Engineering a Sustainable Future

2003/2004 Sustainability Report

CH2M HILL designed a plant-based system to halt the migration of contaminated groundwater at Beale Air Force Base.

On the CoverTo control the fl ow of water around a highly

contaminated area at Beale Air Force Base in northern

California, CH2M HILL and U.S. Air Force employees

designed a sustainable solution involving more than

5,000 plants (primarily native cottonwood trees, oak

trees, and grasses). The solution combined a slurry

wall with a phytoremediation (plant-based) system to

halt further migration of contaminated groundwater.

In contrast to standard technologies, such as excavating

and removing the soil or using electric pumps to

control water movement, this solution saved more than

$12 million in up-front costs.

To maximize the benefi ts to the ecosystem and

provide extended habitat along the realigned channel,

CH2M HILL and Beale Air Force Base partnered with

regulators to reconstruct the streambank. This included

planting an additional 7,000 new plants and using more

than 30,000 pounds of recycled coconut fi ber matting

along both sides of the new stream channel. This

approach improved erosion control and water-holding

capacity, and promoted the growth of native grasses

seeded beneath the mat.

Dear clients, employees, community partners, and industry peers:

We are pleased to present CH2M HILL’s first Sustainability Report, which describes our company’s

commitment to and progress toward visioning, designing, and building a legacy we can be proud

of—delighting our clients, inspiring our employees, and protecting the integrity of the natural

systems upon which all life depends.

With so many pressures endangering the planet’s ecological systems and its peoples, our

industry’s professional responsibility to serve the public health, safety and well-being takes on

new urgency. Indeed, the engineering profession has a powerful role to play. As scientists, we

are uniquely qualified to understand the delicate and complex relationships between ecological

systems, the built environment, and social frameworks. As designers, we are challenged to

innovate—to protect natural resources while meeting the cost and performance expectations

of clients and consumers. As members of society, we are called to improve our communities,

promote fairness, and educate the young. And as leaders, we must inspire others by turning the

resources of our company to solving some of the world’s most daunting challenges.

This report documents the progress CH2M HILL is making, not only in how we operate our

businesses, but—perhaps more importantly—in how we collaborate with and advise our clients on

sustainable solutions. We invite you to read about our extraordinary people, who are delivering

landmark projects around the world to a variety of clients. Learn about the steps we’ve taken

in developing sustainability policies, programs, and new technologies, as well as methods for

accounting for our progress (such as the implementation of a North American environmental

management system and the publication of this report). As a signatory of the UN Global Compact,

we are committed to support its ten principles in the areas of human rights, labor, environment,

and anti-corruption. We are proud to convey our participation in organizations that influence

sustainability policies locally and globally—the Design-Build Institute of America, the Civil

Engineering Research Foundation, the World Economic Forum, and the World Business Council for

Sustainable Development. In addition, we are delighted to announce the appointment of Nicholas

Sonntag to the newly created position of Senior Vice President of Sustainable Development.

Sustainability is an ongoing process that requires the continued sharing of our experiences,

regular evaluation of progress, and careful adaptation to new insights. This report represents a

milestone in which we commit to sharing our accomplishments and challenges with all of you.

We invite you to follow our progress and join us in this exciting and worthy quest!

Sincerely,

Ralph R. PetersonChairman of the Board, President and Chief Executive Officer CH2M HILL

Joseph A. “Bud” Ahearn, Vice Chairman of the Board

From the Office of the CEO

Joseph A. “Bud” AhearnVice Chairman of the BoardCH2M HILL

Ralph R. Peterson, Chairman of the Board, President and CEO

About this Report

This is CH2M HILL’s first sustainability report, covering the calendar

years 2003 and 2004. We have used the 2002 Global Reporting

Initiative (GRI) guidelines as they apply to our company. (An Index

to GRI Indicators is included on page 30, and cross-references appear

throughout the report. For example, [EN33] on page 5 refers to the

“environmental performance of suppliers” GRI indicator.) We have

found that some modification of the GRI approach was necessary to

reflect the nature of the service business we operate. For example, our

company’s material consumption and through-put are small compared

with the impact and scope of the work we do for thousands of clients in

designing water treatment systems, building industrial plants, cleaning

up toxic wastes, or planning transportation systems.

Sustainable management of our internal operations will always be

important as a natural expression of our culture and the deeply rooted

values of our employees. Beyond that, we believe that our greatest

opportunity for sustainable impact is in our role as a leader in sustainable

engineering practices. Thus, we have structured this report to address

both internal operations and the work we are doing for our clients.

The scope of our report encompasses two of CH2M HILL’s

legal entities: CH2M HILL, Inc., and CH2M HILL Canada,

Ltd. (See the Company Profile section for details.) Unless noted

otherwise, “CH2M HILL,” “the firm,” and “the company” are used

interchangeably in reference to the two companies covered by this

report. As we progress down the path of sustainability reporting,

we plan to include other CH2M HILL subsidiaries and affiliates in

future reports.

Contents

Inside CH2M HILL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Meet CH2M HILL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Company Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Environmental Stewardship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Environmental Management System . . . . . . . . . . . . . . . . . . . . . . 4

Materials and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

The Supply Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Recycling and Reuse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Business Travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Employee Commuting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Regulatory Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Corporate Citizenship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Business Ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Employee Well-Being . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Career and Leadership Development . . . . . . . . . . . . . . . . . . . . . . . 8

Creating a Culture of Inclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Health and Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Industry Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Influencing Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Inspiring Tomorrow’s Engineers . . . . . . . . . . . . . . . . . . . . . . . . . 11

Honoring Environmental Leadership . . . . . . . . . . . . . . . . . . . . . . . 11

Community Partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Charitable Giving . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Teaming Up for the Environment . . . . . . . . . . . . . . . . . . . . . . . . . 13

Sustainable Solutions in Practice . . . . . . . . . . . . . . . . . . 15

Civil Infrastructure Projects

Whittier Access Highway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Toronto Waterfront Revitalization . . . . . . . . . . . . . . . . . . . . . . . . 16

NEWater Plants and Visitor Centre . . . . . . . . . . . . . . . . . . . . . . . 17

The Geysers Recharge Project . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Federal Projects

Johnston Atoll Environmental Restoration and Closure . . . . . . . 18

Marine Corps Air Station New River Low-Impact

Development Stormwater Retrofit . . . . . . . . . . . . . . . . . . . . . . . 18

Climate Leaders Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Redevelopment at a Former Military Facility . . . . . . . . . . . . . . . 19

Industrial Projects

Suncor Energy Greenhouse Gas Management . . . . . . . . . . . . . . 20

Advanced Materials Research Lab . . . . . . . . . . . . . . . . . . . . . . . . 20

Nike Model Sustainable Factory . . . . . . . . . . . . . . . . . . . . . . . . . 21

Silverhawk Power Station . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Looking Forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Progress Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Economic Progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Environmental Progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Products and Procurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Facilities and Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Renewable Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Greenhouse Gas (Carbon) Emissions . . . . . . . . . . . . . . . . . . . . . 26

Fleet Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Regulatory Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Social Progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Workforce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Business Ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Learning and Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Diversity and Opportunity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Health and Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Working with Policy Makers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Index to GRI Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

1

CH2M HILL today differs considerably in size and capability from its roots, but our commitment to environmental stew-ardship and community involvement is as strong as ever.

Meet CH2M HILL

The enterprise now serves clients and communities on every continent, offering more than 700 services in the engineering, construction, and operations disciplines. We are dedicated to being a responsible corporate citizen and sustainability leader wherever we do business and have adopted formal sustainability policies and processes to ensure that we “walk our talk.” CH2M HILL is known for tackling the toughest technical and management assignments, working side-by-side with clients as partners, and delivering sustainable solutions that outperform our clients’ expectations. As such, we have grown to become the number one environmental engineering firm in the United States (Environmental Busi-ness Journal, Volume XVI, Number 7/8, 2003).

Our commitment to sustainability runs deep. As an employee-owned firm, CH2M HILL fosters a culture of self-motivation and personal responsibility—and our employees value and support sustainability, both inside and beyond the firm. Our “Green Team” program is a robust, grassroots initiative that promotes sustainable action through recycling, environmental cleanup, peer education, bike commute advocacy, and commuter trip reduction projects. As profes-sional advocates for sustainable practices, our people devise innovative, yet practical solutions to complex problems and promote this know-how through professional societies.

Company Profile

CH2M HILL Companies, Ltd. (CH2M HILL) was established in 1974 to encompass the firm’s growing services offered through subsidiary companies, which now include Opera-tions Management International, Inc. (OMI), Industrial Design and Construction (IDC), and Lockwood Greene.

Inside CH2M HILL

Founding Partners: Holly Cornell, Jim Howland, T. Burke Hayes, and Fred Merryfield. CH2M eventually merged with Clair A. Hill and Associates to form CH2M HILL.

CH2M HILL adopted its sustainability policy in 2000. This policy voices our commitment to provide the best expertise on sustainable practices to our clients. We pursue new technologies and methods to make sustainable solutions feasible and practical, and we monitor the results of sustainable practices within our organization. We are committed to helping our community partners teach and advance the principles and practices of sustainability.

When three young engineers returned from

World War II to launch CH2M HILL with their

civil engineering professor, they could scarcely have

imagined that by the turn of the century the tiny,

Oregon-based firm would grow to 15,000 employees

and more than 200 offices worldwide. What they

did clearly see was an imminent need to clean up the

Willamette River, and they proceeded to develop

wastewater treatment technologies to help Oregon

cities do so.

Our Values

• Honesty, integrity, and trust

• Responsive client service

• Respect for people

• Quest for innovation and continuous improvement

• Collaborative and enjoyable work environment

• Commitment to safety, health, and environmental protection

• Profitable, long-term growth

• Commitment to community

• Challenging work opportunities and a strong work ethic

2

CH2M HILL has offices in 40 countries and has worked on every continent.

In 2004, CH2M HILL Com-panies, Ltd., had more than 15,000 employees, earned gross revenues of US $3.1 billion, and maintained more than 200 offices in 40 countries.

The firm serves municipal, state, and federal govern-ments as well as private- sector organizations around the world. Our principal markets include environ-ment, water and wastewater, nuclear services, transpor-tation, power and energy, industry and manufacturing, federal and military facilities, telecommunications and

information solutions, and security.

The reporting compa-nies in this document are CH2M HILL, Inc., and CH2M HILL Canada, Ltd.

CH2M HILL, Inc., is a full- service, global U.S. company providing complete program management; planning; engineering design, tech-nology, and construction; financing; operations; and project development services to public and industrial-sec-tor clients. CH2M HILL, Inc. serves three major client groups: civil infrastructure, federal, and industrial.

CH2M HILL Canada, Ltd., is the Canadian division of CH2M HILL Companies, Ltd. The firm was formed in 1995 through the merger of CH2M HILL Engineering Limited and Gore & Storrie Limited, a 75-year-old Cana-dian company with a strong history of success across Canada. CH2M HILL Canada offers unique solutions for sustainable development and is a diversified, full-ser-vice engineering solutions provider.

These reporting companies represent most of the compa-ny’s North American opera-

tions and a large portion of CH2M HILL’s total operations, employing 6,299 people in 2004 and representing approximately 30 percent of CH2M HILL Companies’ total revenue. This report does not include other CH2M HILL organizations, wholly-owned subsidiaries, or joint ventures located in North America and elsewhere.

More information on subsid-iary companies, operations, and CH2M HILL’s full range of services is available at www.ch2mhill.com and www.ch2mhillcanada.com.

“ Embracing the tenets of good corporate social responsibility,

environmental commitment, and sound economics not only

benefits our clients, our employees, and the communities in which

we work, it also makes good business sense.”

— John Murray, President, CH2M HILL Canada, Ltd.

3

program, and outdoor trips and community cleanup events. The idea caught on, and other volunteer Green Teams soon sprang up in more than 30 CH2M HILL offices around the U.S., winning over employees and communities alike. Several Green Teams have been recognized for outstanding community service by local organizations.

In 2000, the Green Team program gave rise to the Corporate Environmental Performance (CEP) Program, CH2M HILL’s formal struc-ture for the sustainability of U.S. operations. Almost simultaneously, the Canadian Sustainable Development Program (CNR SD) took shape through the leader-ship of the Canadian regional manager and the Canadian

Environmental Stewardship

This section provides a snapshot of our company’s current programs and accomplishments—as well as challenges and future objectives—in both environ-mental and social arenas. Detailed performance data and metrics are provided in the Progress Report section later in this report.

CH2M HILL’s in-house sustainability effort began humbly in 1996 with the formation of the firm’s first “Green Team” in Portland, Oregon. On their own initiative and time, a hand-ful of employees set out to raise awareness about sustainability issues among fellow employees through informal talks, enrollment in a commuter trip reduction

CH2M HILL started by founders Cornell, Howland, Hayes, and Merryfield, in Corvallis, Oregon. Clair A. Hill Associates formed in Redding, California.

1946

Developed mixed media filtration water treatment process and variable speed pump. Led to the first advanced waste treatment (AWT) plant at Lake Tahoe, California.

1953 1970 1975

Began work on Denver Water Board successive reuse projectLanded Trinidad water project—first significant international project

1982

Awarded first of many EPA “Superfund” remediation contracts

Developed aquifer storage and recovery technique

First urban sustainability/regional planning and first interstate highway work

1964

Decided to enter large-scale hazardous waste/toxic waste market

1981 1992

Participated in the “Rio Summit” on Sustainable Development

CH2M HILL’s Progress Toward Sustainability

The First Green Team

“ In 1996, the Northwest Earth Institute in Portland, Oregon, challenged us to start the first Green Team. In the begin-ning, I was reluctant; but the first meeting of the Green Team changed that! Our team’s first major undertaking was a success.

With just a bit of volunteer energy, we arranged for reduced-price annual bus passes for all of our Portland employ-ees. I think that’s what inspires other people to form Green Teams in their own offices: the idea that you can make a positive difference, even with limited resources.”

— Andrea Ramage, Director, Sustainable Solutions

Green

Team

4

Corporate Headquarters LEED™ Certified CH2M HILL’s new corporate headquarters, located in Denver, was designed and constructed to meet LEED™ green-building certification standards for reducing energy, water use, and waste. Energy efficiency drove the choices for air conditioning systems, indirect lighting, high-efficiency window glazing, and automated lighting controls. Buildings were also commissioned to optimize energy performance and achieve a LEED™ Certified rating from the U.S. Green Building Council.

“ Our people are the driving

force behind CH2M HILL’s

sustainability programs. In

every case that I can think

of—the Sustainability Policy,

the LEED™ certification of our

Denver campus, the Green

Teams, and the North American

environmental management

system—our employees’

initiatives made it happen. Our

responsibility as executives

is to encourage and support

such initiatives wherever and

whenever needed. Our people

will get the job done if we don’t

stand in their way.”

— David Miller, Senior Vice President, Corporate Affairs

Green Teams. Together, these two programs shape the policy and plans for sustain-able operations and keep the firm’s “feet to the fire” with regard to sustainability goals. They are the stewards of the firm’s Sustainability Policy, the newly formed environmental management system (described below), and various communication and education programs. In addition to increasing performance, one of our ongoing challenges is to bet-ter integrate these corporate sustainability programs.

Because environmental engineering is our business, this report places a strong emphasis on what we know best—the environmental aspects of sustainability. We are strengthening our expertise in the social and economic components as we address them within the organization.

Environmental Management System

For many years, CH2M HILL has helped clients manage environmental impacts using environmental management systems (EMSs). When it came time to improve our own practices, an EMS seemed the obvious choice. An EMS is used to evaluate the ways in which business activities impact the environ-ment, identify areas with the greatest potential for environmental “return” on investment, and include an action plan complete with a feedback/adjustment loop. This prioritized approach ensures that the time and money invested delivers meaningful and continuous improvement. In addition, the EMS recognizes the need to work with CH2M HILL’s partners in environmental stewardship—from clients to vendors and from office man-agers to purchasing agents.

Formed Sustainable Development Practice Group

1995 2000 2003 2004

Board endorses CH2M HILL as a signatory to the UN Global CompactFormed the knowledge network of Sustainable Solutions professionals

2005

Hired Corporate EMS ManagerHired Senior Vice President of Sustainable DevelopmentPrepared first Sustainability Report

Developed environmental management system (EMS) for North American office operationsDenver Campus (3 buildings) receive LEED™ certificationLaunched Canadian Commuter Challenge event to address climate change

The goals of CH2M HILL’s EMS are to reduce the company’s environmental footprint and increase operating efficiencies in the North American companies included in the scope of this sustainability report. In the future, we plan to expand the EMS to include the environ-mental impacts of subsidiary companies, international offices, and the projects we deliver.

Our initial EMS action plan focuses on five key areas for measurement and improve-ment, selected to reflect the primary environmental impacts of our service- oriented businesses:

• Materials and equipment

• Facilities

• Business travel

• Employee commuting

• Regulatory compliance

1993

Started Rocky Flats Nuclear Waste Cleanup

Hired first VP of Sustainable Development in CanadaAdopted CH2M HILL Sustainability PolicyInitiated CH2M HILL Corporate Environmental Performance program

Firm’s first Leadership in Energy and Environmental Design (LEED™) certification project at the Whitehead Animal Research Center, Emory UniversityInitiated annual Sustainable Communities Awards with Federation of Canadian Municipalities membersCH2M HILL Canada received GLOBE 2002 Environmental Competitiveness Award

2002

Formed Small Business Mentoring ProgramStarted Diversity Program

5

Materials and Equipment

The Supply Chain

With approximately 27,000 vendors supplying goods and services to CH2M HILL companies, we can use the company’s purchasing power to drive the market toward environmentally preferable choices. We have launched several initiatives to bring us closer to this goal: [EN33]

• Computer and Printer Equipment—To reduce electronic equipment waste disposal, we rewrote contracts with our U.S. computer and printer leasing and manufacturing vendors, specifying that all of CH2M HILL’s computer equipment in the U.S. be released for resale or disposed of responsibly. In addition, we have

adopted formal “green” procurement guidelines for both the leasing and purchase of computer and printer equipment.

• Paper—Since 2000, we have worked to reduce paper consumption by leasing laser printers that print double-sided, using electronic fax systems that integrate with e-mail, increasing the use of online forms and transactions, and discouraging printed newsletters in favor of electronic distribution. We have developed paper procurement guidelines that encourage all of our paper purchasers to buy recycled paper. As a result, the percentage of recycled paper purchased has increased from approximately 70 percent in 2003 to 84 percent in 2004.

• Cleaning Products—For the company’s corporate campus in Denver, we developed environmentally friendly specifications for cleaning products; for example, no persistent or toxic chemicals, carcinogens, or ozone-depleting chemicals; low levels of volatile organic compounds; and resource-efficient packaging. We are currently working to write these standards into national contracts for janitorial services.

Recycling and Reuse

We are committed to reducing the use of office materials and waste through reuse, reduction, recycling, and “rethinking” our choices. CH2M HILL currently recycles materials in most of its facilities, but there is always room for improvement.

Wind-Powered Computers CH2M HILL Canada is helping to support clean energy by powering its more than 500 computers and laptops with wind-generated electricity purchased from the Pembina Institute. By purchasing wind power certificates, CH2M HILL is helping to diversify Canada’s energy sources, reduce harmful greenhouse gas emissions, and support a clean renewable source of energy. The company will also be offsetting approximately 250 tonnes of carbon dioxide (C02) emissions each year.

Pew Center on Global Climate Change As a member of the Business Environment Leadership Council of the Pew Center on Global Climate Change, CH2M HILL is seeking constructive, cost-effective solutions to the climate change challenge. CEO Ralph Peterson represents CH2M HILL as the only engineering firm on the council.

“ With others in the Pew Center’s

Business Environmental

Leadership Council, CH2M HILL

believes that climate change is

a serious issue that demands

serious solutions. They have

shown that it is possible to

reduce or offset emissions

and still remain economically

competitive; and they are

giving others the opportunity

to learn from their experience.

CH2M HILL recognizes that

being a leader on a tough issue

makes good business sense.

We need more companies

like them.”

— Eileen Claussen, President, Pew Center on Global Climate Change

Building from their award-winning success in sustainability on the Barrie Landfill Project in 2002, the six-person office of CH2M HILL in Ontario, Canada, continues to stride toward greener office practices. In April 2004, Jacqueline Trumpe began engaging CH2M HILL suppliers in Ontario’s green initiatives by requesting space-efficient CD catalogs instead of paper ones. Ac-cording to Jackie, “Every year or two we were recycling these 1,000-page supply binders and it seemed like such a waste.” Nearly 75 percent of the suppliers she contacted were willing to provide their information on CDs instead of paper, and now the supplier library uses less than 10 percent of its original shelf space.

Green

Team

6

Most often, the levels of recycling are driven by the extent to which building owners provide facilities and systems for doing so. That said, we are working to establish paper, glass, plastic, aluminum, and printer toner recycling programs in all offices. Participation in recycling programs is generally enthusiastic and comprehensive, often led by the company’s volunteer Green Teams. One of our goals is to reduce the waste associated with correspondence by reusing packaging and promoting the recycling of interoffice envelopes. In addition to increasing the amount of recycling within our operations, we are dedicated to improving our ability to quantify the types of waste generated.

Facilities

As a service company, CH2M HILL generally locates its offices in commercial office spaces, and as a rule, these facilities are leased. Efforts to make operations more sustainable—through energy conservation, recy-cling, water conservation, and green tenant improve-ments—must be conducted in collaboration with land-

lords. In addition, the finan-cial rewards of sustainable practices often are not easily captured through existing leasing arrangements.

Despite these two hurdles, however, CH2M HILL’s office managers and employees strive to implement best practices. For example, 83 percent of our offices encourage employees to turn off lights in vacant rooms, and 16 percent have installed automatic light sensors in conference rooms and common areas; 16 percent of the offices surveyed have performed office energy assessments. In 2003, we conducted a baseline energy audit and greenhouse gas inventory for all North American offices covered in the scope of this report. In addition, we plan to establish energy conservation pro-grams in offices with more than 50 employees.

One very important aspect of our environmental com-mitment is to support the development of renewable energy choices. In several office locations, we purchase renewable energy or buy “Green Tags” (renewable energy certificates). In fact, CH2M HILL was the first commercial enterprise to buy Green Tags through the

Bonneville Environmental Foundation in 1999. [EN17]

In 2003, the U.S. Environ-mental Protection Agency (EPA) included CH2M HILL in its Green Power Partners program because of our commitment to purchase 10 percent of the energy for our Northwest Region offices from renewable sources, starting in 2004.

Business Travel

Because we have clients all over the world, CH2M HILL employees do a lot of travel-ing to serve their needs—via airplane, rental car, fleet car, train, and other modes. For example, the 6,035 employ-ees of CH2M HILL, Inc., and CH2M HILL Canada, Ltd., collectively flew 44,053,167 miles in 2004. This includes domestic and international flights and represents 7,300 miles per employee for the year. Because air travel is a significant environmental impact of our company, we

promote common-sense approaches to reducing the number of miles flown. This is a challenging area for reducing environmental impacts, one for which we need to develop options.

In addition to looking at air travel, we are implement-ing an initiative to reduce the size of the company’s fleet, and we are working to establish green preferences and national agreements with eco-friendly hotels and rental car companies that, for example, offer hybrid vehicles.

Employee Commuting

Employees commuting to work consume fuels, cre-ate air and greenhouse gas emissions, and contribute to traffic congestion. To reduce these impacts, CH2M HILL supports a variety of com-muting alternatives, which are most often implemented at the local level.

Boise’s 10-year-old Green Team received the City of Boise’s EnviroGuard Environ-mental Protection Award for its recycling and sustainability efforts. Because the award came from one of the Boise office’s largest clients, it was especially meaningful. The Boise City Mayor Dave Bieter recognized CH2M HILL for its good neighbor ethic and caring about the environment in his State of the City address in 2004. Shortly thereafter, CH2M HILL was selected as the consultant to develop the City of Boise’s Strategic Plan.

Green

Team

7

This includes promoting trip reduction programs, sub-sidizing annual bus passes and FlexCar memberships, promoting carpooling and vanpooling, and provid-ing facilities for bicyclists. Employees in our Atlanta office, for example, have the opportunity to participate in a commuter rewards pro-gram by carpooling, taking transit, walking, bicycling, and teleworking. Active participants are included in a monthly drawing for gift cer-tificates to local businesses. In the Seattle office, which subsidizes transit passes, 55 percent of employees use transit, carpool, bike or walk, ride with a vanpool, or take a train or ferry to work, rather than drive alone. Many of our employees support trip reduction goals by working at home and taking advan-tage of the company’s telework policy. In addition, several employees in the Denver office held leader-ship positions on local urban steering committees that

successfully lobbied for three additional pedestrian bridges at future light rail stations near the headquarters campus.

Regulatory Compliance

Regulatory compliance, while important, is a minimum requirement for sustainable operations. The regulatory issues that affect CH2M HILL’s operations (and client work) most directly include environmental incidents (for example, spills) and management of hazard-ous materials.

CH2M HILL’s target is zero environmental incidents per year. Our long-standing Health, Safety, and Environ-ment (HS&E) program devel-ops, maintains, and enforces best practices with our staff and subcontractors. When environmental incidents do occur, they are reported, recorded, and assessed to determine whether improve-ments in systems or proce-dures are required.

Because of the nature of our business, our staff handles and transports hazardous materials (hazmat) on a daily basis. To minimize the risk of exposure, protect our staff, and comply with regulations, a rigorous hazmat program establishes handling and shipping procedures and conducts staff training.

Corporate Citizenship

CH2M HILL is more than a collection of technically skilled individuals. As a company, we become a collective force capable of solving difficult challenges for our clients, while advanc-ing the technologies and improving the welfare of the communities in which we live and work. When we combine technical capabilities with strong business ethics, a good corporate citizen emerges. That is what we aspire to be. In this section, we describe our accomplish-ments and challenges with respect to the many facets of corporate citizenship at local, national, and global levels.

“ We are excited that

CH2M HILL’s efforts helped

secure support for the new

pedestrian crossings. When

complete, these bridges will

allow our employees and

other commuters to safely

access the Denver light

rail line.”

— Brian Bellfi, CH2M HILL Senior Transportation Design-Build Manager and participant on Denver area urban steering committees

It must be a company record: 90 percent of the Philadelphia office employees leave their cars at home and get to work with a com-muting alternative. They take the train, ride a bike, walk, or tele-commute. In doing so, they’ve reduced their commuter mileage by 76 percent—saving an estimated 162,989 gallons of gas and eliminating 484 pounds of smog-forming pollution every year.

Green

Team

CH2M HILL Canada’s Commuter ChallengeIn 2004, 107 staff in our Canadian offices took a one-week Commuter Challenge. By leaving their single-occupant cars at home and walking, biking, or taking mass transit, these employees avoided driving 9,320 vehicle miles.

8

Business Ethics

CH2M HILL’s culture of conducting honest, ethical business was firmly estab-lished by the company’s founders and is now carried forward by a well-defined, strongly endorsed code of conduct. Revised in 2004, the Ethics Code and Busi-ness Conduct Policy guides employees and decision making by addressing topics such as bribery, corruption, conflicts of interest, dis-crimination, and harassment. Adherence to this policy is a condition of employment at CH2M HILL. Staff with concerns about how the Busi-ness Conduct Policy applies or who observe coworkers not following the policy can consult with one of the firm’s lawyers through a confiden-tial hotline.

To extend this commitment internationally, in 2004, CH2M HILL CEO Ralph

Peterson signed the World Economic Forum’s Zero-Tolerance Policy to Combat Corruption and Bribery. [SO2]

Employee Well-Being

CH2M HILL’s success depends on the knowledge, skills, and innovation of our employees; the fact that our firm is employee owned underscores this reality. The company’s founders placed a high premium on hiring people of integrity and on encouraging personal initia-tive and responsibility, values that continue to this day. The quality and character of our staff and corporate commit-ment to employees make CH2M HILL one of the most sought-after employers in the industry. In fact, CH2M HILL was named one of Fortune® magazine’s “100 Best Places to Work.”

We are determined to maintain a workplace popu-

lated by people who hold themselves accountable to high ethical standards and who lead others in doing so. The company is, in turn, committed to providing ample opportunities to keep our employees challenged, rewarded, and satisfied with their jobs. In this report, we highlight three aspects of our commitment to employees: investing in career develop-ment, creating a culture of inclusion, and promoting health and safety.

Career and Leadership Development

In a rapidly globalizing and complex world, great people are CH2M HILL’s smartest investment. Our goal is to hire, develop, and retain the technical experts, nimble thinkers, and thought lead-ers who will give CH2M HILL its competitive advantage in the industry. Toward this end, we support a variety

of enterprise-wide educa-tion, training, and assign-ment opportunities. These include online and traditional classroom courses, tuition reimbursement, leadership development, mentoring, career development models and assessment tools, and performance evaluations linked to career development plans. Future leaders with outstanding promise are sent to Foundations of Leader-ship, an executive leadership program developed and delivered by CH2M HILL executives and the University of Michigan Business School.

“ Integrity is the all-important prerequisite to employment. We need

to be interested in pleasant people of unimpeachable character.”

— Jim Howland, one of CH2M HILL’s founders, in his “Little Yellow Book” of guidance and inspiration

Foundations of Leadership. We partner with the University of Michigan Business School to offer the CH2M HILL Foundations of Leadership program. Three or four times a year, 35 leaders from offices around the world convene for this intensive 3 ½-day program to gain greater understanding of the firm’s business strategies and to develop their own leadership capabilities. Participants continue in the program for at least 6 months.

“ At the University of Michigan we have worked with many large companies over the years, but this is the best example, by far, of a serious commitment to leadership development and to a leadership culture.” — Dr. Kim Cameron, University of Michigan

United Nations Global Compact.

In 2003, CH2M HILL’s Board of Directors formally endorsed the UN Global Compact, an international commitment to advance responsible corporate citizenship and promote a more sustainable and inclusive global economy.

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Creating a Culture of Inclusion

CH2M HILL strives to pro-mote an environment of inclusion, equal opportu-nity, and appreciation for diversity. We are committed to establishing a diverse workforce and have been working hard to recruit and develop women and under-represented minorities for managerial positions. For example, in 2003, CH2M HILL implemented a policy plac-ing renewed emphasis on increasing the percentage of women and minorities in mid- and senior-level managerial and professional positions. As we continue to grow and increase our global market share, the goal is to improve our performance through diversity and to mirror our diverse client base. [HR4]

Health and Safety

CH2M HILL places a high premium on safety, both in the office environment and on clients’ job sites. This commitment is backed by a strong health and safety organization that devel-ops operating standards, monitors performance, and conducts ongoing employee training. Furthermore, the Health, Safety & Environment program is integrated with our business and project delivery systems, resulting in one of the lowest recordable incident rates in our industry, both on client projects and within our offices.

CH2M HILL records all workplace incidents using our Incident Report Form. We track subcontractors as well as employees, all injuries regardless of severity,

illness, property damage, fire or explosion, spill, release, potential violation/permit exceedance, and near misses. [LA5]

The reporting process is designed to ensure that injured workers get the care they need quickly. It also helps CH2M HILL identify why an incident happened, what can be learned from it, and how we can improve our programs. The process exceeds federal and state requirements for occupa-tional safety and health recordkeeping, and conforms to the International Labor Organization Code of Prac-tice (with the exception of commuting accidents, which the U.S. Occupational Safety and Health Administration requirements exclude).

Since 1999, CH2M HILL has provided financial support and executive leadership to the Hispanic Engineers National Achievement Awards Corporation, a resource for recruiting talented and motivated young professionals.

“ We applaud CH2M HILL

for generously supporting

National Engineers Week. Their

leadership, volunteer support,

and overall contributions give

students the opportunity to

learn about engineering and

technology—and help build

interest and enthusiasm for the

profession.”

— Leslie Collins, Executive Director, National Engineers Week Foundation

CH2M HILL is proud to be affiliated with the Hispanic Engineers National Achievement Awards Corporation (HENAAC) established in 1989. HENAAC’s mission is to seek out, recognize, honor and document Hispanic excellence in science, engineering and technology.

Each year, HENAAC recognizes the best and brightest stars among the Hispanic engineering and scientific community in the U.S. They receive more than 300 nominations each year, and only 20 professionals are selected for recognition.

In 2004, Kaiser-Hill Vice President and Chief Financial Officer Len Martinez was honored with a HENAAC award in the category of Executive Excellence in Government. He is the first non-engineer/scientist to be selected for this notable award.Len Martinez, winner of the

HENAAC Executive Excellence in Government Award

10

The company conducts its operations according to written safety programs. In nearly 60 percent of our North American offices, these programs are adminis-tered by safety committees and, in the remainder, by office safety coordinators. Site safety coordinators fulfill similar functions on our proj-ect sites. [LA6] These commit-tees and coordinators are the primary channel for employ-ees to voice and resolve health and safety concerns.

CH2M HILL Leaders in Action

Ralph Peterson, Chairman, President, and CEO: Holds a position on the World Economic Forum (WEF) committee for transparent business conduct and anti-corruption; Member, World Business Council for Sustainable Development (WBCSD); Member, Business Environmental Leadership Council, Pew Center on Global Climate Change.

Don Evans, President and Client Group Chief Executive, Civil Infrastructure and EPC Client Groups: Board member, Design-Build Institute of America (DBIA); Board Member, Center for the New West; Member, Water Environment Federation; Member, American Water Works Association.

Joseph A. (“Bud”) Ahearn, Vice Chairman of the Board: Chairman, Corporate Advisory Board, American Society of Civil Engineers (ASCE); Board Director, Engineers Without Borders—USA.

Nicholas Sonntag, Senior Vice President of Sustainable Development: Member of Science, Technology and Environment Advisory Board, Royal Roads University, Canada; Member, Board of Councilors for China-U.S. Centre for Sustainable Development; Member of the Earth Council Institute, Costa Rica.

Peter Hughes, Vice President and Chief Legal Officer, CH2M HILL Constructors, Inc.: Active participant in the WEF; Director and Assistant Secretary of the newly created Engineering & Construction Risk Institute, Inc.; Legislative Committee, DBIA.

Jan Dell, Vice President, Industrial Client Group: Liaison Delegate to WBCSD.

Andrea Ramage, Director, Sustainability Solutions: Member, Governor’s Panel for a Sustainable Washington.

Ann Duffy, Vice President, Sustainable Development, CH2M HILL Canada: Board member, International Centre for Sustainable Cities.

“ As president of the Junior Engineering Technical Society, I’m very proud of JETS programs,

particularly UNITE, a national program that introduces minority high school students to

engineering. More than 86 percent of the students in the program enrolled in college in 2003.

That’s pretty impressive.”

— Bob Allen, CH2M HILL Senior Vice President, Human Resources

Other channels include direct contact with HS&E manage-ment, regularly conducted all-employee surveys, and semi-annual survey probes with smaller groups of ran-domly selected staff.

Industry Leadership

To advance the practice of engineering—and sustainability—within the industry as a whole, engi-neering companies such as ours must step up and provide leadership. As part

of that mission, CH2M HILL is an active corporate member of the organizations that are shaping the future of engi-neering and sustainability. We engage in policy-making dialogues and are fre-quently called on to provide policy makers with technical expertise. We also recognize and honor other companies that demonstrate leadership in sustainable practices, and invest in the future generation of engineers through various programs.

Influencing Policy

CH2M HILL actively engages with policy makers to support issues and legislation that help move the engineering industry forward and support client and company inter-ests alike. Members of the executive staff and numerous employees hold positions on the boards of directors of policy-making organizations, many of which have a strong agenda for sustainable busi-ness practices. We work with legislators, policy leaders,

11

and other stakeholders to pave the way to more effective and sustainable solutions. Some of the federal organizations we engage regularly are the U.S. Department of Transporta-tion, Department of Energy, Environmental Protection Agency, and the Department of Defense. We also engage similar organizations at the state and local government level.

Public policy creates busi-ness opportunities and challenges that affect CH2M HILL and our clients. Our government affairs staff promotes the business and professional interests of CH2M HILL, its employees, and its clients at federal, state, and local levels. Government affairs profes-sionals are responsible for handling firmwide legislative

Ralph Peterson presenting CH2M HILL’s “Building A Better World” award to Chad Holliday, CEO of DuPont, in 2003.

affairs, supporting business development, assisting clients, manag-ing the company’s Political Action Committee, and working with and leading professional societies and organizations.

Inspiring Tomorrow’s Engineers

In partnership with engi-neering societies, nonprofit organizations, and other engineering companies, our employees are working to educate future engineers. We believe this work is impor-tant, not only to counter declining enrollment in engineering programs, but to inspire young people to help design the future.

• For more than a decade, CH2M HILL has been a leading sponsor of Engineers Week. In 2003,

employees in 32 U.S. CH2M HILL offices shared their knowledge with K-12 and college students through engineering competitions, technology fairs, and classroom presentations. In 2004, employees from 43 offices participated in Engineers Week outreach programs.

• Less than 10 percent of the current engineering workforce, industry-wide, is made up of women and minorities. With a strong commitment to diversity, CH2M HILL is working to change this by supporting local programs aimed at improving these numbers.

Honoring Environmental Leadership

As one of the largest environ-mental engineering firms in North America, CH2M HILL

CH2M HILL Corporate Citizenship Honors and Awards [SO4]

2004

• Human Rights Campaign of Colorado Corporate Award of Excellence—for supporting an open and diverse workplace

2003

• “100 Best Places to Work,” Fortune®

• “Great Place For Women,” Chemical Engineering Progress

• Business of the Year in: Redding, California; Gainesville, Florida; and Corvallis, Oregon

• Company of the Year, Southeast Business Partnership (Denver, Colorado)—for outstanding community and environmental stewardship

• 14th among Top 50 Companies to Work For, Woman Engineer

• Company of the Year, Denver’s Coloradobiz —for commitment to the community

• Corporate Telework Award, The Telework Coalition—for commitment to teleworking and telecommuting

• Martin Luther King Award for Corporate Social Responsibility

“ Increasingly, our clients seek solutions that make sense for the long

term. Many of our employees love to solve problems and enjoy

collaborating to devise practical, innovative solutions. It’s gratifying

to see them contribute to projects, provide value to clients and

communities, and get paid to do it!”

— Ann Duffy, Vice President, Sustainable Development, CH2M HILL Canada

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recognizes other organiza-tions that are working to improve and protect the environment. In May 2003, CH2M HILL presented its Building a Better World Award to Charles (Chad) Hol-liday, Jr., Chairman and CEO of DuPont, for his company’s exceptional contributions to sustainable development, social responsibility, and workplace safety. CH2M HILL presents the award periodi-cally to recognize leadership, vision, and actions that make a significant difference in

Since 2002, employees from CH2M HILL offices across the U.S. have taken part in the largest national fundraiser for the American Red Cross—the Fat Tire Classic. In 2003, CH2M HILL won the event’s Team Spirit Award for the second consecutive year, was recognized as the largest corporate team, and raised the largest corporate donation.

“ We are so very grateful to CH2M HILL and their ongoing commitment to supporting the Red

Cross. We appreciate the tremendous help they provide through volunteerism, financial

support and youth leadership.”

— Susan Gillespie, Special Projects Coordinator, American Red Cross Mile High Chapter

improving the lives and pros-pects of people and society. In recent years we granted awards to the founder of the EPA and to the Chairman and CEO of British Petroleum.

We are co-sponsors, with the Federation of Canadian Municipalities, of the FCM-CH2M HILL Sustain-able Communities Awards. Through this program of biannual awards, more than 100 municipal governments of all sizes have received financial awards to recognize

environmental responsibility and help advance sustain-able development objectives in their communities. In 2003, seven communities won awards. Among them were Vancouver, B.C., which produces electricity from landfill gas, and Moncton, New Brunswick, whose residential recycling program has achieved 83 percent participation.

Also in Canada, CH2M HILL supports the Union of British Columbia Municipalities’

The new Los Angeles Green Team, led by Jeff Friesen and Ileana Ruiz, is already making an impact in the heart of downtown. So far, the five-member team, along with co-workers, family, and friends, has joined efforts with other Los Angeles organizations like Heal the Bay, which spon-sors beach cleanups, and Le Gran Limpieza, a volunteer organization that picks up trash along the Los Angeles River, to help make LA a greener place. “These efforts not only make CH2M HILL a good neighbor, but also provide opportunities for good business,” says Friesen.

Green

Team

CH2M HILL’s Ann Duffy receiving a Tree Canada Foundation carbon offset certificate from Herb Brett, President of Newfoundland and Labrador Federation of Municipalities and Deputy Mayor, Arnold’s Cove, NL. The Tree Canada Foundation partners with volunteers to improve quality of life by planting and caring for trees.

Community Excellence Awards program, which recognizes municipalities and regional districts that demon-strate leadership in improv-ing ways of doing business. CH2M HILL sponsors the “Leadership and Innovation” award category to recognize municipalities with demon-strated excellence in incorpo-rating sustainability into an engineering or infrastructure-based project.

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Community Partnerships

Contributing to commu-nities through financial gifts, in-kind services, and volunteering is a vital part of CH2M HILL’s corporate culture. [EC10]

Charitable Giving

The CH2M HILL Foundation was established in 1991 to continue the founders’ legacy of community service and dedication to engineering technology and education. Each year, the Foundation awards five founder awards, financial gifts to more than 60 colleges and universities and periodic capital grants that support engineering, architecture, and science programs at institutes of higher education. The Foundation awarded contri-butions of $425,000 in 2003 and $480,000 in 2004.

Other charitable giving through CH2M HILL is highly decentralized; contributions are made on regional and local levels. For this reason, accurately documenting community contributions companywide is difficult.

We are investigating ways to improve our ability to accurately track and report charitable contributions.

Teaming Up for the Environment

CH2M HILL’s partnerships with nonprofit organiza-tions have grown over time, in large part through the initiative of our employees. Many of these partnerships have evolved into long-term, mutually supportive relation-ships. For example, the firm partners with Water For People, a nonprofit organiza-tion that helps impoverished communities all over the world gain access to locally sustainable drinking water, sanitation, and hygiene. In 2003, our employees sup-ported Water For People through financial grants, volunteer board service, and an annual workplace giving campaign that contributed $15,000. Employees in 56 offices worldwide increased their contributions to Water For People to $21,000 in 2004.

Shared Values

In 2003/2004, CH2M HILL was a member of numerous organizations whose values align with ours, including:

• American Council of Engineering Companies

• American Society of Civil Engineers

• American Water Works Association

• Boston College Center for Corporate Citizenship

• Canadian Business for Social Responsibility

• CEO Coalition to Advance Sustainable Technology

• Civil Engineering Research Foundation

• Construction Industry Round Table

• Engineers Without Borders—USA

• Federation of Canadian Municipalities

• National Academy of Construction

• National Conference of Black Mayors

• National League of Cities

• Pew Center on Global Climate Change

• Society of American Military Engineers

• The Conference Board

• The Keystone Center

• U.S. Conference of Mayors

• U.S. Green Building Council

• World Business Council for Sustainable Development

• World Economic Forum

• World Resources Institute

CH2M HILL is committed to doing everything it can to support the recovery and reconstruction of the nations impacted by the December 26, 2004 tsunami. In fact, CH2M HILL professionals provided expertise in assessing local needs and reconstruction priorities in Indonesia, Sri Lanka and Thailand. With senior-level professionals working “on the ground,” CH2M HILL teamed with global and local governments, corporations and NGOs to provide a wide range of critical relief services, including managing a water treatment plant. CH2M HILL engineers have assessed the damage to water and wastewater treatment systems as well as sanitation and transportation infrastructure.

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CH2M HILL teamed up with America’s Clean Water Foundation to support World Water Monitoring Day, a program designed to help raise awareness about water quality. Nearly 300 CH2M HILL employees from 53 North American offices partnered with clients and local com-munity groups to report on the water quality of an estimated 400 water bodies for World Water Monitoring Day in October 2003, and continued these efforts in 2004.

Since 2001, employees in the Toronto, Ontario, office have volunteered their time, energy, and talents to the CANstruction competition—a friendly design-build competition in which teams create imaginative structures built entirely out of packaged food to increase awareness about the issues of homelessness and hunger. The food is then donated to a local food bank.

Working with the Wisconsin Department of Transportation, the Milwaukee Green Team has sponsored an Adopt-A-Highway cleaning crew since 2002. The crew cleans a three-mile stretch of Highway 100 in Milwaukee County three times a year. Highway 100 is a major arterial running along the west side of town. The signs posted at each end of this stretch of highway let passers-by know that CH2M HILL is actively involved in green-ing the community.

“Participating on a cleaning crew is an excellent opportunity to get to know people from other business groups and find out what types of services they provide. It is also a great way to get to know co-workers outside of the work environment while getting a little exercise.”

— Mike Holmquist, Milwaukee Green Team Adopt-A-Highway Coordinator

Green

Team

“ CH2M HILL has been one of Water For People’s major supporters; they’ve

helped us expand our work around the world. Since our inception, CH2M HILL

staff have served as key volunteers in their communities, helping generate

even more support for our mission.”

— Steve Werner, Executive Director, Water For People

In 2004, CH2M HILL became actively involved with Engi-neers Without Borders-USA (EWB-USA), an organization that brings engineering students and professionals together to design and build infrastructure in developing communities. In addition to hosting the 2004 EWB-USA national conference at our headquarters in Denver, CH2M HILL employees also volunteer their time to serve as student advisors on EWB-USA projects. Bud Ahearn, Vice Chairman of CH2M HILL, is the Board Director of EWB-USA.

“ Reliable data from volunteer

monitors, like the professionals

from CH2M HILL, can help fill

the gap by establishing a

baseline for a water body’s

health.”

— Roberta Savage, President, America’s Clean Water Foundation

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Sustainable Solutions in Practice

While making better choices within

CH2M HILL is important, it is our work with

clients that can have exponential impacts on

global sustainability. Our clients are among the

organizations that set policy, protect homeland

security, drive the economy, and build and

operate the infrastructure that is the backbone of

our society: the roads and bridges, water supply

and wastewater treatment systems, manufacturing

plants, airports and ports, military bases, and

technologies that protect our air, water, and soil.

As engineers, planners, sci-entists, architects, and tech-nical professionals, we have opportunities—every day—to redesign the blueprint for how systems are created and operated. By changing the way we think about planning, design, and construction, we can literally change the environmental, social, and economic “footprints” we leave on our world.

More than a single tech-nology, sustainability is a framework and approach that seeks to add value, keep present as well as future gen-erations in mind, and create tangible benefits for people, our clients, and the planet. As such, it is a yardstick that can be applied to any technical area and problem-solving method—and anyone can use it.

Harnessing CH2M HILL’s tal-ent to develop breakthrough sustainable technologies is the goal of the Sustainable Solutions Community of Practice. This dynamic net-work of more than 150 staff links practitioners across a broad range of techni-cal disciplines, helping to

stimulate the systems-based thinking that is the hallmark of sustainable design. This group serves as a sustainable resource “hub” for clients and CH2M HILL staff through one-on-one consulting, online tools, and training.

The projects described on the following pages exem-plify sustainable solutions in practice. No longer within the realm of the conceptual, these projects show that sustainable solutions are creative and cost-effective, enabling us to outperform our clients’ expectations while providing multiple benefits.

The firm’s services that support sustainability extend beyond these examples—to ecosystem management, context-sensitive solutions in transportation, compost-ing and waste management, water resources, brownfield recovery, industrial ecology, and training and education.

We invite you to visit www.ch2mhill.com to learn more about the full range of our sustainability-oriented services.

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Whittier Access Highway Whittier, Alaska, USA

Seeing the Mountain for the Road

Opening highway access to the isolated Whittier, Alaska com-munity involved the familiar conflict between modern mobility and preservation of natural assets—in this case, unobstructed views of pristine glacial streams, mountains, and lakes. Often referred to as the “gateway to Prince William Sound,” Whittier is located in the heart of the Chugach National Forest, an area replete with glaciers, fjords, mountains, and wildlife.

As originally conceived, the Whittier Access project placed a major roadway and bridges just a stone’s throw from the local visitor’s center, blocking views of Begich Peak, Portage Creek, and Portage Lake. CH2M HILL worked with the Alaska Depart-ment of Transportation and Public Facilities to design a solu-tion that, instead, preserved the stunning views and protected flora while making Whittier accessible—for the first time—by highway.

The solution involved redesigning the alignment to incorporate a 500-foot tunnel that would hide the road view and, once the road emerged from the tunnel, “hiding” it behind such natural features as rock outcrops and a glacial moraine (the ridge of debris left by receding glaciers). In addition, alignments and creek crossings were designed to minimize impacts on sensitive plants, salmon spawning grounds, and other environmental features.

The project included three bridges, a 500-foot tunnel, 4 miles of roadway, conversion of a 2.5 mile rail tunnel into a combined rail/highway tunnel (designed by others), and a bridge over Whittier Creek. In addition to aesthetic and environmental benefits, the project has stimulated a small economic boom in local tourism and commerce. Ecotourism, a new hotel, a cruise ship dock, a private marina, and attendant facilities have sprung up since the project was completed in the summer of 2000.

Civil Infrastructure Projects • Water — Transportation — Operations

Toronto Waterfront Revitalization Toronto, Ontario, Canada

From Liability to Sustainable Opportunity

Like many waterfront cities in North America, the city of Toronto recognizes the opportunity in restoring neglected waterfront areas to the more vital role of fueling the city’s economic activ-ity. By 2002, one such area—a 1,000-hectare (2,500-acre) site bordering Lake Ontario—was characterized by abandoned and contaminated lands with poor lake access. The local, provincial, and federal governments changed all of that by creating a coali-tion dedicated to renewing the Toronto waterfront: the Toronto Waterfront Revitalization Corporation. The coalition took on the challenge of transforming this neglected area into vibrant, sustainable shoreline communities.

With help from CH2M HILL and two other joint-venture partners, the Corporation worked with a range of stakeholders to create an integrated, “systems-based” plan for development. Rather than settle for the usual solutions, this group leveraged the opportunity to showcase sustainable planning and technology. The revitalization effort represents an anticipated $17 billion in private-sector and public-sector investment over the next 30 years. This includes 40,000 residential units, extensive public transit expansion into the area, restoration of large tracts of natural lands for parks and habitat improvement, planning that maximizes the potential for energy efficiency and renewable energy use, and an extensive public art and heritage program. Major infrastructure development, such as a district energy system for heating and cooling, is also underway.

As a program management and engineering consultant, CH2M HILL led the formation of the sustainable development framework and is currently building an innovative soils and groundwater management plan for the site. The firm is also working with community, business, and government stakehold-ers to develop a series of practical sustainability implementa-tion tools. This includes sustainability checklists for planning, design, and construction and a “triple-bottom-line” (social, economic, and environmental) process for tracking progress toward the leading-edge sustainability goals.

17

The Geysers Recharge Project Santa Rosa, California, USA

Converting Recycled Water to Energy

The City of Santa Rosa was looking for an environmentally responsible and cost-effective way to dispose of excess recycled water. On the other hand, an energy company, Calpine Geo-thermal, was looking for more water to recharge The Geysers, its “dry” steam generating plant. By matching up needs, both projects—and the environment—benefit.

The win-win solution was a 40-mile pipeline that transports Santa Rosa’s recycled water across the Santa Rosa plain and Alexander Valley, up 3,300 feet into the Mayacamas Moun-tains, to Calpine Geothermal’s steam field. Calpine injects the recycled water into a 4,000- to 11,000-foot-deep aquifer, where it is heated to produce clean “dry” steam that is used in nearby electrical power plants as an environmentally friendly, reliable, and renewable source of energy. Because it runs through an area with the potential for seismic activity, the pipeline was designed with sensors and isolation valves that allow for imme-diate shutdown in the event of an earthquake. (These systems are common in small piping systems carrying chemicals, but not typical for high-pressure water transmission lines.)

In addition to providing an environmentally friendly solution to reclaimed water disposal, this project produces “green” electric-ity. Compared with electricity generated by natural gas-fired power plants, the additional 85 megawatts of geothermal elec-tricity generated by The Geysers reduces emissions of carbon dioxide by 570 million pounds and nitrous oxides by 253,000 pounds annually. It provides enough “green” power to meet the energy needs of 85,000 households in the Bay Area.

The Geysers’ steam field is currently the world’s only geother-mal system to use recycled water to replenish its steam fields.

Civil Infrastructure Projects • Water — Transportation — Operations

NEWater Plants and Visitor Centre Public Utilities Board, Republic of Singapore

Winning Minds to Water Reuse

To meet the burgeoning water demand of its 4.2 million people, Singapore’s Public Utilities Board (PUB) looked beyond conventional answers to find creative and sustainable water supply solutions. The PUB decided to take advantage of the latest technologies and contracted with CH2M HILL to design a demonstration project and “water reclamation” plants in Bedok and Kranji to produce potable water (NEWater) from reclaimed secondary effluent. CH2M HILL subsequently designed a third NEWater plant in Seletar.

CH2M HILL’s design incorporated the latest ultrafiltration/micro-filtration and reverse osmosis membrane technologies, followed by ultraviolet disinfection, to treat reclaimed water to standards higher than the drinking water standards of the World Health Organization and the U.S. Environmental Protection Agency. Today, NEWater goes to high-tech industries requiring ultrapure water, and a small percentage is blended with reservoir water for indirect potable use.

The Singapore PUB, with CH2M HILL as its consultant, also built a NEWater Visitor Centre at the Bedok site to help create community understanding about the water recycling and supply issues and technologies. The Centre explains the technologies that support the manufacture of NEWater from treated, used water and builds awareness and acceptance for the product and the process that manufactures it. The Centre showcases a new way of thinking about water management, which helps local people overcome any fears and prejudices about water reuse. As a result of this groundbreaking community educational effort, Singapore citizens accept and appreciate the NEWater in their reservoirs.

The Geysers Recharge Project Awards • California League of Cities Helen Putnam Award • Association of Clean Water Agencies (ACWA)

Clair Hill Award• Consulting Engineers and Land Surveyors of

California (CELSOC) Honor Award

• WateReuse Association Annual Award—WateReuse Project of the Year

• American Council of Engineering Companies (ACEC) Honor Award

• American Academy of Environmental Engineers (AAEE) Honor Award

18Federal Projects • Military Facilities — Nuclear — Environmental Services

Johnston Atoll Environmental Restoration and Closure Johnston Atoll, Pacific Ocean, USA

Back to the Birds

After 75 years of use as a military staging area and testing site, Johnston Atoll, a group of four small Pacific islands 700 miles southwest of Hawaii, suffered from significant environmental contamination. The U.S. government had used the atoll to con-duct atmospheric nuclear testing and to stockpile and destroy chemical weapons.

CH2M HILL supported the U.S. Department of Defense in clean-ing up the contamination and restoring the atoll for use as a bird and marine mammal sanctuary. This included the cleanup of contaminated groundwater and soil at eight major sites, includ-ing a site that had 6 acres of soil contaminated with dioxin. Rather than ship the waste to another location, we successfully employed a thermal desorption system never before used for dioxin remediation on this scale. We also demolished 235 facilities, many of which contained lead-based paint, asbestos, and ceiling tile with arsenic. Demolition was strategi-cally completed on three islands in a timeframe that avoided disturbing 400,000 nesting birds. CH2M HILL packaged and shipped more than 29 million pounds of waste off the atoll for disposal, including 6,000 tons of scrap metal for recycling. We also planted more than 160,000 indigenous plants to revegetate the islands.

Today, the islands and surrounding reef host a myriad of tropical reef fish, 12 species of seabirds, and 33 species of coral. The reef community also supports three endangered species.

“ The team is leaving a legacy of uncontaminated land…, and for

that they should be strongly congratulated.”

— Colonel Ray Torres, 15th Airlift Wing Commander

Marine Corps Air Station New River Low-Impact Development Stormwater Retrofit Jacksonville, North Carolina, USA

Rolling Back Curbs and Gutters

Instead of the same old “curb and gutter” approach, this Marine Corps base looked to nature for ways to better manage and treat stormwater. High stormwater flows were overloading pump stations and there was concern that runoff from areas where maintenance activities were performed could potentially impact the environment. After studying the problem, CH2M HILL devel-oped three low-impact development demonstration projects to reduce the flow and intensity of runoff going to sanitary sewer and stormwater systems:

Bioswales/Rain Gardens—Existing storm drains were cut and water was routed from the drains to planted “bioswales” or “rain gardens.” Water-tolerant native vegetation, including trees and flowering plants, absorb runoff and provide a visual amenity. Water that cannot be absorbed by vegetation is siphoned off through a layer of gravel and soil and a drain pipe that runs beneath plantings. In addition to providing natural beauty, plant leaves break down pollutants as they decay into humus, acting as a natural treatment filter for runoff.

Roof Drain Planters—Using the same technology as the bio-swales, stormwater is routed from officers’ club roof drains to planters with water-tolerant native vegetation.

Man-Made Stream—The concrete drainage channel that drains the parking lot was removed and replaced by a man-made stream that meanders through the property. The streambed is stabilized with appropriate vegetation and—in addition to slow-ing runoff flow—provides a visual and recreational amenity.

When compared with the traditional approach of funneling water directly into storm drains, these low-impact develop-ment projects are greatly reducing stormwater flow, speed, and potential for polluting the environment, while enhancing the quality of life at this Marine Corps base.

19

Redevelopment at a Former Military Facility Former Marine Corps Air Station, Tustin, California, USA

Green Deconstruction Saves Money, Reuses Resources

CH2M HILL is working with Lennar Communities to reclaim 225 acres of property at the former site of Marine Corps Air Station Tustin for residential development. CH2M HILL had previously done environmental remediation at the site under the SOUTHWESTDIV Navy CLEAN program to close the base. With Lennar, CH2M HILL completed environmental due diligence for the project, demolished all residential structures and roads on-site, and performed abatement of asbestos-containing materials and lead-based paint.

A comprehensive, innovative recycling program reduced devel-opment costs, significantly exceeded state recycling require-ments, and generated a “green” redevelopment image for the project. More than 80 percent of the site materials were reused or recycled, cutting overall costs by half over a traditional waste landfilling approach. The recycling program included:

• Resource recovery using profit/nonprofit organizations

• Tree recovery and green waste composting

• Environmental abatement (waste materials)

• Separation of recyclable scrap metal during facility demolition

• Recovery of asphalt and concrete for reuse

CH2M HILL and Lennar set up an aggressive resource recovery program by engaging local for-profit companies and nonprofit organizations, including Habitat for Humanity, in the recovery of reusable fixtures. Recovered items included appliances (dish-washers, refrigerators, and stoves), cabinetry, windows, and doors. The recovery program put reusable items back into good use, reduced the volume of items that needed to be landfilled, and generated positive publicity for the project.

Federal Projects • Military Facilities — Nuclear — Environmental Services

Climate Leaders Program U.S. Environmental Protection Agency, USA

What is Measured Can Be Managed

The U.S. Environmental Protection Agency’s Climate Leaders Program helps companies develop greenhouse gas reduction goals and data to identify opportunities and track performance. From the beginning, CH2M HILL has provided the technical sup-port needed to build and implement this successful program.

Drawing on our experience in providing energy and environ-mental management support to many of the world’s largest corporations, CH2M HILL helped EPA create accurate, credible reporting tools for Climate Leader partners. Work has also included helping such companies as AEP, Holcim, International Paper, General Motors, Alcan, SC Johnson, Kodak, and AMD develop greenhouse gas inventories. Future plans are to assist EPA with building a Web-based information management sys-tem to help track partners’ best-in-class strategies for inventory development and management.

To date, more than 50 companies representing leaders in most major industrial and commercial sectors have committed to reporting and reducing their greenhouse gas emissions through the Climate Leaders Program.

“ CH2M HILL has been a tremendous technical resource for us in

developing our inventory and inventory management plan as part

of the Climate Leaders Program.”

— Kristin Zimmerman, General Motors Energy and Policy Manager

20Industrial Projects • Process & Manufacturing — Power & Energy — Communications

Advanced Materials Research Lab Clemson University, Anderson, South Carolina, USA

Raising the Bar for Sustainable Research Facilities

When Clemson University wanted to demonstrate leader-ship in sustainable facility design, it turned to CH2M HILL/IDC Architects. The University was interested in creating flexible, cutting-edge research space that would attract the industry’s best and brightest. To achieve that goal, considerable emphasis was placed on sustainable and aesthetic values and the use of quality construction materials.

The resulting facility—the Advanced Materials Research Lab—was designed from the inside out to conserve natural resources, optimize air quality, and present a world-class image. The design, for example, incorporated sustainable materials and used passive, natural air flow to heat and cool. The design also emphasized infrastructure that would conserve energy, deliver high-quality indoor air, and achieve superior water efficiency. Technical design considerations emphasized control of vibra-tion, electromagnetic interference, and noise to support highly sophisticated equipment research activities while building sustainability and flexibility into the design.

This state-of-the-art research facility recently achieved Silver LEED™ certification, a first for the University. LEED™ is a green building certification program developed and managed by the U.S. Green Building Council. Certification is based on a point system that scores each of six categories: sustainable sites, wa-ter efficiency, energy and atmosphere, material and resources, indoor environmental quality, and process and innovation.

Suncor Energy Greenhouse Gas Management Calgary and Alberta, Canada

Meeting the Global Warming Challenge

As members of the World Resources Institute/World Busi-ness Council for Sustainable Development, both Suncor and CH2M HILL are committed to long-term sustainability and exploring innovative and comprehensive ways to prevent global warming. Over the last four years, Suncor has sought expertise and input from CH2M HILL to help improve its greenhouse gas (GHG) measurement and reporting practices.

To help identify further GHG reduction opportunities, Suncor needed to develop a corporate-wide understanding of where they were occurring. CH2M HILL conducted a data gap analysis to get a clearer picture. What additional data were needed? What tools needed to be put in place to measure emissions? Using some of the most stringent standards and measurement criteria in the industry, a team of diverse technical experts crafted a comprehensive GHG Management Program that integrated with Suncor’s Environment, Health, and Safety Management System.

The integrated solution wove together input from air quality, energy management, GHG policy, information solutions, and management specialists. CH2M HILL also evaluated Suncor’s business and GHG information requirements and identified the best option for implementing an automated, enterprise-wide GHG emissions management information system.

As part of their commitment to thorough, “transparent” report-ing for stakeholders, employees, and the investment com-munity, CH2M HILL has also assisted Suncor in preparing the company’s annual report on its GHG planning, management, and performance, which earned industry awards.

Suncor Status and Awards

• Leadership Award for the Gold Champion Reporter Status, Voluntary Challenge and Registry (2003)

• Gold Champion Reporter Canadian Standards Association Climate Change and Greenhouse Gas Registries (2004)

21

Silverhawk Power Station Apex, Nevada, USA

Preserving a Fragile Environment

Owned by Pinnacle West Energy and the Southern Nevada Water Authority and located 20 miles north of Las Vegas, the Sil-verhawk Generating Station is a 570-megawatt combined-cycle power plant that is ideally situated to meet the area’s rapidly growing energy demands.

CH2M HILL Lockwood Greene was the engineering, procure-ment, and construction contractor for this $400 million power plant, providing engineering, procurement, and delivery of all specified equipment, construction, startup, testing and operator training services. CH2M HILL Lockwood Greene also shared in the responsibility for plant permitting.

Because the Silverhawk project is located in the desert, the gen-erating station was designed to use an air-cooling condenser, a technology that consumes 90 percent less cooling water than traditional combined-cycle wet cooling technology. It includes a zero liquid discharge system (ZLD) to meet Nevada Department of Environmental Quality wastewater discharge requirements. The ZLD system uses waste concentration systems and evapo-ration ponds to eliminate any water discharge, including the high brine concentration waste resulting from the cooling and evaporation of wastewater. The project fully meets the most stringent water use and air quality requirements in Nevada.

The project’s permitting process involved 19 different environ-mental areas and carefully preserved the minimal vegetation onsite as well as the habitat of the desert tortoise, which dwells in the area.

Industrial Projects • Process & Manufacturing — Power & Energy — Communications

Nike Model Sustainable Factory Ho Chi Minh City, Vietnam

Facility Design Works with Nature

Rather than rely on energy-consuming methods, Nike’s factory in Ho Chi Minh City, Vietnam, uses sustainable architectural design elements to help cool and light the interior.

CH2M HILL/IDC Architects designed this 101,200-square-foot footwear factory to be an exemplary Asian model of environ-mentally responsible manufacturing. Nike’s goal was to provide a safe and comfortable work environment using sustainable building practices. The idea was to demonstrate the benefits of cost-effective, sustainable applications and their resulting posi-tive impact on productivity, quality, and standards of living.

A natural ventilation system cools the factory by drawing airflow from adjoining landscape zones into the facility; as it moves through the factory, warm air is accelerated and eventually ex-pelled through roof-mounted venturi ventilation towers. Natural ambient daylighting is achieved with open mesh side walls that have continuous clerestory glazing and strategic skylighting. The design also incorporates deep shading roof overhangs and light-colored reflecting and heat-rejecting materials. In addition to providing the traditional functions of lighting and cooling, these design approaches also enhance the working environment with natural lighting and fresh air.

LEARNING—In listening to our employees, clients, and other partners who help to shape the science, policies, and practices around sustainability, we’ve learned where to focus our efforts. Our clients tell us that CH2M HILL’s history as an environmental firm provides a strong foundation of environmental steward-ship, but that we are less familiar with the social dimension of sustainability. Social issues are vitally important to the success of clients’ projects in developing countries, where local commu-nities and livelihoods can be significantly affected by infrastruc-ture and industrial projects. And while we address business ethics and anti-corruption through policy and practice, the firm has yet to develop a separate human rights policy designed specifically for work in developing countries.

Our employees are quick to say that the integrated nature of sustainable solutions requires more collaboration among technical disciplines than ever before. This is especially crucial in urban settings, where whole-systems solutions are neces-sary to address the interrelated issues of traffic congestion, air and water quality, energy, and quality of life. One answer to the challenge of multi-disciplinary collaboration is CH2M HILL’s Sustainable Solutions Community of Practice, an international knowledge network that crosses organizational boundaries to share information. We continue to look for better ways to lever-age this network of experts, for the benefit of our clients and the professionals involved. In addition, as the firm moves toward alternative project delivery methods, we have an opportunity to integrate sustainable approaches that can reduce risk and provide long-term cost savings to our clients.

Looking Forward

While we are now quite familiar with

the challenges and benefits of becoming a

sustainable organization, we recognize that

more is needed. More to learn. More to do.

More ways to lead the industry and serve our

clients and communities.

DOING—Some of our firm’s best learning occurs by experiment-ing and perfecting approaches along the way. Consequently, one top priority is to successfully implement the North Ameri-can environmental management system (EMS), designed to foster continuous improvement. This system will eventually ex-pand to include subsidiaries and affiliates within the CH2M HILL enterprise, both in the U.S. and internationally. In addition, we plan to prepare an EMS that applies to client project work.

We also need to improve our systems for sustainability per-formance tracking and reporting, as the process of compiling this report revealed. Three main areas of focus are to: (1) refine metrics that are more relevant to our professional service-ori-ented businesses, (2) strengthen tracking systems to document metrics with greater ease and efficiency, and (3) build account-ability for meeting sustainability metrics into job responsibilities at various levels throughout the organization.

LEADING—We believe that the engineering and design com-munity is uniquely qualified to create the systems and infra-structure that will help protect the planet’s ecosystems, while raising the quality of life for millions of people around the globe. A tremendous responsibility is thus imparted upon the industry to solve some of the world’s most daunting challenges—from urban land use to global fresh water supply. While CH2M HILL is frequently at the leading edge of innovative design, our leadership mandate now includes our role as a global corporate citizen.

As a global citizen, we must help inform and guide the global dialogue on climate change, fresh water supply, energy supply, and a myriad of other issues that affect economies and societies around the world. Our work in this area has begun with orga-nizations such as the World Business Council for Sustainable Development, the World Economic Forum, Engineers Without Borders—USA, the American Society of Civil Engineers, and others, but we can do more. We also have a unique opportu-nity—and responsibility—to inspire and inform our clients about solutions that will meet their performance criteria and budgets, while delivering long-term benefits for their businesses or organizations, people, and natural systems alike.

We are excited by the challenges and prospects that the future holds and look forward to sharing our journey with you.

22

23

The metrics selected and reported here represent a combination of our internal environmental manage-ment system (EMS) targets and the Global Reporting Initiative (GRI) performance indicators that are relevant to CH2M HILL operations. (See page 30.) Some of the GRI criteria are not applicable to CH2M HILL’s service-oriented businesses. The selected metrics encompass eco-nomic, environmental, and social indicators to provide a comprehensive look at the company’s sustain-able performance for the 2003/2004 reporting period. Over time, the progress report will help CH2M HILL improve and direct resources more efficiently toward problem areas.

Progress Report

GRI at a Glance

The Global Reporting Initiative (GRI) is a multi-stakeholder process and independent institution whose mission is to develop and disseminate globally applicable sustainability reporting guidelines. These guidelines are for voluntary use by organizations for reporting on the economic, environmental, and social dimensions of their activities, products, and services. The GRI incorporates the active participation of representatives from business, accounting, investment, environmental, human rights, research, and labor organizations from around the world.

We can manage what we measure. From grade

school progress reports to preflight checklists,

recording performance against established

standards is a time-tested method for improving

performance. With the goal of motivating

continuous improvement, this section presents

baseline data on the sustainability of our internal

operations—from cost of goods and services

to energy consumption to workforce diversity

and training.

24

Economic Progress

The gross revenue of all CH2M HILL companies in 2004 was US $3.1 billion. By comparison, the 2004 gross revenue of the companies covered by this report was $928.5 million, or approximately 30 percent of the total.

Environmental Progress

Products and Procurement

As a service firm, we rely heavily upon paper to communicate with each other, share information, and deliver the final prod-ucts of our work to clients. Paper is also one of the most visible materials consumed in our day-to-day operations. Conse-quently, paper consumption was selected as a representative metric for total material consumption of our service-oriented business.

The paper consumption shown below includes primarily white paper for use in copiers and printers. It was purchased through a national master contract with OfficeMax Enterprise Solutions, which represents approximately 80 percent of total paper consumption within the scope of this report. The remaining 20 percent is obtained from a myriad of regional and local vendors and is not yet tracked systematically for reporting.

Gross revenue

[EC1]

Cost of goods and services (direct

plus indirect costs)

[EC3]

Total debt

Total shareholders’

equity

Retained earnings

[EC7]

Total payroll and

benefits [EC5]

913.2

43.1

956.3

CH2M HILL, Inc., and CH2M HILL Canada, Ltd. Financial Data, 2003 and 2004 (Million US$)

03 04

873.3

55.2

928.5870.4

42.0

912.4

03 04

817.7

51.0

868.7

4.70

14.9

03 044.30

4.3 99.76.6

106.3

03 04

127.77.4

135.1100.10.5

100.6

03 04

129.7

0.3

130.0

461.6

24.7

486.3

03 04

480.2

28.3

508.5

CH2M HILL Canada, Ltd. CH2M HILL, Inc. Total

2003/2004 Paper Consumption (Metric Tonnes)

Country/SourceVirginpapera

Recycledpaperb

% Recycledpaperc

Recycledmateriald

Total paper consumed

[EN1]

2003 2004 2003 2004 2003 2004 2003 2004 2003 2004

U.S./master contract 109.3 60.3 250.2 308.8 359.5 369.1 69.6 83.7 60.6 72.5

Canada 18.4 27.4 0.5 1.4 18.9 28.8 0.0 0.0 0.0 0.0

Total 127.7 87.7 250.7 310.2 378.4 397.9 69.6 83.7 60.6 72.5

a Paper containing no recycled material. c Percent of total paper containing recycled material. (Total = virgin + recycled) b Paper containing 10 to 100 percent recycled material. d Total mass of post-consumer material contained in recycled paper.

[EN2]

25

2003 Direct Energy Use in Facilitiesa

Canada leased offices

U.S. owned offices

U.S. leased offices

Data not available

Total

GJ = gigajoules, MWh = megawatt-hours, ft2 = square feet

a Represents approximately 90 percent of CH2M HILL’s total electrical consumption related to facilities: 69 out of 90 offices, and 5,183 CH2M HILL, Inc. and 336 CH2M HILL Canada employees. These offices also house approximately 480 employees of other CH2M HILL companies. Data for 21 offices (comprising 642 Inc. and Canada employees) were not available, and the data do not include any offices rented for specific projects.

Facilities and Energy

CH2M HILL’s principal facilities are office buildings. In 2003/2004, the company owned one building in West Palm Beach, Florida, and leased the remainder of the 90 U.S. and Canadian offices of CH2M HILL, Inc., and CH2M HILL Canada, Ltd. Other leased spaces include project trailers and approximately 10 warehouses; these are not included in the scope of this report.

CH2M HILL uses several direct sources of energy in its facilities. Electricity is the primary source, used to power lighting, equipment, and heating systems. Minor energy sources include fuels such as natural gas, diesel, and propane for heating and emergency generators. For 2003, we account for electrical consumption in facilities only. [EN3] Facilities energy audits are conducted biannually; no data were collected for 2004.

Renewable Energy

CH2M HILL invests in renewable energy because it aligns with our company values and client services. CH2M HILL was the first commercial enterprise to buy Green Tags (renewable energy certificates) through the Bonneville Environmental Foundation in 1999, and our commitment continues to this day. [EN17]

13,838 3,844

2,732 759

112,475 31,243

Total energy consumption

GJ MWh

129,045 35,846

Office floor area

ft2

212,588

45,000

1,541,844

1,799,432

Normalized energy consumption

GJ/ft2 MWh/ft2

0.065

0.061

0.073

0.018

0.017

0.020

0.072 0.020

2003/2004 Renewable Energy Investment a

2003 2004

Renewable Energy Total (GJ) 2,296.8 5,457.3

Renewable Energy Total (MWh) 638.0 1,515.9

Renewable Energy Percent of Total 1.8 4.2 Energy Consumptionb

GJ = gigajoules, MWh = megawatt-hours

a Based on known renewable energy purchases for the following office locations: Seattle, Spokane, and Richland Washington; Portland and Corvallis, Oregon; Boise and Idaho Falls, Idaho; Helena, Montana; Anchorage and Juneau, Alaska; Honolulu, Hawaii; Denver, Colorado; and Salt Lake City, Utah.

b Based on 2003 total energy consumption as shown in the chart above, “2003 Direct Energy Use in Facilities”.

--- --- --- --- ---

26

Greenhouse Gas (Carbon) Emissions

Our primary contribution to greenhouse gas emissions derives from the energy used in the facilities we occupy. Approxi-mately 4 percent of these emissions come from our fleet of vehicles, discussed below. Greenhouse gas emissions data are collected biannually, in concert with the facility energy audits; no data were collected in 2004. [EN8, EN30]

Fleet Emissions

CH2M HILL employees commute to work and travel to conduct both client and internal business—by personal vehicle, fleet and project vehicle, rental car, airplane, bus, train, subway, light rail, bicycle, and on foot.

While many of these transportation modes present chal-lenges for accurate tracking and reporting, we can measure our fleet emissions with relative ease. [EN8, EN30]

CH2M HILL’s pool of fleet vehicles consists of owned and leased trucks, SUVs, vans, automobiles, and hybrid gas-electric vehicles. In 2003, the fleet of pool vehicles numbered 112 and was reduced to 109 by the end of the year; in 2004, the fleet was further reduced to 85 vehicles by the end of the year. The fleet included 4 hybrid vehicles in 2003; as part of our overall fleet reduction program, only one hybrid vehicle remained in 2004. Vehicles owned or leased expressly for client projects are tracked separately and are not included in this report.

2003/2004 Fleet Emissionsa

a CO2 emissions were calculated using the World Resources Institute/World Business Council for Sustainable Development Greenhouse Gas Protocol. Other compounds were calculated according to EPA’s 1995 AP-42 guidance 26 (assuming vehicles did not run air conditioners; actual emissions may be slightly higher) and EPA’s 2004 Annual Certification and Test Results Report for cars and light trucks.

03 04 03 04 03 04 03 04

Hydrocarbons, metrictonnes

Oxides of nitrogen,

metric tonnes

Carbonmonoxide,

metrictonnes

C02, metrictonnes

1.1

1.8

1.0

1.6

15.7

26.5

508.5

717.7

2003 CO2 Emissions Based on Facility Electricity Consumptiona

Number CO2 Emissions, Office Floor Normalized CO2 of offices metric tonnes Area, ft2 Emissions, metric tonnes/ft2

Canadian leased offices 4 1,139 212,588 0.005

U.S. owned offices 1 479 45,000 0.011

U.S. leased offices 64 15,965 1,541,844 0.010

Data not available 21 --- --- ---

Total 90 17,583 1,799,432 0.010 a Emissions were calculated using the World Resources Institute/World Business Council for Sustainable Development Greenhouse Gas Protocol (www.ghgprotocol.org). Data reflect the combined emissions from owned and leased facilities. Please refer to data limitations described above for direct energy consumption.

27

Regulatory Compliance

We track all environmental incidents that occur in our offices and on field projects where CH2M HILL is responsible for environmental performance, including spills, releases, and permit violations. Some of these incidents result from the actions of other organizations such as subcontractors, but in keeping with our commitment to project excellence, CH2M HILL investi-gates and implements corrective action for all incidents. Within the scope of this report, we had three environmental inci-dents at work locations or project sites in 2003, and six environmental incidents in 2004.[EN16]

2003/2004 Environmental Incidents

Type of Incident Date Location Incident

2004

Near Miss June 1 San Francisco, CA Hazardous waste shipment (soil) was delivered to a non-hazardous facility. The shipment was reloaded and sent to hazwaste landfill. Environmental agency was notified.

Spill July 13 Texas City, TX Truck backed into another, damaging the radiator and spilling approximately 2 gallons of antifreeze. **

Spill September 5 Hinkley, CA Groundwater with low levels of chromium contamination was released when re¬mediation well pump was left on. Sampling confirmed that remediation was not warranted. Incident was reported to environmental agency.

Spill September 30 Corvallis, OR A 4-liter jug of methylene chloride spilled from solvent cabinet. **

Hazmat Shipping October 12 Sacramento, CA Diesel generator declaration for cylinder shipment was lost during shipment. Incident remedied by providing copy of declaration to shipper.

Spill October 28 US 95, Idaho Mobile drill rig tipped over into creek bed, spilling less than 1 pint hydraulic fluid. Spill reported to environmental agency. **

2003

Spill Mar 7 Corvallis, OR In laboratory, reaction between sample and liquid waste split container and spilled contents. **

Spill May 12 Troutdale, OR Broken hydraulic line on drill rig spilled fewer than 5 gallons of hydraulic fluid. **

Permit Violation October 22 Oakland, CA Wells abandoned without completing proper forms. Paid $5,000 fine.

* All incidents are associated with CH2M HILL, Inc.

** Spill cleaned up; quantity did not exceed reportable limits.

28

2003/2004 Employee Distribution [LA1]

Company/Country Full-Time Part-Time Temporary Total

2003/2004 Net Employment Creation and Turnover [LA2]

Company/Country

CH2M HILL, Inc./U.S. 5,723 5,782 +59 12.21 5.15

CH2M HILL Canada, Ltd. 438 517 +79 14.12 .97

Total 6,161 6,299 +138 --- ---

Social Progress

Workforce

The employees covered by the scope of this report numbered 6,161 in 2003 and 6,299 in 2004, or just under half of CH2M HILL Companies, Ltd.’s total workforce. The employee counts shown below include 51 full-time, 2 part-time, and 6 temporary employees of CH2M HILL Companies, Ltd., who work in CH2M HILL, Inc.’s offices and who perform administration and management for CH2M HILL’s enterprise inclusive.

Business Ethics

New CH2M HILL employees agree to follow the Business Conduct Policy. An effort is underway to have all existing employees review and sign the agreement. In 2004, all U.S. domestic employees except for three had signed the agreement. [SO2]

Learning and Development

In 2003/2004, the firm’s employees logged over 50,000 hours annually in formal corporate learning pro-grams. This includes training tracked through the corporate Learning and Development group and through the Health, Safety, and Environment program. Additional decentralized training takes place through regional and business group programs and is not formally tracked or reported. [LA9]

Business development and client service

Design-build & construction

Health & safety

2,2805,152

2003/2004 Learning and Development through Corporate Programs

Training categories Total hours of traininga

IT and finance

Leadershipdevelopment

Onlinelearning

1,8443,698

18,643b

21,131c

3,9551,152

3,2523,562

7,2808,811

Project delivery

Staffdevelopment

Technology

4,2301,967

5,7806,635

4,4442,919

a Includes only training conducted through the corporate Learning and Development and Health, Safety, and Environment programs. Additional training is conducted through our regional and business group management and is not tracked centrally. CH2M HILL Constructors, Inc. employees are included in these data.

b Comprises 5,764 hours of health and safety training accumulated under the corporate Learn-ing and Development program, as well as 12,879 hours of specialized training conducted by the Health, Safety, and Environment group.

c Comprises 5,344 hours of health and safety training accumulated under the corporate Learn-ing and Development program, as well as 15,787 hours of specialized training conducted by the Health, Safety, and Environment group.

Employee count

2003 2004

Net change in employee

count

% Voluntary turnover

% Involuntary

turnover

2003 2004 2003 2004 2003 2004

CH2M HILL, Inc./U.S.

CH2M HILL Canada, Ltd.

4,911 5,003

384 453

Total 5,295 5,039

308 338

13 15

321 336

504 441

41 49

545 660

20032004

Total hours 2003 = 51,708 2004 = 55,027

2003 2004

5,723 5,782

438 517

6,161 6,299

29

Diversity and Opportunity

To support a culture of inclusion, CH2M HILL developed its Equal Employment Opportunity and Affirmative Action Policy and programs. Annually, U.S. offices develop Affirmative Action Plans, which monitor the diversity of our workforce compared with the available workforce and that of our clients. We have three strategies to diversify our workforce: [LA10]

• Participate in university minority engineering programs and the National Association of Minor-ity Engineering Program Administrators.

• Recruit through professional minority engineering societ-ies such as the Society of Women Engineers, the National Society of Black Professional Engineers, and the Society of Hispanic Professional Engineers.

• Support programs that educate youth about career opportunities in science, engineering, and technol-ogy such as the Junior Engineering Technical Society.

Health and Safety

In 2004, 99 employees of CH2M HILL, Inc., and CH2M HILL Canada, Ltd., were injured on the job. Thirty-five of these incidents were classified as recordable according to U.S. Occupational Safety and Health Administration criteria. The resulting 2004 recordable incident rate for CH2M HILL, Inc., was 0.66 incidents per 200,000 hours worked, our lowest ever and almost 59 percent lower than the industry average of 1.6. No CH2M HILL company had any occupa-tional fatalities in 2003/2004. [LA7]

Working with Policy Makers

CH2M HILL contributes to political causes, organizations, and candidates that reflect the firm’s goals and further the busi-ness interests of our clients and the engineering industry. [SO3] CH2M HILL makes U.S. federal political contributions in strict accordance with U.S. law and company policy, primarily through contributions from the CH2M HILL Companies, Ltd., Political Action Committee (PAC). All U.S. state and local contributions must be approved by the regional managers or the appropri-ate business unit presidents.

CH2M HILL Canada, Ltd., has a separate and equally rigorous reporting structure concerning political lobbying and contribu-tions for all levels of government in Canada.

2003/2004 Injury Rates

03

a Incidents per 200,000 hours worked. b Lost work days per 200,000 hours worked.

Recordable incidents and lost workdays apply only to the United States; no such designations exist in Canada. These data do not include subcontractor performance, although subcontractor incidents are tracked.

Recordableincidents

Recordableincidents

ratea

Lost work day incident

rateb

Occupational fatalities

4335

.87 .66 .20 .21 0 004 03 04 03 04 03 04

2003/2004 Employee and Board of Directors Demographics

Categorya Board members % of Board Employeesb % of Employees

[LA11]

2003 2004 2003 2004 2003 2004 2003 2004

Male 10 9 77 69 3803 3552 61.7 56.3

Female 3 4 23 31 2358 2230 38.3 35.4

Caucasian 9 9 69 69 5324 4976 86.4 79.0

African American 2 2 15 15 225 222 3.7 3.5

Asian or Pacific Islander 1 1 8 8 317 327 5.1 5.2

American Indian 0 0 0 0 22 22 0.4 0.3

Hispanic 1 1 8 8 224 235 3.6 3.7

a The Caucasion, African American, Asian or Pacific Islander, American Indian, and Hispanic data is only tracked

and reported for U.S. employees.

b Employees working within the boundaries of this report totaled 6,161 in 2003 and 6,299 in 2004.

30

Index to GRI Indicators

In preparing this report, we have used the Global Reporting Initiative (GRI) framework as it applies to our professional services company. We chose indicators to report using the following criteria:

• The GRI indicator applies to our business in a meaningful way.

• CH2M HILL seeks improvement in the area addressed by the indicator.

• CH2M HILL has a system for collecting the relevant data. If not, the report describes the firm’s initiatives or partial systems for doing so.

• For indicators that meet none of the criteria above but are important to our stakeholders, we have reported to the extent possible.

GRI Indicator GRI Indicator Topic Page Reference

Economic Performance

EC1 Net sales Page 24

EC3 Cost of goods, materials, and services Page 24

EC5 Total payroll and benefits Page 24

EC7 Retained earnings Page 24

EC10 Donations to community and civil society Page 13

Environmental Performance

EN1 Total materials use Page 24

EN2 Percentage of materials used that are wastes Page 24

EN3 Direct energy use Page 25

EN8 Greenhouse gas emissions Page 26

EN16 Noncompliance with environmental regulations Page 27

EN17 Renewable energy use and efforts to increase energy efficiency Page 6, 25

EN30 Other indirect greenhouse gas emissions Page 26

EN33 Environmental performance of suppliers Page 5

Social Performance

LA1 Workforce status and employment type Page 28

LA2 Net employment creation and turnover Page 28

LA5 Recording of occupational accidents and diseases Page 9

LA6 Health and safety committees Page 10

LA7 Injury, lost day, absentee, fatality rates Page 29

LA9 Hours of employee training Page 28

LA10 Equal opportunity policies or programs Page 29

LA11 Composition of the Board Page 29

HR4 Nondiscrimination policies and programs Page 9

SO2 Policies on bribery and corruption Page 8, 28

SO3 Policies on political lobbying and contributions Page 29

SO4 Awards received relevant to social, ethical, and environmental performance Page 11

This document consists of Forest Stewardship Council-certified 100% recycled paper made from post-consumer waste using wind-generated energy.

© 2005 CH2M HILL

C032005036BDS

Contact UsWe welcome your feedback. Please e-mail us at sdinfo@ch2m.com

For more information, please contact: Andrea RamageDirector, Sustainable SolutionsCH2M HILL1100 112th Avenue NE, Suite 400Bellevue, WA 98004425.453.5000

David MillerSenior Vice President, Corporate AffairsCH2M HILL9191 South Jamaica StreetEnglewood, CO 80112303.771.0900

CH2M HILL9191 South Jamaica StreetEnglewood, CO 80112United States of AmericaPhone: 303.771.0900Fax: 720.286.9250www.ch2mhill.com

CH2M HILL Canada, Ltd.255 Consumers RoadNorth York, Ontario M2J-5B6CanadaPhone: 416.499.9000Fax: 416.499.4687www.ch2mhillcanada.com

Sustainability Report Team

Executive Sponsors: Bud Ahearn, Vice Chairman of the Board David Miller, Senior Vice President, Corporate Affairs

Project Manager: Andrea Ramage, Director, Sustainable Solutions

Production Manager: Judy Wolff

Advisors: Antonette DeLauro and Patty Keck

Primary Writers: Ann Hovland and David S. Smith

Data Researcher: Joanna Monahan

Graphic Designers: Kathy Mullen and Nicole Trousdale