2019 Saunders Corporate Social Responsibility

10 t h E D I TI O N

2019

CORPORATE SOCIAL RESPONSIBILITY

Break The Mold Revolutionize the Experience Build What MatTers

CONTENTS 04

10

PREFACE

ECONOMIC

16

24

ENVIRONMENTAL

SOCIAL

PREFACE

Corporate Overview

CORPORATE HEADQUARTERS

DOWNTOWN DENVER SUITE

SAUNDERS HEATH

86 Inverness Place North Englewood, CO 80112 p 303.699.9000 w saundersinc.com

1660 17th St., Suite LL1 Denver, CO 80202 p 303.699.9000 w saundersinc.com

1212 Riverside Avenue, Suite 130 Fort Collins, CO 80524 p 970.221.4195 w saundersheath.com

Saunders Construction is an employee-owned corporation headquartered in Englewood, Colorado, primarily performing construction management/general contracting work in the Rocky Mountain region. Founded in 1972, Saunders provides integrated construction management/general contracting, design-build, public-private partnership (P3) and commercial real estate development services to a variety of market segments.

In addition, Saunders is dedicated to corporate social responsibility (CSR). CSR at Saunders recognizes that investing in our people, focusing on safety, improving business processes and reducing environmental impact adds value in our industry.

SELECT MEMBERSHIPS Urban Land Institute

B:CIVIC

AGC - Construction Careers Now

Associated General Contractors

Lean Construction Institute

Master’s Apprentice

United States Green Building Council

Hispanic Contactors of Colorado

Denver Workforce

A LETTER FROM THE CHIEF EXECUTIVE OFFICER For Saunders, 2019 marks the 10-year anniversary of the company’s corporate social responsibility (CSR) program. More than that, however, it marks a decade of continuous improvement and commitment to a cause that has become ingrained in our company’s culture. Embarking on CSR was much more an extension of our core values than it was an initiative to start from the ground up. In simpler terms, the impetus was already in place — with employees already leading the charge — to implement a formal CSR program.

As one of the first in the construction industry to formalize a CSR program, Saunders had the opportunity to really prioritize the aspects that resonated with our culture, while making the most meaningful impact on our social community, environment and economy. We’ve moved the needle, for the good, in many of these areas — and the accountability which has been created serves as motivation for us to maintain and strive for greater outcomes every year.

Not only am I pleased with the staying power that CSR has established, but I’m proud of the fact that we’ve been able to take a virtual unknown in our industry 10 years ago and really institutionalize it into the very fabric of our company.

As for 2019 specifically, it was a culmination of years of planning, seeing the fruits of our labor, both in succession and intentional market expansion.

We saw the retirement of several senior leaders at the company. A thoughtful, forward-thinking succession approach ensured that, while the retired individuals closed chapters on rewarding careers, they didn’t leave without setting up the current and future leaders for success.

This year also brought us the first start-to-finish joint effort between two Saunders subsidiaries.

With Confluence, a high-end mixed-use condominium project in Fort Collins, Colo., Saunders Development Company and Saunders Heath were able to see a project from drawing board to completion. These two companies represent a significant effort we’ve taken to expand and refine industry offerings — providing clients and our community with unique and tailored market services.

As we look to the future, we’ll again strive to connect our business to the greater good — whether that’s social, economic or environmental.

We’re extremely proud of the progress we’ve made in these areas and commit to another decade of meaningful contributions.

Gregory Schmidt, CEO

CSR Initiatives ECONOMIC

ENVIRONMENTAL

SOCIAL

Maintain, grow and diversify our work program.

Require all project sites to recycle construction waste.

Encourage participation in company-sponsored wellness events.

Cultivate high-quality relationships with industry partners.

Reduce our use of water through efficient fixtures and smart watering systems.

Create opportunities for employees and their families to participate in volunteering.

Measure our greenhouse gas footprint and evaluate best practices for emissions reduction.

Provide continual opportunities for training and development to employees.

Implement efficient and effective business processes.

The Milo Luxury Residences

The B Impact Assessment covers the impact our business has across the board — including employees, clients, community and environment.

The score also reflects best practices in relation to Saunders’ mission, measurement and governance.

SAUNDERS’ B CORP IMPACT ASSESSMENT SCORE

95.9 POINTS

ECONOMIC

Martin/Martin Office TI

2019 CONSTRUCTION WORK PROGRAM SNAPSHOT 108 projects started 126 projects completed 1,084,000 field hours worked 483,530 staff hours worked 14% small/diverse business participation

Denver Art Museum Martin Building Renovation

2019 REVENUE

$ 5 6 7, 0 4 5 , 8 7 3 Revenues are reported on a consolidated basis for all subsidiaries.

MEASURING OUR E C O N O M I C I M PA C T Market Sectors AVIATION

6.2%

CIVIC GOVERNMENT

8.4%

CULTURAL

8.1% 1.2%

DATA CENTER HIGHER EDUCATION

11.8%

K-12 EDUCATION

7.9% 9.3% 0.8% 1.3%

HEALTHCARE HOSPITALITY INDUSTRIAL OFFICE

11.5% 0.2%

PARKING GARAGE

9.3% 1.3% 1.9%

MULTI-FAMILY RESIDENTIAL RETAIL SITE INFRASTRUCTURE

7.8%

SPORTS & RECREATION

13.1%

TENANT IMPROVEMENT

estimated market share of commercial construction in colorado

2 0 1 9

12.0% *estimated

2 0 1 8

8.0% *revised

2 0 1 7

10.7% *revised

A Saunders First: Confluence of Efforts

The Confluence project was chock-full of firsts, not the least of which was a lesson in how two subsidiaries of Saunders, which work in totally different businesses, can work together. Confluence Fort Collins is the first project the Saunders Commercial Development and Saunders Heath teams have built together.

Confluence is like no other building in Fort Collins, Colo. — the architectural elements were thoughtfully considered to blend both the River District and Old Town components. Three separate buildings take up the entire one-acre project site, providing easy access for residents and high visibility for retail tenants. During the project, it was important for the development and construction teams to work together — but also separately at the same time.

From working with the city, consultants and subcontractors, attending OAC meetings and regularly visiting the site, both Saunders teams sought to provide the very best of services for the project. “The whole process required quite a bit of massaging in order to get something that would actually work. It was a very collaborative process with all parties,� Saunders Commercial Development manager Brett Parmelee said.

Confluence offers 26 condos, as well as office, garden level and ground floor retail spaces all linked together by common areas, which are adjacent to a new public plaza and located within walking distance of Old Town and the new whitewater park.

With units ranging in price from mid $500,000 to over $1 million, the project is a true testament to the growth Fort Collins has been experiencing over the past few years and projected future expansion.

ENVIRONMENTAL

REDUCING PAPER CONSUMPTION Reducing paper consumption became a Saunders environmental initiative 11 years ago. Since then, we’ve fully implemented a paperless program on all projects — first using feasible alternatives where applicable, with the ultimate goal of eliminating paper consumption completely.

STORMWATER POLLUTION PREVENTION Pollutants such as oil, fuel and sediment are prevalent in construction operations and can have a significant negative impact on the local environment. Saunders implements stormwater management practices on all of our projects to reduce impact and is proud to report no violations.

CONSTRUCTION WASTE DIVERSION PROGRAM For waste data in 2019, approximately 64 percent was diverted from landfills. Saunders continues to divert waste from landfills by functionally and creatively re-purposing materials, and/or simply recycling, when applicable at all project sites. Projects inventory all materials and clearly communicate diversion expectations within subcontracts and vendor agreements, as well as daily onsite communications to all construction professionals.

A DECADE OF COMMITMENT TO

CSR

2010

2019

I

2010 Corporate Social Responsibility Report

2011

Corporate Social Responsibility Report

1

1

embracing new challenges

2014 Corporate Social Responsibility

2 15

2016

CORPORATE SOCIAL RESPONSIBILITY

CORPORATE SOCIAL RESPONSIBILITY

n the fall of 2009, an eager group of Saunders employees started the Green Committee and published Saunders’ first annual corporate social responsibility (CSR) Report in 2010.

Aligned with our corporate trajectory priority of holding ourselves to a higher standard through economic, environmental and social accountability, this committee was charged with researching and implementing a comprehensive CSR program.

Saunders hired a third-party consultant, Envirobrand’s founder and CEO Richard Franklin, to guide the company on initiatives that were impactful and achievable, while always looking to innovate. Early on, environmental initiatives included requiring construction waste recycling on every project, installing energy and water efficient systems in offices and jobsite trailers, and launching paperless systems across the organization. All of which have become the normal course of business today at Saunders. In addition, we committed to analyzing and calculating our greenhouse gas emissions, which proved to be challenging for a commercial construction company — but was ultimately achieved in 2011.

With Community being a core value of Saunders, we sought to continuously improve our social impact programs by evolving our employee benefits programs, expanding training and development opportunities, hiring and mentoring disadvantaged businesses, and maintaining a purposeful charitable giving program led by employees. These efforts have been recognized by many professional associations, news media and economic development organizations. Some of these accolades include: • Best for Colorado award by The Alliance Center • Best Places to Work by The Denver Post • Top Healthiest Workplaces by the Denver Business Journal

2017

CORPORATE SOCIAL RESPONSIBILITY

CSR

Corporate Social Responsibility

2018

1

• Contractor of the Year by Hispanic Contractors of Colorado and the Black Chamber of Commerce • BEST Award from the Association of Talent Development • Contractor of the Year by the American Subcontractors Association of Colorado • Corporate Partner of the Year, Volunteers of America Denver Chapter

Commitment to maintaining consistent and sustainable economic growth was also a fundamental aspect of our CSR program and trajectory priorities. We sought to achieve this by diversifying the number of markets we serve, developing new service offerings to include real estate development and publicprivate partnerships, and delivering an exceptional customer experience — all while adhering to the highest ethical standards.

We also learned several important lessons and are committed to applying these going forward, what we are calling CSR 2.0. Saunders remains steadfast in our work to be a business for good.

This work will require streamlining the organization’s CSR function and developing additional accountability measures, as well as researching and deploying new technologies and approaches.

We look forward to further reduce our impact on the environment, address diversity and inclusion within our workforce, and enrich our charitable giving and participation programs.

Additionally, we will seek to develop alliances addressing CSR with a topdown approach from our clients to our trade partners and suppliers – where there is the greatest opportunity for positive impact.

Saunders is proud of what we accomplished in the past 10 years. All of this impact could not be done without the dedication of and collaboration with our employees, trade partners, clients, and our CSR consultants Group 14 and Envirobrand.

SAUNDERS’ 10-YEAR IMPACT

186,166

TOTAL TONS OF WASTE DIVERTED

57 LEED

CERTIFIED PROJECTS BUILT

$425 Million

ECONOMIC IMPACT TO SMALL AND DIVERSE BUSINESSES

4,500

TOTAL HOURS VOLUNTEERED FOR BUILDING CONFIDENCE IN KIDS

58,246

TOTAL HOURS OF TRAINING TO EMPLOYEES

NEW BENEFITS:

100% PAID PARENTAL LEAVE, PAID TIME OFF FOR LABORERS, 4-WEEK SABBATICAL AFTER 10 YEARS OF SERVICE

REDUCING OUR GREENHOUSE GAS FOOTPRINT

Saunders’ commitment to continuous improvement in how we reduce our greenhouse gas (GHG) emissions in daily operations includes: Reduce and divert waste on all of our projects.

Encourage alternate modes of transportation.

Limit the total time trucks and construction equipment idle.

Install or use efficient heating and cooling systems in offices and project sites.

Educate employees on methods to reduce their impact at work and home.

2019 2018 2017 607

10,885

14,020

1.07

17.57

21.18

metric tonnes

tonnes per $1 mil revenue

metric tonnes

tonnes per $1 mil revenue

metric tonnes

tonnes per $1 mil revenue

A significant increase in 2019 recycled material (i.e., concrete) attributed to the major decrease in greenhouse gas emissions in 2019. Primarily, this drastic change is a result of a large amount of recycled concrete on a number of Saunders’ demolition projects.

MANAGING OUR WATER USAGE In 2018, Saunders began tracking water usage on the projects for which we pay the water bill, in addition to our offices and warehouse. This differs from past years, where water usage was only tracked at Saunders’ office and warehouse. Our refined approach expands the scope of what is reported and provides a higher level of clarity on water consumption.

2019 WATER CONSUMPTION

44,239,000 GALLONS

The City Park Golf Course Redesign project contributed to the significant water consumption increase.

The project required extensive watering to re-establish the grass turf on the 135-acre course.

2018 WATER CONSUMPTION

4,070,000 GALLONS

an initiative for the long run I

t’s not new, just a little better. That’s what Saunders was going for when it decided to start its lean journey in the summer of 2018. Since then, a formalized internal committee led the way to engage, encourage and promote adoption of lean principles and practices across the organization.

Initially prompted by an industry that is laced with inefficiencies — waste in both the literal and figurative sense — lean at Saunders aims to create a culture of continuous improvement. More often than not, it’s the incremental actions by individuals or teams over time that change organizations. These small actions are at the center of Saunders’ lean journey — be it at home or on the project site.

By committing to find ways of optimizing resources and promoting team work for the betterment of the individual and the industry, Saunders employees have found it second nature to lean in to the lean thought-process for the betterment of work and personal life.

“Lean works at Saunders because we are driven to help people, foster relationships, learn and improve consistently,” Jesse Steinert, Saunders preconstruction manager and Lean Think Tank member. “This mindset encourages people to support one another and our clients to deliver uncommon experiences through genuine care for each person and organization we work with.”

12 projects on-boarded with lean practices

100 hours completed of lean training

25 employees involved with the Lean Think Tank

Inverness Garden Planterpalooza 4 PLANTERS BUILT 11 CUBIC YARDS OF SOIL 3 HOURS OF BUILDING 2 HOURS OF SOIL FILLING 1 HOUR OF PLANTING

sungold tomatoes | zebra tomatoes | green beans | peppers | eggplant | strawberries | broccoli | zucchini | watermelon | lettuce | swiss chard | mustard greens | basil | parsley | green onion

SOCIAL

LOST WORK DAYS (LWD) INCIDENT RATE

DART DAYS (DART RATE)

TOTAL CASE RECORDABLE INCIDENT RATE (TCIR)

2019

0.18 Lower than the national average of 1.2

0.5 Lower than the Bureau of Labor Statistics average of 0.6

1.65% Lower than the national average of 3.0

Safety Stats

Building a Foundation for Growth and Development Without a solid foundation, a building is no stronger than its time and material. The same can be said for employee development — it starts with a foundation of planning, deliberate thought and base knowledge to excel into something greater.

Embracing employee needs for career performance and development, Saunders sought to design new resources and tools supporting just that. In May of 2019, Saunders implemented a company-wide learning management system (LMS) — the Saunders Toolbox — giving all employees a more user-friendly, easily accessible and bilingual platform for training and development resources, well-being events and Building Confidence in Kids™ volunteer opportunities.

The Toolbox helps in the effort to retain an engaged workforce by offering specific content to every level and role within the organization. From online training courses and development resources to company-sponsored philanthropic events, this modernized tool plays a critical role in cultivating a culture of satisfaction and high-quality output.

Additionally, in 2019, and as a direct result of employee engagement survey feedback, Saunders worked to develop and implement an interactive tool for career flow within the operations business function at the company. Employees and their supervisors are encouraged to discuss development at least once a year during performance check-ins, using this career flow tool to facilitate discussions on short-term and long-term career goals.

The career flow tool was designed to give employees the knowledge and expectations to invest in their development and position them for career progression at Saunders.

“At Saunders, we set a strong expectation that learning is a part of our culture and an essential requirement of each employee’s role — and the employee response has been positive,” said Brad Marsh, Saunders vice president of Safety and Human Resources. “As a result, we have seen direct business impacts to our operational readiness, risk management and process alignment. As an indirect result, our company culture has been significantly strengthened by our developing employees.”

STAFF

FIELD

4,592 total hours

2,556 total hours

17 hours per employee

10 hours per employee

7,148 COMBINED TOTAL HOURS

training courses & meetings Asta 1:1 Training

Mandatory Safety Meeting

Public Speaking Skills

BIM Training

Miller Safety Consulting

Safety Walks & Toolbox Talks

CPR & First Aid

Monthly Jobsite Tours

Site-specific Orientations

Customer Experience

New Employee Onboarding

Superintendent Development Program

Foreman Meetings

Project Engineer Mentor Onboarding

Superintendent Training & Meetings

Insurance Training

Project Manager Training & Meetings

Two-week Safety Orientation

Intern Orientation Week

PTI Certifications

Wombat IT Security Awareness Classes

INTERNS BY THE NUMBERS SCHOOLS REPRESENTED Colorado State University Colorado Mesa University Iowa State University Northern Arizona University Oklahoma State University Trinidad State Junior College University of Denver

12

INTERNS

7

SCHOOLS

3

FULL-TIME HIRES

A MILESTONE WORTH CELEBRATING In 2019, Saunders’ Building Confidence in Kids (BCiK) celebrated its 10-year anniversary.

BCiK began in 2009 as a philanthropic initiative focused on the support, wellbeing and development of children. Designed to complement Saunders’ traditional philanthropic giving, the program creates an employee outlet for volunteerism and community impact. Every two years, BCiK forms a partnership with one nonprofit organization, while actively maintaining past philanthropic relationships, to provide financial and in-kind donations, as well as volunteer contributions.

5

Non-profit Partnerships

4,500

Hours Volunteered

144

Hosted Events

BUILDING 2019 STATS CONFIDENCE IN KIDS 87

Individual Participants

5

Non-profit Partnerships

633

Hours Volunteered

23

Events Hosted

CORPORATE GIVING LIST ACE Scholarship Program

Denver Art Museum

Mount St. Vincent Home

Association of General Contractors

Denver Health Foundation

National Western Center

American Heart Association

Denver Metro Chamber of Commerce

National Sports Center for the Disabled

American Red Cross

Denver Public Schools Foundation

American Transplant Fund

Downtown Denver Partnership

Project One Foundation Children’s Classic

Aurora Economic Development Council

Douglas County Schools Foundation

B:CIVIC

Executives Partnering to Invest in Children

Big Brothers Big Sisters of Colorado, Inc.

Family Homestead

Rally for the Cure Ralston House St. Anthony Hospital Foundation St. Joseph Hospital Foundation St. Vincent Hospital Foundation

Boy Scouts of America

Food for Hope

Boys Hope Girls Hope

Girl Scouts of Colorado

SCL Good Samaritan Hospital Foundation

Brent’s Place

Heart and Hand Center

Swallow Hill Music Association

27J School District

HOYA Foundation

Save Our Youth

The Cherry Arts

IMA Foundation

Teach Men to Fish

Cherry Creek Schools Foundation

Jeffco Schools Foundation

Tom McMahon Scholarship

Cherry Creek Area Business Alliance

JEWISHcolorado

University of Colorado Foundation

Judi’s House

University of Colorado Real Estate Foundation

Children’s Diabetes Foundation Children’s Hospital Foundation

Junior Achievement Rocky Mountain, Inc.

CITY Year

Leukemia & Lymphoma Society

Civic Center Conservancy

Limb Preservation Foundation

Colorado Ballet

Littleton Public Schools Foundation

Colorado I Have a Dream

University of Denver Foundation University of Denver Bridge Project Urban Youth Ministries Volunteers of America

Colorado Sporting Clays Association

Lutheran Foundation

Von’s Vision

Mental Health America

Warren Village

Colorado Uplift

Mental Health Center of Denver

Cottonwood Institute

Minds Matter Mizel Museum

The Women’s Foundation of Colorado

2 0 1 9 A W A R D S

16 Chestnut

Best Project Winner – Office Retail/Mixed-use Engineering News-Record Mountain States

BPX Denver Headquarters

City Park Golf Course Redesign

Environmental Excellence Award American Society of Golf Course Architects

CSR Report

Riverview at 1700 Platte

Transformational Project Award Downtown Denver Partnership Denver Mayor’s Design Awards – Distinctive Denver City and County of Denver Community Planning and Development

The Grand Residences Best Project Winner – Interior/Tenant Improvement Engineering News-Record Mountain States

Building Division Over 1 Million Hours

3rd Place – Construction Safety Excellence Awards Associated General Contractors

City of Thornton Fossil Ridge Public Safety Center

Merit Award – Government/ Public Building Engineering News-Record Mountain States

Marketing Excellence Awards – Brochure SMPS Colorado

Dairy Block

Transformational Project Award Downtown Denver Partnership

Denver Mayor’s Design Awards – Distinctive Denver City and County of Denver Community Planning and Development

University of Colorado Denver Lola and Rob Salazar Wellness Center

Porter Adventist Hospital Phase 1

Merit Award – Renovation/ Restoration Engineering News-Record Mountain States

Merit Award – Sports/ Entertainment Engineering News-Record Mountain States

All financial and project data is based on information available on March 31, 2020.

Saunders’ logo, “Building Confidence” and “Building Confidence in Kids,” along with the vision statement are registered trademarks of Saunders Construction, Inc.

303.699.9000 www.saundersinc.com