Safety

Safety and wellbeing
Our manufacturing activities present a range of risks. These include slips, trips and falls, work in confined spaces, machinery operation and working at height, among others.
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 or known hazards have the protective equipment they need and we continually monitor our operations to ensure the working environment is as safe as possible.
 

Safety objectives

To demonstrate our commitment to safety and drive performance the Board continued to prioritise safety through the inclusion of a safety objective in executive remuneration. 
 
Safety is set as a qualifier to the overall non-financial element of the executive bonus. 
Line managers are incentivised to achieve the desired safety culture and additional personal objectives are identified through the Performance Development Review process.
 
We use Recordable Accident Rate1 as a key performance indicator to assess workplace safety improvements and this is used to determine an element of executive bonus. 
 
During 2021, we did not meet the overall Recordable Accident Rate reduction target of 10% against the 2020 baseline. Handling, lifting and carrying, and slips, trips and falls continue to be responsible for more than 50% of recordable injuries.
 
2021 Recordable Accident Rate
 
 
Our major injury rate decreased by 11%.
 
The health and safety of our employees continues to be our highest priority. We remain focused on safety across our business, and are targeting our most challenged sites through a comprehensive performance improvement plan. Businesses are conducting safety campaigns to deliver a sustained programme of critical safety themes across employee groups, implementing virtual reality safety training, and implementing new and improved assurance programmes to reduce risk related to safety, health, and environmental impacts.
 
In 2021, improvements in safety and diversity were underpins to the non-financial element of the executive bonus. The requirements for diversity improvements were met but those for safety improvements were not achieved. While progress was made with some of the long-term metrics improving, especially around major injuries rates and a reduction in severity levels, the overall recordable injury rate increased slightly over 2020. The analysis of this showed a significant increase in hours worked in several of our larger sites throughout 2021 while the staff headcount remained consistent. Given the importance of safety to our company, it was agreed that there should be no exception and a reduction be applied to the non-financial element of the bonus.
 

Footnotes:

1. We define recordable injuries in line with the US Occupational Health and Safety Administration reporting standard.
2. BAE Systems Internal Audit has reviewed and confirmed effective systems, processes and controls are in place to collate and validate this data.