BluSky 2023 ESG Report

A Message from our CEO, Kent Stemper

I am honored to be able to share BluSky’s second annual Environmental, Social and Governance (ESG) report, showcasing our continued efforts toward this important initiative. BluSky continued to grow and improve in 2023, adding 12 new office locations and over 250 new team members, closing out the year with a total of 62 office locations and over 1,600 valued employees serving our residential and commercial customers across the country. Throughout what was another exciting and challenging year of growth at BluSky, I could not be more proud of our enduring commitment to effectively managing our business operations in ways which take into consideration the impact on the environment, our people, and the areas and communities where we live and work.

In 2023, we continued our focus on ESG initiatives through our ESG committee consisting of Board members and BluSky executive leadership.

The committee meets regularly and determines the areas and priorities for continued advancement in ESG. In 2022, we completed our first ever greenhouse gas emissions Scope 1 and 2 audit, and in 2023 we were able to significantly improve on that process resulting in even more complete data to measure our progress against going forward.

During the year, we hired a dedicated full-time Director of Safety who implemented new methods and processes for additional training to reduce safety related incidents resulting in a nearly 60% increase in training hours per employee. We increased our training and education of all employees with additional content and a new training platform. We also formed a committee devoted to company policies which meets regularly to review existing policies for updating as well as creating new policies. In 2023, the policy committee was able to publish several new policies specific to ESG.

We remain steadfast in our commitment to reducing our impact on the environment while increasing our contributions to our people and communities in which we operate, continuing to build BluSky as an important, contributing member of corporate society. Thank you to all our BluSky team members, including our Board of Directors, for continuing to realize the importance of ESG and their daily efforts to execute on its intent to improve our lives and make the world a better and safer place to live.

Kent Stemper Chief Executive Officer

About This Report

In our second annual ESG report, we outline our progress related to our ESG strategy and goals. This report 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, now part of the International Financial Reporting Standards (IFRS) Foundation, 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 Frameworks and Standards section

Unless otherwise noted, all quantitative company data provided throughout this report covers our fiscal year 2023 (FY2023), reflecting data for the period from January 1 through December 31, 2023. We have also included certain subsequent initiatives that occurred after the end of FY2023, 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.

About BluSky

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 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.

Fast Facts

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.

Since our founding, BluSky has constantly increased capabilities and expanded our footprint. In doing so we have gone from a single office in Colorado in 2004 to having 62 offices across 27 states with over 1,600 dedicated employees serving customers from coast to coast. This remarkable growth has occurred organically and through strategic acquisitions of other best-inclass restoration businesses with proven commitment to integrity, excellence and company culture. We are excited to continue on this path of growth in 2024 and beyond to better serve people and businesses that have been impacted by property damage.

Founded in 2004 Approximately 1,630 employees

62 locations and growing

Licensed in all 50 states

10,190 customers

24,000 projects

Working in 45+ states at any given time

2004

BluSky was founded in 2004, beginning with a small local office in Denver with 15 employees. We have spent the last two decades growing methodically and aggressively into the premier restoration provider in the nation while building a culture of family.

Present Day

At any given time, we are working on projects in over 45+ states. We have responded to every large national catastrophe/weather event since 2004 with our national operations to restore our clients‘ properties safely and quickly while able to maintain the needs of our local clients.

Future

We are the premier national restoration service provider of choice with the ability and capacity to go anywhere in the US and US islands. We are projected to grow to over 100 locations.

BluSky Operates Nationwide

Our Purpose and Values

BluSky is committed to being a socially responsible company. We take that commitment seriously in every aspect of our business, especially in those communities where our offices are located and our own people live and work.

WE PLEDGE TO CREATE AN EXCEPTIONAL BLUSKY CUSTOMER EXPERIENCE THROUGH OUR

TEAMWORK & GENUINE CARING

FOR THE CUSTOMERS‘ PERSONAL NEEDS

BluSky office

Our ESG Approach

Our ESG Strategy and Priorities

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.

Our second annual ESG report depicts our progress along our sustainability journey in the areas fundamental to our business, as follows:

Responsible Business Operations

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.

Our People and Communities

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.

Environmental Management Governance

We are committed to identifying operations and byproducts of business that most impact the environment. We aim to measure these impacts 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.

Governance of ESG

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.

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

Employees

Investors

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

• DEI Ambassador Team

• Annual BluSky Day of Giving

• Regular meetings with investors

• Participation in industry association and investor conferences

Key ESG Topics Addressed

• Talent training and development, career planning and retention

• Internships and entry-level recruitment

• Employee health and safety

• Compensation and benefit programs

• Mental health and wellness

• Diversity and equal opportunity initiatives

• Employee volunteering and community engagement

• 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

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

• 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

• 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

• Community engagement Government agencies

• Safety and security

• Environmental impacts and sustainability

Materiality Assessment

In 2022, we conducted our first materiality assessment in order to better understand the relative significance of ESG topics to both internal and external stakeholders. The results and findings of our materiality assessment continue to inform our ESG road map and disclosures and help build on our existing program. For more information, please reference our 2022 ESG Report

1.Introduction

ESG Highlights

ESG Highlights

Responsible Business Operations

• Hired a new Director of Safety

• Improved safety data tracking

• Employees completed 26,528 hours of safety training

• Tracked subcontractor diversity data

Our People and Communities

• New leadership training through Wharton School of Business

• Launched BluPrint Learning Management System, with 955 courses available for professional and career development

• Achieved Great Place to Work® certification for the sixth consecutive year

• Supported over 130 charitable organizations with $775,000 giving via BluSky Foundation

Environmental Management

• Published stand-alone Environmental Policy and corresponding training

• Completed our second annual Greenhouse Gas Assessment and disclosed Scope 1 and 2 emissions

Governance

• Published stand-alone policies and corresponding training covering Code of Conduct, Anti-Corruption/Bribery and Whistleblowing

• Planned 2024 training rollout for new policies

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 operations 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, and every person at BluSky is empowered and expected to stop and resolve unsafe working conditions immediately.

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.

10% 2.

Workplace injuries were reduced at BluSky by 10% in 2023.

Oversight of Safety

In August 2023, as part of BluSky’s continued commitment to constantly improving safety, we hired a new Director of Safety who brings years of demonstrated success designing and implementing safety programs within the service industry sector. The Director of Safety reports to the Chief Operating Officer and, in collaboration with the Risk Department, designs and manages BluSky’s overall safety program and regulated compliance (including OSHA and EPA), with regular reporting to the ELT and the Board.

Establishing a Culture of Safety

Our comprehensive Safety and Health Program is a point of pride at BluSky. Nevertheless, we know workplace safety is always evolving, and we are constantly looking for ways to improve our program. Advancing this commitment to continuous improvement, the BluSky Director of Safety conducted a thorough evaluation of our safety program in 2023, including leadership commitment, team member involvement, hazard control, prevention and training programs. We will continue to identify opportunities for improvement such as implementing enhanced safety training, as well as more rigorous safety data tracking and reporting.

2023 Key Safety Initiatives:

80%

42 of BluSky’s 62 office locations had zero recordable injuries in 2023.

Dedicated injury prevention program reduced the need for ER and urgent care treatment by 80%.

• Introduced additional safety training courses on Fall Prevention and Protection, Personal Protective Equipment, Electrical Safety General Awareness, Hazard Communication and Fire Extinguisher Safety.

• Increased focus on subcontractor safety by revising BluSky’s Master Subcontractor Work Order. These revisions incorporate mechanisms to ensure subcontractors understand BluSky’s policies and on-site procedures, and ensure appropriate safety programs and training are in place for their employees.

• Improved our Job Hazard Analysis form with creation of a dedicated “Working at Heights” section to evaluate if team members or subcontractors are performing work at greater than 6 feet high on a project.

• Improved safety data tracking, including hazards, near misses and incidents to establish a strong baseline.

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 job sites to address relevant hazards, monthly safety meetings and trainings, and annual companywide training. All newly hired field personnel are trained on the first five issue areas during onboarding. These areas are:

• Defensive driving

• OSHA 10

• Asbestos awareness

• Lead awareness

• Sexual harassment

All BluSky employees are assigned individual, task-specific 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 allemployee safety stand-down to highlight the importance of safety. This year we expanded safety training to focus on fall prevention and protection, hot work safety, personal protective equipment, electrical safety, hazard communication and fire extinguisher safety.

Spotlight: Annual Operations Retreat

Safety was the theme and primary focus at BluSky’s 2023 annual Operations Retreat, held in Arlington, Texas. The event brought together over 440 members of BluSky’s Operations and Leadership, as well as over 100 vendors, to discuss a variety of important safety topics applicable to the work BluSky performs.

Safety Training Metrics

Specialty training (OSHA 10) 2,980 hours

OSHA asbestos supervisor (initial and refresher)

hours Defensive driving 1,680 hours Lead/asbestos awareness

hours

topics

Safety training for each employee

16.3 hours per year

In 2023, average safety training increased from 10 to 16 hours per year.

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

• Pre-job hazard analysis: Complete a walkthrough assessment of potential safety and hazard issues prior to work beginning.

• Environmental job requirements: Complete and document all regulatory protocols, particularly those related to asbestos, lead, mold and other hazardous materials.

• OSHA complaints investigation: Investigate 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 and maintain all requisite licensing.

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

• Fleet monitoring and vehicle safety: Reinforce good driving habits for employees operating any company-owned vehicles through fleet monitoring.

• Safety audits: Regularly audit office locations and project job sites to mitigate safety risks throughout the company.

Spotlight: Fleet Management and Safety

In 2023, BluSky implemented a new fleet management system to monitor driver compliance and vehicle safety. The system supports driver compliance, safety and productivity. Since implementation we have seen a reduction in bodily injuries and vehicle accidents year over year.

Performance and Measurement

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

Maintain the very best safety and health conditions possible

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 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 zero 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 vendors, subcontractors and staffing providers 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.

Vendor Code of Conduct

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. Every subcontractor or vendor receives a copy of the Vendor Code of Conduct and acknowledges the Code as part of our onboarding process. We also expect subcontractors and vendors to maintain their own policies and procedures to ensure compliance with applicable anti-corruption laws and acknowledge BluSky’s Code of Conduct and AntiCorruption/ Bribery Policy as an additional measure.

BluSky conducts annual strategic business reviews of our largest, most-utilized vendors to evaluate vendor performance against established expectations.

2. Responsible Business Operations Vendor Management

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 semi-skilled 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 that occur at least annually to ensure that workforces are being paid fairly, accurately and on time

• Unannounced job site 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 job sites, including time cards, as well as communication expectations.

Vendor Diversity

We recognize that economically empowered, diverse businesses strengthen our supply chain and contribute to the overall sustainability and expansion of our operations. We are committed to growing, developing and partnering with diverse and underrepresented businesses in our network. To help BluSky build a diverse base of partners, we actively seek and track this information through a diversity classification form as part of the vendor onboarding process.

Currently 10% of our vendor base identifies as diverse.

Responsible Sourcing

We are committed to using responsible products and chemicals to minimize our environmental impact where possible. As part of our procurement process, we aim to partner with vendors who utilize sustainable practices and have related standards in place.

From window installation to chemical ingredients, we’re constantly identifying new products and methods to operate more efficiently and sustainably for our clients. We make sure to utilize products that are in compliance with U.S. EPA and other environmental regulations. Where possible, we source chemicals and cleaning products that are less harsh on the environment and have cleaner ingredients to minimize the impact on the environment and human health. We source a range of environmentally friendly products, including plant-based disinfectants, smoke/soot removers, carpet cleaners and specialty products.

Customer Feedback and Satisfaction Customer Experience

Creating an exceptional BluSky customer experience and delivering successful projects happens by providing our customers with quality workmanship, safe job sites and operational excellence. Quality is our culture.

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.

At any given time, BluSky is actively working on thousands of projects around the country. In 2023, we completed over 24,000 jobs in more than 45 states. To gather customer feedback and measure satisfaction, voluntary surveys are distributed to customers at the end of a project. We utilize a third-party platform to ensure the integrity of survey methodology and data and to gain additional insights from the analysis of survey results.

We are proud that 89% of customers would hire BluSky again, according to survey results in 2023. Standout attributes from survey feedback include appreciation of team and contractor excellence, meticulous work and attention to detail, resolving of issues and customer trust in the BluSky team. BluSky was also recognized for effective communication and responsiveness, as well as efficiency and speed on the job.

QUALITY ASSURANCE PLEDGE BLUSKY

We are proud that 89% of customers would hire BluSky again, according to survey results in 2023.

BluSky Restoration Contractors LLC

2023: Overall positive customer responses

Quality of product and services

Appreciating the quality of service

Appreciating professionalism

Appreciating team and contractor excellence

Going above and beyond

Communication

Effective communication and responsiveness

Demonstrating compassion and care

Meticulous work and attention to detail

Team resolved issues

Customers trust the team

Appreciating good project management and regular updates

Efficiency and speed

Timely service and project completion

Satisfied with scheduling and appoinments

Quick water damage resolution

Excellent crew performance

Appreciating availability

Listening to our customers and implementing their feedback is vital to how we operate.

There has also been consistent growth in the number of online public reviews over the past three years, with over 2,000 reviews in 2023 and an overall rating of 4.4 out of 5.

BluSky’s focus on four key components from our Quality Assurance Program — highly qualified trade partners, operational excellence, safety and customer service — makes the difference for our customers.

Customer Success Stories

David Genrich, veteran property manager in Portland, Oregon, describes BluSky’s involvement in a major water damage event at a popular hotel in his portfolio. It was imperative that he have a partner that responded swiftly, took care of the damage with very little guidance and reopened the hotel to guests within just a few hours.

Watch David’s testimonial here

Disaster Awareness

Michelle Morales, Associate Director for Commercial Property in Los Angeles, describes how important it is to have a trusted partner to handle damage to the commercial buildings in her portfolio. Michelle emphasizes BluSky’s attention to detail and attentiveness to her needs, and she recalls a very large water damage event in a high-rise in Los Angeles that BluSky handled.

Watch Michelle’s testimonial here

In the Chicago market, BluSky regularly appears on local radio station WGN to help listeners through home or building disasters. From flood to fire to storm or mold damage, we offer advice, assistance and expertise on what to do when property damage occurs. In a November 2023 appearance, for example, we discussed the particulars of asbestos abatement, the history of asbestos and how it’s imperative to get it handled professionally.

Awards and Recognitions

BluSky received a number of recognitions for quality of service and customer experience in the local markets where we operate. A few key examples are included below.

Supplier Partner of the Year: Detroit Metropolitan Apartment Association

Partner of the Year: IREM Inland Empire, Riverside, CA

Allied Member of the Year: BOMA Orange County, CA

VIP (Volunteers Are Irreplaceable People) Award: St. Louis Apartment Association

Company of the Year: Independent Brokers & Agents of the San Fernando Valley, CA

Our People and Communities

Employee Engagement, Training and Development

At BluSky, the success of our employees is vital to delivering on our commitment to serve our customers and communities. Continuously striving to enhance our culture, we prioritize teamwork, loyalty and mutual support.

Ongoing 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.

Onboarding Orientations Mentoring Certifications Touchpoints/ Annual Review

Supporting New Employees

Onboarding

BluSky has a robust onboarding program that all employees complete upon hire, grounded in development tracks that fit each role or job-specific program. New hires receive a tailored curriculum encompassing position-specific and state-specific training, including anti-harassment. In addition to general new-hire orientation, we conduct role-specific orientations for certain sections of the business.

The BluSky Way vision orientation, launched in 2022, was designed to increase a sense of employee belonging and ownership of culture. The two-hour live presentation explains the how and why behind our culture, strategies and growth vision at BluSky. Since inception, the program has proven successful, with 277 completions and a 78% completion rate. While we aim for 100% completion to allow for further growth, we are encouraged by the current achievements.

Mentorship

Newly hired Sales and Operations employees 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 to function as a support system for them, particularly within their first 60 days. Mentors assist new employees through the day-to-day tasks of their new role, helping them acclimate to BluSky culture and operations.

To continue to elevate BluSky’s larger mentorship program in 2023, we fine-tuned mentor assignments to group-specific verticals within offices or regions. We also instituted a mentor training program in 2023, housed in our learning management platform, BluPrint. Prior to becoming a mentor, each BluSky employee must complete the required mentor training. Finally, a big success in 2023 was the launch of our mentor recognition program that celebrates managers and directors who served as mentors.

Learning and Development Opportunities

Learning Management Through BluPrint

In 2023, we launched a new in-house learning management system called BluPrint. As the hub for all BluSky training programs, it includes new-hire training, compliance training, industry certifications and professional development.

BluSky has built over 20 professional development curricula around essential skills, such as specific courses for project managers and training on how to manage communications with clients. General courses cover a broad range of topics such as diversity, health and safety, leadership, computer literacy, and essential skills.

In 2023, we partnered with a third-party organization that specializes in financial intelligence and education to develop the twoday “Building Your Financial Intelligence” course. This course was designed primarily for BluSky office leaders who are responsible for making and executing BluSky’s day-to-day financial decisions. Fifty-nine BluSky leaders attended this course in 2023, with positive feedback on the style, content and delivery of the course.

Linkedin Learning

Every employee also has access to around 30,000 courses on LinkedIn, some of which can be accessed through the BluPrint system. Since its implementation in June 2023, our employees have viewed more than 20,000 videos and 1,235 hours of content. Our focus with LinkedIn Learning is to provide learning pathways for targeted roles such as new managers or construction management while making the full library accessible for employees to consume learning content that matters to them.

BluPrint Quick Facts:

Houses 955 courses

39 in-house courses created specifically for BluSky

Additional courses offered through LinkedIn Learning integration

BluSky employees completed approximately 11,000 hours of learning in 2023

646 unique course completions

2023 Learning and Development Metrics

Total learning hours 65,078 hours

Average learning hours per employee 40 hours

Average learning expenditure per employee $1,579

Certifications

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), Water Damage Restoration Technician (WRT) and Certified Healthcare Restoration Technician (CHRT). Employees have opportunities to gain additional certifications from the IICRC and the Restoration Industry Association (RIA) as well based on career development.

In 2023, 331 employees completed certification programs for CHRT and IICRC.

Careers in Construction Month

Careers in Construction Month is a month-long celebration of the various career paths in the building trades industry. This national campaign aims to increase public awareness of construction careers and inspire the next generation of craft professionals, impacting the perceptions of a career in construction. We feature BluSky employees on our website and social pages to highlight their work, impact and career growth.

BluSky Restoration Contractors

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 road map 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 current target audience for the leadership development programs is 150 vice presidents and corporate directors. In 2023, employees from the target audience completed an average of 20 hours of training in content aligned with developing leaders.

We believe that custom leadership development programs have the power to transform organizations in a very positive way. BluSky is committed to amplifying the skills and capabilities of our leaders, which will help drive an exceptional experience for our customers. We are proud to offer this level of development for our executives.

Wharton Executive Leadership Training

As part of our commitment to invest in the growth and development of our leaders, we partnered with the University of Pennsylvania’s Wharton School of Business to offer executive leadership training. A cohort of 34 senior leaders across the country from various functional areas within the organization, such as finance, operations and sales, participated. The program, called Building Growth Focused Leadership, helps build our leaders’ capacity to think through complex business issues and to develop solutions that create lasting value. Over the course of five months, our people engaged in a five-day classroom experience on the Wharton campus and a multi-month action learning project to apply classroom concepts to address real-world business challenges covering topics such as revenue generation, national operations structure, scale and customer experience.

Leadership Foundations Program

To promote leadership throughout all levels, the Leadership Foundations Program is a three-course program focused on the fundamental principles of situational leadership. In 2024, the program will be extended to include new managers, first-level leaders and supervisors.

The Leadership Foundations Certificate Program focuses on content and training in the following categories: situational leadership, coaching, engagement, public speaking skills and creating visual materials that tell a powerful story. In 2023, 76 executive and senior leaders 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.

Engagement and Feedback

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.

For the sixth consecutive year, BluSky received certification by Great Place to Work®. The prestigious award is based entirely on what current employees say about their experience working at BluSky. Eighty-four percent of employee participants said BluSky is a great place to work — that’s 27% higher than the average U.S. company.

Informed by valuable team feedback through the 2022 survey, two main focus areas emerged in 2023: recognition and communication.

Recognition

Based on the survey results, in 2023 we took action to develop new ways to recognize employees. We implemented a new recognition platform, BluSky Rewards, that creates peer-to-peer and leader-to-peer recognition visible to the full company. Leaders now have an effective and efficient means to recognize and reward employees.

To highlight our field team, we celebrate a Technician of the Year for each region. As the foundation of every project, these employees are first responders in times of disaster and foster exceptional customer and teammate service. Winners receive recognition through internal and external channels as well as a monetary award.

Communication

Responding to team suggestions, in 2023 we created a centralized process to facilitate effective and consistent communication for our rapidly growing organization.

Engagement by the Numbers 2023

BluSky Restoration Contractors LLC

Typical Company

Employees Agree:

Work

94% “The work I do helps achieve the company’s mission.”

“This is a physically safe place to work.” 94% 89% “Management promotes inclusive behavior.”

“We’re honored to be Great Place to Work-Certified™ again, and it’s even more gratifying to be recognized repeatedly, which tells me we’re the restoration company of choice when people are choosing their career path.”

Performance Reviews

Formal employee performance reviews are conducted with each employee annually, during which we 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.

Voluntary and Involuntary Turnover Rate

Talent Management

BluSky is dedicated to implementing a comprehensive Talent Management system that integrates performance management and succession planning, emphasizing employee growth and development.

In 2023, the company introduced a new performance management process, establishing the framework, and began the initial phase of succession planning.

With a strategic approach to talent management, BluSky now has ongoing targeted training programs and competency-building initiatives designed to address specific needs. This helps ensure employees have access to resources that enable them to not just excel in their current roles but prepare them for their next role as they advance their career at BluSky and increase their contribution to the company’s success.

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.

3. Our People and Communities Diversity, Equity and Inclusion

In 2023 BluSky teamed up with Wellable, an awardwinning technology platform, to make health and wellness easily accessible, promoting physical, nutritional and mental well-being companywide. Throughout the year, we ran companywide wellness challenges that engaged over 150 employees, enhanced by effective communication strategies, webinars, video courses, and incentives for a fun and competitive wellness journey.

The platform also includes on-demand classes with easily accessible videos ranging from stretching to HIIT classes, meditation and mindfulness series, a full recipe library, and sleep stories.

Employee Assistance Program

All BluSky employees and their families have access to the MINES, an 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.

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.

3. Our People and Communities Diversity, Equity and Inclusion

Diversity, Equity and Inclusion

We believe diversity, equity and inclusion (DEI) is a driver of strength, growth, innovation and business resilience.

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 One BluSky Ambassador Team consisting of diverse employee volunteers from all levels of the business. The Ambassador Team is a representation of our people, offering unique perspectives required to shape a strong and resilient culture. The team, led by the Chief Human Resources Officer, meets monthly and partners with the leads of various departments to advance programs and initiatives.

In 2023, we formalized our Ambassador Team Charter and we continue to make strides in our commitment to an inclusive, diverse culture across BluSky. The Ambassador Team actively engages with our employees through education, outreach and communication, emphasizing our four focus areas of culture, diversity, equity and inclusion.

Core Pillars and Actions

The foundation of our DEI approach hinges on four core pillars:

Education

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.

Efforts include:

• Offering training to all employees, including mandatory DEI and anti-harassment training.

• Holding DEI-specific communication training at BluSky’s Sales and Operations retreats.

• Curating resource materials for self-education, selfevaluation and knowledge building that employees can explore at any time.

Communication

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

Efforts include:

• Maintaining a culture-focused calendar highlighting days of celebration and remembrance.

• Creating places for employee communities to come together.

• Using inclusive language.

• Advancing accessibility, including translating communications for non-native English speakers and people with disabilities.

• Celebrating our employees for daily excellence and impact made in the community.

Outreach

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.

Efforts include:

• Awarding the annual BluSky MLK Community Impact Award to a BluSky employee with exceptional impact at work and in the community.

• Activating employee outreach by identifying opportunities for volunteerism and other efforts that help to strengthen the communities we serve.

• Supporting our purpose-driven community and nonprofit partners that serve diverse, historically underrepresented communities through storytelling, volunteerism, donations and financial contributions.

Recruitment

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.

Efforts include:

• Expanding university partnerships to promote DEI in recruitment and training.

• Promoting a diverse employee population through career fair opportunities, sponsorships and participation in industry events focused on diversity.

• Developing inclusive job posts and posting jobs on diverse platforms to attract a wide variety of candidates.

• Measuring and monitoring DEI metrics to understand where we are succeeding and where we can improve.

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

Spotlight:

Veteran Employment Program

In March 2023, BluSky kicked off a veteran employment program intended to recruit and hire veterans who are approaching the end of their military service. To launch and grow this program, we also created a specific role and hired a dedicated veteran solely focused on recruiting.

The program is tailored for those who are coming to the end of their military service in the next six to eight months. Through this program, military service members are able to join the BluSky team before their military service ends, with a path to full-time paid positions at BluSky once they have completed their military service. Demonstrating our commitment to building this program, in 2023 we attended job fairs at seven military bases across the U.S. and sourced veterans on third-party job sites. We are enthusiastic about expanding this program in 2024 to more positions and more locations.

Women in Construction

Construction is one of the most maledominated professions in the world, with the Bureau of Labor Statistics reporting only 10.9% of the industry is made up of women. This number is continuing to rise with increasingly more opportunities within the industry. At BluSky, we are proud to embrace our female employees in the office and on job sites. Our workforce is 25% female as of December 31st, 2023, surpassing the national average. We look forward to increasing this number and welcoming more women to the construction field as we continue to grow.

During our annual Women in Construction week, we highlight some of our outstanding female team members and the invaluable work they do at BluSky. These women from various departments at BluSky embody unique talents and impactful contributions. The BluSky community is always inspired to hear these employees share their story publicly, reflecting on individuals and teams that have made an impact on them and their careers.

Employee Demographics

FY2023 (As of December 31, 2023)

Male employees

Female employees

Male managers

Female managers

Racial/Ethnic minority employees

Racial/Ethnic minority managers

New hires - male

New hires - female

Total: 712

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) organization 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.

We have raised awareness, donated money and supported dozens of organizations. Our key partnerships include The Adoption Exchange; Boys & Girls Clubs of America; Homes for Our Troops; Habitat for Humanity; EntryWay; Agape; Housing Industry Foundation (HIF); and a 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

Key Partnerships

EntryWay

We recently partnered with EntryWay, a national 501(c)(3) organization that transitions individuals and families at risk of or experiencing homelessness to economic self-sufficiency by providing career training, full-time employment and housing opportunities in partnership with the real estate industry. In 2024, we will maintain a position on their Board of Directors to continue to make an impact.

More information can be found here.

Agape

Our partnership with Agape Child and Family Services aids the nonprofit in delivering safe and healthy homes to underprivileged community members in Memphis, Tennessee. Agape is dedicated to providing essential services that encompass communities, schools and workforce requirements.

More information on Agape can be found here

Housing Industry Foundation (HIF)

As part of our work with the Housing Industry Foundation, BluSky was recognized as a major donor in 2023 and helped complete a transitional housing revitalization project at the Covenant House California (CHC) Santa Clara campus. CHC is a nonprofit youth shelter that provides sanctuary and support for young people ages 18-24 experiencing homelessness. CHC’s Santa Clara campus is able to house 30 young people (up from its previous capacity of 20) now that the renovation project is complete. This revitalization overhauled the aging space by providing CHC’s Santa Clara campus with new flooring, completely remodeled bathrooms, brandnew amenities, an up-to-date career center, workstations for the youth, four refurbished bedrooms, seven additional beds, an outdoor seating area, new HVAC systems and more.

More information can be found here

Homes for Our Troops

BluSky partnered with Homes for Our Troops as the Community Build Event Sponsor. This sponsorship supports Homes for Our Troops’ mission of building and donating specially adapted custom homes nationwide for severely injured post-9/11 veterans to enable them to rebuild their lives.

More information can be found here.

Volunteering

It’s important to us to invest not only financial resources but also our time in charitable endeavors.

A Day of Giving

BluSky employees devote substantial volunteer hours to nonprofits through our Annual Day of Giving. Each year, we inspire our employees to give back to the communities that shape their lives. In 2023, we rounded out the year with our Annual Day of Giving, which takes place the day before Thanksgiving, during which employees nationwide dedicate company-provided paid time off to volunteer with local nonprofits. Every BluSky office is encouraged to identify a local nonprofit organization and spend the day volunteering as a group.

In 2023, 54 BluSky offices supported 130 different organizations and charities in their local communities, representing 4,700 hours of volunteering. Among the many diverse activities were preparing and serving meals to patients in hospice care and in homeless shelters, packaging nonperishable items for families in need, and performing building repairs and upkeep.

54

OFFICE PARTICIPATION

4,700

HOURS OF COMMUNITY SERVICE

130

ORGANIZATIONS SUPPORTED

Volunteering Spotlight: BluSky partners with Feed My Starving Children

For the fourth consecutive year we hosted an event to benefit the organization Feed My Starving Children (FMSC). We prepared over 101,000 lifesaving meals at our FMSC MobilePack event hosted by our Chicagoarea campus. With a total of over 350 community member volunteers, we packed enough boxes to feed 276 children every day for an entire year.

More information can be found here.

Impact by the Numbers

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

In 2023, BluSky supported 130 different nonprofit organizations throughout the country.

In 2023, BluSky raised and contributed $775,000 to charities and organizations serving those in need.

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, 91% of employees feel good about the way BluSky contributes to the community.

In 2023, BluSky employees spent 4,700 hours volunteering.

MLK Community Impact Award

BluSky honors one employee each year with the prestigious MLK Community Impact Award. As an ongoing show of respect for Dr. Martin Luther King Jr., 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.

Industry Partnerships

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.

NATIONAL, REGIONAL AND LOCAL CLAIMS ASSOCIATIONS

This unique award is peer-nominated and recognizes a teammate who has served communities with leadership, service and strength. The MLK Community Impact Award winner is announced on Martin Luther King Jr. Day every January. The winner receives a $1,000 bonus, two days of paid time off and a plaque. BluSky will also donate $1,000 to a charity of their choosing.

Many of our Business Development Managers are active in these various associations as board members or committee members to play a positive role in moving these associations forward and demonstrate BluSky‘s commitment to the industry.

Environmental Management

Sustainability in Our Operations

We are dedicated to building an understanding of our environmental impact across our offices, within our vehicle fleet and on our job sites to ultimately reduce impact and increase efficiency.

As a responsible corporate citizen, BluSky considers the impact of our actions and how they affect the environment both directly, in terms of our own operations, and indirectly, through our purchasing decisions, the products and services we offer to our customers, and the business opportunities we pursue. BluSky is committed to minimizing the impact of our operations on the environment and integrating environmental changes into our business practices, driving efficiency, innovation and, ultimately, long-term value creation.

Environmental Policy

In late 2023, we rolled out BluSky’s Environmental Policy, which defines the principles, goals and focal areas of the company’s activities in environmental protection and safety. Policy governance and guidance is provided by BluSky’s ESG Committee of the Board and executive leadership team.

Compliance and Training

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.

We understand that human actions contribute to climate change, and we are committed to fostering a culture of environmental responsibility to reduce greenhouse gas emissions and subsequent impact on the environment.

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

In 2024, we plan to launch environmental awareness training for all employees, which will cover important topics such as energy consumption, greenhouse gas emissions, water management, pollution and chemical waste.

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 job site receive additional training periodically in compliance with regulation requirements. In 2024, we plan to launch environmental awareness training for all employees, which will cover important topics such as energy consumption, greenhouse gas emissions, water management, pollution and chemical waste.

Reducing Waste in Our Offices

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 opens 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. Another change we implemented in 2023 is the conversion to a new job tracking software system that further decreased our dependence on paper.

We responsibly dispose of all electronic waste through a dedicated processing site, and in some cases we recycle scrap tools and project materials. Several offices contract for a mobile shred unit, which has the capability to shred sensitive documents more quickly and securely on-site while BluSky monitors the process. All shredded paper is recycled through the vendors, who manage the transportation, processing and delivery to a paper mill for final conversion.

4. Environmental Management Energy and Greenhouse Gas (GHG) Management

Energy and Greenhouse Gas (GHG) Management

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 where and when possible to make use of renewable energy

• Reducing the carbon emissions generated by transportation through increased use of hybrid and electric vehicles

• Conducting energy audits of our facilities to identify opportunities to reduce energy consumption

• 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-time or full-time remote working in many positions

Move to Electric and Hybrid Vehicles

BluSky has made a concerted effort to begin the transition of our vehicle fleet to electric and hybrid options. While the program is still in its beginning stages, we intend to convert around 5% of our fleet to electric and hybrid vehicles by the end of 2024.

Management

Gas (GHG) Management

Our Carbon Footprint

While we are in the beginning stages of tracking and measuring key environmental metrics, we are in our second year of reporting GHG emissions for Scope 1 and Scope 2. We will be working closely with ESG experts to determine appropriate goals and aspirations for managing and reducing our carbon footprint over time.

BluSky’s 2023 Scope 1 and 2 GHG emissions footprint is included below. The audit was conducted by a third party and performed in accordance with the GHG Protocol.

GHG Emissions Unit

Total GHG Emissions (Scope 1 + Scope 2)

Scope 1 Emissions

Stationary combustionGenerator Usage

Stationary CombustionNatural Gas Heating

Mobile Combustion

Fugitive Emissions - Refrigerants

Scope 2, Location Based - Emissions Equipment Using Customer Electricity

Scope 2, Location BasedBluSky Locations

2,789 1,012 9,893 205 1,195 2,787

Improving our Data Reporting

The 2023 Scope 1 and 2 footprint was higher than what was reported in 2022. This increase in our footprint was primarily driven by improvements in our inventory methodology after utilizing a different third party to measure our carbon footprint in 2023. The advancement in our calculation methods now provides a more complete and accurate baseline for our full operations:

• Scope 1 emissions from generators used on job sites when electricity was not available were not included in 2022 numbers but were added in 2023.

• Scope 1 emissions from mobile combustion were not complete in 2022 due to the addition of a new internal procurement department managing the BluSky fleet and changes in the outsourcing vendor tracking vehicle fuel usage.

• Scope 2 emissions from using customer-supplied electricity were not included in 2022 inventory, but it was determined to be within our operational control boundary for our 2023 inventory. Otherwise, Scope 2 electricity consumption at BluSky offices was relatively steady, showing there wasn’t a significant change in day-to-day operations.

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

Environmental Risk Assessments

Environmental inspections are conducted at most job sites to maintain compliance with various regulations coming from OSHA, the EPA and other governing bodies. BluSky’s environmental team has increased its focus on tracking inspection results across the company’s operations, utilizing a central database and standard operating procedures at all locations.

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 water-related disasters, mitigating related damages and restoring properties to their intended use. We recognize the importance of water efficiency and conservation on job sites and take steps such as installing high-efficiency fixtures on projects where possible. We maintain several standard operating procedures 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

Our established procedures provide guidance on how to handle any materials that pose physical or health hazards. We provide administrative controls, engineer safeguards and distribute personal protective equipment to all employees on job sites involving hazardous waste. We follow all state and local regulations in addition to relevant OSHA and EPA standards. We utilize third-party waste management companies to ensure proper recycling on projects with recycling requirements and standards set by project owners. Environmental protection and worker health and safety are prioritized on every job site.

Project Impact

Every day we bring people back into their homes and businesses, making sure the spaces where life happens are safe and hazard-free.

We restore damage from water leakage, fires and storms, and we conduct hazardous environmental remediation projects addressing mold, asbestos and other biohazards. In 2023, we completed 11,112 projects with a direct environmental benefit by remediating mold and asbestos, bringing buildings back online as healthy living and working environments.

2023 Highlights

Getting Students Back in the Classroom

A mold outbreak at an 18,000-square-foot K-12 school left mold on the walls, ceiling, mechanical components, chairs, tables and most printed materials. BluSky conducted an emergency mold remediation for the school in just five days to ensure all students and teachers could safely return for the start of a new year.

Environmental remediation projects completed in 2023: 11,112

Mold Remediation Projects:

8,638

Asbestos Remediation Projects

2,474

The impact of BluSky’s work spans sectors and geographies, but our mission remains the same: fixing what’s broken.

Formaldehyde Removal in 1,000 Homes Across the U.S.

A defective fire-retardant product containing formaldehyde was found in over 1,000 homes throughout the Northeast, Midwest and Rocky Mountain regions, impacting the United States’ largest homebuilders and their commitment to deliver for their consumers.

BluSky partnered with a team of industrial hygienists to design a solution for removing the hazardous formaldehyde from joists by cryoblasting dry ice. This proved to be the most effective and least invasive solution.

In order to complete this monumental project and get thousands of people back into their homes quickly, BluSky acquired a dry ice manufacturing facility to ensure a continuous supply of dry ice was available and recruited and trained 1,500 supervisors and abatement workers within 30 days.

Click here to learn more.

Governance

Corporate Governance and Business Ethics

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

Ethical Conduct and Policies

We expect all employees to demonstrate the highest degree of ethical principles, integrity, responsibility and professional conduct, as stipulated in our Code of Conduct (Code). The Code applies to all employees and outlines our expectations around acceptable conduct, fair competition, conflicts of interest, data protection, health and safety, anti-harassment and discrimination, and more.

In 2023, BluSky also developed a stand-alone AntiCorruption/Bribery Policy to formalize our longstanding commitments and operational procedures. It is our policy to compete fairly and engage in business practices that comply with the Foreign Corrupt Practices Act of 1977, as amended (FCPA), together with all other anti-corruption and anti-bribery laws and regulations applicable to the BluSky’s business. The BluSky Human Resources Department is responsible for implementing the BluSky Code of Conduct and other policies.

Whistleblower Policy

We have zero tolerance for any kind of discriminatory behavior or harassment and expect any incidents or behaviors that go against company policy to be reported. Potential misconduct should be reported to an individual’s manager and Human Resources if the issue was not resolved in a timely manner. The manager and Human Resources are then responsible for coordinating an investigation and implementing any corrective or disciplinary action, and reporting such concerns and actions taken to the appropriate levels of executive management, including the BluSky Board.

Our Whistleblower Policy applies to all BluSky employees, vendors, subcontractors, customers and other third-party partners.

Whistleblower protections are provided in two important areas — confidentiality and against retaliation. As far as possible, the confidentiality of the whistleblower will be maintained. BluSky will not retaliate against a whistleblower. 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.

Ethics Training and Awareness

Training for all employees on BluSky ethics and compliance, including on the Code of Conduct, Environmental, Anti-Corruption/Bribery, and Whistleblower policies, will be rolled out in early 2024 and annually thereafter. Our training department developed a resource that all employees will be required to review to ensure understanding of the company’s policies and procedures.

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 leverage the National Institute of Standards and Technology (NIST) cybersecurity framework in structuring our security program and track the program’s maturity. We 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.

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. The Incident Response Policy is reviewed annually by our IT Cyber Security team and outlines a designated Incident Response Team and backups to ensure we have support in the event of a cyber incident.

Employee Training

We provide annual cybersecurity training to all employees and track completion rates. New hires receive training as part of our onboarding program. Through the training platform, employees have access to over 267 micro-training modules that can be taken at any time to increase resilience against cybercrime. We also distribute monthly phishing campaigns to gauge employee awareness, provide best practices and offer additional training where needed.

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 man-made disasters. We perform annual backup and recovery tests of all critical business applications, and we plan to conduct an incident response tabletop exercise in early 2024 with continued frequency on an annual basis.

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 shortterm and long-term disasters or other disruptions,

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

Frameworks and Standards

6.1 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.

Goal Description Alignment to BluSky

Ensure healthy lives and promote well-being for all at all age

Achieve gender equality and empower all women and girls

• Partnered with over 130 organizations to support initiatives such as preparing lifesaving meals and delivering safe and healthy homes to underprivileged community members, young people and severely injured post-9/11 veterans experiencing homelessness

• BluSky Foundation donated $775,000 in charitable giving in 2023 to ensure healthy and safe living

• Employees spent 4,700 hours volunteering in 2023

• Formalized our Ambassador Team Charter in line with our commitment to an inclusive, diverse culture across BluSky Ambassador Team

• Increased our efforts to facilitate mentorship opportunities (focused specifically on women and BIPOC populations)

• Committed to support more women entering the construction field, with 25% of our workforce being female across offices and job sites, surpassing the national average of 10.9%

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

• Rolled out veteran employment program to recruit and train more veterans to join BluSky after the end of their military service

• Upheld BluSky’s MLK Community Impact Award to recognize an employee for their outstanding service and positive contributions to both customers and teammates

• Launched BluPrint in-house learning management system for all employees

• Created employee development opportunities through certification programs and leadership development programs such as Wharton Executive Leadership Training and Leadership Foundations programs

• Implemented several new safety initiatives, including additional safety training to enhance safety at BluSky

Report Section

Community Engagement and Impact

Diversity, Equity and Inclusion

Our People and Communities

Workforce Safety and Health

Good Health and Well Being

Gender Equality

Decent Work and Economic Growth

Industry, Innovation and Infrastructure

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

Take urgent action to combat climate change and its impacts

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

• Completed 11,112 restoration and hazardous environmental remediation projects across the country, including mold remediation, asbestos abatement and other biohazard cleanup for customers

• Developed Environmental Policy to demonstrate stewardship

• Completed our second GHG assessment

• Invested in EVs and hybrids to decarbonize our fleet

• Upheld our commitment to good governance practices through the development of ethicsrelated policies such as Code of Conduct, AntiCorruption/Bribery Policy and Whistleblower Policy

Environmental Impacts of Project Development

• Partnered with various associations to play an active role in creating a positive impact in the restoration industry Environmental

Corporate Governance and Business Ethics

Climate Action Peace, Justice and Strong Institutions

and Standards Sustainability Accounting Standards Board (SASB)

Sustainability Accounting Standards Board (SASB)

The following table incorporates the SASB standards, now part of the International Financial Reporting Standards, for the engineering and construction services industry. The table includes relevant metrics and references to sections within this report where specific topics are discussed.

Environmental Impacts of Project Development

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

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

Workforce Health & 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

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

Environmental Impacts of Project Development

Workforce Safety and Health

Workforce Safety and Health

Environmental Impacts of Project Development

Lifecycle Impacts of Buildings & Infrastructure Topic Accounting Metric SASB Code Response Report Section

Topic Accounting Metric

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.

IF-EN- 410b.2 Climate Impacts of Business Mix

Business Ethics

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 Perception Index

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 behaviour in the project bidding processes

IF-EN- 410b.3

BluSky does not have any such projects in its backlog.

BluSky does not have any such projects in its backlog.

IF-EN- 510a.1

IF-EN- 510a.2

IF-EN- 510a.3

None None

Sustainability in Our Operations, Energy and GHG Management, Environmental Impacts of Project Development

All employees are trained on BluSky’s current Anti-Corruption /Bribery Policy, and BluSky will be reviewing the need for more position-specific policies and training in the future.

Corporate Governance and Business Ethics

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 forward looking. 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 forward-looking 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.