Occupational Health and Safety fact sheet

What is BAE Systems’ approach to occupational health and safety?

Employee safety is a top priority. We strive for the highest possible safety conditions and performance. Our management focus on this is necessarily strong and tailored towards continually improving the safety of our people.
 
We have several programmes focused on the health, safety and wellbeing of our employees. We also ensure employees exposed to identified or known hazards have the safe systems of work and protective equipment they need using risk management processes, and we continually monitor our operations to ensure the working environment is as safe as possible.
 
Senior executives are incentivised to achieve the desired safety culture. Additional personal objectives for senior executives and line managers are identified through the Performance Development Review process. The award of executive directors' bonuses is dependent upon maintaining and improving safety performance.
 
We use the Recordable Accident Rate as a key performance indicator to assess workplace safety improvements and this is used to determine an element of executive bonus.
 
We continue to promote mental health awareness programmes across the organisation and have also leveraged technology to launch a digital platform to empower employees to take a proactive and preventative approach to mental health and wellbeing.
 
To further strengthen our safety culture the Group focused on three key areas:

• Preventative safety management with the aim of investigating, mitigating and learning from incidents that can potentially cause serious injury or a fatality (SIF);
• Visible leadership engagement led by our Executive Committee team; and
• Continuing to deploy safety training for all employees.

 

These areas of focus are regarded as qualifying metrics linked to the award of executive bonus.

How is BAE Systems’ health and safety policy governed?

We have a global Health and Safety Policy which is embedded in our Operational Framework. Compliance with this Policy is reviewed every six months, via the Operational Assurance Statement (OAS) process, by Sectors and Group functions. 
 
Our Health and Safety Policy requires Line Leaders to:

• ensure that their businesses comply with, and where reasonably practicable exceed, the requirements and targets set by existing health and safety regulations that affect their business; 
• plan for future compliance; 
• establish and communicate health and safety objectives, including setting health and safety objectives for managers;  
• develop health and safety risk mitigation strategies, including operating an Occupational Health and Safety (OHS) management system;
• review and audit OHS systems; and
• proactively engage employees on health and safety, including awareness and training. 

 

Businesses/sectors support this global Policy, with local market policies and procedures to address market level legislation and material business/sector safety risks. 
 
Our approach to identifying and assessing safety risks is embedded within our approach to risk management.  Our OHS management systems support our business/sectors in managing and mitigating material safety risks and improving levels of workplace safety. Any safety risks identified via our OHS management systems are included within our risk management framework. 
 
Safety Performance is reviewed as part of the Quarterly Business Review and Chief Executive’s Business Review Process. And the Executive Committee and Environmental, Social and Governance (ESG) Committee of the Board also review global safety performance. 
 
We have a global Health and Safety Council, made up of senior Safety, Health and Environment (SHE) representatives from across the business that manage day to day safety and progress safety performance. Our Health and Safety Council works collectively to ensure that the requirements of our global Health and Safety Policy are implemented, whilst collaborating on safety programmes and initiatives.
 
You can find a summary of our Health and Safety Policy here.

How does BAE Systems establish quantitative targets for improving occupational health and safety performance metrics?

To demonstrate our commitment to safety and drive performance, the Board prioritises 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.
 
Safety is part of our company shared strategic objectives which support delivery of our Group Strategic Framework. Our Executive Committee and Line Leaders are incentivised to achieve the desired safety culture and additional personal objectives, for employees, are identified through the Performance Development Review process. 
 
We use the Recordable Accident Rate process as a key performance indicator to assess workplace safety improvements and this is used to determine an element of executive bonus. Alongside this measure, we also monitor leading indicators.
 
Benchmarking the health and safety performance of high performing industry groups, e.g. oil and gas, provides a comparison for our own performance. 

What is the process of managing incidents and how does BAE Systems ensure they don’t happen again?

We have formalised routes for the notification, investigation and reporting of all incidents and events. Depending on their actual or potential severity, these go through a process of investigation to identify root causes. Actions are targeted around root causes to minimise the chances of re-occurrence. In addition, we have a safety alert system that is used to communicate serious or unusual events around our business.

How ‘material’ is occupational health and safety to BAE Systems’ operations?

Occupational health and safety is of huge importance to us due to the nature of our business. We consider it as a key material issue and one of enduring priority. We are a large, global defence manufacturing company where many of our people work in extremely challenging environments. We monitor all risks and aim to eliminate or mitigate them wherever possible. 

What health and safety risks does BAE Systems face, and what is your approach to them?

Due to the nature of our work, BAE Systems faces many varied occupational health and safety risks which shape our approach. Many of our risks are common to other manufacturers. These include slips, trips and falls, working at height, injuries caused by working in confined spaces and from working with machinery. We also must mitigate risks that are highly specific to the nature of our operations, such as explosions caused by military munitions. 
 
These risks mean that the governance of occupational health and safety in the workplace must be particularly strong. Our number one priority is making sure our people leave their place of work safely at the end of every day. Therefore, we constantly mitigate, or eliminate safety risks by continually finding new ways to maintain a safety culture, improve safety standards and increase awareness. 

What is your approach to the occupational health and safety risks of contingent workers*?

Contingent workers are treated the same as employees. Contingent workers are normally hired on a long-term basis and are given the same training as employees. Therefore, for the purposes of occupational health and safety, we regard and report contingent workers as employees.

Does BAE Systems monitor and report fatal accidents for employees and contingent workers*?

Yes, we record the number of fatal injuries to both employees and contingent workers* in our ESG Performance data spreadsheet each year. 

Has BAE Systems had any work-related fatalities of employees or contingent workers* in the last five years? 

No, there have been no work-related fatalities in the last five years. 

Does BAE Systems record and report on its recordable accident rates and major injury rates and fatalities?

Yes, we report this information within our Annual Report and our ESG Performance data spreadsheet.

Does BAE Systems monitor its lost-time injury frequency rate?

Yes. Our lost-time injury frequency rate for employees (calculated as n/million hours worked) are recorded in our ESG Performance data spreadsheet each year. Note: contingent workers are consolidated in the ‘employees’ figure. 

What Occupational Health and Safety management system does BAE Systems use and how does it operate?

Different businesses have different risk profiles, so each operates its own OHS management system.  Most of our OHS management systems are externally accredited and are in the process of transitioning from OHSAS 18001 to the ISO 45001. 86%** of our employees are currently covered by ISO 45001 certification.

Are OHS management systems verified by a third-party?

Where we operate management systems accredited to a particular national or international standard, these accreditations are awarded and verified by a third party e.g. BSI, LRQA etc. This involves an ongoing programme of external audits on top of our own internal management system audit processes.

Does BAE Systems consult its employees with regard to occupational health and safety?

Yes, we encourage all of our employees to be involved in health and safety matters, both within their individual workplaces or within the wider workplace. In some of the countries in which we operate, there is a statutory requirement to consult formally appointed employee safety representatives, this includes trade union appointed safety representatives. In other legal jurisdictions, employees volunteer to take part in health and safety related projects or complete certain safety-related tasks such as help produce risk assessments or undertaking workplace audits and inspections. We also encourage all our employees to report hazards and make suggestions around improvements to their workplace, process or safe systems of work.

How does BAE Systems integrate actions to prepare for, and respond to, emergency situations?

Mitigating and preparing for emergencies is a core requirement of many legal frameworks throughout the world. International management systems also place a requirement on the Company to prepare for emergencies and this is achieved through a number of routes within BAE Systems depending on the risks and situations involved. Many of our processes are also licensed activities and emergency preparedness forms a key part of the conditions of those licenses to operate.
 
At a local level, risk assessment is used to identify potential emergencies and to put controls in place to both prevent them, or mitigate the effects should things go wrong. The higher the risk, the greater the detail required for planning and response. An example of this is the provision of fire and rescue procedures, response to serious weather events or procedures covering the release of hazardous substances from processes we operate. In addition, we also have business continuity plans and teams in place where health and safety professionals are fully integrated into their structure and workings. As part of business continuity plans, regular exercises take place ranging from table top exercises and local drills to full-scale disaster recovery exercises involving external agencies such as fire, law enforcement, health services, the military, coastguard and even members of the public who live and work in close proximity to our locations. The level of exercise will depend on the level of risk and the severity of any potential outcome.

Does the Company carry out internal inspections as part of its occupational health and safety system?

Yes, inspections form an important part of our management systems. These take many forms and examples include: 

• Inspections carried out by specialist third parties (statutory inspections) where these are a legal requirement e.g. lifting equipment, local exhaust ventilation (LEV);
• Safety inspections of the workplace by supervisors, employees or their representatives;
• Regular maintenance inspections of plant and equipment by our maintenance teams;
• Building inspections, including condition surveys for asbestos;
• Operational control inspections to ensure processes that are in place are effective;
• Inspections carried out by trade union appointed Safety Representatives in jurisdictions where these are required;
• Inspections where specific procedures are checked in the workplace to ensure they are both followed and effective (process confirmations); and
• Inspections which monitor how contractors are working and whether they are carrying out their activities in the agreed safe manner.

 

Does the Company have procedures in place to investigate work-related injuries, ill health, diseases and incidents?

Yes, investigation is a key part of our management system when things go wrong. Many of the countries in which we operate have legislation relating to the reporting of injuries, ill health, diseases and certain incidents.
 
We also have an internal global requirement to investigate certain incidents where there was no injury or illness but there was the potential for this. Some of these events are selected on a quarterly basis for review by senior directors at their meetings.

Does BAE Systems have OHS criteria introduced in procurement and contractual requirements?

Yes, this takes many forms depending on the situation involved. There is a general requirement on all our suppliers and contractors to supply safe products and services. Due to the nature of our own products, many items have to be manufactured to recognised international standards to ensure safety and this forms part of contracts. When on our sites, suppliers are required to work safely as part of their contract and safety performance can be a factor in selection processes as well as in decision making for offering further contracts.

Is OHS training provided to employees and/or other relevant parties to raise awareness and reduce operational health and safety incidents?

Yes, the minimum requirement for any person to work or visit BAE Systems is a health and safety induction to the site. The content of these inductions will vary by location depending on the risks involved. For example, the information provided for meeting or working in a stand-alone office facility will be very different than that on board a ship under construction in a shipyard.
 
With regard to employees, the amount and periodicity of training is determined by the job they do, the risks associated with the work, and where it takes place. Factors which affect this include:

• The level of experience of employees - apprentices receive specific trade and safety training off-site before they come into the workplace to ensure their health and safety. More experienced employees may receive refresher training at set intervals;
• The processes involved - specific training may be required to operate dedicated pieces of equipment or processes e.g. fork lift trucks, cranes, chemical plant, explosives etc.; and
• The general working environment - each environment has its own specific risks that may need specific information, training, instruction and supervision.

 

Training takes many forms including online training, briefings, team talks and specific face to face training courses, with or without assessment, depending on the subject matter. Some training also takes place outside the Company for specific or specialist technical roles.
 
Our Operational Framework places a responsibility on Line Leaders to ensure appropriate safety training and monitoring processes are in place to ensure proper implementation at all times.
 
We also proactively engage employees, across our business, throughout the year with communications campaigns, which include general awareness and targeted safety messages. 

How do you know what the Company is doing with regard to health and safety is the right approach?

We use a number of methods to validate our approach to health and safety and to check we are on the right path. As a Company with a diverse risk profile, we use our accreditations to international standards like ISO 45001 as the basis for how we manage health and safety risks. These standards require us to audit our own systems to ensure we are controlling our risks in the way we say, or think, we are and the third-party assurance checks by accrediting bodies give that very important independent overview and opinion. We welcome feedback from these audits and view actions from any audit as opportunities to continuously improve.
 
In addition to audit, we look to other industries, with both similar and very different risk profiles, to identify new ways of managing health and safety. This can be in the form of specific benchmarking visits to other companies’ facilities, reviews of academic papers, or through discussion with other organisations at industry meetings. We do not solely rely on using health and safety professionals to identify improvements and there are many examples where good engineering design and manufacturing developments have delivered significant improvements to the levels of safety in our workplaces. How we design and build our products can have an enormous effect on how safe and healthy our employees are. 

Footnote *Contingent workers includes long-term contractors.
Footnote **The remaining 14% of employees are those employees working on sites not under operational control of BAE Systems; newly acquired businesses who are in the process of transitioning to ISO 45001 accreditation; or smaller sites that operate to the principals of the relevant standard, but do not have third party accreditation.
 
The information contained in this fact sheet is for PLC managed businesses and is accurate as at the date of its publication.
 
Publication date: 09/05/24