Occupational Health and Safety fact sheet

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

Employee safety is an enduring 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. 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 activities and support the continuous improvement of 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 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, are identified through the Performance Development Review process. 

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. Alongside this measure, we also monitor leading indicators.

Benchmarking the health and safety performance of high performing organisations and industry sectors, such as 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.

Any incidents that are classified as having an actual or potential Serious Injury or Fatality (SIF) consequence are shared across the organisation, together with key lessons learned, to help prevent recurrence. Assurance regarding the effectiveness of controls related to actual SIF events is monitored through the Global Safety Council.

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

Occupational health and safety is of significant importance to us due to the nature of our business. We consider it a key material issue and one of enduring priority. We are a large, global defence company where many of our employees work in 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. Many of these risks are common to other manufacturing organisations and include slips, trips and falls, working at height, confined spaces working and interaction with machinery. We also manage risks that are more specific to the nature of our operations, such as those associated with military munitions.

We have a common set of Life Saving Rules based on our ten common significant risks across the organisation. Supporting the deployment of these Life Saving Rules we have an extensive library of supporting materials for businesses and sectors to use to effectively deploy them.

These risks require robust occupational health and safety governance. Our priority is to prevent harm by identifying, eliminating or reducing risks so far as reasonably practicable, while continually improving our safety culture, standards and awareness.

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

Contingent workers are treated in the same way as employees from an occupational health and safety perspective. They receive appropriate training, information and support relevant to their work activities. For performance reporting purposes, contingent workers are included within our employee safety metrics.

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) is reported in our ESG Performance data spreadsheet each year. Contingent workers* are included in the employee 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 certified to ISO 45001, the international standard for occupational health and safety management systems. Over 90% of our employees are currently covered by ISO 45001-certified management systems.

Are OHS management systems verified by a third-party?

Where we operate management systems certified to national or international standards, certification is awarded and maintained through independent third-party assessment, for example by organisations such as BSI and LRQA. This involves an ongoing programme of external audits in addition to our own internal management system audit processes.

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

Yes, we encourage all employees to be involved in health and safety matters, both within their individual work areas and across the wider workplace.

In some countries where we operate, there is a statutory requirement to consult formally appointed employee safety representatives, including trade union-appointed safety representatives. In other jurisdictions, employees volunteer to participate in health and safety projects or undertake activities such as contributing to risk assessments, workplace audits and inspections. 

We also encourage employees to report hazards and make suggestions to improve their workplace, processes and 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 require organisations to prepare for emergencies, and this is achieved through a range of approaches across BAE Systems depending on the risks involved. Many of our activities 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 implement controls to prevent them or mitigate the consequences should they occur. The higher the risk, the greater the level of planning and response required.

Examples include fire and rescue procedures, response arrangements for severe weather events and procedures for dealing with the release of hazardous substances.

In addition, we maintain business continuity plans and teams in which health and safety professionals are fully integrated. Regular exercises are undertaken ranging from tabletop exercises and local drills to full-scale recovery exercises involving external agencies including fire and rescue services, law enforcement, healthcare services, the military and coastguard organisations. The nature and complexity of these exercises are proportionate to the level of risk and potential consequences.

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 must 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.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 must 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 at or visit a BAE Systems site is a health and safety induction. The content of these inductions varies depending on the location and associated risks.

With regard to employees, the amount and frequency of training is determined by the activities they undertake, the risks associated with their work and the environment in which it takes place.
Factors considered include:

• The level of experience of employees – apprentices and other new starters receive role-specific training, instruction and supervision before undertaking work activities;
• The processes involved – specific training may be required to operate equipment or undertake specialised activities; and
• The working environment – each environment has its own specific risks and may require additional information, training, instruction and supervision.

Training takes many forms including online learning, 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 health and safety training and monitoring processes are implemented.

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 range of measures to assess the effectiveness of our approach to occupational health and safety and to identify opportunities for continual improvement.

As a business with diverse operational risks, our approach is based on recognised international standards, including ISO 45001. These standards provide a structured framework for managing occupational health and safety risks and require regular monitoring, review and internal audit to verify that controls remain effective.
Independent third-party certification and surveillance audits provide additional assurance that our management systems are operating effectively and in line with recognised standards. We value the findings from these assessments and use them to strengthen our management systems and drive continuous improvement.
We also have an internal safety assessment tool that each operational site is mandated in our Group Health and Safety Policy to complete an internal assessment annually and develop and regularly report on an improvement plan to improve health and safety standards and performance.

In addition to audit and assurance activities, we benchmark our performance and practices against other organisations, including those operating in industries with comparable or higher-risk activities. We also consider developments in industry good practice, research and emerging technologies to identify opportunities to further improve workplace safety.

We recognise that effective health and safety performance depends on contributions from across the organisation. As a result, improvements are driven not only by safety professionals but also through engineering innovation, operational excellence and employee engagement. The way we design our products, facilities and processes can play a significant role in reducing risks and supporting safer, healthier workplaces.

Footnote *Contingent workers include long-term contractors

Footnote **The remaining 10% 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. These businesses undergo a safety culture assessment and have an associated Improvement plan developed which is then tested to support a maturing framework.

The information contained in this fact sheet is for PLC managed businesses and is accurate as at the date of its publication.
 
Publication date: 5 August 2026