Legence - Sustainability Report 2024

At Legence, we are creating a future where energyefficient, healthy, and sustainable buildings are the norm, not the exception.

A MESSAGE FROM OUR CEO

Our trademark, Energy Transition Accelerator™, perfectly captures our collective potential to make the buildings that shape our lives energy efficient, healthier, and more sustainable.

In this annual Sustainability Report, you will read about how Legence has continued to mobilize our collective potential by elevating our people, delivering excellence, and growing sustainably.

In 2023, Legence continued to prioritize a culture of safety across our operations by engaging our employees in what it means to be safe and prepared for every situation. At Legence, safety will always be our number one priority. We want our people to work safely in their offices, at worksites, and on the road so they can get home safely. I am proud to announce that we attained a best-in-class total recordable incident rate (TRIR)1 of 0.59, with over seven million work hours logged in 2023. A feat made possible by our collective commitment to put safety first each and every day.

To understand our environmental impact, we looked at our operations, mapping and analyzing our carbon footprint to help realize our roadmap to Net Zero by 2040. We have made great strides towards finalizing an avoided emissions methodology. Completion of this work will help us draw a direct line between the suite of stackable services we provide our clients and a reduction in global greenhouse gas (GHG) emissions.

Legence continued to put people first with training programs, opportunities to connect with local communities, and employee benefits to create workplaces that are both dynamic and fulfilling. We reviewed results from our first-ever company-wide engagement survey to find ways to better serve the people who make up our legion of companies and connect them with resources, tools, and giving opportunities they identified as important. Our efforts to deliver career development opportunities expanded with a focus on early career intervention, including continued sponsorship of the U.S. Department of Energy Solar Decathlon to support the next

generation of building experts. Along the way, we saw employees through triumphs and milestones like Steve Rusconi’s half a century at Therma and Yearout’s one million hours worked without a recorded injury. It is in these stories and many more that we take great pride and celebrate.

Throughout the year, we relied on our leaders to lead by example with increased stakeholder engagement among colleagues and across industry associations, amplifying our voice on advisory boards and planning committees at the regional and national levels. We visited our colleagues across the country with in-person town halls where we had the opportunity to hear first-hand what challenges and opportunities result from connecting our legion of companies. We are excited to share those results and more on the pages that follow.

At the end of the day, it will take all of our collective efforts to turn the tide of climate change. Here at Legence, we’re committed to our shared mission of delivering high performance buildings by leveraging our teams’ integrated approach, technical expertise, and passion for our customers, communities, and colleagues. Together, we are creating a future in which energy-efficient, healthy, and sustainable buildings are the norm, not the exception.

Legence is proud of our people for showing up and delivering on our commitment to creating a sustainable future—faster.

2023 RESULTS

TOTAL RECORDABLE INCIDENT RATE 1

0.59

A best-in-class safety rating secured with top-notch training and tools.

HOURS LOGGED

7M+

A dedication to sustainable building design.

GHG INVENTORY

4.19

Emissions per employee.2 A 15% reduction from 2022.

Jeff Sprau Chief Executive Officer, MTCO2e

SAFETY TRAININGS

88K+

Hours of safety training.

TRAINEES + APPRENTICES

1K+

Professionals engaged in workforce development initiatives.

WE ARE

OUR IMPACT

ESG / SQ FT

5.5B+

As an ESG advisor, Legence is maximizing the efficiency of more than 5.5 billion square feet across 22,000+ buildings.

NET ZERO / SQ FT

10M+

Legence has undertaken over 10 million square feet of net zero energy design3 and implemented more than 140 MW of renewable energy generation.

RENEWABLE ENERGY

1.1GW+

Legence consultants are advising clients on more than 1.1 GW of on-site renewable energy projects across the U.S.

AS AN ENERGY TRANSITION ACCELERATOR™, LEGENCE TRANSFORMS BUILDINGS TO PAVE THE WAY FOR A SUSTAINABLE FUTURE—FASTER.

Legence, a Blackstone Portfolio Company, is North America’s leading, integrated provider of energy efficiency and sustainability solutions for the built environment. We specialize in helping clients decrease operating costs, reduce carbon emissions, and enhance occupant well-being and productivity. From advisory services and design to construction and ongoing maintenance, we offer a comprehensive suite of Stackable Solutions™ across the entire building lifecycle. With over a century of experience, we have the expertise to implement high-performing projects with unmatched outcomes, serving industry leaders in mission-critical and other essential sectors such as data centers, semiconductors, life sciences, healthcare, education, and more.

ENERGY EFFICIENCY + RENEWABLE PROJECTS

$21B+

Our advisory, design, and implementation services have delivered over $21 billion in energy efficiency and renewable energy projects over the past three years.

OUR VALUES

VISION

Create a future in which energy-efficient, healthy, and sustainable buildings are the norm, not the exception.

MISSION

To deliver high-performance buildings by leveraging our teams’ integrated approach, technical expertise, and passion for our customers, communities, and colleagues.

PURPOSE

Improve the well-being of people and the planet by unlocking the energy efficiency potential of buildings.

OUR SERVICE LINES

ENERGY ADVISORY+ SUSTAINABILITY SOLUTIONS DELIVERY

Sustainability Consulting MEP Contracting Services

Consulting Engineering Preventative Maintenance + Service

Program Management In-Plant Services

Energy Solutions Fabrication, Process, + Controls

OUR

END MARKETS

Data Centers Higher Education

Semiconductors K-12 Schools

Life Sciences Government

Healthcare Commercial Real Estate

What is an ENERGY TRANSITION ACCELERATOR™ ?

Simply put, we are in the business of transitioning our built environment to operate off low-or zero-carbon. Legence offers Stackable Solutions™ to help our clients achieve their efficiency and sustainability goals faster and more effectively than ever before.

Our Stackable Solutions™

As an Energy Transition Accelerator™, Legence transforms buildings to ensure the promise of tomorrow at speed and scale, offering a comprehensive suite of Stackable Solutions™ across the entire building lifecycle.

About 80% of the buildings that exist today will exist in 2050.

What we build today matters, but retrofitting existing buildings is even more critical.

Legence has solutions for both.

Stackable Solutions™ for a Sustainable Future

At Legence, we are all connected by our desire to improve the well-being of people and the planet by transforming and unlocking the energy efficiency potential of buildings.

TRANSFORMING BUILDINGS

The powerful and interrelated forces driving the energy transition and sustainability in the built environment:

DECARBONIZATION + CLIMATE CHANGE

RESOURCE DEMANDS

STAKEHOLDER REQUIREMENTS

POLICY CHANGES

Retrofitting existing buildings presents a complex and time- consuming challenge, yet it’s crucial for achieving a sustainable future. Mitigating a building’s environmental impact requires a multi-faceted approach tailored to the facilities’ unique characteristics.

LEGENCE’S SIMPLIFIED PROCESS

Our experienced advisors, engineers, and craftspeople deliver comprehensive energy efficiency and sustainability solutions across diverse building types. We offer a full suite of services, from advisory to design, construction, and ongoing maintenance, that span the entire building lifecycle.

Our clients receive a single point of contact to integrate services customized to their specific needs seamlessly.

LEGENCE’S SOLUTIONS ARE

ƒ Proven and accredited

ƒ Holistic

ƒ Customizable

ƒ Comprehensive

ƒ Flexible to project budgets and timelines

ƒ Reducing complexity and minimizing uncertainty

BUILDING A SUSTAINABLE FUTURE—FASTER

SUSTAINABILITY CONSULTING

CONSULTING

ENGINEERING

How We Support Building Efficiency

Accelerating the transformation of the built environment.

With Stackable Solutions™ designed to drive building performance, Legence reduces energy and operating costs and overcomes any project challenge. See below how we interact with building owners and managers. From advice on upfront capital decisions to design and construction and developing decarbonization goals to helping our clients track building performance, Legence is a one-stop-shop for addressing building efficiency and sustainability.

PROGRAM MANAGEMENT

ENERGY SOLUTIONS

MEP CONTRACTING

IN-PLANT SERVICES

PREVENTATIVE MAINTENANCE + SERVICE

1. LISTENING

Every Legence engagement begins with an internal project manager who works to fully understand our client’s needs. The project manager engages our experienced team of advisors, designers, planners, and builders to gather an all-star project team.

2. ADVISING

Our advisory services help clients develop the plan, including any sustainability components, to fine-tune the project roadmap and meet a client’s goals.

3. FUNDING

We leverage our deep experience in both public and private funding to develop a financial plan that fits the project and client’s financial parameters.

4. DESIGNING + PLANNING

Our designers work alongside our planning and construction teams to develop a holistic blueprint, creating an environmentally sound design structured to last. Legence’s design-build process is faster and more effecient by minimizing disruptive hand-offs between teams.

5. BUILDING

Legence companies collaborate to build the project, using trusted and efficient solutions. Our full suite of in-house services and fabrication capabilities greatly minimizes procurement and overall project execution time.

6. COMMISSIONING

Our quality assurance / quality control (QA/QC) team performs commissioning to confirm the project meets energy and operational goals along with any regulatory requirements. The project manager maintains accountability for any issues that may arise.

7. MEASURING

Legence supports clients through the full building lifecycle. Projects with guaranteed energy savings are tracked and performance is verified.

FABRICATION, PROCESS, + CONTROLS

Our Commitment to Improving the Built Environment

Approach to Sustainability

Legence has set clear commitments to increase and prioritize environmental, social, and governance (ESG) topics within our strategy to achieve sustainability excellence across our organization. Our commitments cover a range of topics, including safety, health and wellness, climate action, diversity, equity and inclusion (DEI), and strong governance.

Our principles of service, outlined on this page, put us on a path to accelerate this strategy, which is catalyzed by the dynamic, industry-leading organizations that make up our legion of companies.

Principles of Service

ƒ Performance: In everything we do, our work seeks to deliver the highest levels of business, environmental, and asset performance to our clients.

ƒ Partnership: Our success is our client’s success and is always the result of skill, dedication, and collaboration. To achieve our goals, we rely on every stakeholder.

ƒ Responsibility: We have a duty of care for our partners and communities. We are active corporate citizens, working in an equitable and environmentally friendly manner.

Our strategy embodies these principles as we advise our clients on decarbonization and climate adaptation approaches that pave the way for a sustainable future, faster. Throughout our business units we are working to support our partners, their communities, and the world we all share.

As a legion of companies, united as Legence, we are a formidable force for large-scale, positive impact, delivering energy efficiency, sustainability strategies, and building solutions more effectively than ever before.

STEVE HANSEN Chief Operating Officer

Sustainability

Focus Areas

Legence has made conscious efforts to identify commitments that help facilitate our sustainability approach and hold us accountable for our actions.

See each of our commitments at the start of each section throughout this report. At a high level, you can break out our sustainability goals into four categories:

Safety

Legence’s highest priority is safety. Wherever we are in a building’s ecosystem, on construction sites, in our offices, on the road, and everywhere else in between, we care for the human aspect of our work, first, and always through routine training, education, and drills.

The Environment

Legence monitors our own carbon footprint and has a path set toward net zero carbon emissions status by 2040.

Our People

Legence is fostering a meaningful culture that drives career progression. We do this through attracting and retaining talented individuals celebrated for their unique skills and perspectives, and providing them with industry-leading tools, training, and development opportunities.

Good Governance

Legence’s leadership and executive teams hold our entire operations accountable for demonstrable industry leadership and compliance.

Awards and Industry Leadership

Our people drive our potential.

At Legence, we have built a workforce of individuals who collectively bring expertise and change to our industry for the betterment of our planet and its inhabitants. Our client work this past year has extended our reputation for raising industry standards and setting ambitious precedents in building design and operations.

AWARDS

Recognized as #1 in 2023’s Top 10 Mechanical Contractors in Arizona

Bel-Aire Mechanical has helped mold the HVAC industry in Arizona through a team of dedicated professionals backed by cutting-edge training. Placed 2nd in the ASHRAE International Technology Awards

Therma’s Mehrdad Alipour and Harikrishna Patadiya’s contributions to the Colovore Data Center project helped secure this award, which signifies successful and innovative building design focused on energy conservation for a critical facility. (see page 13) Awarded

We have field staff that are thirdgeneration A.O. Reed employees and those that, for the last 30 years, have never worked elsewhere. As a union contractor, that’s pretty rare.

DAVID CLARKIN President, A.O. Reed & Co.

A.O. Reed & Co. President, David Clarkin, emphasized how receiving the Top Workplace award underscores the company’s commitment to always taking care of employees first.

Commitment to Sustainable Design

Earns National Recognition

CMTA was recognized as a Business Leader by the Green School National Network and U.S. Green Building Council (USGBC)’s Center for Green Schools “2023 Best of Schools Award.”

CMTA was honored among leading design firms working to create learning environments that foster efficiency, health, and a resilient future, collaborating with clients to create high-performing and sustainable K-12 schools across our nation.

CMTA awarded eleven 2023 ASHRAE Regional Technology Awards

The professionals at CMTA show consistent execution in the design of innovative technological concepts that enhance occupant comfort, indoor air quality, and energy conservation.

CMTA Engineers Featured in ConsultingSpecifying Engineer Magazine’s 40 under 40

Roger Maybrier, Steve Torre, and Kiersten Washle made the 40 Under 40, highlighting our team’s leadership and dedication to the science and strategy of high-performance buildings.

Business Intelligence Group: 2023 Sustainability Leadership Award

P2S was awarded the Sustainability Leadership Award by the Business Intelligence Group for the second year in a row. This award honors organizations across various industries that have made sustainability an integral part of their business practice.

Electrical Construction & Maintenance: 30 Under 30 All Stars

Emily Boss, an electrical professional at P2S, made the 30 Under 30 All-Stars by demonstrating a deep level of innovation and creativity in incorporating technology into their projects.

The Nest Climate Campus at Climate Week NYC

Legence’s presence and speaking opportunities at The Nest Climate Campus during New York City’s Climate Week drilled down on the business and ethical case for decarbonization. Nathalie Kiersznowski, Senior Associate of Black Bear Energy, and Erin Richmond, Executive Vice President of RE Tech Advisors, joined our Chief Growth Officer, Arif Quraishi, to help explain the nuances and opportunities of decarbonizing the built environment.

2023 Greenbuild International Conference & Expo

Leaders from Legence, RE Tech Advisors, CMTA, and Black Bear Energy engaged audiences on a breadth of green building topics at the 2023 Greenbuild International Conference & Expo. From steering workshops to hosting speaking sessions and panel discussions, our team of building experts helped distill the benefits and strategies for building better, more efficient, and environmentally conscious buildings.

Institutional Real Estate, Inc.’s Real Assets Adviser

Podcast, “Major Property Investors Taking Money Off the Top”

Black Bear Energy’s Victoria Stulgis discussed the benefits and landscape of rooftop solar energy across the United States with Real Assets Adviser, pointing out the promise behind large-scale solar development and rooftop leasing schemes.

Accelerating Building Projects with IRA and IIJA Incentives

Legence brought together industry experts from inside and outside of our organization, including representatives from The White House, to communicate the benefits and encourage the use of the Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA).

Legence CEO Tours

Therma’s Property with Silicon Valley Business Journal

Jeff Sprau spoke about Legence’s core ability to make buildings better and more efficient, and how the attitude toward sustainable buildings has shifted.

ARTICLE

Navigating Climate Risk Management: Strategies and Steps for Real Estate Organizations

Katie Fluence, Chang Liu, and Jennifer Kennedy of RE Tech Advisors described the framework strategy RE Tech helps clients develop for impactful climate risk management in the GRESB Quarterly, Americas newsletter.

ARTICLE

Unambiguous Climate Risk: Building Performance Standards

RE Tech Advisors’ Deb Cloutier and Colin Curzi break down the impetus of Building Performance Standards (BPS) and how they affect real estate owners’ and managers’ operational and investment strategies across the country, including the costs associated with inaction.

ARTICLE

IMN ESG & Decarbonization Real Estate Forum

Black Bear Energy, CMTA, RE Tech Advisors, and Legence collaborated at the annual Forum to accelerate ESG impact and decarbonization efforts in new construction and throughout the built environment.

Serving the Future: Decarbonizing Data Centers

CODIFYING EFFICIENCY AT COLOVORE

Colovore LLC, a co-location data center in Santa Clara, California, set out to design and build the most sustainable, energy-efficient, high-density data center in the co-location industry, and they turned to Legence ’s team of experts to help execute their plan. Using innovative design approaches, automation, and advanced monitoring throughout the project, Legence delivered a best-in-class power usage effectiveness (PUE) and reduced equipment capital, maintenance, and operating costs. Various sensing devices installed throughout the data center floor also provide a dynamic temperature gradient visualization that helps Colovore rectify localized heat zones and comply with end clients’ temperature specifications.

RESHORING THE WAVE OF DIGITIZATION AT INTEL

Legence runs the operations at an Intel chip-making plant, helping sustain jobs and expertise in chips and semiconductor manufacturing right here in the United States. As global economies and supply chains become increasingly digitized, our employees will continue gaining highly sought-after skills, and we, as an organization, will have insights into deploying and delivering such technology efficiently and sustainably.

Sustainable Skylines: Retrofitting the Cities of Tomorrow

ENERGIZE DENVER

Legence was chosen to lead the effort to revamp some of Denver’s most public-facing buildings, including the Red Rocks Conference Center and Theater to make progress toward the Energize Denver targets using performance contracting. At a high level, Energize Denver is an ordinance that went into effect in early 2023 to reduce GHG emissions and energy consumption across Denver by 30% by 2030 and reach net zero energy by 2040.

Flying Above the Rest: Geothermal in the Aviation Industry

GEOTHERMAL ENERGY SYSTEM AT LOUISVILLE REGIONAL AIRPORT AUTHORITY

Designing and building the largest geothermal system of any airport in the United States.

Legence was selected by the Louisville Regional Airport Authority (LRAA) to execute the design and manage the construction of terminal improvement projects. The geothermal system installed saves massive amounts of energy by using the earth’s natural temperature to heat in the winter and cool in the summer, replacing the need for additional heating and cooling equipment. In addition to the energy savings, the HVAC system in place at Louisville International Airport will increase the amount of outside air brought into the terminals and other spaces, contributing to a healthier and more comfortable environment for travelers and airport staff. Legence was selected for this project in large part due to its commitment to cost savings and pricing transparency, supported by a history of results throughout the U.S. By and large, the numbers of this project speak for themselves:

ƒ 80% carbon reduction compared to traditional systems

ƒ 2-3 times the average traditional system lifespan

ƒ 648 vertical geothermal wells (largest of any airport in the U.S.)

ƒ 1,000,000 Sq. Ft. of future expansion

ƒ $400,000 annual HVAC operating cost savings (with the possibility of future savings)

CLEAN ENERGY AT LITTLE ROCK AIRPORT

Legence is set to break ground on a clean energy project at Arkansas’s Little Rock Airport that is working towards becoming 100% electric. Additionally, the project aims to serve as a resilient microgrid to feed clean energy to the greater Arkansas community.

Old Schools New Tricks: Zero Energy Higher Education Facilities

UNIVERSITY OF CALIFORNIA CAMPUS ECOSYSTEM

Legence builds on an extensive history working on University of California (UC) projects, specifically UC San Diego (UCSD), UC Los Angeles (UCLA), and UC Irvine (UCI), where we have built classrooms, chemical and biological labs, and large student housing projects. As the projects’ mechanical contractor, Legence collaborates with the university to make progress on its 2013 Carbon Neutrality Initiative and broader decarbonization plan through innovative and efficient building design. Meeting the mark on every UC project, we work with the college to secure LEED certifications, prioritize electrification, and collaborate with other trades to deliver superior builds. At UCSD, Legence has built everything from student housing projects to stateof-the-art laboratories. Currently, the team is working towards LEED Gold status for the fully electrified UCSD Pepper Canyon project, a large student housing project, which is benefiting from a unique design build that utilizes “PODs.” PODs are prefabricated bathrooms made off-site from a single vendor. This is the largest POD project that the UC system has built, which has proven to reduce onsite labor and help save up to 20% of the construction schedule.

ZERO ENERGY AT CATAWBA COLLEGE

Landmarked by the Knox Rose Garden, Catawba College is breaking ground on a geothermal energy project that is set to help deliver 100% clean energy to the campus. Engineers at Legence were tapped to oversee the management, design, and implementation of this first-of-its-kind zero-energy retrofit and fuel conversion. The logistics behind a switch to a closed-loop geothermal system are arduous and require complex financing solutions and skilled professionals. Legence has embraced the project, uncovering rebates and federal incentives for the project’s budget and continued support, before identifying efficiency upgrades, electrification opportunities, solar energy generation, and clean energy partnerships. While the existing buildings remain unchanged in appearance, the heating and cooling systems at work beyond the façade will be reengineered by Legence to deploy clean energy into classrooms, study halls, recreation facilities, dormitories, and parking stations across Catawba’s campus.

The

journey to a zero-carbon campus requires a roadmap. Catawba College partnered with CMTA, a Legence company, to create that guide and facilitate implementation because of our team of trusted professionals and project performance. CMTA has helped develop a plan that is both fiscally responsible and practical.

JASON VOLZ Project Manager, CMTA

WE ARE A Safety-First Culture

We pride ourselves on safety; it is a practice ingrained throughout our business units and a promise we keep by supplying our teams with industry-leading tools, equipment, benefits, and protocols.

Safety starts with our leadership and flows into our day-to-day operations. At our facilities, we promote occupant health through improved indoor air quality, access to daylight and natural ventilation, health and wellness amenities, and healthy building materials and furnishings. Legence-wide we have safety communication plans and protocols to help drive our safety-first culture and instill best practices throughout our operations.

OUR COMMITMENTS

ƒ MAINTAINING A SAFETY-FIRST CULTURE, PROMOTING THE HEALTH AND WELLNESS OF OUR TEAM AND AN INCIDENT-FREE WORKPLACE

ƒ SPEARHEADING PREVENTION THROUGH DESIGN IN FACILITIES

ƒ PRIORITIZING MENTORSHIP AND FOSTERING A CULTURE OF CONTINUOUS LEARNING

Best-in-Class Safety Task Force

Safety for all requires a collaborative, team-centric approach.

We created a Best-in-Class (BIC) Safety Task Force to act as a foundation for driving safety initiatives and their implementation across our legion of companies. We started by implementing a survey across Legence to better understand how our organization as a whole can provide a best-in-class safety environment to our 5,000+ employees. Leading this task force is our Director of Environmental Health and Safety (EHS), Zach Gill, who focuses on delivering on our commitment to safety. To date, we have launched three safety initiatives aimed at lowering incident rates for our most vulnerable employees, those within their first two years of employment.

WE FOCUSED ON

ƒ Awareness ƒ Mentorship ƒ Pre-Task-Planning

Each initiative involved team members from across our business units to develop a minimum standard of expectation. We also have a charter and sample program and track key performance indicators (KPIs) associated with these programs monthly, including recorded incident and loss-time incident rates, which are reviewed by the EHS Director and the executive committee for continuous improvement.

SAFETY EXCELLENCE

ƒ Implemented in March of 2023, Legence’s Pre-task Planning (PTP) Initiative runs through a list of preventative actions and safety checks to stay aware and ahead of risks and hazards at job sites. Over 5,000 PTP’s reviewed by business units in 2023, nearly 5x our goal of 1,500/year.

ƒ A.O. Reed awarded Sheet Metal and Air Conditioning Contractors’ National Association Safety Excellence Award 2023

SAFETY BY THE NUMBERS

BEST-IN-CLASS

TOTAL RECORDABLE INCIDENT RATE

0.59

IN 2023

Industry average: 3.30 (BLS 2021)

DEDICATED SAFETY PROFESSIONALS

34

IN 2023

Professionals across Legence with multiple professional safety certifications from the Board of Certified Safety Professionals

LOSS-TIME INCIDENT RATE

0.03

IN 2023

Industry average: 1.40 (BLS 2021) 2

SAFETY TRAINING HOURS

88K+

To keep our people safe

SAFETY COMMUNICATION PLAN

785

Safety communications delivered in 2023

Legence target: 648

82%

Open rate on safety communications in 2023

Legence target: 80%

A SAFETY MILESTONE

1M

Human hours worked without recorded injury at Yearout Mechanical 4 5

Investing in Safety

Whether our people are working in the office, on a job site, or anywhere in between, safety is our number one priority.

Safety-focused activities and initiatives

This past year, Legence hosted and organized a variety of safety-focused activities and initiatives, including:

ƒ National Construction Safety Week activities

ƒ Post incident stand-downs

ƒ Appreciation lunches

ƒ Live safety demos and guest speakers

ƒ Group training on equipment and fall protection

ƒ Tailgate and Toolbox Talks

ƒ Heat illness prevention

ƒ Emergency response and action plans

ƒ Safety checklists and job aids

NATIONAL CONSTRUCTION SAFETY WEEK 2023

Every May, we participate in Safety Week across Legence, with special events focused on safety education. This year, our Safety Week campaign theme was “Strong Voice, Safe Choices,” and we took the opportunity to reaffirm our dedication to safeguarding our people and emphasizing the importance of safety preparedness.

TAILGATE AND TOOLBOX TALKS

We engage our on-site teams in discussions to focus on a particular safety issue, such as controlling energy sources to prevent hazards and injury. These relaxed group interactions highlight the risks and procedures our employees should be aware of in a way that leads to candid conversations and live feedback to ensure everyone is prepared to stay safe.

CREATING A CRISIS COMMUNICATION PLAN

Legence has established a process to address crisis situations readily and effectively should one occur in our operations. First and foremost, we consider threats to safety and immediately dial 9-1-1. Thereafter, we have two hotlines where employees can alert leadership of a potential, occurring, or completed crisis. To encourage both timeliness and accountability, steps are taken to alert all appropriate and affected parties and activate the Crisis Response Team, which is comprised of senior leadership.

WE ARE Positively Impacting the Environment

The built environment contributes 40% of all the carbon emissions on the planet, so the work we do within our business units makes an impact beyond the United States. In addition to helping our customers reduce their environmental impact, we are working to reduce our own carbon footprint.

Our commitments are how we gauge and track our success. As we continue to grow our organization and develop greater efficiencies throughout our operations, our goals and KPIs will adapt to ensure we are measuring and making progress on material aspects of our business.

OUR COMMITMENTS

ƒ ACHIEVING AND MAINTAINING CARBON NEUTRALITY ANNUALLY, STARTING IN 2024

ƒ ACHIEVING NET ZERO STATUS ACROSS LEGENCE CORPORATE OPERATIONS BY 2040

ƒ ANNUALLY REPORTING OUR GHG EMISSIONS AND PROGRESS TOWARDS NET ZERO

ƒ REDUCING SCOPE 1 AND SCOPE 2 EMISSIONS PER EMPLOYEE BY 15% WITHIN THREE YEARS, FROM A FIXED BASE YEAR OF 2022

Strategic decarbonization is reducing our environmental footprint

Driving Towards Net Zero

Just as we advise our clients to develop net zero strategies, Legence is developing interim targets for carbon emissions reduction in advance of our Net Zero by 2040 goal.6 This roadmap shows our progress to date as well as the initiatives we plan to explore in the future.

DATA COLLECTION AND OPPORTUNITY ASSESSMENTS

BENCHMARKING DATA INVENTORYING GHG EMISSIONS

OPTIMIZING BUSINESS TRAVEL

INTEGRATING BEST PRACTICES

EFFICIENCY OPTIMIZATION

CATALOGING FLEET OPTIMIZATION

PRIORITIZING GREEN BUILDINGS

CONSERVING WATER AND REDUCING WASTE

Our Lanes and Pit Stops

BENCHMARKING DATA

Legence will continue to benchmark each facility in ENERGY STAR® Portfolio Manager® and onboard new facilities to track and manage our building data. We have set up auto benchmarking where available to reduce errors, improve accuracy, and streamline our utility data collection.7

INVENTORYING GHG EMISSIONS

Legence is using data from our annual GHG Inventory to map emissions and track progress towards our goal to achieve net zero status by 2040. We are using the inventory to better understand our operations and help prioritize investments in operational efficiency and procurement.8

OPTIMIZING BUSINESS TRAVEL

Business units across Legence use Onriva, a centralized online travel booking platform, to track and manage scope 3 emissions from employee business travel.

INTEGRATING BEST PRACTICES

We are implementing an ESG Program to help new companies integrate into Legence’s ESG strategy. The program includes guidance on tracking and reporting operations data for use in our annual GHG Inventory and avoided emissions accounting, incorporating best practices, and driving both efficiency and sustainability into operations. Legence uses Trove™, a data-driven tech-enabled web-based platform that helps optimize building performance and manage risk.

CATALOGING FLEET OPTIMIZATION

Legence developed a transition strategy to electrify our fleet of vehicles as electric vehicles (EVs) become more widely available and are developing a company-wide policy for EV purchasing. Legence is looking to tap into incentives from the IRA to grow the number of EVs and charging stations in use across our operations. (see page 28)

PRIORITIZING GREEN BUILDINGS

We strive to certify and maintain environmental certifications for company-owned facilities, in addition to partnering with landlords on leased properties to promote sustainable building performance, maintenance, and design.

CONSERVING WATER AND REDUCING WASTE

Legence has engaged JLL to help manage leasing across our business units to get a better view of our lease agreements. We are looking to add data-sharing clauses in all new and renewing leases in order to obtain actual consumption metrics that we can confidently benchmark and manage.

PROCURING 100% RENEWABLE ENERGY

Legence has made incremental progress toward purchasing green power with a commitment to purchase 100% renewable energy for our operations. As a precursor to that commitment, we have conducted a cost analysis to identify the total investment needed to attain 100% green power and have identified a vendor that can help us move this strategy forward in 2024 and beyond.

ASSESSING RENEWABLE ENERGY OPPORTUNITIES

Legence is developing a decarbonization plan that provides a framework to achieve net zero while continuing to grow sustainably as a business. Legence has engaged a vendor to strategically support our decarbonization journey and complete a green power procurement opportunity assessment in 2024. This will help drive progress toward our goal to procure 100% renewable energy at all facilities.

INVESTIGATING RENEWABLE ENERGY PROJECT SPONSORSHIP

We are assessing the feasibility of off-site renewable energy sponsorships that can help us reach our net zero goal and support the development of new renewable energy generating resources.

GROWING PARTNERSHIPS

We utilize renewable energy credits (RECs) as a last resort after exhausting all operational efficiencies and maximizing green power procurement. We will work with our vendor partner to source environmental certificates needed to offset any remaining emissions from our value chain to achieve carbon neutrality, starting this year.

SPONSORING RENEWABLES AND MITIGATION PROJECTS

We have the potential to explore opportunities for direct sponsorship of renewable energy, carbon removal, or mitigation projects to take us the last mile on our road to net zero.

GHG Inventory

2023 Legence Operational Emissions

Tracking Progress & Improving Operational Efficiency

As an interim milestone on our journey to net zero, Legence has committed to reducing scope 1 and scope 2 emissions per employee by 15% within three years from a fixed base year of 20222. Using an intensity-based metric enables us to track progress in optimizing efficiency of day-to-day operations at individual business units while continuing to grow sustainably.

Emissions per employee is a comparable metric across Legence’s diverse business units, which vary in size, typical service offerings, and number of fleet vehicles. This metric also reflects our most valued asset – our people. 2022 was selected as the base year because it is reflective of most Legence acquisitions since 2020 and business units had better data coverage for scope 1 and 2 emissions in comparison to previous years.

REDUCTION

15%

2022 EMISSIONS PER EMPLOYEE

4.93

MT CO2e

2023 EMISSIONS PER EMPLOYEE

4.19

MT CO2e

The acquisition of new business units and a focus on hiring partially explains the reduction in emissions per employee observed in 2023; Legence employee head count increased at a faster rate than scope 1 and 2 emissions year over year. We will continue to monitor emissions per employee across all of Legence and at the individual business unit level to inform our decarbonization strategy and investments in operational efficiency and renewable energy procurement.

Methodology to Assess Avoided Emissions

Legence engaged Holtara, a global sustainability advisory firm, to develop a methodology for accounting for avoided emissions to understand our decarbonization contributions and its societal impacts.

This is new territory for carbon accounting and the real estate industry. Legence’s research has been focused on identifying and establishing industry best practices given the breadth of our service offerings.

Over the last year, we’ve investigated several methodologies through which our business units could quantify the emissions our customers avoid as a result of the delivery of our advisory, construction, and engineering services.

As we continue exploring this topic, we anticipate applying our discoveries to help scale our impact and advance our customers’ decarbonization objectives.

Green Buildings

When exploring options for our leased spaces, we look for sites that are transit-oriented, close to green space, and green building certified. At our offices, we collaborate with our landlords to integrate green and high-performance building language into our leases to track and improve our environmental performance.

SPOTLIGHT

ENERGY STAR® Tenant Space

RE Tech’s McLean, Virginia, office received ENERGY STAR Tenant Space Recognition in 2023 for their efforts to improve the efficiency and energy performance of their office space. This recognition from the Environmental Protection Agency’s (EPA) ENERGY STAR® program validates tenants’ efforts in leased spaces to increase efficiency.

SPOTLIGHT

Tackling E-Waste with Our IT Department

In 2023, Legence’s IT department launched an official electronic waste (e-waste) program with an external, verified electronic recycling partner to help dispose of outdated and non-functioning electronic products and ensure our operations and asset disposal processes are as environmentally friendly as possible.

LEGENCE TO DATE

RECYCLED 15K+

Pounds of e-waste

DIVERTED 400+

Pounds of toxic metals from landfills

REDUCED 21K+

Pounds of greenhouse gases

SAVED

2.3K+

Gallons of water

RECOVERED 5K+

Pounds of metal

Clean Energy

Clean energy is a key element of our emissions reduction strategy.

With the passing of the IRA by the U.S. federal government, renewables continue to become more cost-effective. At Legence, we are committed to procuring green energy for our entire organization.

Electric Vehicles

Legence’s largest source of emissions is our vehicle fleet. As such, we are working to rapidly integrate EVs into our operations, wherever feasible.

Legence is actively engaging in dialogue around EV feasibility, understanding that electrification is a key strategy for decarbonization. We intend to adopt a company-wide EV purchasing policy in 2024 that will accelerate the purchase of EV sedans and hybrid vehicles and, where appropriate, encourage the installation of electric vehicle supply equipment at Legence facilities. The main barriers to rapidly electrifying our fleet remain the availability of EVs, which are in high demand and not readily available for the specialized vehicles we own and operate, and the performance of EVs, where battery range and operating capacity represent limiting factors.

Legence has conducted a fleet assessment to gain insight into our EV readiness. We’ve also investigated potential incentives and rebates that would help us accelerate EV purchases and will pursue these where feasible to reduce our scope 1 emissions.

WE ARE Elevating Our People

A sustainable world needs big thinkers, and that is exactly who our people are.

Legence’s legacy is defined by our people. We believe we are better together and strive to connect all our 5.7K+ consultants, engineers, craftspeople, and technicians with the tools and resources that they need to thrive so that we can achieve our collective potential. We continually strive to diversify our workforce, prioritize health and well-being, provide opportunities for growth, and emphasize equity and inclusion for all.

OUR COMMITMENTS

ƒ EMPOWERING MEANINGFUL AND PURPOSEFUL CAREER PATHWAYS TO SUPPORT THE DEVELOPMENT OF A RESILIENT WORKFORCE

ƒ TRACKING, MAINTAINING, AND REPORTING ON DIVERSITY DATA, PLACING DEI AS A PRIORITY

ƒ INCREASING VETERAN AND UNDER-REPRESENTED HIRING

ƒ FOSTERING CHARITABLE GIVING AND SUSTAINABLE COMMUNITY DEVELOPMENT

Our power is our people

Our Benefits

We strive to offer exceptional benefits to our employees.

We have the advantage of a diverse makeup of companies in which to pull best practices from to bring the most comprehensive benefit coverage to our people. We provide vision, life, and disability insurance at no cost to our employees on Legence benefits and have merged nearly all business units onto the same health care coverage plan.

Some of our business units employ team members who are represented by unions; these team members have prescribed coverage and benefits through their union providers, which Legence contributes to, but they are not eligible to participate in certain benefits. We are, however, making an effort to ensure unionized employees have access to auxiliary services like HealthAdvocate™ that go the extra mile to maximize a coverage plan’s potential.

Healthcare Difference Makers

As a legion of companies, our combined size has opened doors to more services and benefits partnerships.

SPRING HEALTH

Over 320 employees are enrolled in the Spring Health program which provides support and resources for mental health. Through this program, each covered individual, including dependents, can access up to 12 free counseling sessions per person each year, along with self-guided resources and tools. Over 55% of enrolled members are engaged in care with a clinician (a combination of therapy, coaching, and medication management support).

ƒ Based on assessment data, 95% of enrolled members have indicated improvements in their depression-related symptoms. Another 85% cited improvements with anxiety-related issues.

HEALTH SAVINGS ACCOUNTS (HSA)

SEEING THE POWER OF TWIN HEALTH

Mike O’Brien, an Electrical Field Engineer at CMTA, lowered his A1C to a pre-diabetic level using a combination partnership of Twin Health and Blackstone’s Equity Healthcare Platform.

This benefit can help employees on a high-deductible medical plan save for expected and unexpected medical expenses throughout the year. Money is deducted straight from an employee’s paychecks, pre-tax, and deposited into a savings account that can be used to pay for eligible medical expenses, first-aid, and medications. Additionally, Legence provides an annual employer contribution of $1,200 for individual coverage and $2,400 for all other coverage levels.

TWIN HEALTH

Twin Health program uses digital technology and medical science to reverse, improve, and prevent chronic metabolic diseases such as type II diabetes.

ƒ Starting this year, Legence members enrolled in our benefits will have access to Twin Health’s pre-diabetes management program.

ƒ 34% of active members in this program are currently in reversal, meaning their A1C levels are less than 6.5% with no medication—or just Metformin.

Diversity, Equity, and Inclusion

DEI remains a top priority in our company and our industry at large.

Legence prides itself on creating a workplace that fosters open dialogue and a shared sense of diversity in background, opinion, and identity. We are actively pursuing initiatives to identify more diverse candidates and to bring new people and perspectives to our team. We started by changing the narrative of our job postings to be more inclusive and skills-focused to widen our applicant pool. We appreciate the growth and opportunities that come as a result of bringing more diverse backgrounds and perspectives to our team and are proud of the groundwork we’ve laid to promote those outcomes.

Tracking Diversity

Legence complies with applicable laws that require reporting of workforce composition, and utilizes aggregate demographic data to develop initiatives to support its existing workforce and to identify opportunities to expand or refine recruiting initiatives. Any demographic data is maintained in accordance with applicable data privacy and other laws, and individual hiring and promotion decisions are made without regard to race, color or any other characteristic protected under applicable local, state or federal laws and regulations. Infographics summarizing workforce composition are for informational purposes only.

Training and Development

Career development, compliance training, and continued upskilling delivered through leading employee learning initiatives.

We are building consistency across our legion of companies with fundamental training requirements at the Legence level for all employees on topics such as compliance and safety. But upskilling for our people is not a one-size-fits-all approach, so we encourage our business units to tailor learning opportunities using our LinkedIn Learning® platform as well as other resources to further their individual workforce needs. We are also dedicated to training our leadership on the principles of sustainability so they can disseminate that information to each of their respective business units, adapting their delivery to each business unit’s ESG opportunities.

SOCIETY OF WOMEN ENGINEERS

Legence attended the 2023 Society of Women Engineers Conference where we got the chance to meet 20 incredible intern applicants. As the largest conference for women in engineering and technology, we felt it was essential to attend and engage participants to help showcase the range of meaningful career opportunities for women at Legence.

Upskilling and Diversifying Our Workforce

The Legence team prioritizes career development for all new and existing employees. We want everyone who’s a part of our legion of companies to know that we are actively seeking resources to not only serve our clients but also to advance our industry and workforce (see page 48). We have several resources at our disposal aimed at upskilling our current workforce as well as initiatives used in the recruitment of new team members.

ƒ We work with Blackstone’s Career Pathways program to drive economic mobility for diverse and historically under-represented talent. This includes reframing our job postings to contain more inclusive language and removing unnecessary degree requirements that can become barriers to entry.

ƒ We use Direct Employers to place our open positions on sites that help grow talent from veteran and military sites, as well as disability and minority sites. Through Direct Employers, we are able to host our job openings on over 700 career sites to facilitate a large, diverse, and strategic talent pool.

ƒ Legence makes hundreds of educational appearances in schools every year to connect with future workers. We have been an active voice in our communities, guest speaking at colleges and supporting mentorship programs to encourage early career-aged individuals to pursue paths in engineering and building science.

LEGENCE’S SUSTAINABILITY ROTATIONAL PROGRAM

Legence’s Rotational Program is geared towards professionals looking for on-the-job training in a wide range of knowledge, skills, and abilities needed for a career intersecting sustainability, engineering, and technology. To date, RE Tech has helped two cohorts of early sustainability professionals find their niche.

SERVICE TECHNICIAN PROGRAM

Legence has a Service Technician Program that provides eight different in-person and virtual courses to bring fundamentals and advanced service education to our people across worksites, at their convenience.

Steve Rusconi: 50 Years at Therma

With half a century of unwavering commitment, loyalty, and exceptional workmanship, Steve Rusconi embodies Legence’s dedication to its people and craft. Steve has pioneered innovative engineering solutions at Therma, earning countless accolades and propelling the Therma brand to industry leadership. His 50 years of service are truly something to celebrate, and we thank Steve for his tenure, as he continues to help us innovate our services, train the next generation of employees, and deliver exceptional outcomes for our clients.

Candid Conversations

In 2023, RE Tech Advisors launched a speaker series, connecting industry and community changemakers to speak candidly about their life’s pursuits.

JOAN

TRUMPAUER MULHOLLAND CIVIL RIGHTS LEADER

By age 23, Joan Tumpauer Mulholland had participated in over 50 sit-ins, including the historic Jackson Woolworth’s Sit-in, and was quickly becoming a fixture of the Civil Rights Movement. Joan worked alongside the great Dr. Martin Luther King Jr. and the formidable John Lewis to protest the discrimination and segregation of black Americans. Joined by her son, Loki Mulholland, Joan came to RE Tech’s McLean headquarters and shared openly her experience growing up and participating in Freedom Rides and demonstrations.

DON ANDERSON INDUSTRY LEADER

RE Tech welcomed former Blackstone Chief Sustainability Officer and Green Business Certification Inc. (GBCI) Board Member Don Anderson to share his career journey and insights on sustainability in real estate. Don was instrumental in developing ENERGY STAR® Portfolio Manager® and creating the robust utility benchmarking platform it is today. He spoke openly about honing a work ethic that is both niche and fulfilling while understanding the needs and cultures of your stakeholders.

Philanthropy and Volunteerism

Legence aims to be a responsible corporate citizen with a strong track record of charitable giving.

Our team dedicates time to volunteering, communitybuilding, and partnering with local non-profits and government programs to support causes that are aligned with our mission and vision. Looking forward, we have established a process to track our local and national giving and volunteer initiatives across our business units to aggregate and share our impact.

CMTA and Gilbert are linking up to grow our impact with the Cystic Fibrosis Foundation.

Legence Sponsors U.S. Department of Energy’s Solar Decathlon

After our successful partnership in 2023, Legence has committed to being the top sponsor of the 2024 U.S. Department of Energy Solar Decathlon. True to our mission and values, the Solar Decathlon helps students conceptualize innovative solutions for problems across the built environment. Representatives from our legion of companies will return to Golden, Colorado to play a vital role in the event, acting as jurors for the Design Challenge and supporting team projects throughout the competition.

Since 2002, a total of 273 collegiate institutions and 25,000+ students across 38 countries have participated in the Solar Decathlon Design Challenge to design high-performance, lowcarbon buildings that mitigate climate change and improve our quality of life.

Gilbert Partners with Highland Popcorn

Ed Dahlgren, President of Gilbert, formed a bond with local Minnesota-based non-profit Highland Popcorn, an organization focused on providing meaningful life and employment opportunities for people with intellectual and developmental disabilities. Both Dahlgren and Highland Popcorn’s Shamus O’Meara have children with a disability, and their shared experience as caregivers led to the creation of this partnership that gives back to the community through purpose-driven products.

CMTA Serves Meals with Ronald McDonald House

In 2023, CMTA employees donated their time to the Ronald McDonald House to help in the preparation and serving of meals to families with seriously ill or injured children in the Louisville community.

RE Tech Celebrates DC’s Capital Pride Parade ICS Works with Students at Becker Public Schools

RE Tech was a strong sponsor of DC’s Capital PRIDE Parade, celebrating and serving LGBTQ+ communities. Our teammates showed up to represent RE Tech, walking in the parade and joining in the festivities of Pride Month with the local Washington, DC community.

ICS employees went back to their build sites at Becker Public Schools to teach middle and high school students about best practices around facility development and management, highlighting specific skills and tools used in projects at the very schools they attend. ICS engaged students on three separate occasions, shining light on possible career opportunities and enriching the School’s Career and Technical Education program.

WE ARE Driving Strong Leadership

Good governance is the cornerstone of a resilient company, and Legence boasts a talented group of individuals who guide our operations with experience and ethical business practices.

OUR COMMITMENTS

ƒ MAINTAINING A DIVERSE BOARD OF DIRECTORS TO EMBRACE DIVERSE EXPERIENCES AND EXPERTISE

ƒ CREATING AN EXECUTIVE LEADERSHIP TEAM, FORMAL COMMITTEES, AND COUNCILS TO DRIVE STRATEGIC INITIATIVES AND GUIDE THE SUCCESS OF SERVICE LINES

ƒ ADOPTING SUSTAINABLE PROCUREMENT AND RESPONSIBLE CONTRACTOR POLICIES TO EVALUATE ENVIRONMENTAL AND SOCIAL FACTORS IN MAJOR PURCHASING AND SOURCING

Cultivating a culture of inclusivity and collaboration

Our Leadership

Meet the team at the forefront of rethinking building efficiency.

GREG BARNES

ELT MEMBER Chief Human Resources Officer

MIKE HEUER

ELT MEMBER Chief Information Officer

KRIS RUSHING

ELT MEMBER

Vice President, Operations

JAMES BENSON

BOARD + ELT MEMBER President, CMTA

TERRY KEENEN

BOARD CHAIR

Senior Advisor, Blackstone

JUSTIN SCHWARTZ

ELT MEMBER Chief Development Officer

STEPHEN BUTZ

ELT MEMBER Chief Financial Officer

BILAL KHAN

BOARD MEMBER

Sr. Managing Director of Private Equity, Blackstone

BRYCE SEKI

ELT MEMBER General Counsel

DEBORAH CLOUTIER

BOARD + ELT MEMBER Chief Sustainability Officer

Founder & President, RE Tech Advisors

PHILLIP LE BRIS

ELT MEMBER Chief Accounting Officer

JEFFREY SPRAU

BOARD + ELT MEMBER Chief Executive Officer

DJ FALDOWSKI

ELT MEMBER

Senior Vice President, Operations

MITCHELL NIMOCKS

BOARD MEMBER Managing Director, Blackstone

KAREN TOOR

ELT MEMBER Chief Marketing Officer

STEVE HANSEN

BOARD + ELT MEMBER

Chief Operating Officer

ARIF QURAISHI

BOARD + ELT MEMBER Chief Growth Officer

Executive Leadership Team

Consisting of leaders across business units, C-Suite executives, and our CEO, Legence’s Executive Leadership Team (ELT) is a critical source of strategy, knowledge, and expertise. The ELT meets in-person every two months to guide our business units toward success.

BOARD DIVERSITY

38% 13

We believe that board diversity drives a better functioning, more effective board, and have committed to engage in efforts to attract qualified board members, which include women and members of minority groups.

Committees and Councils

As we set up formal committees to help drive efficiencies and thought leadership across our legion of companies, we are finding a stride that encourages widespread participation.

Communications Council

Comprised of individuals from different business units, the communications council is tasked with ushering in a holistic communication process that works to provide helpful resources and guidance to our employees, as well as share happenings and success stories from our legion of companies.

Marketing Collective

Legence’s Marketing Collective was formed in an effort to streamline communication across business units and ensure we are taking a united stance on our messaging, both internal and external. This group shares best practices among business leaders and distributes key updates on Legence’s sustainability activities.

Legence Leadership Council

The Legence Leadership Council (LLC) exists to foster collaboration and enhance communication among senior leaders throughout the enterprise. Its 150+ members make up a diverse body of leaders with representation from each Legence business unit and function. The LLC meets monthly to disseminate critical information up and down the organization, share best practices and lessons learned, and provide a safe forum for members to provide critical feedback. The Council also provides professional development to its more junior members from Legence’s most senior leaders.

SPOTLIGHT Understanding Sustainability in the Built Environment with DEB CLOUTIER

With deep expertise in energy efficiency, building operational excellence, data analytics, and program design and education, Deb is aptly suited to guide Legence’s sustainability strategy.

Deb Cloutier, Legence’s Chief Sustainability Officer, has worked at the intersection of sustainability and the built environment for over three decades. In collaboration with Legence’s Executive Leadership Team and Board, Deb ensures a relentless focus to do our part to address climate change at speed and scale.

ALM | GLOBE ST. WOMEN OF INFLUENCE

HONOREE

2023 Globe St. Women of Influence Awards

“Climate change, resource demands, stakeholder requirements, and policy changes are driving a global energy shift towards energy efficiency and renewable energy sources. This transition, however, faces a critical hurdle: the built environment. Modernizing existing buildings which are responsible for 40% of global carbon emissions, is complex, expensive, and slow, hindered by siloed industry practices. Legence’s diverse family of companies is consolidating fragmented capabilities across the value chain by fostering collaboration, innovation, knowledge sharing, and long-term benefits to our projects across the building lifecycle.

As a people-first company, Legence is focused on bringing people together with the best tools and training to radically transform our nation’s buildings to be healthier, more efficient, and sustainable. With their complimentary skillsets, our legion of companies is making a real difference, helping deliver cost-effective energy efficiency projects and decarbonization strategies that are the hallmark of our business. (see pages 5-6)

Our companies work in tandem to optimize the performance of buildings, making them healthier, more resilient, and sustainable by:

ƒ Improving energy efficiency

ƒ Deploying renewable energy

ƒ Extending the useful life of building systems

ƒ Lowering utility and operating costs

ƒ Enhancing occupant well-being and productivity

ƒ Driving toward net zero operations

At Legence, we are better together, and will continue to lead the industry by combining our experiences and innovating new solutions to reduce the impact of the built environment.”

Learn More from Our Chief Sustainability Officer on the Intersection of Sustainability and the Built Environment

Deb highlights the changing sustainability landscape in commercial real estate and what factors are poised to impact the industry moving forward.

CSRWire

Joined by Wendy Feldman Block of Savills and John Douglas of Johnson Controls, Deb shares insights on ensuring occupant health is included in sustainability outcomes.

Construction Today

Deb discusses her commitment to enhancing the performance of the built environment and making a positive impact on our planet.

IREM

JOURNAL OF PROPERTY MANAGEMENT OUTLOOK 2024

Looking to the future, Deb offers insight into the policy, sustainability, and technological changes that are on the horizon for property managers across the U.S.

IMN

ESG AND DECARBONIZATION REAL ESTATE FORUM

Deb shares details on the shift in investor preferences and capital provider expectations toward climate-related risk management and carbon reduction strategies.

Leadership Approach

Risk Management

Legence is dedicated to keeping up with industry trends and best practices in our approach to risk management. We remain vigilant and adaptable in our approach and use external resources, including insurers, to help ameliorate some risks. Legence is committed to robust oversight from our general counsels and information technology (IT) specialists to report on potential risks and communicate with the Executive Leadership Team, who then track, monitor, and respond to risks on a case-by-case basis.

Cybersecurity

Legence has designed and implemented a comprehensive security program that is based on the National Institute of Standards and Technology (NIST) Cybersecurity Framework (CSF), a widely recognized and respected set of guidelines for managing cybersecurity risks. Our security program covers five core functions: Identify, Protect, Detect, Respond, and Recover.

In addition to following the NIST CSF, our security program also complies with various industry standards and regulations that are relevant to our business and customers. One of the most important and rigorous standards we adhere to is SOC2 Type II. We have recently completed a SOC2 Type II audit, which verified and validated our security practices and controls through an independent auditor. This audit report provides assurance and confidence to our customers and partners that we are serious and diligent about cybersecurity.

TOOLS FOR SUCCESS

LEGENCE ARTIFICIAL INTELLIGENCE (AI)

Legence is leveraging AI technology to streamline its operations and enhance employee productivity. By deploying AI applications, we can automate repetitive tasks, improve internal and external communication, and facilitate data-driven decision-making. As a result, employees can focus on higher-value tasks such as innovation, creativity, and exploring new ways to improve customer service.

Legence is also an early adopter of Microsoft Copilot and is in the early stages of developing tools to leverage Copilot to further enhance efficiency for our business processes. This tool provides employees with more efficient access to content stored in SharePoint, OneDrive, Teams, and Outlook. By harnessing the power of AI, Legence is well-positioned to enhance its operations and deliver exceptional service to its customers.

Supply Chain

Legence has a long line of suppliers within our business units, which allows us to support a variety of diverse business enterprises. Although a majority of our suppliers are local to each business unit, we have worked to develop national strategies with leading brands to take advantage of major cost savings and availability of products and services. Entering into contracts with major companies ensures we are serviced and priced fairly across the U.S.

IN 2023, WE LEVERAGED LEGENCE’S SPEND TO GAIN

ƒ Incentives

ƒ Contract pricing

ƒ Rebates

ƒ Early pay discounts

Our local and small business partnerships are also very important as they provide the specialized parts and materials that we need to best serve our customers. Through these intimate partnerships, we are able to guarantee efficient, predictable service. As a bonus, our trusted suppliers heed this mutual relationship and provide us with essential market insights, such as rising demand for specific products or new materials slated for market.

Over 50% of our top suppliers are local businesses

To remain competitive, Legence consistently price checks for fair rates. Foreseeable risks to our supply chain, including increased regulatory requirements, are something that we take seriously.

WE ARE DOING OUR PART TO

ƒ Actively choose fair and ethical sourcing

ƒ Price check and set fair rates of exchange

ƒ Reduce shipping emissions by sourcing from local suppliers where applicable

ƒ Procure sustainable Legence branded gear

Policies

Our policies hold us accountable for our actions and facilitate good governance. In 2023, Legence worked to further harmonize our policies and practices across our organization and adopted the following streamlined policies for overall compliance. We are committed to annually review our policies and update according to new risks and regulations.

TO DATE OUR POLICIES COVER

ƒ Anti-corruption

ƒ Code of Business Conduct and Ethics

ƒ Crisis Communication (see page 18)

NEW IN 2023

ƒ Delegation of Authority

ƒ Information Management

ƒ Travel and Expenses

ƒ Whistleblower Mechanisms

EXECUTIVE COMPENSATION

Sustainability performance is a criterion of Legence’s executive compensation, placing emphasis on reaching our collective potential.

Stakeholder Engagement

Stakeholder engagement is two-way for Legence.

Legence values the feedback and insights we gain from engaging with our stakeholders. First and foremost, it is important for us to connect with our employees in the office, on the job site, and throughout our industry and communities. This past year, our leadership made a concerted effort to connect with our employees on the road, in the office, and online through multiple modes of contact to share updates and gather candid feedback. We also strive to engage with our external stakeholders and industry partners through events and leadership opportunities to share industry best practices and be an active force for good.

Engagement Survey and Employee Interests Survey

Legence conducted a company-wide Engagement Survey in 2023, garnering an impressive 900 responses from our office-based personnel. This initiative signifies our commitment to leveraging employee feedback to enhance the overall employee experience. Additionally, we conducted an Employee Resource and Affinity Group Interest Survey to gauge preferences and interests for community development and support beyond the workplace.

Industry Participation

Legence’s team is made up of big thinkers and industry veterans who are eager to share their experiences and help advance our industry. By attending industry events and joining membership associations we are able to share our vision of a more sustainable future.

LEADERSHIP IN ACTION

Michelle Shadpour of SC Engineers was appointed President-Elect of the ASHRAE San Diego chapter—the youngest president in the chapter’s history and one of only four women who have held this role since 1958. Michelle’s leadership, expertise, and dedication to building performance will undoubtedly propel the ASHRAE San Diego chapter to new heights.

Doug Fick of CMTA is helping to shape nationally recognized sustainable building codes as the Chair of the ASHRAE Standards Committee and a member of the Technology Council where he helps select, develop, revise, and prepare national HVAC & R code language documents, standards, and guidelines.

EMPLOYEE COMMUNICATIONS

To ensure all of our employees are kept informed and educated on the projects and initiatives carried out across our legion of companies, we compile a monthly newsletter and distribute it across all of our business units. The Legence Link includes highlights on business wins, team meetups, employee awards and milestones, as well as the latest insights from in and around our industry.

Abby Lauck takes her role beyond CMTA and Legence as Chair of the ASHE National Young Professionals and Early Careerist Committee, which has a mission to bring more awareness and access to sustainability resources in the Healthcare Facility Management industry.

Damian Smith of CMTA is a member of The Sustainability Advisory Counsel for the Denver office of Climate Action, Sustainability and Resiliency, where he advises on the implementation of Energize Denver, a citywide plan to reach net zero energy by 2040.

Nearly all of our business units have individuals representing Legence on contractor’s associations such as MCAA, where they help teach and expand the next wave of contractors and codes to benefit people and the planet.

LEGENCE ON THE ROAD

Legence has been on the road, visiting our people in town halls and attending industry events to share knowledge and drive dialogue around best practices.

TOWN HALLS

ƒ Albuquerque, NM

ƒ Chantilly, VA

ƒ Denver, CO

ƒ Louisville, KY

ƒ McLean, VA

ƒ Minneapolis, MN

ƒ Philadelphia, PA

ƒ Phoenix, AZ

ƒ San Jose, CA

INDUSTRY EVENTS

ƒ American Institute of Architects (AIA) Annual Conference

ƒ ASHRAE 2023 Decarbonization Conference for the Built Environment

ƒ ASHRAE Annual Conference

ƒ Climate Week NYC

ƒ GRESB Sustainable Buildings and Decarbonization Seminar

MEMBERSHIPS 14

…and many more.

ƒ IMN ESG and Decarbonizing Real Estate Forum

ƒ NAIOP’s CRE.Converge

ƒ National Multifamily Housing Council (NMHC) Student Housing Conference 2023

ƒ Net Zero Conference

ƒ Society of Women Engineers (SWE)

ƒ U.S. Department of Energy’s Better Buildings Summit

ƒ U.S. Department of Energy’s Solar Decathlon

ƒ USGBC Greenbuild

IGNITING SOLAR DEPLOYMENT

REAL ESTATE SOLAR LEADERBOARD

Black Bear Energy created the Real Estate Solar Leaderboard to highlight the investment potential of renewable energy in the real estate industry. By leveraging rooftops and parking lots, real estate owners and managers can capitalize on renewable energy projects. The data-driven scorecard encourages corporations to set renewable energy targets relative to peers, fostering competition within the industry. (see page 11)

Transparency

We are committed to regularly reporting our business activities in accordance with the United Nations Sustainable Development Goals (UNSDG) to stakeholders. Transparency not only fosters accountability but also encourages collaboration and knowledge-sharing within our industry, facilitating a faster transition to a more sustainable world for all. This annual sustainability report is the first step in our reporting journey, and we intend for it to grow and expand year over year.

UNSDG Alignment

The United Nations Sustainable Development Goals have been adopted by 193 countries and represent the world’s shared plan to end extreme poverty, reduce inequality, and protect the planet by 2030. Through our business and ESG approach, we align with 11 of the 17 goals.

NO POVERTY

Every member of the Legence team plays a key part in creating a more sustainable world, and we support our people by paying competitive salaries and contributing to unions.

GOOD HEALTH AND WELL-BEING

Legence radically improves the performance of the built environment, making the spaces we occupy healthier and more sustainable. To support the wellness of our employees, partners, and professional communities, we commit to:

Maintaining a ‘safety first’ culture, promoting the health and wellness of our team and an incidentfree workplace. And promoting occupant health at our facilities through improved indoor air quality, access to daylight and natural ventilation, health and wellness amenities, and healthy building materials and furnishings.

QUALITY EDUCATION

Legence is upskilling our workforce for both technical and vocational positions to promote a well-rounded employee base and to grow our people’s skills for future career development and success. Through our business we also design and build certified green building education facilities to foster healthy, safe, and inclusive learning environments that benefit the communities in which we work.

GENDER EQUALITY

Legence maintains a diverse and experienced Board of Directors and executive team. We also conduct hiring practices that promote diverse hiring pools and will continue to be an equal-opportunity employer. Our training and development is focused on upskilling our workforce and promoting diversity throughout our industry.

AFFORDABLE AND CLEAN ENERGY

Legence helps our clients innovate and expand their energy infrastructure to enable the adoption of alternative, renewable, and decentralized energy innovations. To date, Legence has helped design and implement more than 140 MW of renewable energy generation.

DECENT WORK AND ECONOMIC GROWTH

Legence’s supply chain drives economic growth for minority-owned businesses, and we have a successful history acquiring and growing privately held and founder-owned businesses. We are growing our diverse employee base every year and are constantly evolving our practices to use industry-leading tools and procedures that promote safety, efficiency, and innovation in our sector.

INDUSTRY, INNOVATION, AND INFRASTRUCTURE

Our community engagement and technical expertise have generated over $21 billion in energy efficiency and renewable energy projects to date. Legence is a choice building science and engineering solutions provider. We pair sector expertise with creative ingenuity to lead and deliver design-build projects that meet efficiency goals and protect the well-being of occupants.

REDUCED INEQUALITIES

Legence provides career opportunities that are rewarding, respectful and embracing of diverse backgrounds and perspectives. We track, maintain, and report on diversity data. And we remain committed to increase hiring from veteran populations and other historically underrepresented groups.

SUSTAINABLE CITIES AND COMMUNITIES

We have a duty of care for our partners and communities. We’re active corporate citizens, working in an equitable and environmentally friendly manner. As a national leader we play an active role in design and construction of the municipal, university, school, and hospital (MUSH) market, and in that role, we emphasize health and sustainability. Our approach improves operational and energy efficiency and creates high performance buildings while significantly reducing the amount of deferred maintenance. Through our efforts we have helped communities implement their carbon reduction roadmaps through performance contracting, zero energy and zero carbon buildings.

CLIMATE ACTION

Legence is an Energy Transition Accelerator™. Our team radically improves the performance of the built environment by maximizing efficiency consumption. We have adopted climateconscious goals, policies, and processes and embedded them across our organization.

PARTNERSHIPS FOR THE GOALS

Legence is a team of experienced solutions providers, working as one to push our clients further and build a future defined—and redefined—by efficiency.

Our success is our clients’ success and is always the result of skill, dedication, and collaboration. To achieve our goals, we rely on every stakeholder. We engage our peers and partners to move the industry forward through advocacy and collaboration.

WE ARE Planning for the Future

Our legion of companies—working in concert—has empowered our clients to define and accomplish their sustainability objectives at unparalleled speed and scale.

Simultaneously, Legence is turning our expertise inward and pushing the envelope with respect to sustainability reporting and outcomes. We will continue to execute on our sustainability strategy and commitments and will find new ways to make our solutions work for us and the industry at large.

KEY ESG INITIATIVES FOR THE FUTURE

ƒ Maintaining a best-in-class safety culture for our employees, clients, and communities

ƒ Continuing to lead with respect to sustainability goal setting, tracking, and achievements

ƒ Remaining an employer of choice with limitless career development potential

ƒ Building upon our culture of philanthropy, community service, and volunteerism

With our legion of companies, we are embarking on projects that are ramping up decarbonization efforts across the country. Together, we are changing entire college campuses, airports, data centers, and cities into resilient fixtures of the future that will benefit people, profits, and the planet.

ENDNOTES

1 TRIR= Total Recordable Incidents X 200,000 / Total Hours.

2 2022 emissions per employee metric and 2023 emissions per employee metrics calculated using total scope 1 and 2 locationbased emissions and time-weighted employee head counts for each Legence business unit, reflecting period of operational control for acquisitions during calendar years 2022 and 2023. Employee totals included both full-time and part-time employees.

3 According to ASHRAE, a net zero site energy building produces as much energy as it uses. Net zero energy design is a cost-effective building development approach that prioritizes and achieves advanced levels of energy savings by creating an efficient building that, with the addition of renewable energy, requires equal or less energy than it provides to the grid annually.

4 Bureau of Labor Statistics (BLS) is the principal fact-finding agency for the U.S. government in the broad field of labor economics and statistics and serves as a principal agency of the U.S. Federal Statistical System.

5 LTIR = Lost Time Incidents X 2000,000/ Total Hours.

6 Net zero target encompasses Legence’s scope 1, scope 2, and where material, scope 3 emissions.

7 Many Legence companies lease facilities space and, under current leasing agreements, do not have access to metered energy consumption data. Where metered data is unavailable, we estimate leased space energy consumption and input this into ENERGY STAR Portfolio Manager to provide a baseline for tracking progress; we are also evaluating upcoming lease renewals as opportunities to request this data from landlords.

8 Statement of boundaries:

ƒ Over 95% of reported emissions are from tracked data. Total emissions disclosed reflect time under Legence’s operational control (for business units acquired in 2023).

ƒ Scope 1: Stationary natural gas and diesel includes natural gas and diesel consumption from Legence offices and facilities. Fleet represents mobile diesel and gasoline consumption from Legence vehicles. Refrigerant emissions are excluded from the GHG inventory as an immaterial source of emissions.

ƒ Scope 2: Electricity represents purchased electricity that supplies Legence offices and facilities.

ƒ Scope 3: Business travel includes corporate-related travel for all employees. Employee commute considers fuel consumption associated with travel to and from Legence offices and facilities. Waste includes trash and recycling associated with Legence-occupied spaces.

ƒ Note: Business travel associated with Legence employees is accounted for under scope 3 sources, separately from the business units. Scope 1 and 2 emissions from Legence employees are captured across the individual business units. Note: only select companies report scope 3 source data: A.O. Reed & Co. (business travel), Bel-Aire Mechanical (business travel, employee commute, waste), Black Bear Energy (business travel, employee commute), CMTA and OCI Associates(business travel, employee commute), Gilbert (business travel, waste), ICS (business travel, employee commute), RE Tech Advisors (business travel, employee commute, waste), San Jose Boiler Works (employee commute, waste), SC Engineers (employee commute), Therma (business travel, employee commute, waste), VarcoMac (business travel, employee commute, waste), and Yearout Mechanical (business travel, employee commute, waste). As we grow, our emissions grow. Increases from the 2022 absolute emissions disclosed in last year’s report reflect 2023 acquisitions: OCI Associates, A.O. Reed & Co., San Jose Boiler Works, and SC Engineers.

9 The facilities and offices for our business units in the 2023 GHG inventory include: A.O. Reed & Co., Bel-Aire Mechanical, Black Bear Energy, CMTA and OCI Associates, Gilbert, ICS, RE Tech Advisors, San Jose Boiler Works, SC Engineers, Therma, VarcoMac, and Yearout Mechanical.

10 Total square footage reflects all square footage for Legence offices and facilities occupied during calendar year 2023, regardless of date of acquisition for new business units.

11 As of December 31, 2023.

12 Monetary and in-kind donations.

13 As of April 1, 2024.

14 Industry memberships: AABC Commissioning Group (ACG); Air Force Manpower Analysis Agency (AFMAA); American Industrial Hygiene Association (AIHA); American Institute of Architects (AIA); American Society for Health Care Engineering (ASHE); American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE); American Society of Mechanical Engineers; American Society of Safety Professionals (ASSP); Apartment and Office Building Association (AOBA); Association for Learning Environments (A4LE); Association of Energy Engineers; Association of School Business Officials International; BICSI; Building Owners and Managers Association (BOMA); California Plumbing and Mechanical Contractors Association; The Counselors of Real Estate (CRE); International Association of Professional Engineers; International Facility Management Association; International Society of Pharmaceutical Engineers; Mechanical Contractors Association of American (MCCA); NAIOP; National Electrical Contractors Association (NECA); National Fire Protection Association; National Fire Protection Association (NFPA); National Safety Council (NSC); New Building Institute; Sheet Metal and Air Conditioning Contractors’ National Association (SMACNA); Society of American Military Engineers (SAME); Society for College and University Planning (SCUP); U.S. Green Building Council (USGBC); United Association (UA); Washington Building Congress; and Washington Building Congress (WBC).

FORWARD LOOKING STATEMENTS

Statements contained in this Presentation (including those relating to current and future market conditions and trends in respect thereof) that are not historical facts are based on current expectations, estimates, projections, opinions and/or beliefs of Legence. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. In addition, no representation or warranty is made with respect to the reasonableness of any estimates, forecasts, illustrations, or prospects, which should be regarded as illustrative only, or that any profits will be realized. Certain information contained herein constitutes “forward-looking statements,” which can be identified by the use of terms such as “may”, “will”, “should”, “expect”, “project”, “estimate”, “intend”, “continue”, “target” or “believe” (or the negatives thereof) or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or actual performance of Legence (or any other entity referred to herein) may differ materially from those reflected or contemplated in such forward-looking statements. As a result, investors should not rely on such forward-looking statements in making their investment decisions. No representation or warranty is made as to future performance or such forward-looking statements. None of the information contained herein has been filed with the U.S. Securities and Exchange Commission, any securities administrator under any securities laws of any U.S. or non-U.S. jurisdiction or any other U.S. or non-U.S. governmental or selfregulatory authority.

CONTACT

ABOUT LEGENCE

For questions regarding information found within this report, contact: comms@wearelegence.com LEARN

Legence, a Blackstone Portfolio Company, is North America’s leading, integrated provider of energy efficiency and sustainability solutions for the built environment. Legence improves the performance of buildings, making the spaces that shape our lives healthier and more sustainable. We specialize in helping clients decrease operating costs, reduce carbon emissions, and enhance occupant well-being and productivity. From advisory services and design to construction and ongoing maintenance, we offer a comprehensive suite of Stackable Solutions™ across the entire building lifecycle. With over a century of experience, we have the expertise to implement high-performing projects with unmatched outcomes, serving industry leaders in mission-critical and other essential sectors such as data centers, semiconductors, life sciences, healthcare, education, and more. WeAre