, and restoring properties to their intended use. We recognize the importance of water efficiency and conservation on jobsites and take steps such as installing high-efficiency fixtures on projects where possible. We maintain several standard operating procedures (SOPs) related to water management including black water (contaminated water), cleanup and water drydown, which governs the process for inspecting and drying structures that have water intrusion.

Waste and Hazardous Materials

We utilize third-party waste management companies to ensure proper recycling on projects with recycling requirements and standards set by project owners.

We take environmental protection and worker health and safety very seriously. Our established procedures

provide guidance on how to handle any materials that pose physical or health hazards. We provide administrative controls, engineer safeguards, and personal protective equipment to all employees on jobsites involving hazardous waste. We follow all state and local regulations in addition to relevant OSHA and EPA standards.

Responsible Sourcing

We are committed to using responsible products and chemicals to minimize our environmental impact where possible. From window installation to chemical ingredients, we use environmentally safe products that meet required standards and minimize the impact on environmental and human health.

As part of our procurement process, we aim to partner with vendors who utilize sustainable practices and have related standards in place. Of our top 20 suppliers who account for approximately 50% of our spend, a majority have established ESG programs.

At BluSky, our employees are the most important resource in our commitment to serve our customers and our communities. We support each other and share a bond of loyalty and teamwork. We are a culture of family.

Employee Engagement, Training and Development

Continuous learning, development and engagement are a priority for BluSky, and we actively seek to create opportunities for our workforce to advance. By reinforcing our training and development programs, we hope to become a leading learning organization in our industry and create true experts at all position levels to support retention, business performance, future growth and stability.

Employee Development Programs

Onboarding and Mentor Programs

BluSky has a robust onboarding program that all employees complete upon hire, grounded in development tracks that fit each role or job-specific program. In addition to general new hire orientation, we conduct role-specific orientations for certain sections of the business.

Newly hired Sales and Operations employees also participate in a 60-day mentor program as part of their onboarding. A peer mentor at the same employment level is assigned to the new employee as a support system particularly within their first 60 days. Mentors assist new employees through the day-today tasks of their new role, helping them acclimate to BluSky culture and operations.

The BluSky Way vision orientation was implemented in November 2022 and is designed to increase a sense of employee belonging and ownership of culture. The twohour live presentation explains the how and why behind our culture, strategies and growth vision at BluSky. In the short time it’s been operational, over 90 people have attended the program. In the years to come, our goal is that 100% of our people attend.

4

3. Our People and Communities

2022 ESG Report |

3. Our People and Communities

3.1. Employee Engagement, Training, And Development

1. New hire Orientation

2. Rol Specific Orientation

3. Blusky Vision Orientation

4. Mentor Program

1. New Hire Orientation

2. Role Specific Orientation

3. BluSky Vision Orientation

4. Mentor Program

Learning Opportunities

In 2021, we launched BluSky University, a comprehensive learning management system that tracks internal and external training courses as well as professional certifications. Every BluSky employee has on-demand access to a library of over 900 courses that cover industry-related and general professional development topics such as diversity, health and safety, leadership, computer literacy, essential skills, and more. In Q1 2023 BluSky launched BluPrint, a new learning management system designed to fully enhance and track employee training and assist with career development.

2022 TRAINING AND EDUCATION METRICS

In 2022, instructor-led courses and virtual training opportunities resulted in a total of:

• 3,443 hours of online training completed YTD December 2022*

• 8,207 hours of instructor-led training (in person and virtual) completed YTD December 2022*

*Numbers do not account for new hire, monthly or annual safety trainings, which are currently tracked by the Risk department.

We also support our employees with a variety of certification programs from the Institute of Inspection Cleaning and Restoration Certification (IICRC) to advance career opportunities and mobility. These include Health and Safety Technician (HST), Fire and Smoke Restoration Technician (FSRT), and Water Damage Restoration Technician (WRT). Employees have opportunities to gain additional certifications from the IICRC and the Restoration Industry Association (RIA) as well based on career development.

Leadership Development

Developing the leaders of tomorrow is critical to the BluSky mission and delivering on our promises to customers. BluSky uses a leadership development roadmap to help current, new and emerging leaders navigate challenges they face in four main areas: leading yourself, leading teams, leading organizations and leading the business. The training experiences are designed to equip leaders with the confidence and skills to face these challenges successfully.

The year 2022 was one of building and creating the strategy for our long-term leadership development program. We hired a vice president of Leadership Development and designed a Leadership Foundations Program to serve as the core element of the overall program, launched in Q3 of 2022. Over 250 participants to date have experienced content and training in the following categories: situational leadership, coaching, engagement, public speaking skills and creating visual materials that tell a powerful story. In 2022, 30 executives also participated in targeted external training programs on business essentials for executives, scaling the business, mergers and acquisitions integrations, executive presence, and mastering virtual presentations.

Benefits and Compensation

The financial, mental and physical well-being of our employees is important to us. In addition to a competitive base salary and bonus plan for qualified positions, we offer a comprehensive benefits package that includes a matching 401(k) plan, health insurance, paid time off, disability insurance, parental and bereavement leave, and equipment stipends appropriate to the position. For eligible employees, BluSky allocates stock through its employee stock purchase plan. Employees are offered the opportunity to work from home if their job duties permit it.

Mental Health and Wellness Resources

All BluSky employees and their families have access to the MINES & Associates employee assistance program (EAP), offering counseling sessions on topics like stress, anxiety, family situations, drug and alcohol abuse, and relationships and additional support around work/life services. This includes services such as legal and financial support and parental coaching.

We also offer health assessments, health and wellness coaching, biometric screenings, and team-based activities to promote a healthy lifestyle.

Pay Equity

We are committed to maintaining fair and equitable pay for all employees. BluSky aims to complete a full remuneration plan to define the value each role has, based on market value and internal value, and to provide opportunities to increase effective pay management.

Feedback and Engagement

Performance Reviews

We conduct two formal employee performance reviews each calendar year to review progress and provide an opportunity for open dialogue between an employee and their manager. Outside of the formal review period, managers and employees are encouraged to check in frequently.

Overall attrition rates remain well below construction sector averages.

Engagement

On a regular basis, we survey employees on engagement, training, retention and inclusion, including questions about fairness and opportunity for employees of all ages, races, genders and abilities.

Our 2022 engagement survey results revealed that BluSky promotes inclusive behavior and demonstrates integrity throughout all functions of the organization. Employees are invested in BluSky’s mission.

ENGAGEMENT BY THE NUMBERS 2022

89% of employees at BluSky

Restoration Contractors LLC say it is a great place to work compared to 57% of employees at a typical U.S.-based company.

BluSky Restoration Contractors LLC

Diversity, Equity and Inclusion

We believe diversity, equity and inclusion (DEI) is a driver of strength, growth, innovation and business resilience. While our DEI program is still in its formative stages, we are currently creating a stakeholder informed DEI platform and playbook outlining priorities and recommendations for further implementation.

DEI Approach

DEI at BluSky is supported by the highest level of executive leadership. Anchoring BluSky’s DEI approach and strategy is a cross-functional DEI Ambassador Team consisting of diverse employee volunteers from all levels of the business. The team, led by the chief human resources officer, meets monthly and partners with the leads of various departments to advance programs and initiatives.

DEI Pillars

The DEI Ambassador Team is focused on the following four pillars promoting engagement, belonging and inclusivity:

Education is key to understanding. We commit to creating a positive learning environment where employees are eager to expand their DEI knowledge from resources and experts as well as one another.

When we serve, we are better equipped to understand the challenges of others. Volunteering, community outreach and internal impact initiatives are a key part of our diversity and inclusion work.

Communication Recruitment

When we communicate, we create safe spaces where stories are told and voices of individuals and underrepresented groups can be heard.

We strive to attract and hire individuals from diverse networks who bring different perspectives and life experiences to BluSky. When we widen our talent pool, we open new avenues for growth and possibility.

2022 Progress

Led by the DEI Ambassador Team, key highlights of our diversity initiatives in 2022 are detailed below. COMMUNICATION

We created a cultural calendar and communication plan to highlight and celebrate diversity within BluSky and our communities.

EDUCATION AND AWARENESS

We introduced and launched DEI communication at BluSky’s Sales and Operations retreat and created a repository of DEI courses accessible to all employees.

RECRUITMENT

We are working to expand our diverse recruitment approach using strategies such as:

• Partnering with universities and other organizations to promote DEI in recruitment and training

• Posting jobs on diverse platforms to get a wide variety of candidates

• Facilitating more mentorship opportunities (focused specifically on women and BIPOC populations)

• Monitoring recruiting and internal demographics against our DEI goals outreach: We launched our prestigious MLK Community Impact Award. This peernominated award honors one exceptional BluSky teammate for their dedication to serving communities, on and off the clock.

Diversity Metrics

Our Journey

The formalization of the BluSky DEI journey began in 2022. We are committed to developing, leveraging and promoting our talent to foster an exceptional employee experience.

36%

45%

19%

45%

Community Engagement and Impact

At BluSky, we aim to make our communities better. We believe that to be a truly great company, we must share time and resources with the communities where we live and work.

BluSky Foundation

BluSky has been committed to giving to our communities since its founding in 2004. In 2021 we officially established the BluSky Foundation, a 501(c) (3) with the mission of building upon BluSky’s vision to not only fix broken buildings but restore and rebuild the vital elements of our communities. By intentionally living and working our core values, BluSky strives to fulfill our responsibility to give back to our communities and assist in the development of nonprofit organizations nationwide.

Volunteering

In addition to monetary contributions, BluSky employees devote substantial volunteer hours to nonprofits through our Annual Day of Giving.

Annual BluSky Day of Giving

It’s important to us to invest not only financial resources but also our time in charitable endeavors. Each year on the Wednesday before Thanksgiving, BluSky employees across the company participate in acts of community service as a team. Every BluSky office is encouraged to identify a local nonprofit organization and spend the day volunteering as a group.

In 2022, employees volunteered with 35 different charities in their local communities. Among the many diverse activities were preparing and serving meals to hospice patients and in homeless shelters, packaging nonperishable items for families in need, and performing building repairs and upkeep.

Combined Day of Giving efforts totaled 1,400 hours of employee volunteer time. Each employee who participates is given paid volunteer time off. We are in the process of tracking employee volunteering time going forward.

We have raised awareness, donated money, and supported dozens of organizations. Some of our key partnerships include The Adoption Exchange; Boys & Girls Clubs of America; Children’s Hospital Colorado; Habitat for Humanity; and a whole host of women’s, children’s and industry-related philanthropic causes.

To read more about the BluSky Foundation and our philanthropic commitments, visit our website: https://goblusky.com/about-us/philanthropy/.

Case Study: Clays for Kids

Clays for Kids is one of BluSky’s signature community service events and is held annually in several cities where BluSky operates. In the past seven years, we have raised over $350,000 benefiting more than 10,000 active Denver Boys & Girls Clubs members.

Impact by the Numbers

As the company increases in size and success, we are committed to increasing our charitable giving.

Charitable Contributions for 2022: $775,442

BluSky has supported and impacted over 70 different non profit organizations throughout the country.

In 2020 BluSky raised/contributed $500K and in 2021 we increased our contributions to $661,806.

We aim to track, measure and report the impact of our overall contributions on an annual basis. We are committed to increasing our charitable contributions annually year over year. As we grow, we strive to become more diversified in the way we help people, organizations and communities.

Based on our employee engagement survey, 92% of employees feel good about the way BluSky contributes to the community. This result is a 2% increase over 2021.

92%

*graph results: Green: 2022, Blue: 2021

Source: Initiative + One-Pages ESG deck and Culture Community Slides

In 2023, BluSky Team will be known for serving communities through our philantropic involvement. This will be continued to be measured by our volunteer hours.

MLK Community Impact Award

BluSky honors one employee each year with the prestigious MLK Community Impact Award. This award celebrates service on the job with customers and teammates as well as off-the-clock dedication to building futures and restoring lives and communities. This unique award is peer-nominated and recognizes a

Industry Partnerships

teammate who has served communities with leadership, service and strength. The MLK Community Impact Award winner will be announced on Martin Luther King Jr. Day every January. The winner will receive a $1,000 bonus, two days of paid time off, and a plaque. BluSky will also donate $1,000 to a charity.

We work with a number of industry organizations throughout the country to stay apprised of best practices, contribute our voice to the conversation, and make an impact in the restoration space.

Environmental Management

We are dedicated to building an understanding of our environmental impact across all key areas of our business to ultimately work to reduce it. While we are in the beginning stages of tracking and measuring key environmental metrics, in 2022 we undertook our first greenhouse gas (GHG) emissions audit for Scope 1 and Scope 2 emissions. We will be working closely with ESG experts to determine appropriate goals and aspirations for managing and reducing our carbon footprint over time and expect to develop an Environmental Policy in 2023.

Environmental Compliance

Our commitment to improve BluSky’s impact begins with implementing a strong compliance program. We comply with all relevant national and international environmental laws and regulations and have implemented policies that reflect our support for environmental responsibility.

Employee Training

At BluSky, continuous education and training is critical to the work we do, especially as it relates to environmental procedures. We provide trainings for all field-based employees on black water cleanup, water mitigation projects, asbestos abatement and more.

Employees are also trained according to their specific roles, and those who may be exposed to hazardous materials at the jobsite receive additional training periodically in compliance with regulation requirements.

In 2022 our employees completed over 1,450 hours of lead and asbestos awareness training and 2,500 hours of OSHA 10 training. Contractor supervisors underwent an additional 9,000 hours of initial and refresher trainings. We are also in the process of developing environmental awareness training for all employees, which will cover important topics such as energy consumption, GHG emissions, water management, pollution and chemical waste.

Combined Employee Training

OSHA 10

2,500 hours

OSHA asbestos supervisor (initial and refresher)

9,000 hours

Lead/asbestos awareness

1,450 hours

Our Operational Footprint

From our corporate and regional office locations, BluSky manages large property damage events for customers throughout the United States. We typically work in 40+ states at any given time and in 20+ states on large projects.

Energy Management

We are conscious of our energy consumption and associated emissions and continue to look for opportunities to minimize our impact.

We do this by:

• Implementing solar installations in our offices to make use of renewable energy when possible

• Utilizing and maintaining a fleet of electric and hybrid cars in our California office, which helps reduce the carbon emissions generated by transportation

• Reduce the carbon emissions generated by transportation

We strive to minimize the environmental impact of our operational footprint through sustainable business practices. We currently lease all our facilities. While that limits our influence on building decisions, we play our part in reducing our environmental footprint where we can with eco-friendly business practices.

• Conducting energy audits of our facilities to monitor energy efficiency

• Providing employee education on how to reduce BluSky energy consumption

• Installing LED lighting and motion sensor lighting with auto-shutoff features in our facilities

• Using cloud-based data centers and leveraging economies of scale offered by third-party data center providers to maximize energy efficiency and minimize electricity-related GHG emissions

• Offering flexible schedules to allow for part- or fulltime remote working in many positions

Our Carbon Footprint

In 2022 we underwent our first greenhouse gas (GHG) audit with a third-party consultant to help us better understand our Scope 1 and Scope 2 GHG emissions footprint. The audit, performed in line with the GHG Protocol, provided a baseline for future emissions reductions analysis and goal setting.

Waste Management

We strive to embed low-waste actions in everyday activities in our offices through our office waste management procedure. We have switched from paperbased processes to digital methods, which open the door for greater security in our data and documents while saving on costs associated with printing, storing and managing paper. Moving toward a paperless system also paves the way for workflow automation opportunities that have a positive impact on the environment.

Our efforts to reduce paper waste include using cloud storage for company files and providing employees with dual monitors to reduce the need to print documents and make manual data transfer easier than on paper. Additional steps we are considering include tracking the print footprint in the office, encouraging our employees to take paperless notes, and setting up corporate computers to automatically print double-sided.

We responsibly dispose of all electronic waste through a dedicated processing site.

Case Study: Signal Hill Office

Our Signal Hill office now houses a new mobile shred unit, which has the capability to shred sensitive documents more quickly and securely. All shredded paper will be recycled through our partner, who manages the transportation, processing and delivery to a paper mill for final conversion.

We also offer the following recycling initiatives:

• Document destruction and recycling

• Aluminum and plastic internal office recycling bins

• Recycling of electronics, scrap tools and project materials

Corporate Governance and Business Ethics

BluSky expects all employees to demonstrate the highest degree of integrity, responsibility and professional conduct, adhering to our core values, credo and employee promise.

Board Composition

Our defined corporate governance structure starts with the Board of Directors and corresponding Board committees including Compensation, Audit, and ESG and Risk. We value diversity of skills, perspectives, characteristics and experiences on our Board and continue to look for ways to increase this diversity in leadership, building value and delivering on our mission.

• 8 total directors

• 2 directors are racially/ethnically diverse

• 1 director is female

Whistleblower Policy

We have zero tolerance for any kind of discriminatory behavior or harassment. Employees are encouraged to report potential misconduct to a senior manager, and any employee who reports misconduct in good faith will be protected against unfair treatment or retaliation. Violations will result in disciplinary action up to and including termination of employment.

The incident reporting and evaluation process is overseen by the Human Resources department with oversight from BluSky’s Executive Leadership Team and escalation of serious incidents to the Board.

Ethics Training and Awareness

To ensure that employees understand how to prevent unethical business practices, we are in the process of developing training with clear guidelines on issues such as conflict of interest, fair competition, and bribery and corruption.

Equal Employment Opportunity Policy

We are dedicated to the principles of equal employment opportunity and prohibit discrimination against applicants or employees.

This policy applies uniformly throughout the organization to all employees and applicants for employment. It covers all aspects of the employment relationship, including selection, compensation, benefits, discipline and training.

Data Security and Customer Privacy

Protecting the integrity of our data and mitigating the risk of security incidents is essential to our business operations. We consulted the National Institute of Standards and Technology (NIST) cybersecurity framework in structuring our security program and have implemented policies to establish guidelines and communicate the controls necessary for a secure network infrastructure. Oversight of BluSky’s IT and data security resides with the ESG and Risk Committee of the Board, managed on a day-to-day basis by the chief information officer (CIO).

Our Information Security Team deploys a robust information security program. Highlights include:

EMPLOYEE TRAINING

All employees undergo cybersecurity training annually, and new hires receive training as part of our onboarding program. Through the training platform, employees have access to over 190 microtraining modules that can be taken at any time to increase resilience against cybercrime. We also rolled out a monthly phishing campaign in 2022 to gauge employee awareness, provide best practices, and offer additional training where needed.

SECURITY TESTING AND RISK ASSESSMENTS

As part of the risk management process, we conduct a thorough assessment of the potential risks and any vulnerabilities to the confidentiality, integrity and availability of the company’s critical or confidential information. Our IT team conducts internal vulnerability assessments on a regular basis and requires external security testing to be performed annually.

INCIDENT RESPONSE

Our incident response policy and procedures ensure the company’s preparedness in the event of a security incident.

DISASTER RECOVERY MANAGEMENT

The BluSky disaster recovery plan focuses on the recovery of technology infrastructure in the event of an IT disruption or a disaster. We plan for the full spectrum of disasters ranging from small-scale hardware failures to long-term facility disruptions and widespread natural and manmade disasters.

CUSTOMER PRIVACY

While we host very little customer data, we evaluate all third-party vendors who house this data to ensure that their data retention policies and encryption levels align with BluSky’s information security program.

Business Continuity and Risk Management

BluSky’s Risk Operations department has oversight of all business recovery functions and manages safety and compliance risk. The department coordinates recovery of critical business functions in the event of a facilities disruption or disaster. We plan for short- and longterm disasters or other disruptions such as fires, floods,

earthquakes, explosions, tornadoes, extended power interruptions, hazardous chemical spills, and other natural or manmade disasters.

Business Continuity and Risk Management

United Nations Sustainable Development Goals (SDGs)

In September 2015, the General Assembly adopted the 2030 Agenda for Sustainable Development that includes 17 Sustainable Development Goals (SDGs). The SDGs are a call to action for countries, corporations and communities.

We have identified several goals that we believe our business activities and key priority areas support.

Achieve gender equality and empower all women and girls

• Ambassador Team

• Working to facilitate mentorship opportunities (focused specifically on women & BIPOC populations)

Diversity, Equity, and Inclusion

GENDER EQUALITY

DECENT WORK AND ECONOMIC GROWTH INDUSTRY, INNOVATION AND INFRASTRUCTURE

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

Ensure sustainable consumption and production patterns

• Partnering with universities and other organizations to promote DEI in recruitment and training

• Ensuring safety and health of workforce through Master Safety Program

• Supporting a number of non-profit organizations through BluSky Foundation

• Managing restoration and hazardous environmental remediation projects including mold remediation, asbestos abatement, and other biohazard cleanup for customers

Workforce Safety and Health, Community Engagement and Impact

Environmental Impacts of Project Development

RESPONSIBLE CONSUMPTION AND PRODUCTION

PEACE, JUSTICE AND STRONG INSTITUTIONS

Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

• Working to develop an Environmental Policy and measure carbon footprint to demonstrate stewardship

Environmental Management

• Upholding our commitment to good governance practices through our Board and core values

Corporate Governance and Business Ethics

2022 ESG Report | 6. Frameworks and Standards

6.2. Sustainability Accounting Standards Board (SASB)

Sustainability Accounting Standards Board (SASB)

The following table incorporates SASB standards related to the engineering and construction services industry. SASB is overseen by the International Sustainability Standards Board (ISSB), a governing board managed by the International Financial Reporting Standards (IFRS) Foundation (previously the Value Reporting Foundation). The table includes relevant metrics and references to sections within this report where specific topics are discussed.

Number of incidents of non-compliance with environmental permits, standards, and regulations

ENVIRONMENTAL IMPACTS OF PROJECT DEVELOPMENT

Discussion of processes to assess and manage environmental risks associated with project design, siting and construction

Amount of defect- and safety-related rework costs

STRUCTURAL INTEGRITY & SAFETY

Total amount of monetary losses as a result of legal proceedings associated with defect- and safety-related incidents

(1) Total recordable incident rate (TRIR) and (2) fatality rate for (a) direct employees and (b) contract employees

Number of (1) commissioned projects certified to a third-party multiattribute sustainability standard and (2) active projects seeking such certification

LIFECYCLE IMPACTS OF BUILDINGS & INFRASTRUCTURE

Discussion of process to incorporate operational-phase energy- and water efficiency considerations into project planning and design

Safety and Health

TOPIC ACCOUNTING METRIC SASB CODE

Amount of backlog for (1) hydrocarbon-related projects and (2) renewable energy projects

IF-EN- 410b.1

BluSky does not have any such projects in its backlog

Environmental Impacts of Project Development

CLIMATE IMPACTS OF BUSINESS MIX

Amount of backlog cancellations associated with hydrocarbon-related projects

Amount of backlog for non-energy projects associated with climate change mitigation

(1) Number of active projects and (2) backlog in countries that have the 20 lowest rankings in Transparency International’s Corruption Perceptions Index

IF-EN- 410b.2

BluSky does not have any such projects in its backlog

IF-EN- 410b.3

BluSky does not have any such projects in its backlog

BUSINESS ETHICS

Total amount of monetary losses as a result of legal proceedings associated with charges of (1) bribery or corruption and (2) anti-competitive practices

Description of policies and practices for prevention of (1) bribery and corruption, and (2) anti-competitive behavior in the project bidding process

IF-EN- 510a.1

None

Corporate Governance and Business Ethics

IF-EN- 510a.2

None

IF-EN- 510a.3

BluSky currently has very brief / basic policies for specific positions and will be developing more comprehensive policies and training in the future.

Disclaimer and Forward-Looking Statements

The information and opinions contained in this report are provided as of the date of this report and are subject to change without notice. BluSky does not undertake to update or revise any such statements.

This report represents current BluSky policy and intent and is not intended to create legal rights or obligations. This report may contain or incorporate by reference public information not separately reviewed, approved or endorsed by BluSky, and no representation, warranty or undertaking is made by BluSky as to the accuracy, reasonableness or completeness of such information. Inclusion of information in this report is not an indication that the subject or information is material to BluSky’s business or operating results. This report was originally drafted in English and the English version is the authoritative version.

This report includes forward-looking statements within the meaning of the Private Securities Litigation Reform

Act of 1995. All statements other than statements of historical or current facts — including statements regarding our plans, initiatives, projections, goals, commitments, expectations or prospects — are forwardlooking. We use words such as aim, believe, commit, drive, estimate, ensure, expect, goal, intend, may, mission, plan, project, seek, strategy, strive, target and will or similar expressions to identify forwardlooking statements. Forward-looking statements reflect management’s current expectations and inherently involve risks and uncertainties. Actual results could differ materially due to a variety of factors, including assumptions not being realized; scientific or technological developments; evolving sustainability strategies; changes in carbon markets; evolving government regulations; our expansion into new products, services, technologies and geographic regions; or other changes in circumstances. The standards of measurement and performance contained in the report are developing and are based on assumptions, and no assurance can be given that any plan, initiative, projection, goal, commitment, expectation or prospect set forth in this report can or will be achieved.