37 2023 Integrated Report 01 Our Company and Strategy 02 Our Businesses 03 Our Functions 04 Our Corporate Information 2023 2022 2021 2020 76% 63% 40% 41% How are Fluor’s business development and sales teams shifting to pursue contracts with fair and balanced terms? We have been targeting more reimbursable contracts in our efforts to de-risk our backlog, and I am impressed with the achievements our teams across the business have made so far. Over the past year, we have increased the reimbursable share of our backlog from 63% in 2022 to 76% at the end of 2023. This strong project pipeline provides our stakeholders with more performance certainty over the next few years. Our success has been realized through focused account management, coupled with strong and deep relationships with our clients. Leveraging our technical expertise early in the process enables us to deliver the results our clients need, while also ensuring we do so under a fair and balanced contract model. Where has Fluor had the biggest success leveraging opportunities to extend market reach? We see significant potential in energy transition, particularly in clean energy, the battery value chain, carbon reduction, hydrogen and renewable fuels and chemicals. Our businesses have repositioned to meet these opportunities, and our market reach has expanded substantially in energy transition projects, with nearly 40% of our 2023 new awards in this space. Read more on pages 18-19 and 39 We are also seeing Fluor’s market reach develop and deepen in the advanced manufacturing and advanced technology space, particularly in pharmaceuticals, semiconductor and data centers. Read more on pages 22-23 Q&A with Al Collins, Group President, Corporate Development and Sustainability “Our sustainability journey does not end with the achievement of our Net Zero 2023 commitment. Our focus remains on helping our clients reduce their own carbon emissions, leading to a more significant impact.” What progress has Fluor made to support clients’ environmental commitments and the company’s own environmental goals? As an organization, we are taking steps to reduce our emissions to help protect the environment and strengthen community health. In parallel, governments and companies are increasing their sustainable investments, leading clients to more frequently request our support with making their projects and operations more sustainable. We have had success licensing our carbon capture technology to clients, implementing several renewable fuel production facilities and continue to support carbon-free nuclear energy production. Our company’s environmental efforts, dating back to 2006, illustrate that we share our stakeholders’ values, giving Fluor credibility when we offer our expertise to help them solve their own decarbonization and sustainability challenges. And finally, I am proud that we achieved our Net Zero 2023 target, which was set in early 2021. This significant milestone on our sustainability journey has reduced our Scope 1 and Scope 2 GHG emissions of offices and fleet to net zero. Read more on page 38 REIMBURSABLE BACKLOG Al Collins speaks at a town hall meeting // Houston, Texas, United States
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