TEAM ESG Profile 2023 Version 2
Environmental, Social and Governance Profile 2023 This document covers ESG disclosures for TEAM, Inc., and subsidiaries (the “Company,” “TEAM,” “our,” “we,” or “us”) for the period January 1, 2023, through December 31, 2023, unless otherwise noted.
TEAM, Inc. Who We Are Environmental, Social TEAM, Inc., is a worldwide integrated asset performance solutions provider offering and Governance Profile inspection, maintenance, repair services and manufacturing. Our services optimize critical asset functionality, safety, and reliability across several industries. With a diverse workforce The following contains disclosure of engineers, technicians, and client support professionals, we deliver a comprehensive suite of relevant metrics to TEAM, Inc.’s of services in vital sectors including those that further the efforts of green energy. business. This includes disclosures in the Sustainability Accounting Standards We champion ESG excellence by leveraging asset integrity, minimizing environmental impact, Board (SASB) standards for the Engineering and mitigating risks through proactive maintenance practices. and Construction Services industry. Also Our mission is to ensure the integrity and longevity of critical assets, contributing to a identified are our practices and efforts as sustainable and responsible future. they relate to advancing the United Nations Sustainable Development Goals (UN SDGs).
TEAM’s ESG Program Objectives Five years ago, we initiated our ESG Program to further our commitment to environmental, social and governance principles. We promote and support business practices that are environmentally sustainable, socially conscious, and aligned with strong corporate governance practices. Social consciousness is evidenced by our commitment towards good corporate citizenship and a focus on improving the quality of people’s lives – including employees, clients and the communities where we operate. Business Summary $862M ~5,400 >140 >20 25 Revenue Employees Locations Industries Served Service Lines Across Across 15 Countries Green Industries: 2 Business Segments Renewable Energy
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Environmental Awareness
ENVIRONMENTAL AWARENESS (SASB IF-EN-160a.1) Environmental Compliance and Stewardship All business operations must be conducted in compliance with (IF-EN-410a.1) all applicable environmental laws and regulations, both domestic and foreign, and in compliance with TEAM’s Health, Safety, At this time, TEAM does not have any projects that are Environmental and Security Policy (HSE&S Policy) and our clients’ commissioned projects certified to a third-party multi-attribute environmental policies and standards. These laws, regulations, sustainability standard or active projects seeking such certification. policies, and standards protect the communities where we live and (IF-EN-410a.2) work, human health, wildlife, and natural resources. Process to incorporate operational-phase energy and water Processes to Assess and Manage efficiency considerations into project planning and design Environmental Risks Most of our operations take place at our clients’ facilities minimizing To ensure we properly manage environmental risks, we maintain our own facilities’ operational footprint and water and energy usage. management systems, such as ISO 14001:2015 (Environmental We continue to explore opportunities that would further reduce Management Systems), ISO 45001:2018 (Occupational Health our environmental footprint such as utilizing drones, robotics and and Safety Management Systems and ISO 9001:2015 (Quality remote monitoring technology to reduce unnecessary travel and Management Systems). carbon emissions.
SAFETY, QUALITY & TRAINING
SAFETY, QUALITY & TRAINING (IF-EN-320a.1) Total recordable incident rate (TRIR) and fatality rate for direct employees and contract employees Safety and quality are our primary core values, and we strive to (IF-EN-250a.1) achieve zero recordable injuries. Our training program enables At this time, TEAM does not report metrics relating to the amount of employees to stay updated on industry best practices for safe defect-and-safety related work costs. operations.In 2023 our technicians completed over 64,000 hours of training. In 2023, we lowered our lost time case rate from our (IF-EN-250a.2) 2022 rate by 43%. In 2023, our TRIR global rate was 0.28 and our TEAM discloses material monetary losses as a result of legal TRIR U.S. only rate was 0.24. Since June of 2020, TEAM has driven proceedings associated with defect- and safety- related incidents in approximately 144 million miles and have not sustained a recordable our Annual Report on Form 10-K. injury from a vehicle accident. Company Health and Safety Programs TRIR Comparison Safety of our employees, clients, and contractors is our #1 Core Value. We maintain management systems designed to exceed compliance with applicable laws and regulations as detailed in our Health, Safety, Environmental and Security Policy (HSE&S Policy). These management systems apply to processes, products, and all personnel.
OUR PEOPLE
OUR PEOPLE Gender Diversity Through targeted recruiting efforts, with a strong focus on veterans, women, and candidates from other minority groups, alongside efforts to diversify our board of directors, we remain committed to enhancing diversity throughout the company. Community Engagement and Global Workforce Corporate Leadership General and Administrative Philanthropic 11% 89% 13% 87% 56% 44% Initiatives Female Male Female Male Female Male We sponsor and support numerous charitable organizations including Easter Talent Recruitment and Retention Efforts Seals, American Cancer Society and United Way. These contributions enable Our talent management and professional development programs, such as the TEAM the work of nonprofit organizations of all Apprenticeship Program, empower team members to personalize their career journeys sizes, working in areas such as disability by building critical job skills, gaining hands-on experience, providing ongoing access to services and support, disaster response world class training, career mentoring and pave the way toward career paths that provide and humanitarian assistance, hunger long-term advancement. prevention, and sustainable development around the globe.
GOVERNANCE & ETHICS
GOVERNANCE & ETHICS Policies 1. Code of Business Conduct and Ethics (IF-EN-510a.3) ■ Reporting Free from Retaliation/Ethics Hotline Description of policies and practices for prevention of bribery and corruption; and anti-competitive behavior in the project bidding ■ Insider Trading Policy processes. ■ Corporate Governance Principles Our anti-corruption policies require TEAM to maintain an adequate system of internal accounting controls to assure management’s 2. Health, Safety, Environmental and Security Policy control over our assets; and books, records, and accounts that accurately and fairly, and in reasonable detail, reflect all its 3. Environmental, Social and Governance (ESG) Policy commercial transactions. (IF-EN-510a.1) TEAM employees, particularly those with international responsibility In 2023, we did not have any active projects or backlog in or bookkeeping responsibility, are required to complete regular, countries that are within the 20 lowest rankings in Transparency specific anti-corruption training. Prior to retention of third parties, International’s Corruption Perception Index. including agents, licensees, customs/shipping vendors and finance professionals, we conduct pre-screening due diligence and require (IF-EN-510a.2) contractual commitments to compliance with anti-corruption laws In 2023, TEAM had $0 losses in connection with such proceedings and compliance certifications. TEAM also audits our processes resulting in $0 monetary losses as a result of legal proceedings for foreign transactions outside of the U.S. for compliance risks. associated with charges of bribery or corruption; and anti- All TEAM employees receive basic training on anti-corruption law competitive practices. Read more in our Form 10-K. compliance as part of their Code of Business Conduct and Ethics training.
Governance Practices* Independence 86% 3 ■ Director Independence 86% ■ Lead Independent Director, Executive Chairman of the Board Board Average Years Energy and and CEO Independence of Tenure Energy Service ■ Independent Board and Committee Members Experience ■ Regular Independent Director Executive Sessions Best Practices Accountability ■ Board Oversight of ESG ■ Majority Voting ■ Board Oversight of Corporate Strategy and Risk ■ Annual Board and Committee Self-Evaluation ■ Shareholder Engagement Program ■ Annual Evaluation of CEO by Independent Directors ■ Director Overboarding Limits ■ Executive Compensation Clawback Policy ■ Stock Ownership Guidelines for Directors and Executive Officers ■ Director Resignation Policy ■ New Director Orientation/Continuing Education for Directors ■ Anti-Hedging/Pledging/Speculative Investments Policy ■ Board Refreshment ■ Stakeholder Right to Call Special Meeting ■ Board Commitment to Seek Diverse Director Candidates ■ Shareholder Right to Act by Written Consent ■ Succession Planning ■ One-Share, One-Vote *As provided in our 2024 Definitive Proxy Statement
Certain forward-looking information contained herein is being provided in accordance with the provisions of the Private Securities Litigation Reform Act of 1995. We have made reasonable efforts to ensure that the information, assumptions, and beliefs upon which this forward-looking information is based are current, reasonable, and complete. However, such forward-looking statements involve estimates, assumptions, judgments, and uncertainties. They include but are not limited to statements regarding the Company’s financial prospects and the implementation of cost saving measures. There are known and unknown factors that could cause actual results or outcomes to differ materially from those addressed in the forward-looking information. Although it is not possible to identify all of these factors, they include, among others, the duration and magnitude of accidents, extreme weather, natural disasters, and pandemics (such as COVID-19) and related economic effects, the Company’s liquidity and ability to obtain additional financing, the Company’s ability to continue as a going concern, the Company’s ability to execute on its cost management actions, the impact of new or changes to existing governmental laws and regulations and their application, including tariffs; the outcome of tax examinations, changes in tax laws, and other tax matters; foreign currency exchange rate and interest rate fluctuations; the Company’s ability to successfully divest assets on terms that are favorable to the Company; our ability to repay, refinance or restructure our debt and the debt of certain of our subsidiaries; anticipated or expected purchases or sales of assets; the Company’s continued listing on the New York Stock Exchange, and such known factors as are detailed in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, each as filed with the Securities and Exchange Commission, and in other reports filed by the Company with the Securities and Exchange Commission from time to time. Accordingly, there can be no assurance that the forward-looking information contained herein, including statement regarding the Company’s financial prospects and the implementation of cost saving measures, will occur or that objectives will be achieved. We assume no obligation to publicly update or revise any forward-looking statements made today or any other forward-looking statements made by the Company, whether as a result of new information, future events or otherwise, except as may be required by law. 13131 Dairy Ashford Rd. Sugar Land, Texas 77478 800-662-8326 teaminc.com ĚĠ䠀ĝƛĨĦ
