Diversity inclusion.

The companies of d.e. Foxx recognize the importance of building economic and diversity inclusion into every facet of our organization including our people, tools, programs and processes. We incorporate the same guiding principles across our brands with strategies to develop a diverse approach to managing business and in sharing the benefits with our clients.

d.e. Foxx has a long-time record of success in achieving challenging targets for diversity spending. Our involvement through Foxx Construction delivered a $4 million multi-use social agency headquarters for which more than 80% of the construction dollars were spent with minority contractors. Through XLC Services, we have delivered mutiple solutions for an $83 billion consumer goods client that allows that our participation to enhance their ability to provide economic inclusion opportunities for the community. Similar results have been realized across our Validex and Versatex brands, including the achievement of a 28% W/MBE inclusion rate upon completion of a major construction project. Our ability to accomplish this level of participation is through our knowledge of the local communities in which we operate, developing relationships within those communities, and through knowing the strengths of vendors and suppliers, including capacity by trade or specialty.

We have developed a diverse and inclusive vendor/supplier base through strategic partnerships as the foundation of our diversity approach. This methodology is currently in use at our client sites. Promoting and supporting diverse vendors/suppliers enhances our program. Our vendor development program includes the following components:

1) Segment - Profile Based on Total Value and Potential:

Deep understanding of strategic sourcing allows us to identify high performing WMBEs. We evaluate suppliers based on the total value delivered to the client. Suppliers will be segmented as "high value, potential or at risk." This ranking helps us to better support our diverse vendors, while meeting our client's corporate objectives and the objectives set forth in implementing their critical strategies.

2) Design & execute diversity growth and support plan based on corporate objectives.

Those ranked high value will grow through partnering, mentoring and identification of new opportunities to provide more services...over time. Efforts will be made to facilitate strategic introductions.

Those ranked as potential will be mentored to determine missing value-added components that could be developed, bought or partnered. WMBE vendor reviews will be conducted and efforts will be made to develop or introduce these suppliers to the necessary funding or business resources.

Finally, those ranked as risk players will garner the full support of our Supplier Diversity Development Office (SDDO) to identify alternate solutions to smoothly transition their business or dramatically enhance their performance.

3) Manage through Our Supplier Diversity Development Office (SDDO):

We continually search for qualified WMBE vendors and suppliers with the ability to participate in our program. We have been certified by NMSDC and are participants in numerous local diversity organizations in cities where we operate. Our strategy is founded in development of relationships with these organizations and working with them to identify potential WMBE businesses with the capability to participate in our program. We employ an WMBE vendor review process to evaluate participants and provide ongoing feedback.

Leveraging Technology to Support Inclusion

Our technology provides vendor information reporting that provides vendor profile data (such as diversity status, performance, contract documentation, certifications, etc.) in addition to vendor performance in meeting or exceeding inclusion goals. This technology allows for "real time" evaluation and course correction to address any issues as they occur, staying ahead of the curve on any vendor/supplier concerns.

Leveraging Contacts in the Community to Support Inclusion:

Our ability to benefit from the richness of talent available in the diverse regions in which we operate, requires that we work closely with the community to identify, engage and retain talent reflecting the area's ethnic, racial and cultural background. This approach includes:

• Developing new and leveraging existing relationships with local and regional minority business and community organizations
• Developing relationships with associations and organizations that are focused on underrepresented groups in surrounding communities
• Utilizing inclusive language and visuals in recruiting and on-boarding materials
• Deploying a diverse and inclusive recruiting team
• Implementing a robust and effective referral system
• Working closely with our associates to develop their skills and abilities to create bench strength for the organization and foster retention of top talent