We monitor and aim to eliminate, mitigate and manage all risks. Our approach to identifying and assessing safety risks is embedded within our approach to risk management.
We strive for world-class safety conditions and performance. Our management focus on this objective is necessarily strong and tailored towards achieving a world‑class safety standard that is embedded in our Safety Policy. We have a number of programmes focused on the health, safety and wellbeing of our employees. We also ensure employees exposed to identified/known hazards have the protective equipment they need and we continually monitor our operations to ensure the working environment is as safe as possible.
To ensure an improving safety culture and to incentivise leadership in this area, the Board continues to prioritise safety through the inclusion of a specific safety objective that is designed to be realistic, but stretching.
Performance against the safety element of the executive bonus is determined by the Corporate Responsibility Committee, taking account of the level of significant risk reduction and improvement in safety culture, as well as targeted improvements against key safety indicators, including a reduction in recordable accidents.
Line managers are incentivised to achieve the desired safety culture and additional personal objectives are identified through the Performance Development Review process.
We use the Recordable Accident Rate as a key performance indicator to assess workplace safety improvements. This metric, along with the number of major injuries and progress on culture and risk reduction, is used to determine an element of executive bonus.
During 2020, we did not meet the overall Recordable Accident Rate reduction target of 10%2. Several of our businesses did however meet or exceed the 10% reduction target. Our Air, Maritime and Land sectors exceeded the 10% target with the Air sector achieving a 25% reduction on 2019 numbers. The health and safety of our employees continues to be our highest priority and we continue to push for zero injuries across all of our businesses.
The portion of executive bonus associated with safety performance has been assigned accordingly with those achieving the targets receiving a payout commensurate with a strong performance and those who did not meet the target receiving zero. At Group level, a small part of the available award was made in 2020.
1. BAE Systems Internal Audit has reviewed and confirmed effective systems, processes and controls are in place to collate and validate this data.
2. We define recordable injuries in line with the US Occupational Health and Safety Administration reporting standard.