HDR Annual Report, 2022

UNRIVALED

UNRIVALED

Our work has touched countless lives, countless times. Each time, we have helped fulfill an important human need: food, water, shelter, safety, security, well-being, belonging, acceptance, value — and even personal growth.

We can improve the human condition by using our talents and knowledge to change the world. This is a privilege that comes with a responsibility to do things right. It requires the best of what we must give — day in and day out.

Each bold step we take, leads us further along our journey to becoming Unrivaled. Let us reflect on some recent steps we have taken.

Unrivaled: Momentum & Milestones

The ability to follow through on promises is an important part of our culture, and the execution of our 2022 Strategic Plan clearly shows our collective success. Thanks to our employee owners, we closed out the five-year plan with strong results.

The past year has been marked by strong momentum in staffing and projects.

Our workforce grew by nearly 10%, adding more than 1,000 employees and bringing our total to approximately 12,000 across more than 15 countries. And for the first time in company history, we reached the No. 5 spot on Engineering News-Record’s Top 500 Design Firms list.

We created two new executive-level positions. To support our employees’ professional growth, we added the position of Chief Talent Development Officer. And our technology needs grew to support a Chief Technology Officer.

In its first full year, our new Advisory Services team helped connect the business, technical and engineering areas of our clients’ operations. Through the Infrastructure Investment and Jobs Act, our grants support team aided clients in obtaining $649 million in discretionary grant funding for 26 transportation projects across 19 states.

As part of our Inclusion, Diversity and Equity program, approximately one in five employees across our enterprise is a member of an Employee Network Group, a 50% increase over last year.

In 2022, our ENGs also participated in our first ENG 4C grants, created by our employee-driven HDR Foundation to mirror the ENG “4C” multidimensional perspective focused on career, commerce, community and culture.

This past year, the HDR Foundation celebrated its 10th year of driving employee engagement and giving back to communities. This milestone was marked with the launch of the HDR United Kingdom Fund, joining colleagues in Canada, Australia and the U.S. in our philanthropic efforts. In the first year of giving in Australia, our employees supplied direct relief to communities in New South Wales devastated by flooding. Our Canadian employees funded a support program for stroke survivors, an outdoor recreational sports program for people with disabilities, and contributions to food banks in HDR office communities. Collectively, across the globe, we surpassed another milestone, awarding more than $6 million in U.S. dollars to charities since the Foundation’s start.

We are full of enthusiasm and expectation as we embark on a new five-year plan. Our clients and communities are taking notice of our work in positive ways, and I am grateful and honored to be a fellow employee owner of HDR. We look forward to helping solve our clients’ and communities’ greatest challenges, and we invite you to follow along on this journey.

Eric Keen Chairman and Chief Executive Officer

We Celebrated These Achievements in 2022:

Industry Leadership

#1 Largest 100% employee-owned architecture/engineering firm National Center for Employee Ownership*

Our Global Footprint

~12K Employees Worldwide

#1 Top Data Center A/AE Firms Building Design+Construction, Giants 300*

200+ Offices Around the Globe

#2 Top Architecture/Engineering Firms Building Design+Construction, Giants 300*

#5 Top 500 Design Firms Engineering News-Record*

15 Countries

23 Envision-verified Projects (more than any other firm)

*U.S.-based organizations and publications

I-579 Urban Open Space Cap Pittsburgh, Pennsylvania, United States of America | photo left

Our Employees Are Our Greatest Asset

History has shown us that when we take the time to think about what we want to be, and plan accordingly, we do great things. In our strategic plans, there is a significant common denominator. Our employees! We’re united in culture — how we interact with one another, the stories we share and the atmosphere we create influence who we are. Our culture fosters an understanding that we are all in this together and that our contributions matter to our teammates and our clients.

We have pride in our work. Together, we use our talents and knowledge to make the world a better place for humanity today and for future generations. We aim to make day-to-day decisions that drive the business forward.

We want to build a better future, so we bring together our complementary talents to add value, promote growth and inspire positive change.

Strategic Plans Guide Our Journey

We may not be able to predict the future, but we can take part in creating it through strategic planning. Our first plan was created in 1999, and we have never looked back. Each plan has supported our client philosophy, quality culture and growth aspirations. We also focus on adapting to generational differences and studying and cultivating our corporate culture.

Our strategic plans have identified where we want to go and have guided our journey over the past 23 years. Our employees are at the foundation of all our plans, and our plans work because of our employees. Our actions, focus,

attitude, creativity, knowledge, ideas, values, decisions, and behavior make a difference.

We promise to do things right — to treat our clients and each other with respect, to collaborate and build strong relationships, to be both responsive and responsible, and to always do what is right for our clients. We constantly strive to grow the success of our clients, our communities, our company, and ourselves.

As we sunset our 2022 plan and look to the future, we know that our 2027 Strategic Plan will be there to guide and challenge us to be our best.

2022 Strategic Plan

For the past five years, we embarked on a journey to bring our 2022 Strategic Plan to life. We implemented a Best ME-Best WE strategy, wherein we honed our craft and collaborated to amplify our collective talent and knowledge. The plan proved to be an important guide through adversity and positioned us well for the future.

Our 2022 Strategic Plan Focus Areas

Personal Bests

Master of Craft

Client Focus

Control of Destiny

Market Leadership

Trust & Collaboration

Creativity & Innovation

High-Performance Teams

Community Building

Geographic Strengthening

Personal Bests

Our employees stand out! We share in the company’s success as an engaged, inclusive team that boldly lives our values in extraordinary ways. Our people are confident to lead from where they are, and we have activated our leadership potential within all facets of our company.

01. Enhancing our technical expertise through active participation

Participants in the TaLON program experience knowledge transfer to enhance our technical capabilities, quality, and industry leadership. This allows us to develop the next generation of practice leaders.

02. Pushing ourselves to do better and stretch further

To effectively improve skills, you need on-the-job experience (70%), mentors, managers, and peers (20%), and formal courses and reading (10%).

Plan to Win training brings real projects, mentors, and peers together to plan our path forward.

03. Ending global sprawl: Urban standards for sustainable and resilient development

HDR’s Peter Calthorpe, Author, Published by World Bank’s Global Platform for Sustainable Cities

Design principles can shape healthy urban forms to combat humankind’s most pressing challenges: climate change, habitat stability, social opportunity, economic growth, and poverty.

04. Colin Rohlfing’s HDR Fellowship research: Cross-company collaborative development of the regenerative design framework

This online, interactive tool with 125 data sets and 40 calculators tracks a project’s design performance for carbon, water, air, biodiversity, nutrients, human health, and community. Outcomes are key design strategies and goals moving projects toward regeneration.

Master of Craft

Individually, we strive to master our craft, and consistently honor the ethos of our professions while transforming them. We rigorously welcome and prepare those entering our fields for careers in improving lives with smart design. Our business acumen is deep and widespread, and this builds resilience.

01. Houston Channel Deepening Houston, Texas, United States of America

Two-way traffic along the channel for larger vessels is critical. In collaboration with the port, we worked within U.S. Army Corps of Engineers regulations to expedite the federal approval process, shortening the project delivery timeline significantly.

02. Science and Innovation Centre Hull, United Kingdom

Our mechanical and electrical engineering team collaborated closely with the architect to establish a flexible, energy efficient solution. This resulted in the Science and Innovation Centre being recognized as the best refurbished/recycled workplace at the British Council for Offices’ Northern Awards.

03. Esri Special Achievement Award in GIS Toronto, Ontario, Canada

Choosing from more than 100,000 customer organizations, Esri awarded the HDR team with a Special Achievement Award in GIS for our effective enterprise implementation of geographic information system technology to deliver better services for the Ontario Line subway project.

Alex Wroe Photography

04. 80 Strand London, United Kingdom

Acknowledging the listed nature of a landmark building to improve the functionality of the headquarters meant we must honor the history of the site to design a resilient future.

05. Anacortes Water Treatment Plant Resiliency Anacortes, Washington, United States of America

The dual pipeline and clearwell provide additional resiliency and reliability to Anacortes’ system. Combining the pipeline and clearwell tank into a single construction project helped reduce the City’s administrative effort and risks, and resulted in completion 20% under budget.

Client Focus

We work feverishly to help our clients stay relevant and competitive. Our relationships with our client organizations and our ability to share these relationships across business groups and borders result in unequivocal client focus. We help our clients make their most important business decisions as they navigate a highly complex world.

01. The Beaumont, St. James London, United Kingdom

Our skilled engineers have executed mechanical, electrical and plumbing work to the highest standard with the inclusion of important design details that will elevate the guest experience at The Beaumont.

02. St. Mary Facilities Drop Structures Emergency Repairs

Glacier

County, Montana, United States of America

The facility that provides water for irrigation to more than 140,000 acres of land and 14,000 residents failed. Through emergency repairs, we reestablished water flow and provided reliable access to the thousands of irrigators, ranchers, communities, tribes, and habitats that rely on it.

03. Silicon Ranch Solar Nationwide, United States of America

More than a decade of collaboration exists to help preserve the environment on tens of thousands of acres of solar sites bringing more than a gigawatt of solar power to life.

Chicago, Illinois, United States of America

We designed spaces where clinical care, research, and education were brought together in a translational care environment to improve collaboration, accelerate discovery, and provide patients access to new treatment options.

Pullman,

Following standards by USDA, NIH, and ARS allowed us to utilize design-build criteria documentation to create a mass-timber and rapidly renewable steel structure.

Idaho, United States of America

Together, we created a new weir marking a key point in the critical restoration of the region’s biological and cultural heritage. This provides a healthy future for sockeye in Redfish, Pettit, and Alturas lakes.

04. Joan & Paul Rubschlager Building

05. Plant Biosciences Research Building

Washington, United States of America

06. Pettit Lake Creek Weir

Control of Destiny

In all we do, we appreciate and celebrate the value of controlling our own destiny. We remain the industry’s largest employee-owned firm and are active in sharing our story with others seeking to learn. Our expanded employee ownership model lives on because we do what’s possible to preserve and protect it for future generations.

01. Learning from each other through the highest level of teamwork

Austin, Texas, United States of America

Many employees say that what matters the most about HDR is not the size of our company or the value of our stock; instead, what matters most is our culture.

02. Finding the best solutions for our clients and our company

Chicago, Illinois, United States of America

Controlling our destiny also means answering the difficult questions of what, when and where to design and how to build it better.

03. Striving to do things better and stretch further as we deliver projects

Florida, United States of America

Whether on projects or in the office, sharing expertise and building relationships allow us to continue our long-term sustainable growth of employee ownership and our business.

London, United Kingdom

We can all benefit from our individual efforts as we strive to make a difference in the world.

05.

personal responsibility to see things through Manhattan, New York, United States of America

We appreciate and celebrate the value of controlling our own destiny. Catching up with peers and sharing is part of our culture.

04. Listening first to find the best answer

Taking

Market Leadership

We are market leaders, focused on the long-term sustainable growth of our sectors. Our cross sector services are more integrated into our sectors and have expanded our geographic presence. We push to be known as one of the top three service providers in each of our market sectors, always driving to be at the forefront of our markets with a progressive portfolio.

01. I-4 Ultimate Improvement Project Orlando Metro Area, Florida, United States of America

A major P3 project brings travelers to the state’s most popular destinations. Our design innovations contributed to the project certification of Envision Platinum, reaffirming our leadership in sustainable transportation design.

02. San Juan Water District ArcGIS Implementation Granite Bay, California, United States of America

Our partnership with Esri and our Esri specialty designations for ArcGIS Online and Utility Network Management provide quick identification of system and customer impact during outages and help engineering and operations teams proactively determine areas exposed to potential vulnerabilities.

03. Anna-Maria and Stephen Kellen Research Building Rochester, Minnesota, United States of America

Designing a focal point for translational research also communicates a mission that is aspirational, a catalyst of interdisciplinary innovation, and a symbol of hope.

04. Lowell Hydroelectric Project Lowell, Massachusetts, United States of America

A project nestled among historic districts, with dozens of buildings over centuries old, required preservation of the area’s historical resources to provide a long-term source of clean and renewable electricity.

05. Dubbo Base Hospital Redevelopment and Western Cancer Centre Dubbo, New South Wales, Australia

We were awarded the cancer center because of the quality of work we delivered on the hospital, where we’ve continued to expand our geographic presence and helped provide life-saving care to thousands living in regional and remote areas.

06. SunTrax Connected/Automated Vehicle Test Facility Auburn, Florida, United States of America

Driving the future of connected and autonomous vehicles places us at the forefront of our markets and adds to our progressive portfolio. This cuttingedge proving ground is dedicated to emerging transportation technology research, development, testing and safety.

© Guy Wilkinson

Trust & Collaboration

Our matrix structure continues to be foundational to our collaborative culture, and our internal relationships are strong and widespread. Our employees’ knowledge of company capabilities unmasks market opportunity and builds confidence in our future because they understand our goals, direction, and progress.

01. Needles Third Main Track

Needles, California, United States of America

We’ve relied on our technical excellence and strong relationships to play a key role in the design and delivery of the largest capital expansion project for freight line goods movement in the U.S.

02. Harbor Island

Grand Haven, Michigan, United States of America

Our collaborative culture allows us to bring multiple business groups and cross sector services together to identify the extent of CCR and PFAS contamination on Harbor Island and help determine the island’s future.

03. Valmont Industries Global Headquarters

Omaha, Nebraska, United States of America

Our knowledge of capabilities provided great opportunity to the future of Valmont and their new global headquarters committed to sustainability. This enhanced space will foster continued growth, expansion, and innovation.

04. Middle Fork Nooksack River Fish Passage Bellingham, Washington, United States of America

Our matrix continues to be foundational to project completion. From intensive stakeholder participation and strategizing to environmental permitting and cultural and historic property needs, a collaborative approach was needed to remove the dam on an aggressive timeline.

Designing and constructing a bridge in a third of the normal time requires experience, expertise, and dedication to seeking the best solutions — all made possible through extensive collaboration and understanding of our capabilities.

05. Fern Hollow Emergency Bridge Replacement Pittsburgh, Pennsylvania, United States of America

Creativity & Innovation

We cultivate entrepreneurship and institutionalize scalable ideation, together inventing new approaches that help shape our next horizons. We employ design thinking, and our Design Council elevates the importance of the design process across the full spectrum of our work.

01. Kiewit Luminarium

Omaha,

Nebraska, United States of America

An innovative community space and learning environment that is part workshop and part museum, the new science center aims to be a family-friendly destination. It will serve a critical need in cultural amenities and help inspire children’s interest in science, technology, engineering and mathematics (STEM).

02. Commonwealth Fusion Systems Corporate Campus

Devens,

Massachusetts, United States of America

Collaborating with the Massachusetts Institute of Technology’s Plasma Science and Fusion Center, we provided full design to build SPARC — the first-ever net-energy fusion device that produces plasmas generating more energy than they consume. SPARC moves us toward carbon-free, safe, limitless, commercial power.

03. Salk Institute

Torrey Pines,

California, United States of America

Inspiring meaningful breakthroughs in science for generations to come, the Salk Institute reinvigorates a dynamic sense of place comprising the entire campus. Respect of the geometry of the institute influences the creation of a new face for the community.

04. I-579 Urban Open Space Cap

Pittsburgh, Pennsylvania, United States of America

Creativity and new approaches established this 3-acre park on top of the interstate to reconnect the historic Hill District to downtown. Extensive community listening meant a finished park that incorporates residents’ art and matches the neighborhood vision.

High-Performance Teams

Our project teams are the core of our company; they thrive because they have the knowledge, skills, tools and support they need to deliver our best work. Our strategic decision analysis of the potential roles we could have on mega-projects, and other potential high-risk projects using non-traditional delivery models or contracting methods, sets us up for success.

01. New York Interstate 95 Reconstruction Westchester, New York, United States of America

Reconstruction efforts along a key corridor connecting New York City with New England required ingenuity and knowledge to maintain a safe, reliable highway system.

02. Gateway South Transmission Line Wyoming, Colorado, Utah, United States of America

Our strategic decision analysis assisted our client with data management, environmental restrictions and requirements, permitting plans, environmental monitoring and compliance, access road engineering, and agency coordination.

03. San Francisco Southeast Wastewater Treatment Plant - Headworks San Francisco, California, United States of America

Our team supports vast construction management services for the city, and this project helps prepare for earthquakes and sea level rise, increases sewer system reliability and efficiency during storm events, reduces odor, and contributes to the architectural aesthetic of the Bayview neighborhood.

04. The Knightsbridge Estate

London, United Kingdom

Following the recent restoration and modernization of the estate, our team assisted with a mixed-use scheme that sits behind the retained heritage façades’ unique character, while delivering a new building to meet modern occupants’ needs.

Community Building

We are deftly woven into the fabric of our communities across the globe and are known as leaders and difference-makers. The lasting impacts of our work, combined with our corporate giving, volunteerism, sponsorships and HDR Foundation grants and project participation grant opportunities, allow us to tell a social innovation story that makes us proud.

Gretna, Nebraska, United States of America

HDR Foundation Grant

Our grant helped fund kayak equipment for children and adults with disabilities visiting William Watson Lodge, where more than 300 participants per year experience the Canadian wilderness from the water.

Improving the physical and emotional well-being of children and adults with disabilities through equine-assisted activities, our grant funded the addition of fencing for the facility’s sensory trail.

Denver, Colorado, United States of America

HDR Foundation Grant

Putting a $100,000 grant to work and getting their hands dirty in the process, our team has planted perennials, repaired pathways and planting boxes, expanded a compost bin and weeded gardens throughout the city.

01. Rocky Mountain Adaptive Canmore, Alberta, Canada

HDR Canada Fund

02. Heartland Equine Therapeutic Riding Academy

03. Denver Urban Gardens

Charleston,

Being woven into the fabric of our communities and known as difference-makers allowed us to create an innovative series of videos to introduce the community to their first bus rapid transit system.

Omaha,

This project’s impact on the community is transformative. The revitalization makes the area more accessible to the community while providing welcoming outdoor spaces and fostering critical connections within the city.

04. Lowcountry Rapid Transit Community Outreach

South Carolina, United States of America

05. Gene Leahy Mall, Riverfront Revitalization

Nebraska, United States of America

Geographic Strengthening

Geographically, we operate out of more cities within the countries where we are already established. We’ve expanded our global network with other permanent offices that fit our expansion profile, and we continue to operate from project offices throughout the world.

01. The Hayesbery

Rosebery, New South Wales, Australia

Our established presence allowed us to collaborate with the client to transform a 20 th -century former factory in Sydney’s Rosebery suburb into a premier workspace.

02. District Wine Village

Oliver, British Columbia, Canada

The first “Wine Village” in Canada provides opportunities to small winemakers in a community-focused development and features extensive mass-timber and cross-laminated timber construction.

03. University of Sydney Biomedical Accelerator

Sydney, New South Wales, Australia

A co-funded partnership project between the NSW Government, Sydney Local Health District and the University of Sydney will deliver a first-in-Australia facility equipped with education and laboratory research facilities, specialist core laboratories and technical support spaces that brings together multidisciplinary teams.

04. HDR Sydney Design Studio

Sydney, New South Wales, Australia

Expanding our presence in Sydney, our location is designed to achieve a Gold WELL Health Safety rating — putting the well-being of staff and sustainability first and repurposing furniture from the previous office where possible.