TRC 2014 Sustainability Report TRC 2014 Sustainability Report | Page 42

SUBCONTRACTOR RELATIONSHIPS G4-12 G4-LA14 In our project delivery, we often retain and rely upon subcontractors for specialized support, and our subcontractor network constitutes our primary supplier network. Subcontractors are an extension of TRC and their performance is a reflection on TRC in the eyes of our clients. Thus it is essential that our subcontractors share TRC’s vision when it comes to safety, quality, security, sustainability, and a commitment to the health and welfare of their employees. Our ability to win new work and retain existing work with many of our larger clients requires that we have a systematic approach to pre-qualifying subcontractors, especially those working in safety sensitive environments such as refineries, substations, and chemical facilities. TRC has recently partnered with PICS, a third party company which performs prequalification audits of suppliers, in order to manage our supplier screening efforts in a more formal and systematic manner. Historically, we have used a similar approach with our subcontractors in select situations, primarily in relation to their safety performance. This partnership will help us to gather data on subcontractors’ performance, with a particular initial focus on safety and quality. We are piloting the PICS program with our subcontractors and will evaluate an extension of the program in the future. Supplier Diversity at Holly Street We have successfully implemented our Supplier Diversity Program for current contracts throughout the United States, most recently with the City of Austin and the decommissioning and demolition of their Holly Street generation plant. On the $13 M Holly Street project, TRC has engaged and used many local SB, WBE, DBE,and MBE firms. Particularly, TRC far exceeded the City’s diversity participation goals with 30.89% going to qualified small disadvantaged MBE firms and another 3.81% going to small disadvantaged WBE firms. This is a cumulative 34.70% diversity firm participation for this contract (approximately $4.5 million upon contract completion). TRC has implemented a Supplier Diversity Program that outlines TRC’s commitment to working with Minority-Owned Business Enterprises (MBE), Women-Owned Business Enterprises (WBE), Disadvantaged Business Enterprises (DBE), Veteran- Owned Business Enterprises (VBE), Historically Underutilized Business zone, and other local small businesses (SB). TRC understands and respects the importance of local small business cooperation and support by the community. Our Supplier Diversity Program facilitates the Company’s partnerships with experts from local companies and is aimed at the economic growth and investment in the sustainability of the project’s region. TRC formed this program as part of our ongoing commitment to diversity participation and to ensure that we continue to develop strong collaborative partnerships with the local MBE, WBE, DBE, VBE, HUB and SB communities on our project efforts. For every project, TRC’s goal is to effectively complete the scope of work while investing in the community. As example of our commitment, TRC has used our Supplier Diversity Program with Historically Underutilized Businesses (HUBs) on contracts in key project locations, particularly New York City; Austin, Texas; and throughout California. By using team members that work and live in the area, we reinforce our commitment to the community and validate that we are truly invested in their prosperity and respect their contribution to the specific project. Equally important is the connectivity and transfer of information that supports a common mentorship. 42 | 2014 Sustainability Report