2020 CORPORATE SOCIAL RESPONSIBILITY REPORT
2020CORPORATE SOCIALRESPONSIBILITY REPORTAn Annual Summary Report of Sustainability
A MESSAGE FROM OUR PRESIDENTAs North America’s energy andinfrastructure projects grow in scope andcomplexity, Michels remains steadfastin our goal of being the safest, mostreliable construction partner. Our guidingprinciples are fundamentally unchangedsince we started our operations more than60 years ago; we continue to build on ourreputation for excellence and at the sametime we extend the limits of constructionmethodologies and customer relationships.In 2019, we helped our customers complete many projectsthat will have a meaningful and positive impact on the world inwhich we live. Along the way, we ranked No. 27 on EngineeringNews-Record’s (ENR) Top 400 Contractors List and wonawards and accolades for our work.Of course, we know our real success is based not on whatwe do, but who we are and how we contribute to our world.At every turn we consider safety, social and environmentalresponsibility, and the health and wellbeing of our people andthe communities in which we work. My family and I take veryseriously our great responsibility for managing the impact ouroperations have on the environment and the world. Each year,we renew our commitment to making a difference in positive,respectful and responsible ways.Thank you for reading this 2020 Corporate SocialResponsibility Report to learn more about how we are makingchanges to our operations and holding ourselves accountableto the high standards that have guided Michels since 1959. Wehope you share our enthusiasm for the future and our ability toplay a necessary and positive role in it.Corporate Social Responsibility Report1
WELCOME TO MICHELSMichels’ 2020 Corporate Social Responsibility Reportencapsulates many of the key components of theSustainable Michels Program, our operating principlesand our Core Values. From our corporate headquarters inBrownsville, Wis. to the crew rehabilitating sewer lines inConnecticut and Hawaii, we are committed to promotingsafe construction procedures, reducing environmentalimpacts, and supporting our people and communities.As Michels continues to prosper inmarkets across the United Statesand Canada, we use our 61-yearhistory to guide us by reminding ushow we got to where we are today.We recognize corporations need tobe responsible for environmental andsocial impacts, and we take pride inour contributions.Michels safelycompleteschallenging projectsbeyond customers’expectationswhether it’s inPennsylvania, Texasor in our home stateof Wisconsin.We continually seek ways to improve the quality of lifeof our people and of the communities in which we aretrusted to work. We invest heavily into providing ourpeople with the tools and training necessary for theircontinued development and accomplishments. We fullyunderstand our responsibility for the welfare of the planet.In addition to highlighting our commitment tosustainability and social responsibility, this report willalso provide a clear perspective as to why our customersand employees continue to choose Michels Corporation.Our customers know they can rely on us, just as ouremployees rely on each other. The result is a deep senseof shared values that lead to mutual benefits.2
Our FrameworkMichels has grown and achieved success by alwaysremembering the importance of being a responsible corporatecitizen. Our business framework is built upon the foundation ofour Mission, Vision and Core Values.Our MissionOur VisionTo be the foremostprovider of innovativeconstruction solutionsand value for our clientsin their mission to servethe growing utility andinfrastructure requirementsof their customers aroundthe world.To exceed our customers’expectations by continuallysetting the global standardfor quality, safety andenvironmental stewardshipin utility and infrastructureconstruction.Our Core ValuesSAFETY & ENVIRONMENTWe take pride in our reputation for quality workperformed safely and with care for our environment.SUSTAINABLE OPERATIONSWe have sustainable and profitable operationsdriven by our ability to execute swift decisions.DEDICATIONOur people are dedicated, innovative andhardworking.INTEGRITYOur actions are characterized by integrity, trustand respect.TEAMWORKWe are committed to teamwork.Corporate Social Responsibility Report3
A CLOSER LOOK AT MICHELS8,000employeesMichels has been providing industryleading energy and infrastructureconstruction solutions for more thansix decades.14,000Our high standards have allowedus to grow from a regional gasdistribution pipeline contractor into aninternational leader in infrastructureconstruction.10Michels combines construction,engineering and procurement servicesto keep pace with the evolvingdemands of the energy, transportation,telecommunications and utilityconstruction industries.pieces ofheavy equipmentmarkets served40permanent officesWe currently maintain more than 40permanent facilities from coast tocoast in the United States as well asthree in Canada. We also establishmany temporary facilities to supportor operations and maximize efficiency.Michels’ 2019 Safety Performance Statistics36%8%38%TRIRLTIRExposure HoursTotal Recordable Incident RateLost Time Incident Rateimprovement4improvementincrease
When I think back on the HISTORY OF MICHELS,I SWELL WITH PRIDE.We remain a FAMILY OWNED COMPANY,we’ve grown ORGANICALLY & STRATEGICALLY,and we have earned anUNPARALLELED REPUTATION OFEXCELLENCE.Industry-leading accomplishmentsMichels Corporation is ranked among the industry leaders inseveral categories, according to the 2019 Engineering NewsRecord (ENR) Sourcebook:629Petroleum ContractorTop 20 by sectorWorking AbroadTop 50 Contractors1539Power ContractorTop 20 by sector25New ContractsTop 100 ContractorsHeavy ContractorTop 50 DomesticEthical actionsS AF&EN VI R ONTSUSTAINABLEE R A TI OTE A MOPWYENORKCODE OFBUSINESSETHICSMETMichels Code of Business Ethics is based on ourCore Values of integrity, trust and respect. Wetake pride in doing business the right way eachand every day, and we expect our suppliers,vendors and employees to uphold our highstandards of excellence and integrity.NOur Core Values in Action programidentifies a few of the many ways ourpeople live by these values each day.SINTNIT YIOEGRD E DICOurCORE VALUESin ACTIONATCorporate Social Responsibility Report5
WHAT SUSTAINABILITY MEANS TO USThe Sustainable Michels Program evolved from our Core Valuesand influences our decisions and operations. If we properlybalance the need to attract and retain good people, limit theenvironmental impacts of our operations and maintain financialviability, we believe we will be able to sustain our growth andsuccess, and continue to deliver top-quality services to ourcustomers.Sustainability consists of three main pillars: social, economicand environmental. Combined, all three create the framework ofour corporation and the Sustainable Michels Program.The Sustainable Michels Program was implemented in 2009 bya group of highly trained and passionate Michels employees.The Sustainable Michels Group set out to make changesthat ultimately create a healthier, safer and more successfulcorporation overall.Cornerstones of Sustainable Michels Program Tracking environmental impact Creating innovative solutions Participating in community activities Engaging employees6
HEALTH, SAFETY,ENVIRONMENTDuring a JSA meeting, a Gas Distribution crew shared concernsfor additional safety needed for a flagger. Due to tight workingconditions, a flagger had to perform his work near the middle ofthe road while directing vehicles through the other lane. They cameup with the idea of placing a concrete jersey barrier in front of theflagger to provide additional protection.C O R E VA LU E I N A CT I O N
OUR COMMITMENT TO HSEMichels Health Safety and EnvironmentDepartment (HSE) developed a threepronged approach to health, safety andenvironmental initiatives out of recognitionfor the individual and overlapping effectseach of these critical areas have on ouremployees, those who work with us, thepublic and the environment.Our HSE team consists of more than 150 professionalswho provide technical HSE support, training, conductassessments and oversee operations from an HSEperspective at our job sites.Pat Michels addresses hundreds of employees at a safety meeting ona mainline pipeline spreadCulture of Continuous Improvement 51,802 course certifications (120 courses) earned byMichels employees 7,093 HSE Audits were conducted and submitted 825 Senior Management site visits completed 1,812 Good Catch/Observations submitted8
HSE INITIATIVESSafety is of critical importance to all of Michels’ operations andis incorporated into everything we do. Michels has developedextensive programs to help ensure the safety of everyone whoworks on our projects. Among them are: Stop Work Promise: Michels asks allemployees to make a promise to theirfamilies and co-workers to STOP or notperform any work or action that is or mightbe unsafe, whether on the job or in theirpersonal lives. Short-Service Employee Program (Green Hands): MichelsGreen Hands program ensures all short-service employees(with less than six months experience) are identified andappropriately supervised, trained and mentored to preventaccidents and injuries. Tailgate Safety Meetings: Tailgate meetings focus on anylocal laws/regulations, environmental hazards, safetyrequirements and any other topics that may regard the sites. Michels Emergency Response Team (MERT): Michels’Emergency Response Team manages and administers theMichels Crisis Management Plan to address serious safetyincidents after they occur. MERT is available to Michelsemployees 24 hours a day and seven days a week. It isstaffed by Michels’ full-time legal, safety, environmental, fleetand risk management professionals.Michels HSE Training ProgramIn 2019, Michelsspent approximately35 hours peremployee/peryear for HSEtraining. Trainingwas conductedat locationsthroughout NorthAmerica.Corporate Social Responsibility Report9
MI-PROMISESAt Michels, our fundamental promise is to work safely, keep avigilant eye out for potential hazards, and return to our lovedones at the end of each day just as healthy as we were whenthe workday started.We have initiated “Mi-Promises”, a multi-faceted campaignfocused on inviting our employees to make a personalcommitment to their safety and the safety of those aroundthem, whether at work or home. Components of the annualMi-Promises campaign include: 12 Safety Celebrations for employees and their families atoffices and project yards throughout North America. Stop Work Promise: Michels asks all employees to promise tostop work that is unsafe or that they or someone else may beunqualified to perform. Mi-Promises: Employees made a personal and specificcommitment/promise to their loved ones regarding what theywould “always” do to ensure they make it home safely eachand every day. “Mi-Promises” video: This award-winning video reinforcesthe “Promise Me” message by featuring Michels employeesmaking candid, unscripted and compelling promises to worksafely. Michels designed and distributed a commemorative MiPromises safety coin to celebrate the Mi-Promises campaignand reinforce the importance of each individual’s Stop WorkPromise. All employees are asked to carry the coin with themeach day as a reminder to themselves and their teammatesof this essential commitment and message.The cornerstone of Michels’ safety initiative is to remind eachperson of the main reason for working safely: To be able toenjoy spending time with loved ones doing activities we enjoy.10
ENVIRONMENTAL SUSTAINABILITYMichels demonstrates environmental excellence in many ways.Our recent sustainability initiatives and accomplishments include: Continued waste management reductions throughout oursupport facilities, equipment and projects. For example,Michels acquired 10 pipe cleaning trucks that “recycle” waterused for cleaning sewer lines. This resulted in saving a clientnearly 26,000 gallons of fresh water daily, per truck, per day,and eliminated the need to process through water treatmentfacilities. This investment will save water on our municipalprojects for years to come. Continual improvement to corporate fleet vehicle andconstruction equipment idling time. Michels programs mediumand heavy duty trucks with an idle shutoff. To date, an estimated500 trucks have this feature installed and enabled. Continual stormwater management best practicesimprovements within our support facility and constructionyard in Brownsville, WI, including an improved detention basinoutlet device. Development of several adjacent contaminated propertieson a large brownfield site near Milwaukee’s harbor. Theproject revitalizes an abandoned industrial area and removescontaminated soil. Post-remediation site uses are scheduled for2020, including a new office building with underground parking.Future site use includes retail, restaurants and apartments. Participation in Green Tier, Green Masters and Clean Citiesprograms. The Wisconsin Department of Natural ResourcesGreen Tier program recognizes past successes and futureefforts that demonstrate commitments to environmentalstewardship. The Wisconsin Sustainable Business Counciladministers the Green Masters Program, focused on educatingand providing assistance to create sustainable trends that willeventually turn into the business norm.Our initiatives and goals for 2020 and beyond include: Completing a third-party energy analysis for the Brownsvillecomplex to determine an energy use baseline, followed by acommitment to energy reductions. We are participating withUS Department of Energy better plants program and workingtoward a 20% energy reduction over 10 years. Identifying the Tier 0-3 engines in the Michels fleet that couldfeasibly be replaced with Tier 4 or higher engine models. Expanding the single stream recycling program to reduce thepercentage of waste that goes to landfills.Corporate Social Responsibility Report11
INFORMATION TECHNOLOGYINK BEFORE Think Before You Click campaign.This corporate-wide, ongoingawareness campaign remindsemployees to keep watch forsuspicious emails, phishing schemesand other potential threats, andempowers them to take time toconsider appropriate actions andconsequences when confronted by arequest for sensitive information.THProtecting information is an important part of Michels’comprehensive safety culture. Procedures, tools and trainingprograms are in place to reduce the risk of data breaches.Among them are: Online training. Computer usersthroughout the company participate in quarterly onlinetraining sessions focused on awareness and avoidance ofincreasingly sophisticated cyber security threats. Email encryption. Employees who send personal informationto external recipients have the ability to encrypt it beforesending through email. In addition, our system identifiessensitive information, including Social Security numbers,credit card numbers and birthdays, and stops them frombeing sent without encryption.A Closer Look at . E-RecyclingInstead of relegating non-usable information technology (IT)equipment and devices to landfills, the Michels E-Recyclesprogram ensures the safe, secure and environmentally sounddisposal of computers, printers, servers, monitors and phones.More than 6,000 pounds of mixed electronics were recycledin a two-year period, including 442 monitors, 140 printers andcopiers, and around 4,600 mixed electronics.12
SOCIAL IMPACTA crew in West Virigina donated funds to fulfill the wish lists of fivelocal schools. The drive raised enough money to buy the suppliesthe schools needed and HSE Project Safety Manager Jason Hovatterhelped deliver the supplies to the schools. After dropping them off,he noticed a man lying on the ground at a nearby gas station. Jasonpulled over and discovered the man was having a very rapid allergicreaction to a bee sting. Jason used equipment from his vehicle tomonitor the victim’s blood pressure and oxygen levels. His quickaction and intervention allowed the man to regain consciousnessuntil emergency response arrived.C O R E VA LU E S I N A CT I O N
EMPLOYEE ENGAGEMENTThe backbone to Michels’ success is our team of 8,000 people who bring their talents and skills to work each day.Michels strives to ensure their personal and professionalhealth and happiness, provides an atmosphere conducive tomaintaining a rewarding work-life balance, and encouragesactive participation in their own and the company’s success.These practices are manifested each day at Michels jobsitesand offices throughout North America. We listen to our peoplewhen they offer their opinions and innovations; we trust themto make decisions and develop solutions; and we focus on theircontinuous development.One example of how Michels lives this mission is via theMichels Scholarship Fund, helping to provide post-secondaryeducation scholarships to employees and eligible dependents.In 2020, Michels employees raised 1,858.00 for the fund.Another way Michels achieves these goals is through a fivepart collection of programs that offer accessible and practicalways to improve and enjoy many aspects of life. Theseprograms include: MI-Family: Programming that allows our people to take part infun activities with their families and their colleagues. MI-Health: Opportunities to maintain a healthy lifestylethrough activity challenges, healthy lifestyle classes andorganized fitness activities. MI-Involved: Volunteer activities that allow our people to beactively and efficiently involved in charitable causes. MI-Learning: Seminars on personal enrichment topics, fromfinancial planning to fitness trends. MI-Team: Non-work-related activities that foster cooperationand trust among colleagues.Breakfast With Santa14Literacy Trivia
COMMUNITY INVOLVEMENTFounded in a small, rural Wisconsin community in 1959,Michels has grown exponentially in size and scope of work. Ourcommitment to being a good community partner, however, hasnever wavered. Michels actively supports local, regional andnational charitable organizations in the community we servethroughout North America.In 2019, Michels donated time, supplies and financial supportto make a positive impact on more than 150 organizations. Inthat one-year span, our people contributed 1,098.5 volunteerhours to assist the charitable causes.A closer look at MI-InvolvedIt is our responsibility as a good corporate citizen to helpthe communities in which we live and work. The MichelsCommunity Involvement Program (MI-Involved) encouragesour people to voluntarily support programs that improve thequality of life in these communities. Being actively involved inour communities enriches the lives of our people, has a positiveimpact on the culture at Michels, and allows us to providefinancial support and people resources.Lemonade DayCops for KidsDonated IT EquipmentMichels provides our employees with the latest IT devices sothey can operate efficiently and utilize the latest advances intechnology. Whenever possible, we donate decommissionedcomputers, printers and monitors to local schools, churches,clubs and organizations that provide services to areacommunities.Corporate Social Responsibility Report15
K-12 INVOLVEMENTMichels is proud of our extensive record of communityinvolvement. One of the many ways we give back isparticipating in activities focused on students in grades K-12.In addition to supporting the communities in which we live andwork, we use these opportunities to raise awareness aboutcareers in the skilled trades and utility and transportationconstruction.K-12 activities in which Michels is involved include: Career Day at area elementary, middle and high schools Summer seasonal recruitment Mock interviews at local high schools School to Work Career Exploration Day Junior Achievement Youth Apprenticeship Future Business Leaders of America Reality
responsibility, and the health and wellbeing of our people and the communities in which we work. My family and I take very seriously our great responsibility for managing the impact our operations have on the environment and the world. Each year, we renew our commitment to making a
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