Community Investment fact sheet

Introduction

As a Group, we recognise our role and responsibility to contribute to the communities in which we live and work, in addition to the regions and countries in which we operate.

What is your community investment strategy?

Our community investment (CI) strategy is focused on delivering measurable value to our communities and the organisations that we work with. We are fully committed to supporting our local communities and building strong relationships between our business, our people and the communities in which we operate. 
 
We support a variety of activities and projects, establishing long term partnerships that help charitable organisations plan for the future. We aim to work together to help solve social issues and deliver impact across our communities, whether this is addressing local community needs close to our areas of operation, inspiring young people to study Science, Technology, Engineering and Maths (STEM) subjects or supporting our armed forces community. 

How is your strategy governed?

Each of our markets has its own strategy that supports the global strategy and is relevant to specific local issues, community needs and culture.
 
Our Group Board of Directors is supported by our Board Environmental, Social and Governance (ESG) Committee. This committee's duty is to provide oversight of BAE Systems sustainability performance, taking a long-term view. The committee regularly engages with, and challenges members of the executive team. It also receives updates from internal subject matter experts and training where required. The committee ensures that appropriate assurance is sought for all ESG data including community investment, the data is reviewed by the committee and is included in the Annual Report.  More information on the committee’s terms of reference can be found here.
 
Our overall programme is managed by a dedicated Group Head of Community Investment who works closely with CI Leads in each market and line of business. Our CI Policy outlines our governance process and mandates the minimum standards applied to CI activities, along with definitions for our specific activities.  
 
Our CI Policy summary is a public facing statement outlining our approach to CI and how it aligns to Company governance processes. We have a CI Supporting Manual that was developed to support the CI Policy which provides clarity, guidance and examples of good practice in the administration and approval of CI activities. Our Code of Conduct addresses the governance of our community investments and need for due diligence on the organisations we work with.

What are the areas of support that you focus on?

We focus on what is material to our business and the communities in which we are based. To do this, we consider how our strategies and approach will lead to successful outcomes and contribute to solving social issues, whilst reducing our impact on the environment. We then implement appropriate programmes to meet these requirements. 
 
Our community investment strategy focuses on the following areas:

• Support for the armed forces:  we have a long and proud history of supporting the armed forces. It’s at the heart of our purpose and what we do. For example, in the UK, we donate £50k each year to five Armed Forces charity partners, as well as undertake a variety of fundraising and volunteering activities in support of these partners;
• Support for education and skills: with particular focus on STEM subjects. For example, we are supporters of the FIRST® Robotics Scholarship and Internship Program in the USA, and now Australia; and
• Support for our local communities: we are particularly proud of our support in the communities in which we operate, such as in Barrow-in-Furness where we are a major employer and work hard to improve skills, wellbeing, health and prosperity in the area.

 

Each year, we provide additional information in our Annual Reports. 

Do you provide financial as well as in-kind support?

Yes.  As well as donations, sponsorship and employee fundraising, we develop and support structured education programmes and enable our employees to volunteer their skills and time. Volunteering is an important part of our employees’ working life and can be pursued as a personal development goal. 

Does your Company publicly report on quantitative social indicators?

Yes. The information can be found here. Our quantitative social indicator KPIs include age and gender diversity, pay differentials, occupational health and safety, as well as community investment. This data covers more than 75% of our operations.

Is the community investment data you provide subject to an assurance process?

Yes. Our reporting data is externally assured every year and we publish the statement online. All community investment-related expenditure and associated employee fundraising is reported through an online system and validated by an external assurance provider. We use the B4SI Framework methodology to define the value of our support and its impact on our community partners, in comparison with our peers and other organisations. Our assurance statement:

• contains a “declaration of independence” that the assurance provider has no conflict of interest;
• is based on recognised international standards including ISAE 3000 (Revised);
• clearly indicates the scope of the assurance; and
• provides external limited assurance on the total value of community investment donations.

 

The information contained in this fact sheet is for PLC managed businesses and is accurate as at the date of its publication.
 
Publication date: 02/05/24