UK Modern Slavery Act

Sustainability reporting
This statement is made pursuant to Section 54 of the UK Modern Slavery Act 2015 and sets out the steps BAE Systems plc and its subsidiaries have taken to prevent slavery and human trafficking in our business and supply chain during the year to 31 December 2019.
We are committed to conducting business responsibly and to maintaining and improving systems and processes that reduce the risk of slavery and human trafficking in our business and supply chain.
 

Organisation Structure – Our Company Overview

At BAE Systems, we provide some of the world’s most advanced, technology-led defence, aerospace and security solutions. We employ a skilled workforce of 87,800 people in more than 40 countries. We help our customers to stay a step ahead when protecting people and national security, critical infrastructure and vital information.

BAE Systems has a diverse portfolio, broadly balanced between an enduring services and support business, long-term platform and product programmes, electronic systems, and activities in cyber and intelligence.

Our largest customers are governments, but we also sell to large prime contractors and commercial businesses.
 
Our UK subsidiaries that are required to prepare a Modern Slavery Act Statement are:
  • BAE Systems (Military Air) Overseas Limited
  • BAE Systems (Oman) Limited
  • BAE Systems (Operations) Limited
  • BAE Systems Applied Intelligence Limited
  • BAE Systems GCS International Limited
  • BAE Systems Global Combat Systems Munitions Limited
  • BAE Systems Marine Limited
  • BAE Systems Surface Ships Limited
The majority of our workforce consists of full-time employees with a small percentage of sub-contracted workers to carry out specific tasks such as short term contract support. We work closely with local partners to support economic development by transferring knowledge, skills and technology. 

Our tier one suppliers are based mainly in the following countries: Australia, Canada, Denmark, France, Germany, Italy, Israel, Saudi Arabia, Kuwait, Netherlands, Norway, Spain, Sweden, Switzerland, UK and the US.
 

Policies – Human Rights and Our Governance Arrangements

We are committed to respecting human rights wherever we operate, within our sphere of influence. This applies equally to our employees, our suppliers and business partners, all of whom are expected to adopt the same or similarly high standards of ethical behaviour. We are committed to conducting business responsibly and to maintaining and improving systems and processes to reduce the risk of slavery and human trafficking in our business and in our supply chain.
 
Our Board Corporate Responsibility Committee has oversight of our human rights approach, which falls into our Sustainability agenda.
 
Our Code of Conduct and other global policies and processes mandated under our Operational Framework, together with our supporting principles and guidance on responsible trading and suppliers, support our commitment to human rights and are regularly reviewed. This results, for example, in due diligence being carried out during the supplier evaluation stage against non-financial risks, including human rights, working hours, harassment and unlawful discrimination, anti-whistleblowing, slavery, human trafficking and child labour.
 
Throughout our relationship with our suppliers, we raise awareness of and engage them in our ‘Supplier Principles – Guidance for Responsible Business’ which set out our expectations with regards to slavery and human trafficking, within our supply chain. Suppliers are regularly reviewed throughout their contractual relationships against such non-financial risks.
 
We monitor our performance and compliance with policies and processes via the twice yearly Operational Assurance Statement. This is made up of two parts:
 
  • A self-assessment by our business and functional leaders of compliance with our Operational Framework; and 
  • A report showing the key financial and non-financial risks for the relevant business completed by line and functional leaders.
 
The key financial and non-financial risks identified are collated and reviewed by our Executive Committee to identify those issues where the cumulative risk, or possible reputational impacts, could be significant.