How do you select and manage offset agreements?
BAE Systems has offset commitments in a number of countries and through these programmes we seek to support customers’ economic and development goals, and deliver long-term sustainable benefits. All offset arrangements are governed by our Operational Framework (including our Offset Policy) and Code of Conduct, which sets out the principles we apply to all our offset activities:
- They must be undertaken in accordance with our Code of Conduct
- They must have clear line management ownership and executive oversight
- They must be consistent with the customer’s offset policies and proportionate to the value of related contracts
- Financial and non-financial risks must be clearly assessed and mitigated.
We endeavour to evaluate all financial and non-financial risks in our offset plans and transactions through a comprehensive review and approval process which includes due diligence on all offset transactions. See more on how we manage Offsets.