2017 CORPORATE SUSTAINABILITY REPORT CONTENTS Company Overview ......................................................................................3 Disclosures .......................................................................................................5 Sustainability in ABM Operations ........................................................6 ABM in the Community ...........................................................................29 GRI Index .........................................................................................................30 ABM Corporate Sustainability Report 2017 | July 2018 | 2 ABM Corporate Sustainability Report 2017 | July 2018 | 3 Company Overview 102-14 - Statement from Senior Decision-Maker An Unprecedented Year I am proud of the fact that ABM is the 44th largest employer in the Fortune 500. Corporate Social Responsibility is at the heart of ABM every day, whether we’re With that comes great responsibility to our people and the communities we serve. After creating efficiencies for clients or keeping a keen eye on how our operations impact all, ABM is a people business with more than 130,000 employees and 350 branch our shared environment and support our communities. It is also a shared responsibility. locations throughout the United States and various international locations. This fact No single company or organization can meet and solve all the social responsibility and permeates everything we do at ABM and uniquely links our business commitments to sustainability challenges we face. sustainability and Corporate Social Responsibility (CSR). 2017 was a prime example of that as the United States was impacted by several In this report, you will find the sustainability milestones we have achieved in 2017. I want natural disasters. Hurricanes Harvey, Irma, and Maria displaced thousands of people. to highlight a few items. We were able to surpass our long-term emissions reduction ABM and many companies provided safety and support for their communities. goal by achieving an 18% intensity reduction (metric tonnes CO2e per FTE). Our goal Organizations also provided resources so those communities could rebuild. During was a 15% reduction of our 2011-year Scope 1+2 emissions by 2020. We also initiated times like these, I am confounded by the power of what we often cannot control and our ABMCares program which allows for matching of charitable donations made equally inspired by the strength of character in people. These natural disasters hit by employees. Through ABMCares and our associated programs, we donated more home for many of our employees and has only strengthened our resolve and focus on than $1.3 million to charities in FY2017. Finally, in 2017, we focused on implementing CSR. technology solutions and standard operating practices that reduce waste. For example, through our new online talent platform we have eliminated more than 3 million pieces of Looking Ahead physical paper from the hiring process. The importance of social responsibility will only increase in the coming years. The world’s approach to changing demographics, climate change, inequality, energy Looking Back diversity, privacy, data protection, and more will have a lasting impact on our society Overall, FY2017 was a momentous year for ABM. We operated for the first time under as we advance forward. For our part, we are committed to providing value for all our our new 2020 Vision industry group organizational structure, and successfully grew our stakeholders: our employees, our clients, our investors, and our communities. business organically. We completed the largest transaction in ABM’s history through our acquisition of GCA Services Group, a leading provider of facilities services in the education and commercial industries. And we embraced our Purpose, Vision and Mission, which are shown on the previous page. As our 2017 performance reflects, we Scott Salmirs were undeterred by the complexities of our 2020 Vision business transformation. We President & CEO, ABM navigated change and managed our business steadily while focusing on giving back and driving sustainability. ABM Corporate Sustainability Report 2017 | July 2018 | 4 Disclosures Segment Descriptions Healthcare Services in the healthcare industry group include janitorial, 102-1 - Name of the Organization environmental services, facilities management, healthcare ABM Industries Incorporated technology management, food and nutrition, laundry and linen, parking and guest services, and patient transportation at traditional hospitals and non-acute facilities. 102-2 - Activities, Brands, Products and Services T&M Technology & Manufacturing combines our Industrial & Manufacturing (“I&M”) business, which was previously included ABM is a leading provider of integrated facility services, customized by in our B&I segment, with our High Tech industry group. Services include janitorial, facilities engineering, and parking services for industry, that enable our clients to deliver exceptional facilities experiences. clients in these industries. We serve urban, suburban, and rural areas and properties of all types—from Technical Solutions Technical Solutions provides specialised mechanical and schools and commercial buildings to airports, data centers, hospitals, and electrical services. These services can also be leveraged for cross- selling across all of our industry groups, both domestically and manufacturing plants. internationally. 2017 began with the completion of our organizational realignment (2020 Vision Complete information is provided in the links below: – Phase 1), which established five industry groups – Aviation, Business & Industry, Education, Healthcare, High Tech — and a Technical Solutions group spanning the Business & Industry (B&I) five industry groups. ABM.com/Banking-Financial Those groups evolved into the following segments (see chart below). Through ABM.com/Commercial-Building-Maintenance them, we offer our full complement of solutions on a standalone basis or in ABM.com/Sports-Entertainment combination with each other or with specialized mechanical and electrical ABM.com/Retail technical services. Following is a general description of the services we provide. ABM.com/LifeSciences Segment Descriptions Aviation Aviation includes services supporting airlines and airports ranging Aviation from parking and janitorial to passenger assistance, catering, air ABM.com/Aviation cabin maintenance, and transportation. B&I Business & Industry, our largest segment, encompasses janitorial, facilities engineering, and parking services for commercial real Education estate properties, and sports and entertainment venues. ABM.com/Education Education Education provides custodial, landscaping and grounds, facilities engineering, and parking services for public school districts, Technical & Manufacturing (T&M) private schools, colleges and universities. ABM.com/Industrial-Manufacturing ABM.com/Technology ABM Corporate Sustainability Report 2017 | July 2018 | 5 Technical Solutions Sum of Gross Square Footage (in millions) Healthcare LEED® Certified 236,901,000 ABM.com/Healthcare Initial Phase 171,913,000 LEED® Registered 77,715,000 Sustainability in ABM Services Grand Total 486,529,000 We’ve built our strong reputation in part by continually striving to improve Number of LEED® Certified Buildings Total 469 upon our client service offerings through the ABM GreenCare® program. As Total in Program 1,093 part of the program, we actively work with our clients on a wide range of these efforts, from energy reduction to green cleaning and Leadership in Energy & Environmental Design (LEED) certification. Some of the key value-adds that ABM GreenCare® offers to clients include: • Green cleaning programs with Green Seal certified or environmentally ABM GreenCare® preferable products and certified equipment improve indoor environmental ABM GreenCare® helps clients make improvements in four key areas: quality for building occupants. We also provide recycling, touch-free water environmental and social responsibility, employee productivity and retention, conservation, and LEED certification assistance for clients. property protection, and fiscal responsibility. This program’s offerings span • Just as with our entire line of services, ABM is utilizing technology to upgrade our businesses and the key industries we serve. As a member of the U.S. Green our sustainable offerings. This includes electrically activated water systems Building Council (USGBC), we also continue to offer specific products and that produce general cleaning and sanitizing solutions from water, salt procedures for buildings to maintain certification through the LEED Rating system. and electricity. These allow ABM to produce safe, non-toxic daily cleaning ABM’s commitment to measuring its own performance has led to some statistics solutions onsite and reduce packaging, transportation, and storage issues relating to its clients’ sustainability efforts, including: associated with traditional chemicals. • ABM continues to identify new products and methods to operate more • ABM GreenCare has been implemented at over 1,000 buildings, totaling more efficiently for our clients and stay on the forefront of sustainable practices than 460 million square feet across the United States. and new innovations in cleaning methods and equipment. Through our strong, • ABM’s Energy Solutions program reduced clients’ energy use by over 23 established relationships with industry-leading supply, chemical, and raw percent on average. material manufacturers we are actively implementing new solutions. • ABM has installed over 8,000 EV charging ports across the United States with Energy many more expected in 2018. ABM understands that clients face tremendous financial pressures as a result of • ABM has assisted more than 480 million square feet worth of client buildings increasing demand. Our expertise in energy savings performance contracts and with products and procedures to maintain certification through the LEED rating Property Assessed Clean Energy (PACE) financing provides us with the unique system. We service over 469 USGBC LEED-certified and registered sites ability to collaboratively work with clients to help them address facility upgrade needs, sustainability goals, and financing options. Through the implementation ABM Corporate Sustainability Report 2017 | July 2018 | 6 of the ABM program, clients benefit from improved facilities that are paid ABM parking also provides the incentive of discounted parking for people for through their existing budget and from the savings incurred by the who share rides or participate in van pools. One of our clients’ rideshare improvements. In addition to traditional facility upgrades that help clients lower program consists of 34 leased vehicles and has more than 3,000 participants. costs — HVAC, mechanical, electrical and lighting — we also offer a number of We install bicycle parking and offer shuttle services to assist our clients’ customers other energy conservation measures, including EV charging and solar solutions. to safely and sustainably move from parking lots to facilities, or from public transit centers to client facilities. For riders’ convenience, we sell public transit passes Energy Performance Contracting Program (bus or train), and we help clients by doing SCAQMD emissions reporting. More As an accredited member of the National Association of Energy Companies, than half of our shuttles use natural gas or propane, running 11 million miles a year. ABM achieves cost reductions and sustainability goals for our partners by using We wash our vehicles according to local environmental regulations. future savings to enable projects. Our energy performance contracting program has helped public and private sector clients save an average of 23% on their Landscape & Grounds energy costs and millions of dollars over the course of their contracts. ABM uses alternative fuel and water-efficient, “smart” irrigation systems EV Charging with timers and flow sensors to help keep clients’ properties sustainable. Our As one of the leading installers of EV charging stations, ABM has installed more services include draught tolerant plantings, integrated pest management, and than 8,000+ EV charging ports. ABM’s partnership with multiple market leaders LEED certification support. of EV hardware and network providers brings us the first all-inclusive, affordable charging service plan. There’s no need to choose either DC or Level 2 Fast Charging Air Travel Stations, which creates a value-added amenity for all of a clients’ customers. ABM’s GreenCare Program is an integral part of our services at several airport locations. We are committed to reducing our clients’ impact on the environment Solar by providing a full range of services, from environmentally friendly janitorial and We help clients understand that solar has become a viable financial solution for maintenance to energy efficiency improvements. In 2017 ABM helped JFK Terminal companies. ABM enables facilities to receive the financial and environmental 4 take steps toward LEED Gold certification (which it obtained in early 2018). benefits of adopting a solar power solution and assists with the design, installation, financing and management of these systems. Brands that are also part of the ABM family GCA Services Group (facility services, including janitorial services, Parking contamination control for cleanroom manufacturing, facilities operations and For parking facilities, ABM provides LEED certification support, such as EV maintenance, grounds management, production staffing and labor management). charging ports, solar panel installation, green cleaning, and energy-efficient lighting. Our customized mobile app helps drivers save time, money, and gas OmniServ (based in the U.K., serves airlines and airports worldwide). through online payments, a parking locator, a frequent parker program, and online reservations. We were one of the founding members of ParkSmart and 102-3 - Location of Headquarters service two ParkSmart Green Certified garages, in addition to our sustainable practices at other locations. New York, NY ABM Corporate Sustainability Report 2017 | July 2018 | 7 102-4 - Location of Operations • BlackRock, Inc. • The Goldman Sachs Group, Inc. Primary operations occur throughout the United States and various international • Blackrock, Vanguard, TH Lee, GS, State Street locations, including the United Kingdom. • State Street Corporation 102-5 - Ownership and Legal Form • The Vanguard Group, Inc. ABM is incorporated under the laws of the State of Delaware and is a publicly traded company, governed by a board of directors. ABM common stock is listed on the New York Stock Exchange [NYSE: ABM]. The person or entities known to ABM to be beneficial owners of more than 5% of the shares of ABM common stock as of December 31, 2017 are set forth below. This disclosure is based on a review of Schedule 13G filings and Schedule 13D filings. *Countries shown in green are franchise locations. ABM Corporate Sustainability Report 2017 | July 2018 | 8 102-6 - Markets Served 102-8 - Information on Employees and Other Workers ABM serves markets through our five industry groups and one Technical Solutions ABM Employee Breakdown (As of 10/31/2017) group, which spans the five industry groups. Total Full-Time Part-Time Union Non-Union ABM serves commercial, industrial, government, and retail clients in the following Board 10 markets throughout the United States and various international locations. Service 128,137 98,130 30,007 50,509 77,628 • Aviation Staff & Mgt 7,765 7,720 45 0 7,765 • Building & Industry 135,912 • Education • Healthcare Total Male Female Age Age Age Age Not • Technology & Manufacturing <30 30-50 >50 Specified • Technical Solutions Board 7 3 10 Service 66,066 62,071 25,808 53,472 48,786 71 ABM’s comprehensive capabilities include janitorial, electrical & lighting, energy Staff & Mgt 4,554 3,211 682 4,073 3,010 solutions, facilities engineering, HVAC & mechanical, landscape & turf, mission critical solutions and parking, provided through stand-alone or integrated solutions. ABM provides custom facility solutions in urban, suburban and rural areas to properties of all sizes - from schools and commercial buildings to 102-9 - Supply Chain hospitals, data centers, manufacturing plants and airports ABM uses strategic supplier partnerships, providing a capable, modern supply chain allowing ABM employees to order and receive the products used to 102-7 - Scale of the Organization service our clients in the most efficient manner. Having strategic suppliers Dollar amounts in millions, except per share amounts. Information relates to implementing modern supply chain practices allows ABM to asses and minimize ABM’s fiscal year ending October 31, 2017. the Company’s impact of transporting machines, cleaning materials, et al. between work sites. Number of employees 135.912 Net revenues $5,453.6 Diluted earnings per share (diluted) $0.07 ABM Corporate Sustainability Report 2017 | July 2018 | 9 ABM’s suppliers fall into several throughout our company we are piloting ABM Way procedures, including categories. These include suppliers initiating team cleaning and instituting a daily moment of safety. We also for internal operations (office continue to make investments in technology platforms to help drive and supplies, information technology, sustain our 2020 Vision strategy. communications, utilities, etc.), suppliers for products Cost Optimization used in our services (cleaning We are migrating more of our back-office functions to our Enterprise Services chemicals, cleaning equipment, Center in Sugar Land, Texas and are continuing to consolidate our procurement paper and plastic liner products, activities. Our procurement initiatives resulted in savings of $10.0 million during engineering HVAC, alternative 2017. See also our Supply Chain discussion in the previous section of this report. energy components, fleet vehicles, landscape materials), service providers (pest control, landscaping, engineering, Talent Development waste removal) and suppliers for external marketing and communications One of the key underpinnings of our 2020 Vision is the investment in people and (consultants, printing, materials). the development of key personnel. Our Talent Development Group improved front-line leadership training initiatives, began the centralization of talent 102-10 - Significant Changes to the Organization and Its Supply Chain acquisition for staff and management, and completed a full talent assessment Organizational Realignment program identifying emerging leaders throughout the company. By prioritizing these initiatives, we believe we are building a stronger organization that will In 2017, we operated for the first time under our new 2020 Vision industry group enable us to be a leader in industry-based facility solutions. organizational structure, and successfully grew our business organically. We also completed the largest transaction in ABM’s history through our acquisition of Acquisitions and Divestitures GCA Services Group, a leading provider of facilities services in the education and commercial industries, while also divesting our non-core Government Services On May 31, 2017, we sold our Government Services business. business. Effective December 1, 2016, we acquired all of the outstanding stock of In Phase 2, which started in 2017 and is continuing, we are focused on Mechanical Solutions, Inc. (“MSI”), a mechanical service operator that improvements to our operational framework to promote efficiencies and specializes in HVAC, plumbing, building automation and mechanical retrofits. process enhancements. This acquisition bolsters our Technical Solutions and coverage in the Dallas/ Fort Worth metro market with chiller expertise, expanded service and retrofit Best Practices capability, controls for building automation, and commercial plumbing service. In 2017, we conducted a thorough evaluation of our field operations across Also, effective December 1, 2016, we acquired all of the outstanding stock of the country to identify best practices (the “ABMWay”) in account planning, OFJ Connections Ltd (“OFJ”), which provides ground transportation at Gatwick labor management, manager development, and safety and risk management. Airport for both the airport and all airlines, as well as similar services at London As a result of this site-by-site review, we began to codify best practices, and City Airport. The addition of OFJ helps solidify Omniserv’s strength in the U.K. ABM Corporate Sustainability Report 2017 | July 2018 | 10