Kirby Corporation · NYSE:KEX
Kirby — ESG Presentation (November 2019)
28 slides from Kirby's sustainability presentation, November 2019
Slide 1: Sustainability Report
Sustainability Report Environmental, Social & Governance Kirby Corporation November 2019
Slide 2: The Kirby Way
“The Kirby Way” Our guiding principle is No Harm to people, the environment or Safety equipment. Safety is at the core of everything we do and always drives our decision making. Our people make the difference. We invest in the tools and People resources to empower our employees and we promote a work
Slide 3: Sustainability is integral to our corporate culture
Sustainability is integral to our corporate culture “Do the Right Thing” is a key Kirby value At Kirby, sustainability is embedded in our culture – From an environmental and human impact perspective, safety is the foundation – Zero Harm: • No harm to people • No harm to the environment • No harm t
Slide 4: Safety
Safety 4
Slide 5: Strong emphasis on safety
Strong emphasis on safety Safety is the first and foremost concern in everything we do ZERO INCIDENTS All levels of supervision have the responsibility for the NO safety of our employees to people to the environment The Board of Directors review monthly safety statistics and major incidents at
Slide 6: Marine Transportation Safety Highlights
Marine Transportation Safety Highlights No Harm to People* No Harm to the Environment** 1.6 3,300 6.0 Higman Acquisition 1.4 1.44 3,200 5.0 1.2 3,100 4.9 4.0 1.0 1.04 1.07 1.04 1.10 3,000 4.1 1.03 3.7 3.8 3.9 3.8 0.8 2,900 3.0 0.6 0.68 2,800 2.6 2.0 0.4 2,700 1.0 0.2 2,600 0.10 0.07 0.09 0.07 0.05 0
Slide 7: Distribution and Services Safety Highlights
Distribution and Services Safety Highlights 4.0 S&S 3,000 Acquisition 3.5 2,500 3.38 3.0 2.72 2,000 2.5 2.56 2.66 2.54 Employees Incident Rate 2.0 2.15 1,500 1.87 1.5 1,000 1.0 500 0.5 0.75 0.57 0.48 0.47 0.30 0.58 0.27 0.0 0 2012 2013 2014 2015 2016 2017 2018 Recordable Injury Rate* Lost Time Injur
Slide 8: Blue "No Harm" flag program
Blue “No Harm” flag program Creating safety awareness, pride, and accountability amongst our employees All boats and operations groups with “No Harm” to People, the Environment and Equipment during the year fly a blue “No Harm” flag Flying a “No Harm” flag reinforces that the employees are stead
Slide 9: Environmental
Environmental 9
Slide 10: Environmental commitment
Environmental commitment Kirby is committed to continuously improving the compatibility of our operations with the environment Management and the employees of Kirby pledge to: Conduct our business and operate our vessels in a manner that protects the environment and the health and safety of our em
Slide 11: Marine transportation is a good news story
Marine transportation is a good news story Marine transportation is the cleanest, safest and most efficient mode of surface transportation in the U.S., with far fewer impacts on the population than truck or rail. Units to Carry 27,500 Barrels of Liquid Cargo 1 barge 1 loaded tank barge carrying 27,5
Slide 12: Barge tows move more cargo than alternatives
Barge tows move more cargo than alternatives… One 15-Barge Tow 1,050 Large Semi Tractor-Trailers 216 Rail Cars + 6 Locomotives Kirby’s 23.7 million barrels of inland capacity is equivalent to ~40,000 rail cars and ~124,000 large tractor-trailer trucks Source: National Waterways Foundation 12
Slide 13: Using less fuel and with fewer emissions
… Using less fuel and with fewer emissions 647 477 145 Ton-miles Traveled per Gallon of Fuel Tons of CO2 per Million Ton-Miles Source: National Waterways Foundation 13
Slide 14: Going above and beyond – Marine Transportation
Going above and beyond – Marine Transportation Kirby implemented usage of low-sulfur diesel on all vessels in 2012 All tank barges are double hulled to better prevent environmental spills Voluntary usage of 6 psi vs. 3 psi barges (the industry standard) virtually eliminate cargo vapor emission
Slide 15: Going above and beyond – Distribution and Services
Going above and beyond – Distribution and Services Developed technology to lessen environmental impact of hydraulic fracturing – Noise reduction fracturing units – reduce decibel levels by more than 3x (10+ dB noise reduction) compared to conventional frac units – Bi-fuel powered fracturing units
Slide 16: Mitigating our impact on the environment
Mitigating our impact on the environment Effective safety and awareness programs driving significant improvements on cargo spills 7.0 6.61 6.0 5.53 5.0 4.66 4.10 3.93 3.86 4.0 3.74 3.65 3.59 3.62 3.62 3.61 3.50 3.51 3.39 3.16 3.0 2.42 2.0 1.0 0.74 0.82 0.65 0.60 0.53 0.46 0.46 0.41 0.26 0.30 0.24 0.
Slide 17: Social
Social 17
Slide 18: Giving back to our industry
Giving back to our industry Kirby has a long history of supporting foundations, associations and institutions whose charitable work is related to Kirby’s mission Seaman’s Church Institute – North America’s largest mariner’s service agency providing spiritual support, maritime education and legal a
Slide 19: Supporting our local communities
Supporting our local communities Kirby shares our success with the communities we live and work in by helping to protect the environment, giving charitably, and encouraging volunteerism Galveston Bay Foundation – Promotes advocacy, conservation, education, and research related to Galveston Bay • I
Slide 20: Supporting our employees and communities when disaster strikes
Supporting our employees and communities when disaster strikes At Kirby, our people make the difference, and our motto “Do the Right Thing” is a fundamental value. We strive to provide our employees and their families support and resources when they need it most. The Kirby Disaster Relief Fund • C
Slide 21: Employee wellness, training and engagement
Employee wellness, training and engagement At Kirby, our employees are our most important assets. Wellness, education and training, and employee engagement create positive morale and a family friendly atmosphere. Generous medical, health and wellness, and assistance programs offered to all employe
Slide 22: M/V Marine One….standing by
M/V Marine One….standing by Kirby is positioned to quickly and effectively support the U.S. Coast Guard to safely open our waterways after an incident, natural disaster or storm M/V Marine One is an emergency response vessel that can be quickly deployed to any area – Replaces ATONs (aids to naviga
Slide 23: Pathways to diversity
Pathways to diversity In a male-dominated industry, Kirby is making inroads in diversity… Women Elected its first female board member in 2015 and its second in 2019 Females on the Executive Leadership Team include: 10% Minorities – VP and General Counsel – VP and Chief HR Officer Management –
Slide 24: Governance
Governance 24
Slide 25: Board composition and experience
Board composition and experience Core Industry Experience Independent Director Age* (in years) Tenure* 30-40 7 DIRECTORS 0-5 6-10 50-60 60-70 3 10+ 70+ 40+ DIRECTORS Average Tenure: 7.1 years Average Age: 65 * As of November 2019 * As of November 2019 Director Independence Industry Experience Marine
Slide 26: Board committees
Board committees All three Board committees consist solely of independent directors Audit Compensation Governance Director Committee Committee Committee Anne-Marie N. Ainsworth Richard J. Alario C Barry E. Davis C. Sean Day C Monte J. Miller Richard R. Stewart C William M. Waterman C Chairman Member
Slide 27: Executive compensation
Executive compensation Overseen by the Compensation Committee, executive compensation is comprised of three key elements: base salary, annual incentive plan, and long-term incentive awards Objectives of the program are to: – attract and retain senior executives – motivate consistent performance ov
Slide 28: Executive compensation
Executive compensation Overview of 2018 performance based compensation Executive Chairman Total Compensation* President and CEO Total Compensation Salary 1% Equity Not At Risk 9% 17% Salary 17% Bonus 46% Equity At Risk 37% 83% Retirement Pkg. 90% Other NEO Total Compensation Not At Risk Bonus Salary