TEAM is excited to debut our inaugural Environmental, Social and Governance report. Use the interactive filtering system above to learn more about TEAM's ESG efforts or customize and download your own report through our unique digital hub.
TEAM Inc. is proud to release our inaugural Environmental, Social and Governance (ESG) Report, which aims to provide information about relevant ESG activities and metrics related to safety, quality, training, environmental stewardship and governance. This report is guided by the Sustainability Accounting Standards Board (SASB) standards for the Engineering and Construction Services industry, as relevant to our operations. In addition, we identified where our practices and efforts align and advance the United Nations Sustainable Development Goals (UN SDGs).
This report covers the period of January 1 through December 31, 2019, unless otherwise noted. For more information about TEAM’s ESG program, working group, or this report, please contact us at email@example.com.
Decent Work and Economic Growth
Peace, Justice and Strong Institutions
Affordable and Clean Energy
Industry Innovation and Infrastructure
Responsible Consumption and Production
Safe Harbor Statement
Safe Harbor Statement Certain forward-looking information contained herein is being provided in accordance with the provisions of the Private Securities Litigation Reform Act of 1995. We have made reasonable efforts to ensure that the information, assumptions and beliefs upon which this forward-looking information is based are current, reasonable and complete. Such forward-looking statements involve estimates, assumptions, judgments and uncertainties. There are known and unknown factors that could cause actual results or outcomes to differ materially from those addressed in the forward-looking information. Although it is not possible to identify all of these factors, they include, among others, (i) the duration and magnitude of the COVID-19 pandemic, related economic effects and the resulting negative impact on demand for oil and gas along with the current surplus in the global supply of oil, and (ii) such known factors are detailed in the Company’s Annual Report on Form 10-K. Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, each as filed with the U.S. Securities and Exchange Commission, and in other reports and statements filed by the Company with the Securities and Exchange Commission from time to time. Accordingly, there can be no assurance that the forward looking information contained herein, will occur or that objectives will be achieved. We assume no obligation to publicly update or revise any forward-looking statements made today or any other forward-looking statements made by the Company, whether as a result of new information, future events or otherwise, except as may be required by law.
TEAM, Inc. is a leading global provider of integrated, digitally-enabled asset performance assurance and optimization solutions. We deploy conventional to highly specialized inspection, condition assessment, maintenance and repair services that result in greater safety, reliability, and operational and economic efficiency for our client’s most critical assets. A professional team of experienced engineers, technicians, and client support personnel backs each service armed with the best on-the job safety and service training, equipment, and technical support in the industry. Through 200 locations in more than 20 countries, we unite the delivery of technological innovation with nearly a century of progressive, yet proven integrity and reliability management expertise to fuel a better tomorrow.
locations in 20 countries
integrated service lines across 3 segments
unique industry sectors serviced
year legacy of providing integrated inspection and assessment, turnaround and onstream services
legacy of technological innovations
annual revenue in 2019
Our Core Values
TEAM’s Core Values anchor every aspect of our business in a set of commonly-held beliefs and commitments. They represent what our company stands for, what values our employees embody, and what our services and products contribute to the market. These statements are deeply ingrained in our culture, guiding employee behavior and company decisions and actions.
Safety First/ Quality Always
In everything we do
Uncompromising standards of integrity and ethical conduct
Leading service quality, professionalism, and responsiveness
Supports continuous growth and improvement
Pride and Respect
For our clients, for each other and for all of our stakeholders
Global teamwork and collaboration
At TEAM, we are committed to conducting our business in a manner that protects the environment and the health and safety of our employees, our clients, our suppliers and contractors, and the general public. Our Senior Vice President, Health Safety and Environment reports directly to our Chairman and Chief Executive Officer, and has management responsibility with respect to TEAM’s Health, Safety, Environmental & Security commitment.
We strive to be an industry leader in the fields of health, safety and environmental management, and to promote resource conservation, waste reduction and pollution prevention across our global operations. To meet our commitment, we maintain management systems designed to ensure compliance with all applicable laws, regulations and internal requirements, as well as to facilitate the continuous improvement of our processes, products and personnel.
We work with our suppliers, contractors and clients to promote responsible health, safety, environment and security practices. Through our partnerships with government organizations and industry coalitions, we support laws, regulations, standards and other programs that safeguard the workplace and our environment. We promote education and research that advances health, safety, environment and security progress and knowledge for the common good.
TEAM maintains regular communication with our stakeholders regarding workplace health, safety, environment and security issues and environmental risks related to the services we provide.
Many TEAM professionals within our organization are members of, and participate in, the activities of major organizations. We are recognized in the industries we work and serve and many of our personnel volunteer and serve on industry related standards committees as subject matter experts, including American Society of Mechanical Engineers (ASME) and the National Board Inspection Code (NBIC).
We take the concerns of our employees, clients, business partners, government authorities, and local communities very seriously and have taken concerted action to refine our emergency response plans to deal effectively with the global Coronavirus (COVID-19) pandemic.
We have put in place business continuity measures to protect our employees, clients and the communities within which we live and work.
In addition to implementing work from home policies and focusing on workplace safety, one of the key areas where TEAM has focused its resources is mental health. The COVID-19 pandemic has significantly disrupted the lives of our employees and their families. Therefore, TEAM launched the Stress & Anxiety Management Program, named STAMP.
Through STAMP, TEAM set up specialized training for managers and supervisors to help train them to look for signs of undue stress or anxiety in their employees and how to effectively communicate in this uncertain time. Additionally, weekly Mental Health Moments are sent to all employees that provides guidance and ideas on how best to cope with stress, anxiety and how to minimize both in your life.
TEAM has a long history of technology innovation. We are committed to investment in technology, integrated solutions and digitally-enabled operations that support our ability to work remotely and limit our environmental footprint. We were the first company to perform Leak Detection and Repair (LDAR) and one of the first companies to perform Optical Gas Imaging for leak detection, providing the capability to rapidly scan large areas and miles of pipelines to deliver real-time thermal images of gas leaks. Today we use a wide variety of technologies, including drones and remote visual inspection camera systems, to reduce the need for physical inspection in situations where physical inspections are costly and potentially dangerous. Through this use of state-of the art technology, we are able to capture images and inspect pieces of equipment that previously would have been almost impossible to inspect. We work closely with our clients to make investments in technology to meet the needs of our clients.
As part of our ongoing technological innovation efforts, we continue to develop our digital ecosystem supporting complete asset management. The TEAM digital ecosystem enables our clients efficient, reliable access to the data and analysis that is critical to their utilization and management of their key assets.
Over 450 of our technicians have been trained on our digital platform
More than 75,000 successful inspections completed utilizing our digital platform since commercialization in 2019
At TEAM, we have a long history of innovation to reduce greenhouse gas emissions and provide a safe work environment for our employees and clients. Starting with our humble beginnings in 1920, when we initially developed a leak sealing process, our focus has been assisting companies to operate in a safe and eco-friendly manner. Over the last 100 years, we have made many industry-leading innovations, including being the first company to perform leak detection and repair inspection work – and then later by expanding our services to be one of the first companies to offer optical gas imaging for leak detection. Today, our track record of innovation continues to evolve as we develop digitally-enabled operations and remote visual inspection systems to further expand our capabilities.
Eugene Clay Furman develops leak sealing process
Eugene Clay Furman develops first DIY leak sealing kits
Eugene Clay Furman files 1st leak sealing process patent
Eugene Clay Furman markets leak sealing kits
Furmanite becomes full leak sealing company
TEAM becomes 1st company to provide LDAR services to the industry
TEAM introduces method 21 reporter software for quality and compliance verification of field data
TEAM Europe introduces cnc manufacturing of leak repair enclosures
Quest Integrity launches suite of UT ILI tools
TEAM introduces specialty field machining services
TEAM introduces smartheat-wireless heat treatment technology
TEAM introduces L-CATT, LDAR compliance assurance ticket tracker
TEAM launches high energy piping (hep) phased array inspection
Quest Integrity launches subsea and high resolution UT ILI tools
Quest Integrity introduces ground breaking, high resolution 2” UT ILI tools
TEAM successfully digitizes multi-unit turnaround inspection procedures and workflow
TEAM modernizes manufacturing with automation and 5-axis CNC capabilities
TEAM adds on-stream inspection programs to digital platform
Drone (Unmanned Aerial System) Technology Utilization
In 2019, the advanced engineering and inspection segment within our Quest Integrity business employed drones to perform an unmanned aerial inspection of a client’s damaged crude unit heater. The drones were able to safely inspect the compromised heater prior to and during its disassembly without the need to use man lifts and baskets. Through the use of the Unmanned Aerial System, not only was the efficiency and quality of our client’s data improved, but the “at risk” man hours were reduced significantly.
efficiency and quality of data acquisition
at risk man hours
Integrated Technology Offerings
In 2019, due to the breadth of our service capabilities, TEAM was asked to provide an integrated offering for a multi-year project aimed at minimizing risk and delays associated with the lack of accurate data and the execution of mechanical projects. The client benefited from over $2M annual cost reduction. The integrated offering demonstrates the collaborative environment within which our business segments are able to provide integrated solutions to address the unique needs of our clients.
annual cost reduction to client
15-20 year program
Our portfolio of services and solutions enables us to address the global needs of our clients across a diverse industry base that includes refining, power & utility, chemical & petrochemical, pulp & paper, midstream & pipeline, LNG, aerospace, renewables, and offshore.
In 2018, we formed an internal working group to oversee the company’s ESG Program, the ESG Policy, and external reporting. As a company, we recognize that the way in which we do business influences the results we seek to achieve. Accordingly, we strive to promote and support business practices that are environmentally sustainable, socially conscious, and aligned with strong corporate governance practices. Social consciousness at the company is evidenced through our commitment towards good corporate citizenship by focusing on improving the quality of people’s lives, from our employees, to our clients, and to the communities in which we operate.
At the Board level, our Corporate Governance and Nominating Committee has the authority and responsibility to consider matters regarding ESG, as set forth in the committee’s charter. At the management level, our Senior Director of Investor Relations, who reports directly to our Chief Financial Officer, has general oversight responsibility with respect to matters of ESG. We discuss the governance of our ESG program in greater detail in the Oversight and Management of ESG section of the report.
TEAM has been an industry leader in pipeline inspection, emissions monitoring and leak repair services throughout the history of the company. Our services and technologies, are crucial in assisting our clients to identify, assess and reduce their carbon emissions. Eugene Clay Furman (founder of Furmanite) filed for the 1st leak sealing process patent in 1927 and in 1980 we were the first company to perform Leak Detection and Repair (LDAR) inspection. We were also one of the first companies in the U.S. to offer Optical Gas Imaging for leak detection, providing the capability to rapidly scan large areas and miles of pipelines to deliver real-time thermal images of gas leaks. Our services, including inspections, emissions monitoring and leak repair services, are crucial in identifying, assessing and reducing greenhouse gas and other carbon emissions in the U.S. and throughout the world. We work closely with our clients across the world to assist them in meeting their environmental sustainability goals and provide our services in support of our client’s diversification efforts into sources of renewable energy.
UN Sustainable Development Goals
Emissions control services are essential for industry to meet environmental regulatory requirements that are aimed at protecting the environment and the public’s health from harmful emissions, such as greenhouse gases (e.g. methane and carbon dioxide). According to the Environmental Protection Agency (EPA), the U.S. produced 656.3 million tons (MMT) of methane emissions in 2017. One of the largest components of those emissions is leaks from oil and gas well sites and tank batteries. Leak detection and emissions control services are essential for companies to monitor and reduce their carbon footprint and greenhouse gas emissions (e.g. methane and carbon dioxide).
Over the last five years
TEAM completed 1,501 Optical Gas Imaging leak detection surveys
TEAM reduced or eliminated 1,113,706 metric tons of greenhouse gas emissions
Leak Detection and Repair (LDAR)
We were the first company to perform Leak Detection and Repair (LDAR) inspection in 1980 and have gained valuable insight and furthered technological advancements in this area. LDAR inspection enables leaks to be detected at a ppm (parts per million) level facilitating repair prior to the leak having a larger impact on the environment.
We evaluate each client’s emissions control efforts and offer the tailored guidance and services necessary to streamline and optimize our client’s LDAR processes and management. This service helps our clients mitigate emissions and related risks seamlessly.
Optical Gas Imaging
We were one of the first contactors in the U.S. to offer Optical Gas Imaging for leak detection, using the revolutionary FLIR GasFindIR™ camera. This specialized solution helps detect fugitive volatile organic compounds and hydrocarbon gas leaks invisible to the eye using infrared detection technology. This specialized infrared camera is capable of rapidly scanning large areas and miles of pipeline to deliver real-time thermal images of gas leaks. Once identified, our TEAM technicians work with our clients to swiftly repair leaks and eliminate emissions.
As an additional innovation, TEAM offers the capability to provide direct measurement of methane emissions for leaks from compressor seals and vents using a variety of methods, including Bacharach Hi-Flow® Sampler, VPAC II acoustic leak detector, hot wire anemometer and GASFindIR™ gas leak detector. We also provide emission reports of the testing results in standard cubic feet per hour (scfh) adjusted for annual weather conditions.
Permian Model Case Study - Methane Emissions
A large Upstream Owner Operator in the Oil and Gas Production sector sought to streamline operations for regulatory compliance, with a solution that would simplify their operations and contain cost. The use of multiple vendors was costly and time intensive, requiring duplicate coordination, safety/site trainings, and oversight of various service providers.
We deployed our integrated approach using Optical Gas Imaging and on-site Leak Detection and Repair to discover, quantify and repair the leaking components, thus reducing the methane emissions and assuring regulatory compliance.
The end result to our client, thus far, has been:
It is part of our Health, Safety, Environmental and Security Policy (HSE&S Policy) that all business operations must be conducted in compliance with all applicable environmental laws and regulations, both domestic and foreign, and in compliance with TEAM’s and our client’s environmental policies and standards. These laws, regulations, policies and standards are designed to protect the environment in which we live and work, human health, wildlife, and natural resources. Compliance strengthens our business and community relationships and is consistent with our Core Values and ethical business practices.
We work continuously to be good stewards of our environment and to improve our conservation efforts. It is the responsibility of all of our employees to:
As part of our internal efforts, we have implemented initiatives to conduct environmental assessments at all of our facilities within the United States and Canada. To date, environmental audits have been conducted across 24 facilities in those territories. It is our goal to complete environmental audits at all of our facilities by the end of 2021, as we strive to find additional ways to minimize our overall environmental impact.
Silver Recovery Program
Silver Recovery Programs are aimed at recovering and recycling silver from wastewater solutions produced by film processing units such as mobile dark rooms. These programs must comply with the recovery standards set by the EPA and the Canadian Environmental Code.
TEAM has had a Silver Recovery Program in place for several years. Currently, 22 (17 in the U.S. and 5 in Canada) of our 67 facilities that use film developing chemicals have this program in place. In 2019, we initiated a company-wide effort to have 100% of the facilities that use film developing chemicals have this program by the end of 2021.
Target by 2021 for all of our facilities that use film developing chemicals to have a Silver Recovery Program
TEAM North America
Within our operations in North America, including sites within the U.S., Canada, Puerto Rico, Mexico, and Trinidad, we have strived to have our operations facilities achieve ISO 9001 certification. This is an internationally recognized standard for creating, implementing and maintaining a quality management system (QMS). The certification requires TEAM to have all of the policies, processes, and procedures necessary to provide products and services that meet our customer and regulatory needs. TEAM has 28 ISO 9001 certified sites and another 7 AS9100 certifications (Aerospace certifications that includes ISO 9100 certification).
TEAM United Kingdom/Middle East/Northern Africa(MENA)
Over 60% of TEAM UK’s 8 sites are currently certified by Lloyd’s register as achieving ISO 14001:2015 standard for Environmental Management Systems to enhance environmental performance. In 2020, TEAM UK will have the remaining sites in the portfolio certified to ISO 14001:2015. Additionally, 100% of the 10 operating sites within TEAM’s UK and MENA territories are certified by Lloyd’s Register as achieving ISO 9001 standard for Quality Management Systems. This standard ensures that our clients receive consistent, high quality products and service by measuring client focus, motivation of our site management, and process and approaches to continual improvement, which all drive efficiency and minimization of waste and impact on the environment.
TEAM Europe and Asia/Pacific
All of TEAM Europe’s sites and Asia Pacific sites contract with third parties that are locally certified for hazardous waste disposal. None of the Europe or Asia Pacific locations store or produce large amounts of hazardous waste. All locations are in the “minor storage quantity” category and ensure locations are assessing material storage compatibility, volumes, as well as spill-prevention and control. All of our Europe facilities are certified to ISO 9001 for Quality Management Systems and to Safety Certificate Contractors (SCC), while our Asia Pacific facilities are certified by SAI Global to ISO 9001: 2015 standard for Quality Management Systems and ISO 45001 standard for Occupational Health and Safety. Our facility in The Netherlands has accreditation to ISO 17020 standard for requirements of operation of various types of bodies performing inspection. All of these standards have risk assessment components that ensure businesses and locations properly manage their hazardous materials handling.
Safety is Our #1 Core Value
Our leading core value at TEAM is the safety of our employees, our clients, other contractors and the community. We are committed to safety excellence and strive daily for zero injuries and incidents. In 2020, we established a Board-level Health Safety and Environment (HSE) Subcommittee to enhance and improve our safety efforts. The HSE Subcommittee consists of five Board members and our Senior Vice President, HSE. The guiding principles of the HSE Subcommittee are to provide strategic advice and counsel on the company’s HSE operations, procedures, processes, protocols, practices and related matters of significant importance to the company.
UN Sustainable Developmenet Goals
Our focus and commitment to safety excellence as we strive for zero injuries and incidents has not gone unnoticed in the industry with TEAM winning numerous awards in 2019.
All four of our Voluntary Protection Program (VPP) sites received the VPP Star of Excellence. This is the 13th consecutive year TEAM has participated in the VPP program. The program is a partnership between OSHA, management and the employees focusing on the prevention and control of occupational safety and health hazards.
Received the American Fuel and Petroleum Manufacturers Contractors Safety Achievement Award from two clients. Awarded the 2019 Contractor Safety Excellence Award from two clients.
Received the bronze award at the Houston Business Roundtable Safety Excellence Awards.
In 2019, we introduced our “12 Life Saving Rules” across the organization to further enhance the safety focused culture of TEAM. The 12 Life Saving Rules are clear and simple rules designed to address those activities that put our employees at the greatest risk. The rules include both encouraged behaviors as well as discouraged behaviors. All TEAM employees receive online training on the rules and must acknowledge that they have read them. The rules are posted internally, communicated with posters, infographics and through our safety bulletins, and are printed in multiple languages.
Safe Driving Always operate a vehicle in a safe manner and follow the laws of the road
Working at Heights Always protect workers when working at heights
Tool Tethering Always secure tools and materials to prevent dropped objects
Energy Isolation Always isolate energy sources and verify
Hazardous Operations Always wear approved PPE for the task performed
Work Permits & Rules Always obtain work permits and follow procedures
Line of Fire Never place yourself in the line of fire while working
Rotating Equipment or Parts Never place your hands or body near moving or rotating equipment
Suspended Loads / Rigging & Lifting Never walk or work under suspended loads
Confined Space Entry Never enter a confined space without proper authorization and controls
Safeguards Never alter or disable safety devices
Impairment, Prohibited Substances & Weapons Never perform work under the influence of prohibited substances or carry prohibited items
Safety is a core value and it is our goal to achieve zero injuries in the work place and in the field. In furtherance of this goal, we have mandatory training for all of our employees. In total, our technicians completed over 64,000 hours of training in 2019. This training allows employees to stay up to date on industry best practices. All TEAM employees are empowered and expected to stop a task or operation that is deemed unsafe or if they are not properly equipped to handle the work. Empowering our employees to act safely and responsibly further helps our goal of achieving zero injuries.
Additionally, TEAM is investing in technology which will allow the company to do more work remotely, limiting the number of technicians needed on-site and limiting the human interface with inspection equipment and repair machinery. We are committed to expanding our use of robotics and drones to reduce employee exposure to confined spaces, remotely controlling our heat training equipment through use of Smartheat® technology, and manufacturing hot tap and line stop fittings with advanced heating and extrusion technology offering a step-change in safety and quality.
All of these steps allowed us to deliver the best safety performances in the history of the company in 2019. We lowered our total recordable incident rate year-over-year by 25% and reduced our recordable injuries by 28%.
TEAM takes a proactive approach to our leading core value of safety. We foster a culture of reporting both actual incidents and near miss incidents, to help us learn and improve our safety processes. In 2019, we increased the time we spent on safety observation and reporting by 526%. Our Safety Observation Program helps us to proactively prevent incidents and injuries and adopt best practices as employees provide and receive feedback about safe versus unsafe behaviors and identify opportunities to continuously improve our work processes and procedures. In line with guidance from OSHA and the National Safety Council®, near miss incidents are often precursors to actual loss producing events and reporting such incidents enhances an organization’s safety culture and improves worker safety.
In 2010, we scrutinized our incident classification process to develop a more robust process to capture more accidents and near-miss incidents, that could have resulted in a significant incident or fatality (SIF). Each SIF is reviewed and evaluated with upper management to identify risks and lessons learned and the SIFs are not closed until changes are implemented to address the risks. Our increased review of potential incidents has improved our overall safety, resulting in a sharp increase of SIF Potentials and a decrease in SIF Actuals.
In addition, we increased the time we spent on safety observation and reporting in 2019 by 526%. This allows for better overall safety performance and best practices as workers receive feedback about the process and the techniques used to complete the tasks.
increase in time spent on safety observation and reporting in 2019.
As one of our top priorities at TEAM, we continue to emphasize the driving safety of our employees through the Smith System® Driving Training Courses and our internal journey management practices. In 2019, we installed 3,000+ Geotab devices into the vehicles of our fleet, the 125th largest fleet in the U.S. The Geotab devices allow us to track maintenance needs, location, and operational incidents, such as accidents of our vehicles, and to monitor, on a real-time basis, compliance with vehicle safety requirements by our employees as they collectively log more than 50 million miles per year.
According to the World Health Organization, speed is a factor in over 25% of all fatal vehicle crashes in the U.S. High speed increases risk as the driver has less time to react and by increasing the force of any impacts. The Geotab system, enables us to monitor and enforce speed limits on a real-time basis. Since the deployment of the Geotab system in the first quarter of 2019, the number of speeding events recorded by our Geotab system were reduced by over 70%. The reduction in speeding events has significantly lowered the overall risk of an accident, helping make certain that all of our TEAM employees will return home safely at the end of each day.
Reduction in speeding events since the deployment of the Geotab system in the first quarter of 2019.
TEAM conducts business globally and we are committed to ensuring that our employees remain safe while travelling. To supplement our risk management procedures around international travel, in 2019, we partnered with International SOS to ensure our employees have the right resources to mitigate travel risks. Through our partnership, our employees have access to a suite of travel risk mitigation tools that include an assistance application for mobile devices, a member portal that provides country and city guides, electronic access to the employees International SOS membership card, updates on local health threats and email alerts. Additionally, our employees have access to the International SOS eLearning modules that reinforce travel risk awareness, safe travel practices and the tools available to control risks.
Prior to travel - our employees receive an automatic pre-trip advisory that provides current destination information including medical care quality and access, vaccinations recommended or required, crime risks, etc.
While travelling – our employees receive automatic alerts applicable to their current location and advice to mitigate the potential risk (e.g. local safety alerts, weather advisories such as storm risks, road closures, recommended actions, approved hospitals, etc.). The automated alerts are provided through the online portal and the mobile app.
While travelling – our employees have access 24/7 to security experts and International SOS Doctors and nurses to assist in an emergency (e.g. medical accidents, medical conditions, crime victim, etc.).
Additionally, the International SOS tools enable our managers to locate our travelling employees and communicate important safety alerts and provide incident support during their travel.
We are focused on ensuring our high quality standards and we recognize good quality is at the heart of our success as clearly stated in our core value – “Safety First, Quality Always.”
Through our focus on quality, TEAM is considered a premier provider of standard and specialty services related to the maintenance, inspection and construction of mechanical and piping systems serving a wide array of industry sectors. At TEAM, quality means providing our clients with products and services that consistently meet or exceed established requirements and that re-define client expectations as to what constitutes “best in class” service. We view each service opportunity as an opportunity to continue building our client’s trust and confidence and to deliver the best overall value and leadership in the marketplace. We recognize that the only way to achieve our quality goals is through innovation and best-in-class personnel, training, equipment, technology and technical support.
Our Quality Management System is ISO 9001:2015 (Quality Management Systems) certified through an independent registrar and contains all of the policies, procedures, and processes required to perform effectively in all phases of our operations – service, manufacturing and engineering. Our Quality Management System is also audited and recognized by the Aerospace Standard AS-9100, rev. D and Nuclear Standards 10 CFR 5- Appendix B ASME NQA-1. In addition, many of our regions have achieved ISO 14001 (Environmental Management Systems), 45001 (Occupational Health and Safety), 17025 (Testing and Calibration) and OHSAS 18001 (Occupational Health and Safety) certifications that complement ISO 9001 in driving total quality across our organization.
The success of our Quality Management System requires teamwork, engagement, ownership and support from all of our talented employees around the world. TEAM senior management is committed to providing the leadership and resources necessary to meet our high quality standards and to appropriately empower all TEAM personnel with the responsibility and authority required to ensure that our Quality Management System is understood, endorsed and implemented by all employees at all levels of the organization.
In 2019, to assist us in meeting our quality objectives, we implemented a Non-conformance Management (NCM process) together with its supporting documented procedures, processes, and controls. The NCM Process ensures that we embrace a robust and reliable quality program, while at the same time fostering continuous improvement in our processes, products and services, and in our workforce.
With an eye towards quality performance improvement, in 2019, we set Key Performance Objectives (KPOs) to measure our response time to a non-conformance event. We want to ensure our clients understand our commitment to quality by reducing the days between the non-conformance event and the client review meeting, which reduces the number of days to finish the non-conformance review. The 2019 results far exceeded our target.
Reduced our expected "Days to Client Review Meeting" by 73%
Reduced our "Days to Non-Conformance Review Closure" by 36%
At TEAM we employ only the best, most qualified technicians to ensure every job is completed to the highest standards every time. Our Quality Management System requires quality indoctrination training for all personnel. Additional training and documentation is required based upon specific technical job requirements, which includes TEAM-provided training as part of the preparation for certifications. Any TEAM technician who works on our clients’ equipment has been trained in that specific service area. Because of our extensive training and certification programs, we are able to provide expert solutions for even the most difficult challenges.
Our Training Department currently administers and maintains well over 5,000 certifications, most of which require recertification at certain intervals. Any certification at TEAM requires a specified amount of trade specific education, a vision acuity exam, as well as on the job training and examination.
We currently have training centers in Alvin, Texas, Wood River, Illinois, Los Angeles, California, Kendal, United Kingdom, and Roosendaal, Netherlands. We have been increasing our training capacity at an average rate of 11%, year-on-year, for the last eight years. In that time, we have maintained a practice of continuous quality improvement, which has helped to facilitate our world class status today. In 2019, we trained 1,301 Inspection Heat Treat (IHT) technicians, and 958 Mechanical Services (MS) technicians, for a total of over 64,000-man hours.
Our instructors are all NDT Level 3 subject matter experts who have many years of field experience. Each instructor undergoes 40 hours of “Train the Trainer” courses and is subject to periodic evaluations. We choose the most highly qualified individuals that exemplify our Core Values, to be our instructors.
TEAM’s training programs are centered around safety and quality and designed to meet industry needs. In the case of our Non-Destructive Examination (NDE) training courses, our conventional and advanced courses all adhere to ASNT CP-105: ASNT Topical Training Outlines for Qualification of Nondestructive Personnel.
Accelerated by our response to COVID-19, we have recently added several online training and distance learning classes to our curriculum to help meet the needs of a rapidly changing workplace environment. These are administered and tracked globally though our Learning Management System (LMS).
average rate of year-on-year increase in training capacity
technicians trained for a total of over 64,000-man hours
Our Technical School is licensed through the Texas Workforce Commission. Started in 2015, our school is open to members of the public and provides training for nearly every one of our service offerings. TEAM’s Technical School in Alvin, Texas is located inside the Alvin Technology and Training Center. The facility was renovated in May 2014 to include four state of the art training classrooms and a 50,000 square foot equipment center housing hands-on training labs for NDE and Testing, Heat Treating and a range of Mechanical Services.
Human capital management, including TEAM’s diversity and inclusion and talent management initiatives, are a key driver of our consistent success. We seek to retain employees through our employee engagement efforts, competitive compensation and benefits package and through TEAM’s unique values driven culture. We invest in our talent by providing our employees with targeted training, mentoring and career development opportunities, all of which enable TEAM to hire and retain talented, high-performing employees.
UN Sustainable Development Goals
In 2019, our employees, on a global basis, participated in our annual engagement survey conducted by Willis Towers Watson, providing us with valuable insight as we seek to improve our overall employee engagement and satisfaction. Acting upon employee feedback from the engagement survey, we established additional regional health benefits, developed a “benefits focused” communication strategy, provided in-person benefits presentations at over 50 U.S. sites, and focused our training efforts on digital, e-based learning.
Through our engagement efforts, we achieved an 86% response rate compared to the average response rate of 83% for comparable industries. The response rate is indicative of high sustainable engagement which, as defined by Willis Towers Watson, measures “the intensity of employee’s connection to their organization, marked by committed effort to achieve goals (being engaged) in environments that support productivity (being enabled) and maintain personal well-being (being energized).”
Technician Focus Group
Our technicians are the foundation of our company and as part of our engagement efforts, we regularly engage our technicians to maintain an open dialogue on current pressing issues and opportunities for improvement. Additionally, the technicians are integral to our testing of our ongoing new technology developments.
In September 2019, we brought 14 technicians, representing all of our business divisions and segments, to Alvin, Texas for a one-day focus group. The technicians met with our Chairman and Chief Executive Officer, members of executive management, and participated in a workshop focused on improving communications and moving our technicians towards our digital future. The focus group session additionally enabled our technicians to have a forward-looking voice directly with executive management.
In response to the feedback, we (a) initiated enhanced communications, including townhalls, roadshows, and quarterly safety meetings, (b) initiated an employee referral program, and (c) enhanced our leadership development program with an eye toward training both the technicians as well as the business division leaders.
A company is only as good as its people and due to the incredible talent and passion of our employees, TEAM is known as a premier global industrial services company. We recognize the importance of providing training to continually support career growth and development. Our talent management and professional development programs empower and inspire our team members to personalize their career journeys by building critical job skills, gaining hands-on experience, providing ongoing access to world class training, assigning relevant career mentors and paving the way toward career paths that provide long-term advancement within TEAM.
Global Talent Reviews
Global Talent Reviews were enhanced in 2019 to focus on the identification and development of diverse leaders, supplement our succession planning and provide regular career path discussions. To maintain focus on the career progression of employees identified through the Global Talent Reviews, the identified employees are sponsored by our executive leadership who assist in overseeing the career of our future leaders.
Leadership Journey Program
Additionally, in 2019 our professional development efforts were expanded to include our Leadership Journey Program that takes participating employees through a highly interactive training and development program. Participants in the leadership program receive a behavioral DISC® (Dominance, Influence, Steadiness, Conscientiousness) assessment and work together in teams as they gain self-awareness of their behavioral style. Participants interact throughout the three day training session while learning about and increasing their leadership skills. During the Leadership Journey Program, TEAM subject matter experts lead unique training sessions to share information and knowledge on safety, quality and financial acumen applicable to TEAM’s business.
In 2019, we welcomed TEAM’s first class of College Recruits Excelling at Work (CREW), which is an early career, development program where recent college graduates complete rotational assignments in various functions before being placed into permanent positions. The CREW employees complete three rotational assignments, each lasting eight months, after which they are placed into their permanent job assignment. The program continues to grow and expand with a goal of expanding globally.
CREW Member, SHPE, Texas A&M University
Recruited from Texas A&M in early 2019 as part of our engagement with the Society of Hispanic and Professional Engineers (SHPE), Miguel was hired into the CREW program in the summer of 2019 and is currently in his second rotational assignment.
TEAM’s CREW program offered the invaluable opportunity to interact, contribute and learn from its many diversified business strategies and initiatives. From working turnarounds to software development and management to design engineering this program has reinforced its core values throughout, making transitions to different sectors of the company seamless and enjoyable.
In 2019, we also formalized our summer internship program. The internship program serves as a pipeline for the CREW program. Successful summer internships can turn into permanent, full-time positions at TEAM, with the new full-time employees having the benefit of observing many aspects of our business prior to their permanent employment.
Associate HR Generalist, former HR Intern, University of Houston
As part of the summer internship program in 2019, Liz was identified and recruited as part of TEAM’s university engagement efforts. After a successful internship, Liz was offered and accepted a full-time position with TEAM in 2020.
During my time as a HR Intern and after transitioning into a full-time position as an Associate HR Generalist, I have been fortunate to learn from and work with so many different people across the company. I come from a very diverse background, so being able to begin my career in an environment that is filled with so many diverse cultures is very comforting and exciting.
The TEAM Apprentice Program was piloted in the Louisiana and Texas Gulf divisions starting in 2014 and after much success the program is now growing nationally. Through the Apprenticeship Program, our technicians receive entry-level training and gain experience and insight into various technician disciplines by shadowing and learning from experienced technicians. The program has included more than 40 participants with 16 having graduated from the program and moved into permanent roles within the organization. TEAM hopes to expand the program nationally with a target of more than 100 apprentice technicians in the program across all business divisions by 2022. To help build a pipeline for this program, we have focused our recruitment efforts on vocational schools and the military.
The goal of our Apprenticeship Program is to create a versatile and sustainable workforce in order to meet the ever-growing demand of our various clients. Through a series of established goals this structured program will produce expert technicians who are certified in their respective disciplines. This program is a key factor in leveraging TEAM as not only the vendor of choice to our clients, but also as the employer of choice to our colleagues and candidates industry wide.
We work hard at TEAM to create an environment where team members feel valued, engaged and inspired to do their best work. We are proud that a diverse group of people from all backgrounds, religions, nationalities, gender orientations and races make up our team. It continues to be our goal to knock down barriers and eliminate bias wherever it exists through strategic employee-engaged initiatives.
TEAM is an Equal Employment Opportunity employer and it is the policy of the company to provide equal employment opportunities to all qualified persons without regard to race, color, religion, sex (which includes pregnancy, childbirth, breastfeeding, and medical conditions related to pregnancy or childbirth), national origin, age, disability, marital status, familial status, parental status, domestic partner status, military status, veteran status, military caregiver status, sexual orientation, gender identity, genetic information or any other protected characteristic under applicable law.
TEAM actively seeks to attract and retain a diverse workforce by partnering with organizations such as CareerLink to ensure our open positions are posted through sites and locations with high visibility to veterans and diverse candidates.
As part of our university recruiting efforts, TEAM has developed diversity focused strategies through collaboration with the career centers at the universities where we recruit. We recruit diverse candidate populations through collaborations with the Society of Women Engineers (SWE), Society of Hispanic Engineering’s (SHPE) and National Society of Black Engineers (NSBE) programs, as well as recruiting at Historically Black Colleges and Universities such as Prairie View A&M University.
Our employees highlighted in this report demonstrate our emphasis on and commitment to building our diverse workforce of the future.
Our employees highlighted in this report demonstrate our emphasis on and commitment to building our diverse workforce of the future.
Due to the strong technical backgrounds of military veterans, we also actively recruit at military hiring fairs and target former military service persons for many of our open technician and managerial positions, as well as for our Apprenticeship Program.
Vice President, Quality
As a graduate with a Bachelor of Science in Mechanical Engineering from Prairie View A&M University in 1997, Derrick joined General Electric (GE) as a Process Engineer for GE’s Aviation division. Derrick continued his career progression at GE culminating in his role as Executive Sourcing Commodity Leader for GE Corporate. In June 2018, Derrick was hired by TEAM as the Vice President, Quality.
As a company, we need to continue to increase our hiring, retention and development of talent with diverse backgrounds and experience. At TEAM, we think it is imperative to foster a culture that values different backgrounds and diversity of thought to help create unique business solutions that achieve optimal results. Because diversity does not exist without inclusion, we think it is important to pair the knowledge of those who have a great understanding of the products and services provided by TEAM with ideas and solutions from a variety of other backgrounds. TEAM’s commitment to diversity, coupled with inclusion, shows me that TEAM recognizes the need for a mixture of individuals from different backgrounds in order to reach the company’s aggressive growth plan.
The Executive Leadership team reporting directly to the Chief Executive Officer is 25% female. Additionally, TEAM’s selling, general and administrative (SG&A) population is comprised of approximately 48% female employees.
While we continue to focus on maintaining or improving the gender diversity among the Executive Leadership and SG&A populations, TEAM is also committed to improving our gender diversity amongst our technician population, which comprises more than 75% of our overall employees.
Across the globe TEAM provides its employees with competitive wages, salaries and benefits based upon employee skills, experience and job levels. Additionally, we provide employees with a comprehensive set of benefits, including health and welfare benefits, wellness benefits, employee assistance plans, defined contribution and defined benefit retirement benefits, paid time off, educational support and a variety of other ancillary employee benefits.
TEAM's Scholarship Program
At TEAM we recognize the value of education to empower the next generation workforce to innovate and find new solutions to existing problems. Our scholarship program is open to the dependents of our active, full-time employees. The program provides opportunities for funding to support the student’s pursuit of higher education, whether through 4-year university, 2-year technical programs, or vocational training. Many of the scholarship recipients are first generation college students.
In 2019, we launched our Victories Recognition Program enabling managers or fellow teammates to acknowledge the great work that takes place here at TEAM. Through this program, employees receive e-Cards or redeemable points for a wide range of products and gifts. In its initial year, 1,017 employees in 7 countries received recognitions.
In 2019, we had approximately 7,000 global employees. With such a sizeable workforce, we understand that our greatest asset for driving change is the commitment of our employees to driving positive impacts in their communities. We sponsor and support numerous charitable organizations around the globe and encourage our employees to donate their time and support them as well. These contributions enable the work of nonprofit organizations of all sizes, working in areas such as disability services and support, disaster response and humanitarian assistance, hunger prevention, and sustainable development around the globe.
Since 2014, TEAM has a proud tradition of sponsoring Easter Seals Greater Houston’s largest fundraiser, the annual Walk with Me event. Easter Seals is a non-profit organization dedicated to providing essential services to persons with disabilities and their families and caregivers. Easter Seals programs provide services for our most vulnerable groups, which include people of all ages, races and ethnicities with autism, developmental disabilities, physical disabilities and disabled veterans and their families. Easter Seals clients often face severe health challenges without adequate healthcare. These conditions have been further impacted by the COVID-19 pandemic and accompanying economic crisis.
Our Executive Leadership team actively supports the Walk with Me event and Easter Seals. In 2015, Chief Legal Officer André C. “Butch” Bouchard and his wife, Krista, served as co-Chairpersons of the Walk helping Easter Seals to achieve its most successful event to date. In 2019, our Chairman and Chief Executive Officer, Amerino Gatti, and his wife Cathy, served as co-Chairpersons of the Walk, and Bouchard served on the Executive Leadership Committee. Included in the 2019 Walk with Me event, was 160 TEAM employees and their family members who collectively helped raise over $96,000. Raising the bar once again, Easter Seals exceeded its fundraising and participation levels from the previous year and set a new record with its most successful event to date.
As part of TEAM’s commitment to make a difference in the communities in which we live and work, we have partnered with Junior Achievement and provide volunteers from our corporate and support offices to share their professional experiences and skills with students. As part of our efforts to promote racial equality and economic opportunity, we chose to partner with Arizona Fleming Elementary in Fort Bend Independent School District in Texas where, according to the Texas Education Agency, 67% of the students are considered at-risk for dropping out of school. Approximately 78% of the students at Arizona Fleming Elementary participate in the free and discounted lunch program.
Our volunteers positively impact the community by helping students make the connection between what they are learning in school and what they will need to succeed in work and life.
In the 2018-2019 time period, we served 641 students through our Junior Achievement participation.
To expand our philanthropic efforts, TEAM employees find opportunities to regularly support and sponsor events dedicated to various causes to which our clients are committed. For instance, TEAM sponsored, and its employees participated in, events such as the CITGO Shamrock Bowling Tournament benefitting Muscular Dystrophy and the Delaware City Refining Company’s Charity Golf Fundraiser for youth with physical and intellectual disabilities.
Our Board of Directors is committed to the enhancement of long-term shareholder value with the highest standards of ethics and integrity. Our Board has established an effective corporate governance framework that reflects our core values and provides the foundation for ethical governance through the adoption of our Corporate Governance Principles and Code of Business Conduct and Ethics. The Board and our Board Committees direct, guide and oversee the conduct of our business to ensure that the interests of all stakeholders are being served. Our Board works directly with our executive management team to establish and refine our long-term strategic plan within our established corporate governance framework.
UN Sustainable Development Goals
At TEAM, we value the experience and knowledge our Board brings to the company with every single member having relevant industry experience. The variety of skills and perspectives that our directors have enhances constructive discussion and decision-making, allowing the Board to perform its strategic and oversight roles satisfactorily for our shareholders. Additionally, our Board is 90% independent which helps solicit a wide range of feedback and incorporate new ideas. We are committed to building a diverse Board of individuals with different backgrounds, professional experiences, education, gender, race or ethnicity, age, and other individual qualifications and attributes. One woman serves on the Board and the average tenure on TEAM’s Board is approximately 6 years.
Our Board provides oversight with respect to the Company’s risk assessment and risk management activities, which are designed to identify, prioritize, assess, monitor and mitigate material risks to the Company, including strategic, operational, compliance, data security, financial and compensatory risks. This oversight is conducted primarily through the Board with respect to significant matters, including the strategic direction of the Company, and by the various committees of the Board in accordance with their charters. The Audit Committee, composed entirely of independent directors, focuses on financial risks, including reviewing with management, the Company’s internal auditors and the Company’s independent auditors, the Company’s major financial risk exposures, the adequacy and effectiveness of accounting and financial controls, and the steps management has taken to monitor and control financial risk exposures. The Compensation Committee, composed of all independent directors, considers risks presented by the Company’s compensation policies and procedures, as well as those related to succession and management development. Our Corporate Governance and Nominating Committee is charged with recommending director nominees to the Board; evaluating the contribution and performance of members and committees of the Board; administering the annual self-evaluation of Board performance; developing appropriate environmental, social and corporate governance principles for TEAM; and ensuring the processes of the Board are sufficient and consistent with its oversight role of TEAM.
In 2019, the Board, senior management and outside advisers participated in a multi-day, offsite meeting to review, assess and establish the Company’s long-term goals, objectives and strategy and consider the associated risks and mitigating actions. The Board satisfies its risk oversight responsibilities through receipt of reports from each committee chair regarding the committee’s considerations and actions, as well as through regular reports directly from executives responsible for oversight and management of particular risks within TEAM. The Board continually works, with the input of the Company’s senior executives, to assess and analyze the most likely areas of future risk for TEAM. On an annual basis our senior management updates and reviews our enterprise risk management process with the Board. Directors also have complete and open access to all of our employees and are free to, and do, communicate directly with our management. In addition to our formal compliance programs, the Board encourages management to promote a corporate culture that incorporates risk management into the Company’s corporate strategy and day-to-day business operations.
For more information about our Board of Directors, see our Corporate Governance webpage.
At the Board level, our Corporate Governance and Nominating Committee (Governance Committee) has oversight responsibility for corporate sustainability and social responsibility, as set forth in its charter. The Governance Committee sets our ESG performance objectives, monitors implementation and performance of objectives, and oversees progress made against our social and environmental goals. All members of the Board are invited and encouraged to attend meetings of the Governance Committee. The Board receives regular reports from the Governance Committee Chair regarding the Governance Committee considerations and actions with respect to ESG.
At the management level, our Senior Director, Investor Relations, who reports directly to our Chief Financial Officer, has general oversight responsibility with respect to matters of sustainability and social responsibility. Each of our Executive Officers are members of our ESG Steering Committee and maintain responsibility for the effectiveness of specific aspects of our ESG program.
The Compensation Committee, composed entirely of independent directors, reviews and approves our executive compensation program for all senior executive officers to ensure that our compensation program is adequate to attract, motivate and retain well-qualified senior executives and that it is directly and materially related to the short-term and long-term objectives of TEAM and our shareholders and to TEAM’s operating performance. The Compensation Committee, in conjunction with an independent compensation adviser, annually reviews and evaluates our executive compensation program to ensure that the program is aligned with our compensation philosophy and meets our risk management objectives (see “Compensation Philosophy and Process” – in our 2020 Proxy Statement). Our executive compensation policies are designed to provide aggregate compensation opportunities for our senior executive officers that are competitive in the business marketplace and that are based upon company and individual performance. Our foremost objectives are to attract, motivate, reward and retain the broad-based management talent required to achieve our corporate objectives, and align executive pay and benefits with the performance of TEAM.
We revised our Code of Business Conduct and Ethics (Code of Ethics) and distributed it across the enterprise in 2020. Our Code of Ethics covers a wide range of subjects, beginning with our mandate to work safely then addressing our expectations regarding respect in the workplace, use of corporate resources, how we handle gifts and conflicts of interest, the obligation to protect confidential and proprietary information, and our commitment to human rights, environmental protection and sustainability. All employees and our Board of Directors, contractors, consultants, vendors, and other business partners are expected to uphold the highest ethical standards of business integrity. The Code of Ethics sets clear expectations that TEAM’s high standards of conduct must be followed across our global organization in all job-related activities, regardless of business or personal pressures.
All TEAM employees are required to complete e-learning topics covered by TEAM’s Code of Ethics, such as anti-harassment, anti-trust and insider training compliance, and to complete regular refresher training.
The business activities of TEAM are subject to all applicable anti-corruption and anti-bribery laws, including the Foreign Corrupt Practices Act and the UK Bribery Act. We are committed to compliance with all anti-corruption laws in the jurisdictions in which we conduct our business. All of our employees, agents and representatives, regardless of location, are required to fully comply with all applicable anti-corruption and bribery laws.
The principal features of our anti-corruption policies state that TEAM employees, agents or representatives may not pay, offer, promise, authorize or give anything of value, directly or indirectly, to a foreign official, a foreign political party or candidate for foreign office, for the purpose of influencing the decisions of those officials, parties or candidates to assist in obtaining or retaining business or otherwise gain an improper advantage. Additionally, our anti-corruption policies require TEAM to maintain (i) an adequate system of internal accounting controls to assure management’s control over our assets and (ii) books, records and accounts that accurately and fairly, and in reasonable detail, reflect all its commercial transactions.
TEAM employees, particularly those with international responsibility or bookkeeping responsibility, are required to complete regular, specific anti-corruption training. Prior to retention of third parties, including agents, licensees, customs/shipping vendors and finance professionals, we conduct pre-screening due diligence and require contractual commitments to compliance with anti-corruption laws and compliance certifications. TEAM also audits our processes for foreign transactions outside of U.S. for compliance risks. All TEAM employees receive basic training on anti-corruption law compliance as part of their Code of Ethics training.
At TEAM, we strictly adhere to the belief that everyone has the right to work in an environment free from harassment and other inappropriate conduct. All employees are responsible for reporting all forms of harassment, bullying and other inappropriate conduct taking place in the workplace. We consider harassment to be a serious act of misconduct and violations are subject to disciplinary action including immediate termination of employment.
Reporting Free from Retaliation
TEAM maintains an Ethics Hotline that provides our employees with a confidential way to report possible violations of the Code of Ethics or any policies, laws, rules or regulations. The Ethics Hotline is available 24 hours a day, 7 days a week and it is accessible by phone or online.
We will not tolerate retaliation against anyone who reports a concern in good faith or cooperates with TEAM or with a governmental investigation. We take claims of retaliation seriously; they will be investigated, and if substantiated, retaliators will be disciplined up to and including termination of their employment.
As stated in our Code of Business Conduct and Ethics, human rights are fundamental and protecting them is everyone’s responsibility. TEAM is committed to respecting the human rights and dignity of our employees, contractors, vendors and the general public. We operate our business in compliance with applicable laws pertaining to fair employment practices and those prohibiting forced and compulsory labor, child labor, employment discrimination and human trafficking.
TEAM does not tolerate abuse of human rights in our business operations or in our supply chain
In furtherance of our support of human rights and ensuring TEAM’s actions are not directly or indirectly influencing or financing armed conflict and violence, TEAM continues to conduct supplier diligence and file annual Conflicts Mineral Reports pursuant to Section 1502 of the Dodd-Frank Act. For additional information, see our Conflict Minerals Policy.
Public Policy Participation
We believe in the right of our employees to participate in the political process, but if an employee chooses to be politically active, the employee must do so as an individual citizen on their own time and at their own expense. Laws and regulations place numerous restrictions on a company’s role in political activities and funding. Any political contributions or participation in political activities by or on behalf of TEAM must be in conformance with applicable laws and approved in advance by the Chief Legal Officer and the CEO and Chairman of the Board. In addition, in accordance with applicable laws, we exercise our right and responsibility to make our position known on relevant policy issues to government leaders, when appropriate.