Environmental, Social, and Governance (ESG)
2023 Annual Report
About S&B USA
In the past decade, S&B USA has experienced unprecedented growth, allowing us to tackle bigger projects than ever before. Operating as the United States entity of our multidomestic parent company, Shikun & Binui Ltd., we leverage over a century of global experience and collective knowledge while prioritizing local autonomy.
S&B USA is supported by our Construction and Concessions arms, which work together to bridge knowledge gaps and foster innovative infrastructure solutions. We offer a diverse portfolio that encompasses a variety of transformational large-scale infrastructure projects and mega public private partnerships (P3).
Our work combines the local self-performing construction expertise of Fay, S&B USA Construction and the resources of S&B USA to drive progress and connectivity throughout the Mid-Atlantic region.
What’s In This Report?
This Annual Report summarizes our Environmental, Social, and Governance (ESG) efforts in 2023. Over the course of the year, we prioritized ESG in our projects, our business development, and our corporate culture. We made strides to contribute to sustainable innovation in our industry.
This report serves as a:
Foundational Document
We provide our first public benchmark of our activities pertaining to the environment, our communities, our people, and our dedication to transparency.
Demonstration of Our Progress
S&B USA has always conducted responsible business. This report showcases our progress over the course of 2023 to hallmark our commitment to ESG.
Commitment to Continuous Improvement
We reflect on our operations impact on the environment and its relationship to environmental, operational, and financial optimization and efficiency.
Building for a Safe, Sustainable Future
At S&B USA, we are proud to prioritize safety in everything we do. As creators of safe and innovative infrastructure solutions, we seek to improve our projects through safe working conditions and innovative ideas that save time, money, and resources.
Our ESG initiatives are a direct reflection of our commitment to safety. On every job, we honor our commitment to safety as a pillar of our philosophy to creating sustainable business.
Our ESG Philosophy
Leadership Dedication
“In traditional industries like infrastructure development and construction, S&B USA is innovating with purpose. By embedding ESG principles into our projects, we elevate communities and shape a sustainable future. This commitment not only benefits society but also strengthens our bottom line, ensuring long-term success for our business.”
Sharon Novak Chief Executive Officer of S&B USA Chairman of S&B USA Construction
“Creating a culture of continuous improvement that integrates the environment, our people and communities and responsible business practices is core to our strategy.”
Peter MacKenna President and CEO of S&B USA Construction
“ESG represents a roadmap to sustainable growth for our clients. We guide each step, ensuring efficient eco-conscious infrastructure solutions.”
Katie Spear Vice President of Marketing
“Environmental, Social, and Governance creates unique market opportunities to foster innovative solutions for our clients, our people, and our stakeholders.”
Grant Ervin Vice President of External Affairs and Sustainability
“ESG is not just a sustainability strategy; it is a talent strategy. Organizations that prioritize Environmental, Social, and Governance factors attract and retain the best talent who want to work for a purpose-driven, responsible, and forward-thinking company.”
Laurie Roy Senior Vice President and Chief Human Resources Officer
Why ESG at S&B USA?
Having an ESG framework allows for continuous improvements. It considers all the measures of a company that are not purely financial but can have very important financial implications.
Creates business value for our partners and communities
Improves employee satisfaction and helps in talent attraction
Provides greater opportunity and resiliency in infrastructure
ESG is Innovation
Increases efficiency, project quality, and technology integration
Demonstrates market leadership
We strive to make every project an ESG project. Through community involvement, environmental stewardship, and a commitment to ethical business practices, we lead innovation within the construction industry in everything we do.
By developing new, innovative construction methods like on our Howard Street Tunnel project (seen above), we can forge a legacy of success in infrastructure development.
Our Building Blocks of Sustainability Sustainable
Development Goals (SDGs)
Foundations: The building blocks
Standards & frameworks | Ethics & integrity | Policies & goals
Measurable objectives | Baselines & reporting
Environmental Impact: Our environment, our future
Environmental resilience | Compliance | Emissions
Circularity | Material selection | Supplier Standards
People: Our people and beyond
Diversity | Wellness & health | Collaboration & communication Skills & capabilities | Safety
Community: Those we serve & those we support
Governments & authorities | Supply chain | Local people & communities
Memberships & partnerships | Corporate social responsibility
Sustainable Offerings: Market leading and market making
Bonds & finance solutions | Climate resilient infrastructure
Transport & mobility | Innovation & partnerships | Renewable generation & storage | Products & technology
The United Nations SDGs are global metrics for advancing sustainability followed by leading companies around the world.
At S&B USA, the SDGs provide our ESG framework, with a focus on Affordable and Clean Energy; Decent Work and Economic Growth; Industry, Innovation and Infrastructure; Sustainable Cities and Communities; Responsible Consumption and Production; and Climate Action.
Delivering Return in 2023
2023 Completed Projects
S&B USA has completed a wide variety of projects across the Mid-Atlantic region. From lock and dam rehabilitations to bridge construction, our projects have made infrastructure safer, more reliable, and more resilient.
Driving
Sustainable Growth
Sustainable growth at S&B USA means that we are expanding our service offerings while maintaining our commitment to environmentally conscious and socially responsible practices. Utilizing energy-efficient construction methods, sustainable materials, and eco-friendly standards, we can grow in our ability to serve our communities without sacrificing quality or safety.
Through integrating methods that prioritize our local communities and minimize environmental impacts, we are able to foster a positive relationship with all stakeholders and position S&B USA as a responsible, forwardthinking leader in infrastructure development.
I -279
Montgomery Lock and Dam
Chartiers Creek Bridge Widening
Curtis Bay Pier Drainage Improvements
MD 85 at I -270 Interchange
Berth
2023 Project Wins
Throughout the year, we worked tirelessly to secure a backlog of work that aligns with our ongoing goals and strategic priorities.
Our project wins reflect our ESG mission: to use creative and sustainable financing, scale to environmental stewardship, care for our communities, use ethical business practices, and deliver projects that enhance and improve our environment.
A Focus on Sustainability
Last year, ESG-focused projects scored major wins. Our project teams supported the installation of electric vehicle chargers throughout Pennsylvania for the National Electric Vehicle Infrastructure (NEVI) program, and for the PennDOT Major Bridges P3, we are providing critical infrastructure rehabilitation for key bridges across the Commonwealth.
Monongahela Locks & Dam No. 3 Demo
Amtrak Susquehanna River Bridge
NAVFAC LF Area Runway and Bulkhead
CSX Howard Street Tunnel
BPC Susquehanna River Bridge (Fay)
Cooling System
PennDOT Major Bridges P3
Frederick Douglass Pier E Demo 11
Public-Private Partnerships for All
Fargo-Moorhead Stormwater Diversion Channel
One of the first large-scale ESG-focused P3 transactions in the US
This project offers 500-year flood protection for the Fargo -Moorhead-West Fargo metro area.
It is anticipated to safeguard more than 235,000 people and 70 square miles of current infrastructure against flooding.
PennDOT Major Bridges P3 Program
Led by S&B USA Concessions, public-private partnerships (P3s) develop public infrastructure through collaborative agreements between governmental bodies and private sector partners. By leveraging the expertise, efficiency, and capital of the private sector, P3s can build bigger, better projects that are unrestricted by limited resources or capabilities.
P3s can accelerate ESG outcomes by integrating sustainability goals into infrastructure projects, such as renewable energy facilities, eco-conscious public transportation, and sustainable water management systems.
An integrated P3 approach not only helps in meeting regulatory and societal expectations, but it also drives innovation and investment in critical areas aligned with long-term environmental and social objectives.
Supports PennDOT’s ongoing effort to address the state’s growing backlog of replacement and rehabilitation needs for near-end major bridges
It consists of designing, building, financing, and maintaining 23 bridges in 6 locations in critical need of replacement.
This project will have a direct positive impact on PA residents, businesses and the local economy.
State Highway 288 Toll Lanes
Links the major employment center of downtown Houston and the Texas Medical Center with the rapidly growing residential communities of Harris County and Brazoria County
It is a Greenroads project designed and constructed to be more sustainable than the current practice, increasing its overall longevity.
This project integrates landscaping, public art, and architecture into the roadways and bridges.
ESG Impact of P3s
Our investment in P3s directly contributes to our ESG efforts. Through innovations in project financing, we support communities through infrastructure development.
“Together with our partners, S&B USA is demonstrating the power of P3 investment in advancing responsible practices to drive positive, measurable impacts on the environment and society. In Fargo, our unique and innovative financing solution allowed all loans, notes, and bonds to be certified as “green” by Sustainalytics to fund direct investment in infrastructure to reduce the potential devastating consequences of river flooding in the Fargo-Moorhead area in alignment with climate adaptation and resilience goals.”
Lucas Lahitou, Head of Origination & Structuring at S&B USA Concessions
Fargo-Moorhead Stormwater Diversion Channel
Environmental Impact
Wetland Restoration
More than 1,400 acres of wetlands will be planted with trees, shrubs, and other vegetation, and once planted, those areas will be monitored regularly, and annual reports will be completed on the progress
Wildlife Protection
We have established restrictions on tree-clearing activities to protect the endangered Northern Long-Eared Bat, and the new aqueduct structures for fish passages to annual migration into the Rush River
Climate Change Resiliency
This project is using Envision, a sustainable infrastructure framework that covers sustainability and resilience best practices for planning, design, and construction
PennDOT Major Bridges P3 Program
Economic Impact
Investing in the Local Economy
In order to showcase commitment to support and partner with the local community, approximately 90% of the work was subcontracted to local Pennsylvania firms, far above the 65% contractual requirement
Providing Jobs
At its peak, the PennDOT Major Bridge P3 program will employ around 2,000 employees, many being sourced from the regions local to the project sites
Alternative Funding to Build Today
The financing of repairs in today’s dollars with deferred, financed repayment is a funding solution to meet obligations for which there were no other viable alternatives available to PennDOT
Governance to Help Us Grow
ESG Committee
Committee Chairs
Our ESG Committee offers every business function a seat at the table to create sustainable initiatives that represent the entirety of S&B USA.
In 2023, the Committee reviewed critical baseline data to shape ESG development in the years to come.
S&B USA’s ESG Committee Mission Statement
Increasing ESG awareness, integrating the practice, and monitoring performance with a commitment to sustainable infrastructure solutions for our company and communities that we serve.
Enrico
John Astfalk
Sam Headon
Mark Savannah
Zack Reefer
Laurie Roy
Eva Metzger
Joe Licari
Gary Gamet
Theresa McKruit
Strong Governance for Strong Foundations
Rigorous oversight and strong management controls are mission critical, foundational capabilities. Our public and private partners of resilient infrastructure place their highest trust in our integrity.
Formalized board management and oversight, robust reporting cadence and controls
Strength in Resources
Strong governance begins at the top and lives through collaboration between our parent company and our leaders, our hand selected advisers and counsel, and each of our talented and committed team members.
S&B USA leadership of industry veterans, dedicated roles for compliance, ESG, and more
Specialized committees on mission-critical topics (including Safety, ESG, and DBE)
Best practice standard operating procedures and policies (from operations to corporate ethics)
Sophisticated risk management (Cybersecurity & Data Breach Plan, Crisis Management Plan)
Contract and project level commitments, oversight, and governance across the business
Vince Acri Senior Vice President and Chief Legal and Compliance Officer
Mark Savannah Vice President, In-House Counsel Compliance Officer
Ethics & Compliance
S&B USA's Ethics & Compliance framework focuses on teaching employees how to identify ethical dilemmas and properly navigate them. We utilize yearly training and toolbox talks that provide real-life examples and promote problem solving through the guidance of an EEO Officer or our Ethics & Compliance hotline. We ensure every employee has the contact information for our Compliance Officer to voice issues if and when they arise. Additionally, upper management in the company is trained on crisis management and media involvement during a crisis to help navigate difficult events.
Our Ethics & Compliance Philosophy
Anti-Bribery and Anti-Corruption
Our contractual commitment from us and our partners to prioritize ethics in all of our business
Ethics Code of Business Conduct
Our guidelines to maintain the highest standards of ethics and compliance
Crisis Management
Our training to ethically sustain business functions in the event of any and all emergencies
Call the Hotline
In 2023, S&B USA Construction refreshed its long-standing Ethics and Compliance Campaign. This decision affirms an ongoing commitment to foster a culture that upholds the highest standards of integrity, safety, and inclusion.
As part of the campaign, each employee received an Ethics & Compliance Hotline card encouraging employees to speak up if they encounter issues in ethics and compliance. The card serves as a reminder as well as a leadership-backed commitment to center ethics and compliance in everything we do.
Anti-Bribery and Anti-Corruption
Our Policy, Our Assurance
S&B USA has a zero-tolerance policy for bribery and corruption. Every aspect of our business is subject to our Anti-Bribery and Anti-Corruption policy. In 2023, we fortified our efforts to ensure we practice business ethically, no matter where we are or who we work with.
Officers implement and assimilate the compliance program
All employees are informed of our Anti-Bribery and Anti-Corruption policy
All contracts adopt our Anti-Bribery and AntiCorruption language
We hold an annual training for all employees on the Anti-Bribery and Anti-Corruption program
We ensure proper documentation and bookkeeping
We perform due diligence as necessary
Engagement for a Sustainable Future
Engagement is at the center of everything we do. Our projects have impact. From rehabilitating aging infrastructure to constructing community-focused parks, the work we do plays an important role in our communities. That’s why we make it our mission to sustain relationships with local leaders, stakeholders, government officials, and community-based organizations in every place that we call home.
In 2023, we increased awareness for alternative delivery including public private partnerships (P3s), federal investment opportunities, and sustainable transportation.
Supporting the Industry
Thinking globally and acting locally means getting involved when and where it counts. We provide sponsorship and membership to a variety of organizations that allow us to get to know the stakeholders who shape our industry and support the people who need it most.
“Robust government relations play a pivotal role in shaping policies and laws that foster progress within communities, states, and nations. They ensure that businesses flourish within a framework dedicated to nurturing societal well-being, environmental stewardship, and ethical governance.”
Katie Spear Vice President of Marketing S&B USA
Prioritizing People
Vision
Creators of Safe and Innovative Infrastructure Solutions
Value Proposition
Safety is our culture
Earning a fair profit increases our longterm value Take care of employees and they will take care of clients and stakeholders Honesty builds trust Better solutions yield greater satisfaction
Think Globally.
Act Locally.
Building a Safe Place to Work
All employees, regardless of job position in the family of companies, have the right to exercise Stop Work Authority in situations where they feel there is a need to clarify work instructions or to propose additional safety concerns without fear of reprisal. Any form of retribution or intimidation directed at any employee of company for exercising the right to issue a Stop Work Authority will not be tolerated.
The following list identifies many, but not all situations when the use of Stop Work Authority would be warranted. This list is by no means conclusive of all scenarios where Stop Work Authority may be used.
• Unsafe conditions
• At-risk behavior
• Non-compliance with site policies, procedures or rules
• Occurrence of incidents
• Emergency situations
• Alarm sounds or indicator lights
• Change in condition
• Change in scope of work
• Change in work plan
• Personnel does not have experience performing the assigned task
• Uncertainty, doubt, confusion, or questions persists relative to the work at hand
• Anytime site personnel feel that personnel, the environment or equipment is at risk
Once Stop Work Authority has been initiated, no work will resume until all issues and concerns have been adequately addressed and a follow-up has been completed.
Safety Is Our Culture
S&B USA adopts a safety-first approach across our business functions to address hazards, ensure the well-being of our workers, and protect the environment. Our commitment begins with leadership engagement in safety. Senior leadership demonstrates our dedication to safety by upholding it as a core value of the organization. They set the example by actively participating in safety initiatives and visibly endorsing safety endeavors.
Our culture of safety is exemplified by items like the Stop Work Authority stickers we have distributed to all employees since 2017. We encouraged employees to wear the stickers on their hard hats to visibly and continuously endorse a message of safety.
By supporting safety through proactive measures, effective communication, and constant vigilance, we can mitigate risks and establish a safer working environment while performing all operations.
Safety Performance
At S&B USA, our employees are our most valuable resource. We have established a culture of caring for our people, and we encourage our employees to believe in safety and work the “Safe Way.” We adhere to the best safety practices to:
• Provide a safe workplace for employees, subcontractors and the general public
• Strive for the highest safety standards on our jobsites
• Train and educate our employees to ensure they are knowledgeable of safety rules and standards to guarantee the safety of both themselves and their coworkers
2023 Safety Statistics
Employee-Led Committees
Works to bring awareness to underrepresented groups in a celebratory environment
Creates a rotating cultural calendar to highlight holidays and their origin
Aims to bring high-quality events and resources that provide appropriate education for employees
Provides multiple ways for employees to get involved through volunteer hours and monetary donations
Organizes operations for many of the charities that employees already were involved in through S&B USA
Plans volunteering opportunities every quarter and donates to employee chosen charities
In 2023, S&B USA created four employee engagement committees to better connect employees within the organization and in our local communities.
The Committees
Focuses on physical, mental, and financial wellness—full-body and mind
Encourages employees to improve their health with easy to access resources
Participates in the Pittsburgh Marathon as a relay team
Works to incorporate all offices and the field
Preps for holiday parties and unique events like Fun Fridays, potlucks, decorating contests, and more
Energizes employees through fun, group-led events
Commitment to Labor
S&B USA Construction hires union and non-union contractors for craft hiring needs, depending on region. We are part of an association of member construction firms that utilize the same union halls.
No matter the position, we are proud that S&B USA Construction and all our affiliates are Equal Opportunity Employers. We consider all qualified applicants for employment regardless of and will not discriminate against based on their race, color, religion, sex, national origin, disability status, age, gender, genetics, creed, veterans’ status or sexual orientation.
Partnership with CAWP
One example of our commitment to labor is our partnership with CAWP. As members of the Constructors Association of Western Pennsylvania (CAWP), we are backed by 90 years of tradition in the heavy and highway industry in western Pennsylvania. Their mission to support better labor conditions within our industry aligns with our core values to place safety and people at the forefront of everything we do.
S&B USA Construction centers safe and secure work environments for all employees. From craft laborers to operating engineers to administrative professionals, we are committed to making S&B USA a great place to work.
Approaching Workforce Planning & Development
Strategic partners to broaden talent pools and ensure innovation
Unlock workforce capacity within local areas
Attract talent supply on every project
Accelerate upskilling and talent development
Diversity & Inclusion at S&B USA
S&B USA takes diversity seriously. That’s why we created the employee-led diversity and inclusion (D&I) committee, focused on celebrating the diverse workforce we have today and building a welcoming environment for tomorrow. In 2023, our D&I initiatives included, but were not limited to:
• Celebrating Women in Construction and Construction Inclusion weeks by highlighting our office and field personnel
• Joining Women of Renewable Industries and Sustainable Energy (WRISE)
• Organizing diversity-focused Toolbox Talks focused on providing microlearning opportunities to field personnel
• Naming two Diversity Committee co-chairs to spearhead our ongoing initiatives in this space
Women in Construction: Fargo-Moorhead
Our Fargo-Moorhead Stormwater Diversion Channel project team is promoting positive environmental and social impact that will be seen for years to come, beginning with a focus on women in construction.
In Fargo, the project workforce consists of 14% women, compared to the national average of 10.8%, according to the Bureau of Labor Statistics. Building our industry’s diversity through direct involvement on key projects is one piece of our ongoing efforts to make construction a welcoming space for all.
28% more women
are employed on our Fargo-Moorhead project, compared to the national average*
*number excludes federal workers
“Diversity is central to our progress as an industry-leading company. When employees feel seen, they are free to challenge, innovate, grow, and inspire. Without it, we’d simply stop moving.”
Rachel Bachy (pictured left)
Co-chair, D&I Committee at S&B USA
“All employees deserve acceptance and respect. Diversity helps us to make sure that happens.”
Molly Kozy (pictured right)
Co-chair, D&I Committee at S&B USA
Strengthening Our Supply Chain
We gather top industry talent from far and wide to ensure strength in our supply chain. Whether the Disadvantaged Business Enterprise (DBE) is a Minority or Women-owned Business Enterprise (MWBE), Veteran-Owned Business Enterprise (VBE), or any other, S&B USA Construction believes in uplifting the expertise of historically-disenfranchised business owners in our communities.
By the Numbers
442
DBE partners in our supplier database
14.5% of database partners are DBEs
Sustaining Diversity in Construction at Pittsburgh International Airport
We are committed to providing DBEs with ample opportunities to succeed within our industry. One way we do this is by meeting and exceeding minority participation goals set by project Owners.
Supporting DBEs is a cornerstone of our philosophy. No project better exemplifies this than the Pittsburgh International Airport Terminal Modernization Program Roads & Bridges.
S&B USA Construction is on track to provide DBEs with 14% of our contract value—that’s more than $23 million!
100% of projects target DBE due diligence
“S&B USA is devoted to working closely with DBEs in the construction industry. We not only meet DBE goals; we strive to exceed them. We work side by side with all of our DBE partners to get them actively involved in our projects from the day of project advertising until project closeout.”
Sylvia Wolfe, P.E. Manager of Estimating Systems
S&B
USA Construction
Data-Driven Decisions
ESG as a Decision Support Tool
Environmental and social responsibility have become increasingly important as businesses participate on a global scale with a variety of local, national, and international regulations to meet. However, ESG benefits businesses for more reasons than just regulatory.
A focus on environmental, social, and governance does not just contribute to a company’s ability to be compliant, but also helps us find value in our business as a whole.
The ESG Impact Bridge
To achieve the best outcomes possible for our business, we optimize cost savings, environmental impact, and operational efficiencies. By applying an ESG framework to our business decisions, we can ensure that every choice we make appropriately provides that balance.
Best Outcomes
Environmental Impact Cost Savings Operational Efficiencies
Carbon Emissions and Energy Costs
Our commitment to ESG and sustainability excellence means that our team uses best practices in every project to seek efficiency in all we do—including materials, fuels, hours, and equipment selection.
As additional methods and equipment becomes commercially available, we use a data-led approach to contemplate, design, and pilot additional capability to seek decarbonization. Our fleet electrification pilot is one such example.
The Scale of Earth Moving
As we move through different phases in our projects, we use different activities to perform work. Activities may include demolition, excavation, earth-moving, trenching, and other energy intensive activities. Projects may also include the need for heavy machinery and specialist activities, like craning, welding, and specialty power tools for a site. That means that our projects drive our emissions, and our output will vary based on project phase and activity.
We perform large-scale, necessary infrastructure improvement projects, and we expect our emissions to reflect the demands of our construction phases. In 2023, we moved a lot of dirt, especially on our Beaver River Bridge project, which moved more than a million cubic yards of dirt. To put it visually, one cubic yard is a 3-ft by 3-ft by 3-ft cube, or about half the height of a 6-ft tall person. Now, imagine the energy required to move a million cubes. That’s a lot of heavy lifting!
All that earth moving meant that in 2023, we used 78% more diesel than 2022 to fuel the vehicles that moved the dirt.
Activity and Project Impact
Our emissions footprint is driven by many factors including weather, equipment, and our activities and projects. Different project phases create different amounts of emissions with the greatest drivers of emissions coming from earth moving.
As we deliver safe, robust, and resilient infrastructure, we seek to understand how our projects shape our emissions and reduce our footprint through thoughtful innovations in our processes.
Yellow Iron Activities
Infrastructure projects produce emissions that vary based on the types of activity it requires. Any given project can be a combination of activity type and project type, especially on our mega projects. At S&B USA, we strive to balance between building lasting projects and managing our emissions. The spectrum on the right demonstrates how the emissions generated by our work can vary based on activity type (above the line) and project type (below the line).
We are always exploring new ways to lower emissions—on every project and in every activity.
Gathering Emissions Data
On-road and offroad
and offroad
& sites
Emissions: 2023
2023 Emissions Breakdown
What’s Driving Our Emissions?
Off-road diesel from our Beaver River Bridge project made up approximately half of our 2023 off-road emissions, mostly attributed to major earth-moving in this early stage
On-road diesel blend usage includes dump trucks, tractors, fuel trucks, and freightliners for our projects
Gasoline is largely driven by construction trucks, with distance between company base and employee locations to job sites the key driver of miles
Canister gases are comprised of propane and acetylene, which we use directly in construction activities such as welding
Utilities include both the use of electric (85%) and natural gas (15%) at our offices, workshops, yards and project sites
Steam loop: steam and chilled water from the district heating center, which services our Pittsburgh headquarters
Emissions: 2023 vs. 2022
How We Stack Up
Overall, our operations CO2e tons increased from 8,606 in 2022 up to 10,659 in 2023. Our emissions reflect our activities, and they are not inclusive of emissions from our subcontractors or joint ventures. The main cause of our increased emissions in 2023 compared to 2022 is our off-road diesel increase, stemming from project-level activities during major earth moving phases most notably from the Beaver River Bridge project. For more on emissions, see appendix.
Data Driving Innovation
ESG business operations offer vital opportunities to optimize costs. In recent years, S&B USA began the work of revolutionizing our operations by leaning on cutting-edge software solutions, strategic talent acquisition, and data analytics.
Leveraging pre-existing software, in-house data collection resources, and external consultants, S&B USA has been able to utilize data collected to unlock the full potential for our fleet. The Fay Fleet Electrification Pilot Project, which began operation in 2023, is an example of the power of data in defining ESG strategy.
These evaluations found that many vehicles are being under- or improperly utilized, creating inefficiencies in the fleet. By integrating our data discoveries in new ways, we have ushered in a new era of efficiency fueled by research-backed decisions.
The Process
Idea Data Collection & Data Analysis
Sustainable development begins with good ideas Data creates a baseline to determine gaps in current operations and scope pilot projects
Team Building Implementation
Project teams combine resources across business functions
Pilot project implementation provides a foundation for future wide-scale deployment
Working Together to Build Sustainably
In 2023, we established foundations to create best practices. Prior to 2023, our management software focused on building safety data, but this year, we began utilizing it asa tool to pinpoint target areas for ESG strategy.
Using the data required a team. Members of the IT, ESG, accounting, and estimating teams were pulled in to apply their unique experience to build better business practices. Now, we are in the process of taking this new information and finding better, more efficient ways to store, collect, and apply our data to streamline future processes.
Data Analytics in Action
The data the ESG data team is collecting helps them paint a more wholistic picture of the company's expenses. They're starting to analyze how expenses are influenced by various elements.
For example, instead of looking at thefleet information on fuel expense as a singular point of data, they have begun looking into the relationship between fuel consumption, aggressive driving, traffic, and total distance the vehicle covered to understand what factored into the cost of fuel.
These insights allow us to figure out what the future might look like.
50%+ improvement
In process time expected due to data standardization
“The biggest milestone we accomplished in 2023 is that we figured out where we need to pull all the data from... once that occurs, that is when better information can be gathered.”
John Astfalk Chief Information Officer at S&B USA
Electrifying Our Fleet
Based on the work of our ESG Committee and our multi-disciplinary data-collection team, we made moves to begin electrifying our construction fleet. The first step? A pilot project for on-road construction vehicles.
In 2023, we set the stage for the Fay Fleet Electrification Pilot, which will bring two fully electric Ford F-150 Lightning trucks into our on-road fleet. These trucks will be used for normal commuting between job sites, just like our current trucks.
The pilot will monitor vehicle range, charging time, efficiency, safety, and other metrics to determine the best path towards full electrification.
Data Makes A Difference
As electric vehicles continue to advance in reliability, efficiency, and capabilities, it’s our job to keep up to date with the ever-evolving playing field. In 2023, members of our operations, safety, data, business development, and ESG groups supported our fleet electrification efforts, including:
• Monitoring fuel cost using our vehicle safety software
• Counting emissions in collaboration with consultants
• Researching the best vehicles for our use cases
Small Steps, Big Impact
Electric vehicles (EV) have the potential to reduce capital expense for companies (when compared to diesel fuel) as well as their carbon footprint. By making the switch to EVs, we can benefit our business and our communities at the same time.
EV Trucks: By the Numbers
250+ miles of battery range on our Ford F-150 Lightnings 50% less emissions per mile* *compared to diesel version
0 Tailpipe emissions
CommunityMinded Business
A Stake in Our Community
Pittsburgh is no stranger to adaptation: from steel mills to biotechnology, from Heinz Field to Acrisure Stadium, the region relies on progress to maintain its relevancy in an ever-changing global marketplace. Today, the City embraces innovation, and as a major stakeholder in the region’s infrastructure development, S&B USA is on a mission to honor our dynamic local legacy and guide our shared future.
Growing throughout the 20th century in the City and its surrounding regions, Fay combined innovative solutions with a customer-focused approach. Community values accelerated Fay from small beginnings to its ongoing reputation as a powerhouse in the Mid-Atlantic construction industry.
In 2019, Shikun & Binui Ltd. acquired the parent company of Fay, beginning a new era of success and innovation in the region’s infrastructure market. With more than 75 years of local history, Fay, now growing exponentially through S&B USA, is honoring its local roots while nurturing its ability to adapt and change.
Our Local Commitment: Frankie Pace Park
Frankie Pace Park (I-579 Cap project) represents our commitment to supporting communities and moving towards a sustainable future. This project made big strides in the City of Pittsburgh, including:
• Establishing Frankie Pace Park, providing a bridge between the historically minoritized Hill District and Downtown
• Using sustainable landscaping to reduce stormwater runoff and mitigate heat island effect, a major concern in urban areas
• Incorporating design elements from local Hill District artists to promote cultural storytelling and maintain community autonomy
Nationwide Projects, Local Connections
Our growth has led us to solve crucial problems across the nation through infrastructure development. With each project, we invest countless into the communities local to our project sites, which makes our business ingrained into the fabric of communities far outside our Pittsburgh headquarters.
Places We Call Home
Bridging Communities
Our infrastructure development projects provide necessary transportation access across the nation. On projects like the Chatham Bridge Replacement (seen above), we went beyond roads and bridges to supply the community with a tangible connection point.
The bridge prioritizes form as well as function through use of a bridge path connecting downtown Fredericksburg with Stafford County’s Belmont-Ferry Farm trail and providing scenic overlooks to take in the lush natural surroundings of the area. We also added bike access to the bridge, a fanfavorite in the community.
What It Means To Give
Giving back means a lot to us. That’s why we partner with organizations local to our communities, our offices, and the causes we are most passionate about.
Who We Work With
Pittsburgh Parks Conservancy
We are always looking for ways to align our business with our community. Last year, S&B USA’s Senior Vice President and Chief Commercial Officer, Haggai Dror, volunteered to sit on the Board of Directors for the Pittsburgh Parks Conservancy.
The Parks Conservancy provides invaluable service restoring, maintaining, and funding public parks projects throughout the City. Their official public interest partnership with the City of Pittsburgh’s parks system has allowed the Parks Conservancy to raise more than $130 million and complete more than 22 major park improvement projects to date.
“Part
of ESG in action is caring for our people and communities. The best feeling is knowing that your time and work can bring joy to another person.”
Emily Phelps Chair,
Community Outreach Committee at S&B USA
Volunteering with Purpose
S&B USA recognizes that a healthy, thriving community allows our projects and our project teams to be successful in return. That’s why we prioritize philanthropy and community outreach as a core principle of our business initiatives. With the formation of the Community Outreach Committee in summer 2023, we have been able to formalize many of the volunteer efforts spearheaded by our employees.
Support for Each Other
Whether we’re cleaning up our neighborhood parks with the Pittsburgh Parks Conservancy or walking for maternal and infant healthcare with the March of Dimes, our philanthropic efforts reflect the communities where we work and live, and as a result, they contribute to the success of our company.
100+ hours of paid employee volunteer time (estimated)
20+ Community engagements
Tens of thousands donatedby S&B USA to communities and causes that we believe in
Supporting Tomorrow’s Construction Leaders
S&B USA partners with local colleges and universities to uplift our industry’s future leaders, innovators, and thinkers. Building relationships in on our own backyard allows us to both give back and ensure we have dedicated, skilled professionals ready to take on our industry’s future challenges.
We seek to support the people already involved in construction and inspire others to find their place in our industry.
Building New Paths with CCAC
Forging local partnerships is key to creating a robust, sustainable workforce. In 2023, S&B USA met with a class at the Community College of Allegheny County (CCAC) being taught by one of our own project managers. The class and program supports transitions out of the field and into the office for skilled laborers in the construction industry.
“This real-world experience reinforced my classroom learning because of this direct relation. Knowing the time I spend in the classroom is not wasted is not only a confidence boost but also motivation to learn more, as I now have proof I will be able to practically apply my education in the field.”
CCAC Student, Construction Planning Class
Collected from the student responses to S&B USA classroom visit
“The construction industry holds ample opportunities for growth, innovation, and change. Education is a key component to supporting infrastructure development for now and the years to come.”
Shannon Moss, PMP
Schedule Manager at Bridging Pennsylvania Constructors (S&B USA Joint Venture) Adjunct Professor at CCAC
Outreach for Innovation
In 2023, we partnered with local universities, organizations, and non-profits in pursuit of innovative ideas and future leaders in our industry. Through internships, outreach events, student competitions, and more, we provided resources for young leaders to make a difference in infrastructure development. Our involvement focused on educating students and future industry leaders on the evolving landscape of our industry.
At Carnegie Mellon University, S&B USA’s Vice President of P3 Development, Benjamin Nashpitz, was invited to lecture on the future of public private partnerships. His engagement with the University demonstrates our commitment to giving back to our community and providing educational opportunities with a focus on the future of construction.
Our 2023 Outreach Footprint
We collaborated with a diverse array of colleges, universities, non-profit organizations, and professional organizations. Throughout the year, we participated in and sponsored events and initiatives that contributed to pursuing innovation in our industry.
Center for Sustainable Business
We partnered with the Center for Sustainable Business at the University of Pittsburgh to dive deeper into the intersections of the private sector and promoting sustainable change. Our partnership led us to support a fellowship with a current MBA student.
Jesse Mortimer (pictured second from right) worked with our ESG team to educate for P3 infrastructure in Pennsylvania through a 10year development plan and a series of stakeholder dialogues.
What’s Next?
ESG in 2024 and Beyond
S&B USA is proud of the great strides we have made in 2023. Looking ahead, we plan to continue to develop robust initiatives centered around ESG, through a focus on people, planet, and the longevity of our business. In 2024, we plan to develop our ESG vision and goals, and in 2025, we will issue our 2nd Annual ESG Report. Our select focus areas for 2024 and beyond include:
Environmental
Protecting Our Planet
Upgrade our data capabilities for improved operational insights Data
Social
Deploy fleet and equipment technologies and platforms Fleet
Serving Our People
Formalize and expand our community and philanthropic efforts Philanthropy
Governance
Strengthening Our Business
Develop a new best-practice inspired ESG “risk and opportunities” process Risk and Opportunities
Engage with our supply chain and clients for further insights Supply Chain
Create a structured approach to outreach initiatives and community partners Community
Disadvantaged Business Enterprise policy and continued diversity engagement Diversity
Publish additional ESG policies aligned to our core values Policy
Continue transparency through the 2024 Annual Report by June 2025 Reporting
Appendix
Our Emissions Calculations
Our emissions calculations include S&B USA, S&B USA Construction, Fay S&B USA Construction, and Fay Southeast S&B USA Construction, which are our primary activity centers in the US. At this stage, we do not include construction joint ventures. S&B Energy – a related entity that owns and operates renewable energy across the US – is also not included.
Scopes
Scope 1 includes on-road and off-road diesel and gasoline, plus use of natural gas, propane and acetylene.
Scope 2 includes purchased electricity, steam and chilled water.
Our emissions calculations are focused on our own operations. Therefore, we do not yet calculate scope 3 (e.g., steel, cement, asphalt, lubricants and other aspects) from the upstream or downstream value chain.
Methods
Calculations are volumes based and are in reasonable accordance with Greenhouse Gas Protocol and GWP Fifth Assessment Report (AR5), with estimations for non-material locations and missing data.
Fuels: gasoline variants and diesel variants are based on fuel CO2 factors plus GWP conversions for CH4 and NO2 factors only (at the vehicle category/use type e.g. Construction EquipmentDiesel Fuel); together these are stated as CO2e.
Utilities: electric uses location-based method i.e., emissions factors at the State level for CO2e (combined generation and transmission & distribution figures based on EIA e-grids data). Natural gas uses EIA national emissions factors.
As our ESG capability matures we may seek additional boundaries, scopes and methods and are currently reviewing the applicability of targets and commitments. Emissions calculations are provided for indicative purposes and have not yet been independently assured.
Emissions by Scope
Calculating “Own Operations”
Overall, our “own operations” CO2e tons are calculated as shown, no other fuels or activities have been identified for our current scope 1 or scope 2 activities. We reserve the right to add additional activities and activities (either in these scopes or scope 3) as appropriate.
About This Report
This S&B USA Sustainability Report (Report) extends to S&B USA; S&B USA Construction; Fay, S&B USA Construction; Fay Southeast, S&B USA Construction; and S&B USA Concessions (Company). Except as otherwise expressly stated, it does not address Shikun & Binui, Ltd.; S&B USA Energy; applicable joint ventures; the operations of our suppliers; our channel partners; our contractors; or other business partners. To the extent the Report includes financial information, it is presented in US dollars.
As Corporate Social Responsibility (CSR), Environmental, Social and Governance (ESG), Sustainability, and similarly known topics are rapidly evolving, the reporting methods and/or metrics used in preparing the Report may also continue to evolve. The Company’s current reporting methods and/or metrics are based on, among other things, Company management’s assumptions believed to be reasonable at the time the Report was prepared. Statements of intention or aspiration contained in the Report speak only as of the date of the Report unless otherwise expressly noted. S&B USA undertakes no obligation to update publicly any statements in this report.
The Report may also include forward-looking statements regarding the Company that are based on management’s current expectations or projections about our products, markets, associates, and programs. These statements are no guarantee of future performance, conduct, or policy and are subject to various factors, many of which are beyond the Company’s control. Therefore, the actual conduct of our activities discussed in the Report may differ materially in the future, and actual results may vary as well.
The information in the presentation is basic and concise while the public reports of S&B USA contain more detailed information which may be different from, or additional to, the information contained in this presentation. In the event of any contradiction or discrepancy between the presentation and the public reports, the information in the public reports prevails. Thus, the presentation is not intended to serve as a substitute to reading and of S&B USA 's public reports.
Unless otherwise indicated, information contained in this presentation concerning our industry, competitive position and the markets in which we operate is based on information from independent industry and research organizations, other third-party sources and management estimates. Management estimates are derived from publicly available information released by independent industry analysts and other third-party sources, as well as data from our internal research, and are based on assumptions made by us upon reviewing such data, and our experience in, and knowledge of, such industry and markets, which we believe to be reasonable. In addition, projections, assumptions and estimates of the future performance of the industry in which we operate and our future performance are necessarily subject to uncertainty and risk due to a variety of factors, including those described above.
These and other factors could cause results to differ materially from those expressed in the estimates made by independent parties and by us.
Unless otherwise indicated, information contained in this presentation concerning our industry, competitive position and the markets in which we operate is based on information from independent industry and research organizations, other third-party sources and management estimates. Management estimates are derived from publicly available information released by independent industry analysts and other third-party sources, as well as data from our internal research, and are based on assumptions made by us upon reviewing such data, and our experience in, and knowledge of, such industry and markets, which we believe to be reasonable. In addition, projections, assumptions and estimates of the future performance of the industry in which we operate and our future performance are necessarily subject to uncertainty and risk due to a variety of factors, including those described above. These and other factors could cause results to differ materially from those expressed in the estimates made by independent parties and by us.
Cautionary Statement Regarding Forward-Looking Statements
Except for historical information, certain matters discussed in this Report may be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, all projections and anticipated levels of future performance, future opportunities, and any other statements about managements’ future expectations, beliefs, goals, plans, or prospects. Words or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “may,” “could,” “should,” “will,” “budgets,” “outlook,” “trends,” “guidance,” “focus,” “on schedule,” “on track,” “is slated,” “goals,” “objectives,” “strategies,” “opportunities,” “poised,” and similar expressions are intended to identify such forward-looking statements. Forward looking statements involve risks, uncertainties, and other factors that may cause actual results to differ materially from those discussed herein and may not align with historical performance and events due to a number of factors. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements, and caution should be exercised against placing undue reliance upon such statements. We are under no duty to update publicly any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.