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2020 Integrated Annual Report
Financial Highlights  •  Chair & CEO's Message  •  Our COVID-19 response •  We do things right • We challenge the accepted • We aim higher  •  We live inclusion  •  Leadership  •  BeyondExcellence Awards  •  Forward-looking statements

Leading through culture

Jacobs Integrated Annual Report 2020

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SteveFellow shareholders,
Our world changed in 2020 — both personally and professionally — since the COVID-19 pandemic started early in the year. While it was uncharted territory for us all, our top priority was the safety and wellbeing of our people and communities. As we shifted from office to home, we took our strong Culture of Caring℠ with us to create and sustain safe working environments for our teams.


COVID-19: leveraging global scale and digital solutions

To ensure business continuity for our customers, we leveraged our global and regional crisis management teams and our strong IT expertise to develop a strategy for maximizing remote working for 85% of Jacobs employees within a 10-day timeframe. We also established safe protocols for employees working on project sites or engaged in essential, mission critical work. I am extremely proud of the determination and resiliency our people showed in the face of adversity.

Staying connected with our people

We recognized that communication was critical. Through weekly CEO Monday messages and CEO virtual town halls with our global employees, we provided personal updates on our people, our business and our response across our communities and with our clients. Through the strong global response to our Staying Connected With You survey, our employees shared their thoughts and feedback around remote working, flexibility and collaboration in our new virtual environment. They also shared stories of inspiration, creativity and mental wellbeing that we highlighted both internally and externally to emphasize that no one was in this alone.

Innovating the new normal

As we define our new normal, we invested more than ever to rethink, reorganize and redefine how our technologies, tools, work processes and physical space have embedded flexibility into our workforce, elevated collaboration, supported our capabilities to deliver value to our clients and improved global operational readiness. As we develop these plans, we will capitalize on the benefits and lessons learned of remote working gained during this time.

TogetherBeyond℠

In our drive to create a “company like no other” and lead through positive change, TogetherBeyond℠ is our global inclusion and diversity strategy to ensure we deliver on our vision through four strategic pillars: Culture Building & Engagement, Leadership Commitment & Accountability, Developing Talent and Growing the Business. It is not only the right thing to do, it is critical to the long-term health of our company, bringing together diverse teams to create solutions focused on better, more innovative outcomes.

Aligning with our strong emphasis on inclusion, the diversity of Jacobs’ continuing Board of Directors is at 55% comprised of 11 members from varied industry, government, technical and business backgrounds, providing a robust governance structure. Our female employees accounted for a steady 29.5% of our global workforce in FY20 and the 2020 Women on Boards Gender Diversity Index ranked us as a winning company exceeding its 20% criteria with 27% women on our Board.

Speak Up. Speak Out.

Standing up for what is right is in our Jacobs culture. It is who we are. At this moment in time, we have an opportunity to continue the momentum that has built around the world; to challenge and to change both workplace and societal dynamics and positively influence the Black employee experience within Jacobs. Through our Black employee network, Harambee, we facilitated a series of Courageous Conversations among the global Jacobs community giving more than 5,000 of our people a safe space to share and be heard.

We launched a global Action Plan for Advancing Justice and Equality, which builds on our existing TogetherBeyond strategy. We will hold ourselves accountable to accomplish actionable initiatives to foster a company and community that embraces equality.

The action plan is about achieving true equality for all of our employees now and in the future — with a focus on ensuring Black employees have the tools needed to advance and achieve their ultimate goals.

Developing our talent … a world where you can

Building on our brand launch last November, we developed our Employee Value Statement: “Jacobs. A world where you can” — aligning with our culture, our values and the employee experience we deliver.

This year, our continued focus on developing our people brought about significant development of resources and tools for our employees. We launched our Global Career program e3: engage. excel. elevate. to ensure every employee can engage with our global network, excel in their role and elevate their career through personal and professional growth with online learning and development courses, talent profiles and experiences tailored to their role and career interests.

Leadership for the future

Recognizing the significant contributions of their leadership and operating discipline, we expanded roles for Kevin Berryman and Bob Pragada, effective Dec. 1, 2019.

Kevin Berryman was appointed President and Chief Financial Officer and continues to lead finance and treasury, investor relations, communications, strategy, M&A and internal audit, and also oversees digital and information technology. Bob Pragada was appointed President and Chief Operating Officer to oversee all global operations with Executive Vice President and COO of Critical Mission Solutions, Dawne Hickton and Executive Vice Presidents Ken Gilmartin and Patrick Hill reporting to him.

Ken Gilmartin and Patrick Hill were promoted to jointly lead the People & Places Solutions line of business.

I would like to personally thank Terry Hagen, retiring this year after more than 30 years with Jacobs. During his career with us, Terry Hagen has made significant, long-lasting contributions to Jacobs, including holding senior leadership roles that encompassed growth in all of Jacobs’ business sectors. He played a crucial role in our business transformation, positioning us well for the next stage of our journey.

I would also like to thank the members of our Senior Leadership Team retiring this year — and all of our retirees — for their endless contributions to our company and the lasting impact they have made to the people and communities around them.

Furthering our Environmental,
Social & Governance commitment

On the 50th anniversary of Earth Day, we published Jacobs’ first Climate Action Plan, committing to 100% renewable energy for our operations1 and net zero carbon for our operations and business travel in 2020, and I am proud to share that we have achieved this. Our long-term commitment is to be carbon negative for our operations and business travel by 2030. Additionally, we continue to help our clients integrate sustainable, low-carbon solutions into their operations, helping them to maximize societal, environmental and economic benefits.

Jacobs attended DAVOS 2020, the World Economic Forum’s Annual Meeting, where as Co-Chair of the Infrastructure and Urban Development Governors, I moderated a panel on leveraging technology and innovation to achieve a net zero carbon future.

As part of our ongoing commitment to align with the United Nations Sustainable Development Goals, we joined the UN Global Compact this year and became a founding member of the CFO Taskforce for the Sustainable Development Goals to help reshape the future of corporate finance and investment as a catalyst for growth, value creation and social impact.

Strong business performance

The 3-year growth strategy we developed to build a company aligned to sustainable higher growth markets has proved its resilience during one of the most severe economic shocks in history. As we mark the third year since closing on the acquisition of CH2M — the largest of its kind in our industry — the alignment of our revenue synergies was key to our success, and our continued portfolio transformation created a model for successful follow-on integrations such as KeyW and Wood Nuclear.

Our resiliency during these challenging times was also driven by the diversity of our end markets and our alignment to high value sectors such as infrastructure, cyber, national security, water,

environmental, healthcare, pharmaceuticals and space exploration to name a few. We also benefited from the economies of scale in both lines of business, allowing us to quickly adjust to global changes in demand and prudent management of our cost structure.

We are embracing new ways of working and operating, and I have asked Kevin Berryman and Bob Pragada to lead our Focus 2023 initiative to drive further innovation, deliver value-creating solutions to our clients and leverage an integrated digital and technology strategy to improve our efficiency and effectiveness, ultimately freeing up valuable time and resource for reinvestment in our people.

Our ability to weather this storm would not have been possible without our strong, highly engaged Board of Directors. I want to personally thank Joe Bronson, who is retiring, for his contributions since 2003. Joe chaired the Audit Committee for 15 years, and his contributions, particularly in M&A, contributed to our portfolio transformation. In continuing to refresh our Board, we welcomed two new members over the past several months, General Vincent Brooks and Manny Fernandez.

Always looking ahead

We are starting FY21 from a position of strength; enabled by the collective and focused efforts of our leadership to stay ahead of the competition and continue to grow profitably.

Jacobs is a special company. We refer a lot to our brand promise of “Challenging today. Reinventing tomorrow.” and we are living up to the meaning behind it every day. And that is because of our people; each reshaping Jacobs in ways we would not have imagined just a few years ago. Over the last six months, it would have been easy to pull back given all that was going on with the pandemic. But instead, Jacobs employees have continued to drive the business forward and deliver innovative solutions both internally and for our clients, positioning us well for the new fiscal year — and a powerful future beyond.

Steve Demetriou
Chair and Chief Executive Officer

1Before the end of Calendar Year 2020 and for full Fiscal Year 2020, Jacobs will achieve carbon neutral status. This note applies to all references to 2020 in our Climate Action Plan and related charts.