2020 Wright Service Corp. Sustainability Report

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2020 SUSTAINABILITY REPORT Preliminary Corporate Social Responsibility Report


Safety

Employee Well-being

Environmental Sustainability

Community Engagement

TABLE OF CONTENTS LETTER FROM CEO

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ENVIRONMENTAL SUSTAINABILITY 26 Energy 27

COMPANY OVERVIEW 4

Water 28

History 5

Waste 29

Adding to the Family

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Biodiversity 31

Board of Directors

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Environmental Sustainability Goals

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Mission and Vision

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COMMUNITY ENGAGEMENT

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Customers Service

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Values 11 ABOUT THIS REPORT 12 Overview of Company Initiatives

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SAFETY 14 Incident Rate 15 Training 16 Security 17 Safety Goals 17 EMPLOYEE WELL-BEING 18 Diversity & Inclusion

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Education & Development

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Contributions 34 Reputation 35 Youth Interaction

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Community Engagement Goals

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CORPORATE OFFICE REMODEL

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CLOSING 38 APPENDIX 39

Wellness 23 Longevity 24 Employee Well-being Goals

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LETTER FROM CEO Wright Service Corp. (WSC) is a unique family of companies in environmental services, with a number of sustainability initiatives taking place across the United States and Canada. We wanted to be able to share our story on our own terms and there’s no better time than now. We’re a leader in innovative solutions and services that align with our core values. As a 100% employeeowned company, our employees are at the forefront of every decision we make and it’s our employees who are behind the success of our family of companies. Wright Service Corp. was founded in 1961, and now have nearly 200 employees based out of West Des Moines, Iowa, and more than 5,000 in North America among the eight brands in our family. We are an innovative group who are open to new opportunities and face challenges head on that come along the way. We understand the responsibility we have as a company and as individuals to strive to protect and improve all ecosystems, and to make positive environmental, social and economic impacts in the communities we serve. A sustainable business is good business, not only for our employees but also for our clients and the public. All of the companies under the Wright Service Corp. umbrella are leading the industry with new service lines, strategic acquisitions complementing the services currently provided, and expanding our footprint in North America. 2020 was challenging to say the least, but our employees stepped up to the challenge – corporate staff moving to a majority remote workforce, cross-border work for the first time, and new demands.

A key to our success is ensuring that not only are our employees top of mind, but also their safety. We’ve been able to attract, retain and reward the highest quality talent in the industry because we value safety. We train and develop our employees to ensure safe practices on the job and at home. Our employees are part of our family and as long as they go home safe each night, that means we’ve done our job as a company. That’s our approach to this sustainability reporting journey, or as you’ll notice, our preliminary corporate social responsibility (CSR) report. It’s our way of showcasing how we’re delivering the highest level of professional, safe and environmentally conscious services and solutions to the industry, public and the communities we work and live in. We’re investing in our employees, enabling our family of companies to provide new and innovative services, adding mutual value to our stakeholders and clients. This report will highlight the progress we’ve made and will continue to make regarding: ‒ Safety ‒ Employee Well-being ‒ Environmental Sustainability ‒ Community Engagement I encourage you to read our inaugural report on how Wright Service Corp. and our family of companies continue to be a leader in providing sustainable environmental solutions to the industries we serve that align with our core values of safety, integrity, excellence, teamwork, innovation and family.

Scott Packard

Chairman and Chief Executive Officer

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Safety Safety Employee Employee Well-being Well-being Environmental EnvironmentalSustainability Sustainability

Community Engagement

COMPANY OVERVIEW The following pages highlight how we incorporate environmental sustainability into our project services and business operations using innovative processes, initiatives, and technology.

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HISTORY Wright Service Corp. // Founded in 1961 A prominent leader in several environmental services industries, as the parent company to Wright Tree Service, Wright Outdoor Solutions, CNUC, Terra Spectrum Technologies, Sustainable Environmental Consultants, Wright Tree Service of the West, Spectrum Resource Group, ArborCare and Verdure Elements. Wright Service Corp. has been employee-owned since 2002.

Wright Tree Service // Founded in 1933 Offering the entire package of vegetation management services, including integrated vegetation management, storm restoration, and work planning services to railroad and utility companies and their communities across the United States and Canada.

Wright Outdoor Solutions // Founded in 1928 Offering central Iowa tree care, landscaping and maintenance, plant design and maintenance, lawn care, holiday lights and décor, snow and ice management, and mulch services.

CNUC // Founded in 1999 Assisting utilities in improving their utility vegetation management programs through inspection and auditing services, emergency response, consulting, and research, often combined with software and LiDAR solutions.

Wright Tree Service of the West // Founded in 2008 Offering the entire package of vegetation management services, including integrated vegetation management, storm restoration, and work planning services to utility companies and their communities on the West Coast.

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continued Terra Spectrum Technologies // Founded in 2008 Offering development and support of software applications for the utility vegetation management industry that help simplify and streamline common field and office processes.

Sustainable Environmental Consultants // Founded in 2008 Offering sustainable services, including sustainability risk management, agricultural compliance and engineering, and erosion control to bridge the gaps among business, industry and the environment.

Spectrum Resource Group // Founded in 1986 An integrated vegetation management solutions provider working actively in forestry, oil and gas, utility and community resource industries across Canada.

ArborCare // Founded in 1983 A dynamic and progressive company providing commercial and residential services providing exceptional service in Alberta, British Columbia and Saskatchewan.

Verdure Elements // Founded in 1981 Offering Greater Omaha interior plantscaping, exterior seasonal color rotation and interior holiday décor for both residential and commercial spaces.

Wright Foundation for Sustainability and Innovation // Founded in 2020 A nonprofit organization focused on fostering innovative solutions in renewable agriculture and vegetation management. The foundation will fund projects that reduce carbon footprints and promote carbon positive practices.

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ADDING TO THE FAMILY

1933

1961

1993

2002

2006

2007

2019

2020

ESOP

2008

2012

2013

2017

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BOARD OF DIRECTORS The Wright Service Corp. Board of Directors is made up of two internal directors and five external directors as follows: Scott Packard, Chairman and CEO of Wright Service Corp. Will Nutter, SVP and COO of Wright Service Corp. Terry McGonegle, Retired CFO of Wright Service Corp., outside director Nancy Wright, outside director John Bruntz, outside director Dick Rue, outside director George Milligan, outside director Scott Packard Scott Packard joined Wright Service Corp. in July 1998. Three years later, John R. Wright appointed Scott to president and COO. In October 2002, Scott took on the position of chairman and CEO of Wright Service Corp. Scott began his career after graduating from the University of Kentucky with a Bachelor of Science in Accounting. In September 2016, Scott became the first recipient of the Management Action Programs (MAP) Disciplined Leader Award. This award was conceived to recognize select leaders who have consistently exhibited the qualities of a disciplined leader. Will Nutter President and COO Will Nutter began his career with Wright Tree Service (WTS) as a groundman in 1982. He has been a general foreman, division supervisor, division manager, operations manager, vice president and became president and COO of WTS in 2008. With more than three decades in the utility vegetation management industry, Will has been an industry driving force, uniting Utility Arborist Association (UAA) members from all corners of the industry and encouraging them to roll up their sleeves, leave their titles and company names at the door, and make progress as an industry in the area of safety. Will is a past president of the UAA and currently the safety committee chairman. Additionally, he serves as Trustee of the TREE Fund. Terry McGonegle Terry McGonegle joined WTS as the controller in June 1994. When the employee stock ownership plan (ESOP) was formed in 2002, Terry was promoted to chief financial officer of Wright Service Corp. where he helped transition the company from a family-owned to an employee-owned and served as CFO until December of 2019 upon retirement. Terry started his career in public accounting and worked in the agricultural and construction industries before joining WTS. He has served on the audit committee for the Tree Care Industry Association, finance committees for both the Utility Arborist Association and TREE Fund. Terry is also a past president of The IowaNebraska Chapter of The ESOP Association. Nancy Wright Nancy Wright is a cum laude graduate of Drake University majoring in Business Communications. Following graduation, she had a long career in the Group Life and Health business, starting with Principal Financial as an underwriter and later selling group life and health insurance to Iowa school districts through Holmes Murphy & Associates. Other positions include Marketing Director for a major group medical carrier and Account Manager for a national insurance brokerage. She was also active in the Iowa Health Underwriters as a board member for six years and president for two years. This involved working with state and national legislators regarding healthcare legislation. Nancy is currently retired.

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John Bruntz Currently retired, John Bruntz was the Chairman and CEO of The Boulder Company, an industrial product distributor with operations in four states and serving an eight-state market region. He held the position from 2014 to 2019. Prior, he was the CEO of The Wittern Group, one of the world’s largest manufacturers of automatic merchandising equipment and controlled access technology. He became the CEO in 1990 and began work for the company in 1985. John also serves as a Director for Dexter-Apache Holding, Inc., a $300mm revenue ESOP company with more than 900 employees across six different business lines. In addition, Bruntz is on the Board of Directors of Cementech, Inc., an ESOP company headquartered in Indianola, Iowa. Cementech is the market leader in the production of volumetric cement mixers. He is a licensed attorney who graduated from the University of Iowa, College of Law and has published articles in law journals in the areas of labor and employment law. He has been involved in numerous civic organizations including ChildServe, the YMCA of Greater Des Moines and the Greater Des Moines Partnership. Dick Rue Dick is retired and served for 23 years as Senior Vice President & CFO and Board member at ITA Group, Inc. a West Des Moines incentive marketing company. Dick has been a CPA since 1978 and was employed during his first five years after college in public accounting. He is a past member of the American Institute of CPAs, the Iowa Society of CPAs, Financial Executives International, where he was a past Iowa Chapter President and Board Member, and the ESOP Association. Dick experience includes serving on the UNI College of Business Dean’s Advisory Board, the President’s Advisory Board of Grand View University, the Board of Directors of Precision Pulley & Idler, six years as State Chairman of Employer Support for the Guard and Reserve (ESGR) for Iowa and two years as Chairman of the National ESGR Executive Advisory Subcommittee. Additionally, Dick is a volunteer at the Iowa Gold Star Museum, a volunteer with United Way of Central Iowa and he actively works as a volunteer financial counselor with the Small Business Development Center in central Iowa. George Milligan George Milligan is a 1978 graduate of Iowa State University, earning a B.S. in Economics with a minor in Industrial Administration (Business). From 1978 to 1985 he worked for Continental Grain Co. in various trading and management positions in four different locations. From 1985 to the present he has worked at The Graham Group, Inc., and as its President since 1988. The Graham Group, Inc. is a diversified real estate development company and general contractor. He has been involved in many Central Iowa charities and boards. He currently serves on the board of two public companies, United Fire Group, of Cedar Rapids, Iowa, and West Bancorporation, Inc., of West Des Moines, Iowa. Both are Nasdaq traded companies.

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MISSION AND VISION Mission ‒ To be a leader in providing innovative solutions and services that align with our core values. ‒ To enable our customers to sustainability manage their products or services for the betterment of all communities. ‒ To ensure long-term viability of the company supported by attractive value appreciation to our employeeowners. ‒ To provide team members with an environment that enables them to achieve their personal and professional career goals.

Vision ‒ Leverage our core competencies to create new environmental product lines and services. ‒ By 2024 traditional business lines will represent 50% of the company’s gross profit margin while continuing to remain #2 in our core market segments. ‒ Be a leader in sustainable environmental solutions to the industries we serve. ‒ Expand into new services and market segments that will align customer and environmental needs with our expertise and capabilities. ‒ Grow our company in the U.S., Canada, and beyond. ‒ Attract, retain and reward the highest quality talent in the industry.

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CORE VALUES

SAFETY

TEAMWORK

EXCELLENCE

It is everyone’s responsibility, we each own it.

It is how we operate and we hold each other accountable.

We continually strive to exceed our customer’s and our own expectations.

INNOVATION

INTEGRITY

FAMILY

We anticipate our clients’ needs and we deliver creative services and solutions.

We abide by the highest ethical standards.

It is our foundation; it is who we are.

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ABOUT THIS REPORT WSC Sustainability Report / CSR Mission Statement

Wright Service Corp.’s global campus is dedicated to supporting the well-being of our employees, our environment, and our community while reflecting the passion of environmental stewardship in the services the family of companies provides.

KPI Overview

WSC’s core key performance indicators (KPIs) will be used to track the progress in key target areas for the WSC North American headquarters and will be used by each company in coming years to gauge progress. These will help shape goals to drive continuous improvement.

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OVERVIEW OF COMPANY INITIATIVES Safety

Safety is our number one value. Our employees are trained on a consistent basis to ensure the best safety practices are in place and mitigate any potential risks or hazards. Internal protocols are routinely reviewed and updated by our Risk and Safety Departments to ensure the latest trainings and protocols are followed to ensure our employees can get home safely each and every night. Our employees follow the Brother’s and Sister’s Keeper motto, striving to achieve zero OSHA recordable incidents.

Employee Well-being

Our employees create a rich work environment. Our family culture is what makes WSC unique and attractive to the next generation of the workforce. This includes a safe, enjoyable, diverse environment that offers opportunity for professional growth within. As competition for talent grows, WSC is committed to offering an attractive workplace to retain and foster talent through our family of companies at all levels. WSC is proud to be employee owned since 2002, and 100% employee-owned since 2006. Continued training, education and development, and our employees’ well-being are top of mind.

Environmental Sustainability

As a family of companies who are in the environmental services industry, we strive to protect and preserve all ecosystems. We continue to reduce our footprints and promote carbon positive practices at our offices and in the communities we serve. The Wright Service Corp. North American headquarters based out of West Des Moines, Iowa, began a remodel phase in 2020 with environmental sustainability and economic sustainability in mind. 2020 posed many challenges; however, also posed an opportunity with many working from home to remodel the existing buildings on the headquarters’ campus to accommodate the growing amount of support staff while also providing the infrastructure needed for the flexibility with the newly enacted Work From Home Policy.

Community Engagement

2020 HIGHLIGHTS ‒ 5,277 Employees ‒ 2.75 Aggregated Incident Rate ‒ Launched Culture Club ‒ Demo Day/Remodel Teaser ‒ 2020 Share Price increased 76.6% ‒ Launched the Wright Foundation for Sustainability and Innovation ‒ 24 Headquarter Update Broadcasts

Wright Service Corp. supports activities that benefit our employees and add value to the communities where we live and work. Through monetary and in-kind donations such as labor or education, we’re able to support various causes and organizations that align with our values. We take pride in building and developing relationships with our employees, clients and communities.

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Safety Safety Employee Employee Well-being Well-being Environmental EnvironmentalSustainability Sustainability

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SAFETY Safety is our number one value. Our employees are trained on a consistent basis to ensure the best safety practices are in place and mitigate any potential risks or hazards. Internal protocols are routinely reviewed and updated by our Risk and Safety Departments to ensure the latest trainings and protocols are followed to ensure our employees can get home safely each and every night. Our employees follow the Brother’s and Sister’s Keeper motto, striving to achieve zero OSHA recordable incidents. Our corporate office is highly trained to assist those in the field as it relates to our safety protocols. We also pride ourselves on a low incident rate for our industry, and award employees that reflect our company standards. Safety protocols and prevention are at the forefront of all of our decisions. Disaster protocols are in place as well as evacuation plans that are posted throughout the WSC corporate office. These plans include a map of each area of the office with information on the location of AEDs, first aid kits, extinguishers, tornado shelters and assembly area.

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AGGREGATED ANNUAL RATES

Includes entire family of companies

2.75

Annual Incident Rate

0.26 1.43 Claims per Employee

Days Away Restricted or Transferred

INCIDENT RATE All WSC companies track and report accidents. At-fault accidents are tracked by company with goals established for reduction. These accidents are used in training materials to identify preventative actions to continue to enforce.

At-fault Rate

Our 2020 OSHA annual incident rate was 2.75 across our family of companies. A DART rate represents OSHA injuries or illnesses that result in days away from work, restricted duty, or transfer of duties. This is because only the more severe OSHA recordable injuries and illnesses are included in the DART rate.

At-fault incidents are often broken down into the following categories: - Property Damage - Auto Liability - General Liability - First Aid - Lost Time - Restricted Duty - Medical - Outage

CLAIMS The WSC family of companies averaged 0.26 claims per employee in 2020.

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TRAINING

Safety Challenge

WTS sponsors bi-annual safety challenges, focusing on continued training and learning from field and at home experiences. These challenges focus on identifying, documenting and submitting safety hazards. They aim to highlight the importance of being always aware of your surroundings and communicating these hazards and their solutions to those around you – whether it be crew members, coworkers, or family. According to OSHA, one of the root causes of workplace injuries, illnesses, and incidents is the failure to identify or recognize hazards that are present, or that could have been anticipated. A critical element of any effective safety and health program is a proactive, ongoing process to identify and assess such hazards. Due to COVID-19, there was only one WSC safety challenge in 2020 held from August 30- September 12, focusing on “What Changed for You?” 581 employees participated in the challenge, sharing the many ways COVID-19 had impacted them.

CPR & First Aid

Thirteen WSC employees became CPR, first aid and AED certified in 2019 and 2020. Field staff have weekly safety training and have the opportunity to obtain their CPR, first aid and AED certifications.

HIGHLIGHTS 873 Safety Challenge submissions 581 Employees participated 13 New CPR Certified employees

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SECURITY

94% 266 2,606 cyber training completion across all companies compared to a 75% industry average

Cyber Security

WSC’s IT Department is dedicated to cyber security and business continuity. In 2019, a cyber security team was created to improve our information security posture and execute a two-year strategic security roadmap; by doing so maintains and strengths our company’s ability to protect internal and client data. The team conducted a comprehensive security assessment and remediated identified issues. Windows Defender Advanced Threat Protection was deployed to help improve our detection and prevention of attacks on our company’s equipment. A security awareness program was launched May of 2020. Employees undergo monthly training to spot ‘phishing’ scams and other malicious emails. These fraudulent requests are sophisticated and can use known company contacts to lure others into sending funds to illegitimate recipients or compromise confidential data and information. As scams are ever changing, trainings and tips are provided to arm our employees with the knowledge to be a digital Brother’s and Sister’s Keeper. On occasion, employees will be tested internally and if the employee fails, they would be required to go through additional training.

hours of required annual cyber security training

In 2021, WSC will continue to implement tools and training for increased company preparedness and due diligence against increasing cyber security risk.

Additional Security Measures

In 2020 additional security measures were implemented for the WSC corporate office. This included over 20 new or updated policies and procedures including: ‒ Information Security Policy ‒ Incident Response plan ‒ Visitor policy ‒ Clean Desk policy ‒ Secure Shred policy

total hours executed on monthly cyber security topic trainings over the year

SAFETY GOALS Training: Established tracking of CPR, first aid, and AED training, and certifications across the WSC family of companies in 2021 and 2022. Security: In 2021, weekly security email tips and quarterly newsletters will be used to improve communication and awareness with corporate office employees and field staff. Security Training: In 2021, ensure company participation and improvement by 10% or 100 hours of additional security awareness training.

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EMPLOYEE WELL-BEING Our employees create a rich work environment. Our family culture is what makes WSC unique and attractive to the next generation of the workforce. This includes a safe, enjoyable, diverse environment that offers opportunity for professional growth within. As competition for talent grows, WSC is committed to offering an attractive workplace to retain and foster talent through our family of companies at all levels. WSC is proud to be employee owned since 2002, and 100% employee-owned since 2006. Continued training, education and development, and our employees’ well-being are top of mind. Our small company beginnings still ring true with the company culture at the corporate office. Team Thursday events are hosted twice a year to socialize with other departments and build team morale. A Culture Club, comprised of a Wellness Committee, Community Involvement Committee, Special Events Committee, and Employee Ownership Committee plan events for the corporate office and WOS staff. There are instances those events, if held in a digital or virtual format, are open to all employees throughout North America.

“Culture and employee engagement plays a huge role in who we are as a company.” ‒ Scott Packard, Chairman and CEO

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DIVERSITY & INCLUSION WSC takes pride in its employees and their diverse backgrounds. A world map was placed in the lobby for each employee to put a pushpin on their hometown. This helps us and our visitors recognize the global roots of our company. We have employees across North America, including 43 states, Puerto Rico and three provinces in Canada. In 2020, we launched a pilot diversity and inclusion committee at CNUC who will spearhead the way for similar committees at each of our family of companies. A Culture Club launched in the summer of 2020, primarily focused on educating and bringing back the fun WSC and family-like culture in a mainly virtual format. Emails sent from the Culture Club often include information on world holidays and its rich history. In addition, social media posts for all companies have become more inclusive and celebratory of all cultures, holidays and traditions rather than focusing on the standard holidays we often celebrate in the United States. 2020 has been a migration year for WSC with upgrading workplace processes to an improved digital infrastructure upgrade with the creation of the HR Connect project. The team opted to moved forward with a company utilizing their human capital management system that will launch in May 2021. This new platform will help shared services support staff recruit, hire and onboard new talent on day one. In addition, Workday’s intuitive portal will enable employees to easily

access their personal information via mobile device or computer. Currently, we recruit, hire, and onboard between 1,500‒2,000 employees per year. Launching this new HR platform will automate our manual processes. This will allow for complete and increased reporting capabilities on workforce demographics in 2021. Below is the gender distribution at our corporate office:

34% Male 66% Female

2020 WSC corporate office demographics does not include contract employees. Gender identification is derived from internal documentation.

HIGHLIGHTS 166 Corporate Office Employees 5,111 Field Employees

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DIVERSITY & INCLUSION Culture

The WSC Culture Club combines forces of employee committees so that we can support each other’s initiatives and unite in our goal to create a community-focused culture for the WSC and Wright Outdoor Solutions (WOS) employees, a local subsidiary. The Culture Club meets monthly and consists of two employee representatives from each of the below committees, WOS representative, and a Culture Club chair. Culture Club and committee involvement is all volunteer based. Committees include:

continued

Ethical Standards

WSC’s employee handbook outlines several employment policies, procedures and practices. This contains equal opportunity employment policies, a code of conduct policy, business ethics statement, a harassment policy and a protection against retaliation policy. Management and human resources staff have an open-door policy as well to report incidents and provide suggestions to improve the workplace.

Community Involvement - A newly formed committee that will create opportunities to get employees involved in our communities with volunteer and philanthropic opportunities. Employee Ownership - An established committee will continue to educate employees on the benefits of being an employee-owned company and hold Employee Ownership Month festivities. Special Events - A newly formed committee that will spearhead holiday celebrations, corporate office summer picnic, end of fiscal year party and additional events for employees. Wellness - An established committee to lookout for the health and well-being of our employees via a wellness portal, lunch and learns and more.

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EDUCATION & DEVELOPMENT UNIVERSITY

Learning Management System

Wright Service Corp. University (WSCU) is a learning platform that documents and tracks your online training. WSCU creates the ability to reach every employee in the company who has a company email for training and continued learning. Topics include management, leadership, customer service, productivity, tips and tools, and more. The Training and Development Department have increased course offerings significantly in the learning management system (LMS) since 2019.

Train the Trainer

There was a need to equip WSC subject matter experts and employees with the skills needed to create and conduct effective trainings. A pilot program was designed to take place over the course of one year,

Added over 2,000 available titles, including 400+ Spanish language courses - New subjects added include technology, leadership and communication - Increased training hours completed in WSCU by 79% in 2020 compared to 2019 at the corporate office: > 2019 – 801 course completions, 594.94 hours > 2020 – 1,410 course completions, 1,065.27 hours

beginning the first quarter of the WSC 2020 fiscal year, October 2019. It was designed to be in-person, and although a virtual piece was made available, COVID-19 has essentially stalled the pilot program at this time. Program delivery included the dissemination of content including four modules that would focus on design, development, presentation and facilitation using a mix of instructor-led trainings, peerto-peer and e-learning. The initial plan was to have a group of nine employees at the corporate office, conduct three sessions and 10 hours of training. Measuring the success of the program would include direct observation of training conducted by participants in the program. - Recognize the importance of a needs analysis and identify appropriate training interventions and assessment methods. - Write useful learning objectives that focus on performance. - Develop engaging training content that will increase your participants’ learning.

Onboarding

The Training and Development Department leads a two-part orientation session for all corporate office new hires. In a new hire’s first week, they’ll take a deeper dive into each of our family of companies and their history,

the company structure, touch on various policies, review available learning on WSCU, benefits and resources. The second session takes a deeper dive into the WSC culture, mission, vision, values, ESOP, setting personal and professional goals, events the employee can look forward to and a mini True Colors workshop.

- Effectively deliver engaging training sessions.

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EDUCATION & DEVELOPMENT continued

True Colors®

True Colors® is personality assessment is used to boost interdepartmental and team cooperation. Each employee completes a survey and is given a portfolio with potential strengths, weaknesses, and strategies for communicating with people of different personalities. This improves employee self-awareness and conflict resolution. Three employees are certified True Colors facilitators. In addition, new employees will be assigned training on WSCU to review topics such as: ‒ Harassment and discrimination ‒ ESOP ‒ True Colors ‒ Customer service ‒ Timesheet tracking ‒ Retirement savings, and enrolling in a 401(k) or Roth ‒ Accessing the company clothing and apparel store In 2020, the amount of time spent with individual new hires in orientation sessions doubled. Of the corporate office staff, 48 people went through the first orientation session. We were able to have 12 employees attend the second orientation session in January 2020.

LEAD Program

The LEAD Program is a two-year, WSC sponsored leadership, training and development program. Following a nomination process, individuals who have shown they are dedicated to their career and growth within our family of companies are selected. We utilize this program to give selected employees a comprehensive perspective of our family of companies, a platform for cross-company networking, and the tools to enhance their leadership potential. Since the program’s inception, thirty-eight employees have graduated the program. The newest class began their journey in June 2020 and are set to graduate in 2022. This group of participants have completed a total of 1,296 training hours in 2020. Although the LEAD Program has continued to evolve over the years, the foundation of the curriculum has remained the same with a mix of: ‒ Online learning ‒ In-person and virtual sessions ‒ A job shadow ‒ Mentorship program ‒ Book review ‒ Dale Carnegie course ‒ Capstone article and presentation

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WELLNESS WSC provides both full-time and part-time positions with a benefits package that far exceeds the industry standard. Employees receive comprehensive benefits such as health insurance, wellness incentive programs, life insurance, disability, paid vacation time, traditional pre-tax and Roth 401(k) retirement plan options and employees are part of profit sharing through an ESOP.

Health Insurance

WSC offers medical with prescription coverage, dental, and vision insurance to all eligible non-union employees. Plans are offered either as individual or family. Family plans are not limited to number of dependents. WSC pays a portion of these insurance fees to provide competitive premium rates for employee’s insurance packages. Tobacco free lifestyles save money ($312 annually or $26 monthly) on insurance plans and cessation programs are in place to seek help with quitting. The Employee Assistance Program (EAP) is a professional and confidential, short-term counseling service available to the employee and their immediate family. This benefit is a company paid benefit and is offered to the employee at no cost. Immediate telephone access to a counselor is available 24 hours a day, 7 days a week. Resources include up to three sessions for inperson appointments per separate issue per year, legal services, financial consultation, and eldercare resources.

In 2020, WSC saw a 10% increase from 2019 in the number of those enrolled in the health insurance benefits. Wellness Program

The program involves earning rewards for competing activities throughout the year on individual and group activities such as challenges, participating in events, and attending educational lunch and learns on nutrition and eating well, reducing stress, sleep, exercise, financial well-being, community involvement and more. Annual biometric health screenings are hosted at the corporate office through Mercy, a Des Moines hospital. Flu shots are also provided on location in the fall open to employees and their families. Employees can also take part in challenges through the portal to earn points and for accountability.

From 2019 to 2020, we remained consistent with 45% of those plans being employee only, while 55% were family plans.

Those in need can visit a doctor on their smartphone, tablet or computer from virtually anywhere and offered at no cost. Doctor on Demand offers no cost, virtual doctor visits with board-certified doctors who can treat most common medical conditions and prescribe medication.

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LONGEVITY Compared to 2019, the WSC corporate office turnover rate dropped 6.5% in 2020. We have many employees who are with the WSC family of companies for 10+ years including those who have since retired. Across all companies in North America, below is a percentage breakdown of our active employees and their years of service based on 5,277 employees at the end of 2020. 16-20 years 1.33% 21-25 years 0.62% 11-15 years 6.09% 26-30 years 0.19%

31 years or more

6-10 years

0.15%

11.23%

is also designed to assist our employees with their retirement and provide them with a financial stake in the company. For our customers and partners, we are empowered to provide exceptional service and innovative solutions. At all levels of the company, you’ll be working with an employee owner – individuals who are invested in the success of the company and the quality of service we deliver. The ESOP enables employees to directly affect profitability and value and see the results. Employees have pride in the company and a vested interest in making sure the value of their account grows. The ESOP has also allowed the company to protect jobs and support the communities we work in.

ESOP Stats

80.38%

36.00%

The breakdown does not include our seasonal employees.

ESOP & DSU

WSC has been a proud employee-owned company since 2002. Through shared ownership, WSC’s ESOP helps promote a positive, unique organizational culture and supports company success. The ESOP

80% vested

20% vested 12.12%

100% vested 50.00%

40% vested 12.12%

60% vested 13.64%

80% vested 12.12%

Comparison of number of eligible employees; percentage vested.

In 2018, a deferred shared unit (DSU) plan was established for Wright Canada Holdings Ltd. and its subsidiaries. The DSU was created to provide similar benefits to our Canadian subsidiaries’ employees. 100% vested

5 years or less

DSU Stats

20% vested 35.02%

40% 60% vested vested 13.40% 9.39%

6.19%

Comparison of number of eligible employees; percentage vested.

Retirement

WSC offers a comprehensive 401(k) retirement savings plan. Employees at least 18 years of age are eligible when they have completed one year of service with at least 1,000 hours. Plan entry dates are April 1st or October 1st, following eligibility. Effective October 1st, 2015 WSC added a Safe Harbor March Program to their 401(K) offering, matching 100% of the first 3%, plus an additional 50% of the next 2% employees contribute to their retirement savings. The matching funds are

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placed in the ESOP account. Meaning, employees must contribute at least 5% annually to receive the full company match. These company-matched contributions are 100% vested immediately. Effective October 1st, 2017 WSC enacted an Automatic Enrollment Program, implementing an automatic 3% pre-tax 401(k) enrollment process for all eligible employees which increases contributions from salary pay by 1% each year until 10% is reached (opt-out available). This was enacted to ensure employees were taking steps for their financial security in the future. Regarding WSC’s 401(k), employees from the WSC family of companies (in the U.S.) contributed to their retirement plans. When looking at the end of 2020, 92% of those eligible were contributing to their retirement savings during this timeframe.

Employee Well-being Goals

Contribution Ranges

Diversity & Inclusion: Increased reporting capabilities on workforce demographics in 2021.

11%+ 2.42%

1-3%

19.90%

6-10% 35.78%

4-5%

41.90%

Education & Development: Increase online training hours by 10% in Wright Service Corp. University. Education & Development: Continue to gauge interest and feedback from employees to determine frequency, delivery method and topics desired from Lunch & Learns going into 2021.

Those contributing 1-3% receive 100% company match, those contributing 4-5% receive an additional 50% match with the max match potential hit at 5%. 62% of those contributing are receiving the full match potential. *Numbers can change daily.

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ENVIRONMENTAL SUSTAINABILITY The WSC North American headquarters based out of West Des Moines, Iowa, began a remodel phase in 2020 with environmental sustainability and economic sustainability in mind. The year 2020 posed many challenges; however, it also posed an opportunity with many working from home to remodel the existing buildings on the headquarters’ campus to accommodate the growing amount of support staff while also providing the infrastructure needed for the flexibility with the newly enacted Work from Home Policy.

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ENERGY Prior to the remodel, the headquarters had many energy efficiency actions implemented. Since the building will have many large glass windows on the exterior WSC worked with Baker Group, headquartered in Iowa, during the remodel to optimize energy efficiency in our infrastructure. An estimated 50% of the lighting was on a motion activated setting. Thermostats were also set on timers to decrease air conditioning energy in the summer months and reduce heat in the winter after typical workday hours. After the remodel, the building is anticipated to be 100% LED lighting, 95% motion activated with vacancy switches and on a lighting control system, and the heating and cooling system on an efficiency timer to optimize energy and cost savings in 2021. Our existing state of the art high efficiency HVAC system was enhanced with additional zones and reworked for optimized employee comfort. Since

the building will have many large glass windows on the exterior WSC worked with Baker Group, headquartered in Iowa, during the remodel to optimize energy efficiency in our infrastructure. Our local Iowa service provider, MidAmerican Energy Company, has a 100% renewable energy vision by 2021. In 2019, they produced 61.3% of annual energy needs with renewable energy. In addition, the IT Department takes steps to reduce energy consumption with the devices they select for office and field staff use. IT will generate a reference guide for employees to use to educate themselves on extending battery life for devices in 2021. The corporate office has 3 Canon copiers, 5 Lexmark printers, and several personal office printers. The Canon copiers are ENERGY STAR® certified. The default settings are established for energy efficiency and manufactured for low energy use.

Expenses include monthly base service fees such as service availability/transport fees, taxes, demand charge, etc., plus the cost of electricity and gas. Energy cost varies month to month based on demand for us as well as demand in the area.

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WATER Prior to the remodel plans, the corporate office was underway on upgrading to low flow and water efficient fixtures. Post remodel restrooms in 2021 will have new hot water recirculation lines installed to provide hot water quicker and all fixtures will be low flow and automatic to use less water. A Kinetico water system, a reverse osmosis water treatment system that works with a water softer to filter 99% of contaminants from our water supply for drinking and ice making is present at the corporate office. Employees are encouraged to use reusable water bottles and cups as the reverse osmosis water taps. This efficiency will also reduce natural gas usage to heat water.

Expenses include monthly base service fees such as taxes, sanitary sewer service, sewer availability, stormwater management fee, etc., plus the cost of water used. A gallon of water in 2020 cost an average of $.00544 from West Des Moines Water Works.

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WASTE WSC reduces, reuses, and recycles at the corporate office to minimize our waste footprint.

A reduction of 1,960 pounds of paper in 2020 which would equate to reducing 5.5 tons of CO2e.

Reduce

The Marketing and Communications Department outsources high-quality printing projects and in 2020 decided to go paperless for the company-wide newsletter.

Plastic In 2019, an initiative at the corporate office was to reduce the use of plastic water bottles for meetings and events. Company branded reusable cups and a filtered water source was provided. Paper In 2019, the office started to track total paper purchased and where most of the paper was being used in the office for various processes. In 2021, the headquarters will explore sourcing paper made with a higher portion of post-consumer recycled content. ‒ 365 cases of paper were purchased in 2019 ‒ 237 cases of paper were purchased in 2020

In 2019, we used 1.8 tons of paper. The Spring 2020 edition was the first electronic newsletter, decreasing the paper used by 95%, using 221 pounds of paper. This is an estimated reduction of 9.5 tons of CO2e. Recent publications have been printed on responsibly sourced paper as certified by the FSC. Total paper consumption will be evaluated in the future. WSC’s new HR platform, Workday, will launch in May 2021 to help WSC support staff recruit, hire and onboard new talent on day one. Workday benefits our Process Administrators by relieving the burden of manual, paper processes. “Workday will significantly reduce the amount of paper Wright Service Corp. and its subsidiaries uses. The most significant reduction can be seen in our onboarding processes. Currently, we recruit, hire, and onboard between 1,500-2,000 employees per year, each requiring about 46 documents to convert from applicant to

employee. Right now, this is all done through manual, paper processes – that means we print and store anywhere from 69,000-92,000 paper documents per year, just to hire employees. Workday will eliminate this need, converting paper documenta tion to digital and automating our manual processes.” - Workday Project Management Team This is estimated to reduce an average of 805 pounds of paper annually which would equate to reducing 2.3 tons of CO2e annually.

Reuse

WSC has provided branded reusable cups and mugs to corporate office employees over the years to reduce the amount of plastic waste from water bottles or coffee cups. With the remodel, WSC plans to provide all employees with a new reusable branded item to continue this trend. The IT Department purchases and deployed electronic devices that are in good working order to reduce the amount of electronic waste we will produce over each device’s lifetime while also savings on device costs. Further information on device redeployment will be provided in 2021’s report. In 2021, the corporate office will begin a 3-stream waste collection system to include a compost program along with current recycling efforts. A 3-stream system requires employees to sort their waste into either landfill, recycle, or compost. These everyday decisions cause employees to think beyond the bin, think of reclaiming value from waste to reduce their individual footprints together with the

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company, a joint effort for us to be successful in our sustainability goals. A local Iowa company, GreenRU, will repurpose our organic wastes to create nutrient rich soil compost materials and keep a portion of our waste out of the landfill reducing our environmental footprint. We look forward to reporting our total tons of waste diverted from a landfill in our 2021 report.

In 2020, during Phase 1 of the WSC corporate office remodel, an estimated 27,450 pounds of plastic, metal, wood, and fabric materials saved from the landfill from furniture and appliance donations. These donations supported 5 Iowa schools and 6 local organizations. See page 34 for more information.

Recycle

In 2020, WSC started new office recycling initiatives with TerraCycle. In 2021, we will use TerraCycle for all office supply waste that will include tape, scissors, staplers, binders, document filers, and more.

WSC 2020 Office Recycling Efforts:

1,981 total pounds of E-waste recycled with a local certified recycler, Midwest Electronic Recovery. Since implementing the program, we’ve recycled 4,574 pounds of electronic waste. 2018

2019

2020

1,384 lbs

1,209 lbs

1,981 lbs

18 pounds of office supply writing utensils such as pens and highlighters recycled with TerraCycle. Empty print cartridges are sent back to partner manufacturers who handle ink in a compliant manner with a local service provider, The Toner Place.

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BIODIVERSITY Biodiversity is important to our family of companies that provide a variety of environmental services. Although biodiversity is limited in the workplace, office plants add to our biodiversity. Even though our footprint is small, we understand the value of plants for the office interior and exterior. They improve air quality, absorb pollutants, reduce airport dust, and absorb background noise, creating a positive biophilic environment for our employees and guests. WOS supplies the corporate office with plants placed around the office that improve air quality. They also provide landscaping work and a different seasonal arrangement for our front desk in the lobby each week. Due to the renovations, the community garden was removed and will be relocated on the campus. Materials will be reused as the garden is rebuilt in 2021. In 2021, after the remodel is complete several initiatives will be underway for the final landscaping to promote biodiversity. WSC supports industry groups that value biodiversity such as the U.S. Compost Council, the Iowa Sustainable Business Forum, various vegetation management associations, the Arbor Day Foundation, and more.

Environmental Sustainability Goals Energy: IT will generate a reference guide for employees to use to educate on extending battery life for devices in 2021. Water: Account for water used to water both office interior plants, exterior office platers and landscaping from services provided by WSC subsidiary, WOS. Waste: By 2021, remove the availability of plastic water bottles from the office. Waste: Track total tonnage of municipal solid waste/landfill waste disposed of at the headquarters and monitor a reduction with the new compost program in place starting in 2021. Waste: IT Department to start tracking in 2021 ink cartridges recycled as well as cell phones. Data was not available for 2020. Waste: Adding 2 new e-cycle towers to gather batteries, office supplies, and small electronics for expanded TerraCycle recycle program to continue to reduce our waste footprint. Waste: IT Department to host an annual E-Waste drive open to employee personal items as well as office technology waste.

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COMMUNITY ENGAGEMENT WSC has been embedded in our central Iowa community since 1933. WSC supports activities that benefit our employees and add value to the communities where we live and work. Through monetary and in-kind donations such as labor or education, we’re able to support various causes and organizations that align with our values. We take pride in building and developing relationships with our employees, clients and communities.

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CUSTOMER SERVICE In August 2018, our corporate office implemented an internal service level agreement (SLA). The purpose of the SLA is to streamline and continue the strategic and supportive partnership between the corporate office departments and field operations employees. The goals of the SLA are to: - Formalize support and working assumptions between each department and field operations employees of across all companies. - Define mutual requirements and expectations for processes and help improve customer service and the overall performance of each department.

Prior to launching a new company clothing and apparel store on iCoStore and utilizing their customer service department in May, the Marketing and Communications Department would handle phone calls and emails regarding order fulfillment, exchanges and returns, special orders, payment methods, website assistance and more internally. This freed up 50% of the team’s time to focus on product research, special projects and project management.

- Give a high-level overview of each department’s methods of contact and service level of agreement. In addition, the IT Department utilizes a ticketing system using a platform called Samanage. In the fiscal year 2020, October 2019 to September 2020, our help desk team completed 8,210 tickets and the IT Department completed 12,834 tickets in total. The department is working on establishing improved processes to track customer service response tickets and follow-up survey responses in coming years.

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FINANCIAL CONTRIBUTIONS & VOLUNTEER TIME

$228,775 Donated

61.5

Volunteer hours

CONTRIBUTION WSC recognizes the important role that charitable, non-profit organizations play in the communities where we live and work. To align with our values and mission, we strive to provide financial contributions and volunteer support to causes/organizations that support public safety, sustainable communities and environments, champion education and innovation within the vegetation management industry and our communities and support the health and well-being of families. In 2020, a charitable giving policy and committee was established to outline qualifications that must be met for all giving efforts. To align with the WSC mission and core values, the company identified six areas we’d like to focus our charitable giving: ‒ Health and well-being

Beyond monetary donations, each WSC full-time employee has eight hours of paid time per year to use toward volunteering with a charity or non-profit of their choice. Although COVID-19 interfered with many company organized volunteer activities in 2020, we still participated in the following:

HIGHLIGHTS $228,775 in financial contributions was provided to 17 organizations for the 2020 fiscal year.

‒ 8th annual partnership with Meals from the Heartland.

61.5 total paid volunteer hours during the workday in 2020.

‒ Hosted our 3rd annual Red Cross Blood Drive at the WSC office that is open to the community.

154 company hours spent on volunteer activities in 2019.

‒ Various individual activities for Derecho storm cleanup. ‒ Paid volunteer time given for employees to work election polls and vote.

‒ Innovation and education ‒ Sustainable environments and communities ‒ Industry (labor /agriculture /arboriculture) ‒ Disaster recovery ‒ Veteran support

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REPUTATION WSC uses LinkedIn to share updates about our family of companies to employees, clients and the community. 746 people follow our page, gaining 212 new followers in 2020 with a 7.12% engagement rate average on 31 posts. Every three years, we take part in an employee engagement survey conducted by an independent research company who partners with a local newspaper outlet, The Des Moines Register. All employees who work in Iowa for our family of companies are surveyed in the spring and the top workplaces are recognized in the fall of that year. WSC ranked 24th in the 2019 Top Workplaces in Iowa among midsized companies. The National Center for Employee Ownership (NCEO) updates an Employee Ownership 100 list each year – recognizing the nation’s largest companies that are at least 50% owned by an ESOP or other broad-based employee ownership plan. WSC is the 24th largest employee-owned company in the United States.

Industry Leadership

Employees of our family of companies author and submit articles to industry publications throughout the year, such as the Utility Arborist Association’s Utility Arborist Newsline. WSC has an internal editorial committee who brainstorm topics and determine subject matter experts to write articles. In addition, many employees are active members of industry and professional organizations. We encourage our employees to get involved in the industries and communities we serve. It is also a requirement for our LEAD Program participants. These groups will be highlighted in individual company reports in the future.

Vendors

Although at this time WSC does not have standards that our suppliers or service providers are required to follow, we seek out those that share our vision and follow a similar mission to reach our goals. We strive to work with local providers in our community. We understand that those we choose to work with will uphold our reputation in the community and with our current and future clients.

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YOUTH INTERACTION The Employee Ownership Committee has had a yearly coloring contest since 2018, and has given out $250 worth of prizes. Employees were encouraged to ask someone close to them to draw a picture of him or her, their favorite employee, doing what they believe the employee does at work. First place winners receive a gift card to enjoy dinner and a movie with their family.

Community Engagement Goals

In 2020, we held our 15th annual John Wright Memorial Contest. The contest honors the memory of both John L. and John R. Wright. It is designed to further the understanding of the importance of trees among the children and grandchildren of Wright Service Corp. employees. There are three divisions with first ($500), second ($300) and third ($200) place prizes for each. ‒ Division 1: Grades 3-5 ‒ Division 2: Grades 6-8 ‒ Division 3: Grades 9-12

Youth Interaction: Create program to track career fairs attended and work to create a program for youth job shadows across the family of companies.

Contribution: Increase opportunities for employees to partake in volunteer events as a company and encourage volunteer opportunities outside of work hours. Increase volunteer hours by 5%.

The John Wright Memorial Scholarship Fund was established in 2008 to create a substantial scholarship fund to help college students interested in commercial arboriculture achieve high academic goals and support the arboriculture industry. Since its inception, WSC has contributed $32,000. At our corporate office, we invite children and families of our staff to learn more about our company and job functions through a Bring Your Kids to Work Day and picnics. We also participate in local job fairs in the communities we serve throughout North America.

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CORPORATE OFFICE REMODEL Phase 1

In the summer of 2020, we began the remodel process of the WSC corporate office. For the purpose of this report, we’ll provide some key highlights of what we consider to be phase one, the demolition of our main building, soon to be called the east wing. The remainder of our sustainability efforts of the building remodel will be reported in detail in our 2021 report as all construction will be completed at that time.

Environmental Sustainability

Community Engagement

By The Numbers

7.2 tons of scrap metal recycled

1,900 square yards

of carpet recycled

Over 90% of the

assorted office furniture donated Cubicle workstations, private office workstations, conference room tables, chairs, couch, lobby chairs, breakroom tables and chairs, bookshelves, file cabinets, and shelves, the garage door, millwork cabinetry, countertops, sinks and ice makers

27,450 pounds

Estimated of plastic, metal, wood and fabric materials saved from the landfill from these donations made to the local community

3,250 ceiling tiles

saved during demolition and reused

600 feet of fluorescent light tubes and fixtures were recycled: lights crushed and reused as construction concrete material

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CLOSING The WSC family of companies and our employees strive to live out our values and will continue to improve our sustainable practices to ensure a safe and bright future for our employee-owners. We’re committed to a better world for all, by investing in the communities we serve through innovation, integrity and teamwork. We want to ensure that the decisions we make today make a positive impact on our employees, clients, community and the environment.

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APPENDIX An evaluation by EcoPractices®, a sustainability risk management tool from Sustainable Environmental Consultants, a WSC subsidiary, in partnership with WSC. This report is intended to showcase the sustainability journey of Wright Service Corp., dedicated to recognizing their responsibility toward their mission, vision and values for their employee owners, partners, clients, and the public. This preliminary Corporate Social Responsibility Report will be further expanded upon in the coming years to comply with the Global Reporting Initiative (GRI) standards.

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wrightservicecorp.com

5930 Grand Avenue, West Des Moines, Iowa 50266 // 888.972.5930

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