Sustainability FAQs

Diversity, equity and inclusion are key enablers to recruiting the best talent, driving innovation and creating a workplace environment where employees are enabled to bring their whole selves to work every day. Globally, we have set an ambition to be recognised as a leading employer in defence and security for valuing diversity, equity and inclusion. We also want to be representative of gender and ethnicity in the localities in which we operate.

Yes. Our ambitions are supported by a range of targets:

We continue to focus on increasing female representation across all levels. We tackle the issue at three stages: education, early careers, and senor level roles – providing support at key life stages for women, such as when they leave the business to have children and when they return. We have a strategy and roadmap to drive this and to demonstrate our commitment we are proud signatories to Women in Defence Charter, women in Aviation and Aerospace Charter, Women in Maritime Charter and Women in Technology Charter. Additionally, we have an extensive Employee Resource Group, GEN, addressing issues in the workplace – accordingly we became an accredited Menopause Friendly Employer in 2021 and our internal Peer Support Group Pause for Thought continues to gain visibility and members.

 

BAE Systems, Inc.’s strategy is built on attracting and developing a diverse workforce, ensuring equity in our programs and practices and advancing an inclusive workplace. Our Inc.-wide Diversity, Equity and Inclusion objectives focus on increasing gender diversity in leadership, and several of the programs we offer focus specifically on developing women, including the She-Suite Brand Leadership Institute (BLI). BLI is a six-month virtual coaching and leadership readiness program for high-performing women and BAE Systems, Inc. was recently awarded the Architect of Change Award by She-Suite for having put over 100 women through the BLI. Our Women’s Inclusive Network (WIN) Employee Resource Group helps to create a culture with equitable representation of women by amplifying, developing, valuing and supporting the impact of women. Lastly, our partnership with the Society of Women Engineers (SWE) focuses on advancing women in STEM-related careers.

We set bold ambitions to be recognised as the leading employer in defence and security for valuing diversity and inclusion which includes aiming to be representative of race / ethnicity in the localities in which we operate. We continue to embed initiatives to increase representation of ethnic minorities (EM) through our Diversity, Equity and Inclusion (DE&I) Ethnicity Action Plan which is a key part of our DE&I agenda and roadmap. It supports employees in promoting inclusive behaviours and we work with them to bring best practice into our policies and initiatives. The action plan comprises of six actions:

We have also signed the Change the Race:Ratio pledge and continue to set specific short term and long term ethnicity targets in line with the UK census.

 

BAE Systems, Inc.’s strategy is built on attracting and developing a diverse workforce, ensuring equity in our programs and practices and advancing an inclusive workplace. Our Inc.-wide Diversity, Equity and Inclusion objectives focus on increasing racial diversity in leadership. Our Colleagues Advancing Racial Equity (CARE) initiative - formed in 2020 - is a multi-dimensional effort to ensure we make our company a place where People of Colour can thrive and reach their full potential. This effort spans initiatives across career, culture and community. Lastly, several of our Employee Resource Groups (ERGs) cultivate spaces where People of Colour can learn, grow and belong in the organization. The following ERGs specifically support People of Colour and their allies: African Americans Committed to Excellence (AACE), Asian Pacific Islanders Reaching Excellence (ASPIRE) and Hispanic Organization for Leadership Advancement (HOLA). Lastly, we have several partnerships with organizations dedicated to increasing racial diversity within STEM-related fields, including: National Society of Black Engineers (NSBE), Society of Hispanic Professional Engineers (SHPE), Black Engineer of the Year Awards (BEYA) and Society of Asian Scientists and Engineers (SASE).

Our commitment to disability inclusion and accessibility in the workplace is illustrated by our pledge to support The Valuable 500 campaign and in 2022 we became one of the founding members of Neurodiversity in Business (NiB). See BAE Systems Valuable 500 Commitment and how we are going to achieve it. We’re also working hard to ensure employees who require additional support in their roles are able to receive it.

 

BAE Systems, Inc. CEO recently signed Disability:IN’s CEO Letter on Disability Inclusion to convey support of the disability community and in recognition of the help needed to advance equity and inclusion for all. We have consistently received a score of 100 on the Disability Equality Index, the leading corporate benchmarking measure for disability equality.

Our Employee Resource Groups (ERGs) play an important role in promoting an inclusive and attractive workplace. They provide visible leadership and direct engagement with a range of affinity groups, to ensure employees feel that their differences are valued and represented. Our ERGs are also vital in raising awareness and educating those who may not directly relate to their focus area, but wish to support as an ally. In the UK, this is supported by 18 different pledges and commitments to external charters, including veterans, LGBTQ+, mental health, disability, gender, ethnicity and social mobility. Also in the UK, we have six core ERGs: Enabled (disability); GEN (gender); Mindset (wellbeing); VetNet (veterans); Embrace (cultural diversity) and OutLink (LGBTQ+).

 

The BRIDGE Mentorship Program is a cross-cultural, reciprocal mentorship program developed specifically for BAE Systems, Inc. Employee Resource Group members. The program helps develop ERG members and is aligned with the company’s strategic objective to advance a diverse workforce and continue instilling a culture of inclusion where every employee feels like they belong. Additionally, several of our Employee Resource Groups (ERGs) focus on creating spaces that support communities of colour, including, our African Americans Committed to Excellence (AACE), Asian Pacific Islanders Reaching Excellence (ASPIRE) and Hispanic Organisation for Leadership Advancement (HOLA) ERGs. These ERGs all serve to help People of Colour learn, grow and feel they belong in the organisation.

We have set ourselves the target of:

We aim to do this by investing in renewable power, optimising energy efficiency across our operations and manufacturing processes, switching to lower carbon alternative fuels and reducing overall energy use. We are working to reduce eventual exposure to offsets but will develop a responsible strategy to use these where required.
 

We continue to mature our approach to the quantification and understanding of the more complex Scope 3 emissions. We will therefore delay our submission to SBTi whilst we continue to do this. We remain committed to aligning to a 1.5°C reduction pathway for Scope 1, 2 and 3.

We have included in our Annual Report 2022 pages 44 – 51 tables summarising our disclosures relating to the four TCFD Recommendations and the 11 Recommended Disclosures pursuant to Listing Rule 9.8.6(R)(8). We have made considerable progress in our net zero programme. We have established a roadmap based on phases of activity and level of investment, to monitor our progress to decarbonise our operations by 2030 (Scope 1 and 2). Our sectors have each developed decarbonisation roadmaps that outline short-, medium- and long-term activities to support the Company’s decarbonisation ambition. We have aligned our Scope 1 and 2 reduction roadmaps to a science-based pathway of 1.5°C  and set progress against this in both our in-year and long-term incentives. We believe our approach is consistent with 9 of the 11 TCFD Recommendations. The areas we will continue to work on during 2023 are: Metrics and Targets, part b and c, and we expect to be able to make a recommended disclosure in respect of these items in our 2023 Annual Report.

Our ambition is to be carbon neutral across our operations by 2030 (Scope 1 and 2); we will seek to minimise the requirement for offsets through this process. We have established a roadmap based on phases of activity and level of investment, to monitor our progress to decarbonise our operations by 2030 (Scope 1 and 2). In putting together the roadmap we have considered the commitments made by the UK government. We have aligned our Scope 1 and 2 carbon reduction roadmaps to a science-based pathway of 1.5°C and set progress against this in both our in-year and long-term incentives.

Nature loss and degradation poses a major risk to both the environment and society. We are undertaking surveys and assessments to better evaluate how our facilities and operations impact the surrounding natural habitat. Operationally, significant aspects of biodiversity are addressed via our environmental management system (EMS) which includes protecting natural habitats, conserving protected species and the management of invasive species in and around our sites. Our sectors have established a number of initiatives to support their local ecosystems from installing bat roosts, removing invasive species, planting wildflowers to attract bees, cleaning up water courses and restoring underwater environments. Across major UK sites, we also undertake lifecycle environmental assessment for our products to understand our nature-related impacts, supported by natural capital evaluations carried out by third parties across major UK sites. We are monitoring the progress of the Task Force on Nature-related Financial Disclosures.

We have set a decarbonisation ambition that will drive efficiency, innovation and collaboration across our value chain. We recognise that our supply chain emissions are many times those of our Scope 1 and 2 emissions and it is critical that we partner and collaborate with our suppliers to reduce supply chain emissions by 2050 (Scope 3 emissions). To that end, we look forward to working with suppliers to understand where they are on their own decarbonisation journey.

We know that innovation is key to delivering a sustainable future and to progress the decarbonisation of our products and services by 2050. Technology is at the core of our business and we will leverage this to progress our decarbonisation strategy and support our customers in transitioning to a low carbon economy.

We know that innovation is key to delivering a sustainable future and to progress the decarbonisation of our products and services by 2050. Technology is at the core of our business and we will leverage this to progress our decarbonisation strategy and support our customers in transitioning to a low carbon economy. It is also important that we recognise and understand the challenges that climate change will bring so that we continue to design defence and security systems fit for operation in these future environments.

Decarbonisation of our products and services will be achieved by making our current products and services more efficient where practicable and by introducing lower or zero emissions products and technology for new and future requirements. The Group has already established some low carbon products and invested in simulation technologies. 

We conduct supply chain risk assessments and work with suppliers to address any identified key risks to their businesses and supply to our programmes which would include risk associated with the supply of critical materials. Therefore, critical materials are considered as part of a broader corporate approach to monitoring supply chain risk. The issue of limited or sole source supplies of raw materials is familiar, due to the nature of some of the products produced by the Company which are often of a very high, specific and potentially unique specification, but which are required to be supplied in certain cases at low volumes. To address this, we have a multi-faceted risk management programme that seeks to: aggregate risk across the enterprise using proactive intelligence, manage continuity of supply and illuminate lower level suppliers to help us to understand the relationships within our supply chain.

In 2021, our Maritime and Land Sector established a controversial materials strategy to limit materials that are or might become societally unacceptable in their extraction, trading, application or processing method. We are committed to using hazardous materials only where their use is technically justified. We continue partnering with customer toward this end, such as addition of our ZnNi alternative to MIL-PRF-3267 replacing Hexavalent Chromium. 

It is vital that quality freshwater is available for use in our industrial and production processes and for employee hygiene, to reduce corrosion, increase energy efficiency and prevent safety incidents.

Once our emissions have been reduced as much as practicable we will consider the use of offsets to decarbonise our operations by 2030. We have also strengthened our governance model to support our transition to a low-carbon company, amending key policies and processes including our Environment policy and Operational Framework to consider climate-related impacts. We continue to assess and manage the climate-related physical risks and impacts across our global facilities, implementing improvement recommendations, including investment to improve facilities.

We recognise the need for a resilient energy supply, and in line with our net zero roadmap for the UK we will focus on maximising energy efficiency, reducing emissions where feasible and focusing on natural renewable power. We will also consider opportunities to enter into long-term power purchase agreements. Our transition to net zero will be conducted in line with our ethical standards, Code of Conduct and Supplier Principles - Guidance for Responsible Business, to ensure we play our part in a just transition.

No but we do have a Human Rights Statement that we publish on our internet site annually. We are committed to respecting and upholding human rights wherever we operate, in respect of activities under the full, direct control of the Group. Our employees, our suppliers and business partners are all expected to adopt high standards of ethical behaviour. We are committed to conducting business responsibly and to maintaining and improving systems and processes to minimise the risk of slavery and human trafficking in our business or supply chain. Our human rights statement outlines our approach to responsible business behaviour, including in relation to anti-corruption, the environment, as well as our workplace, supply chain, local communities and products. Our Code of Conduct and other global policies and processes mandated under the Operational Framework, together with our supporting principles and guidance, support our commitment to human rights. Please see our policy summaries internet page.

We publish our annual responses to the UK and Australian Modern Slavery Acts and a statement in response to the California Transparency in Supply Chains Act on our Sustainability Reporting webpage.

The submarines we manufacture are powered by a nuclear reactor. All operations undertaken with nuclear materials are extremely low risk; in terms of the safety of our employees, the people using our products, the general public and the environment. Ensuring our staff are well trained and suitably qualified is the key factor in ensuring that the Company operated to the highest levels of safety. Managing safety risks is an absolute priority. We have rigorous management processes, procedures and rules in place to ensure that our employees, the site, the public, the environment and our products are safe, operated by a highly skilled workforce. Nuclear operations and management of nuclear materials is controlled by a comprehensive set of laws and regulations. Activities are governed through a range of licences, permits and consent granted by regulatory authorities in the UK including the Office for Nuclear Regulations (ONR), the Defence Nuclear Safety Regulator (DNSR) and the Environment Agency. We must demonstrate to relevant regulatory authorities that we have adequate management arrangements to undertake nuclear operations safety, and ensure that any risks are minimised. This includes having rigorous procedures in place in the unlikely event of an emergency.

While our operations generate both hazardous and non-hazardous waste, the majority of the waste we produce is non-hazardous.

 

We focus on recycling and re-using high value material and ensure that other wastes are disposed of according to local and national guidelines. We work with our waste contractors to identify waste reduction options where possible. We also have a number of initiatives with third party suppliers to prioritise recycling or re-use.

 

Very small amounts of low level radioactive waste are generated during testing of the nuclear reactor that powers the Astute class submarine manufactured at our site in Barrow, UK. This waste is handled by the on-site waste treatment facility, which is subject to extensive regulations as part of our licence to manage nuclear materials. See our factsheet Managing Nuclear Materials.

We operate a number of industrial sites and our manufacturing activities present a range of risks. These include work in confined spaces, machinery operation, working at height, and slips, trips and falls among others. We monitor and aim to eliminate, mitigate and manage workplace safety risks. Our approach to identifying and assessing safety risks is embedded within our approach to risk management.

The metric used to measure workplace injuries is the Recordable Accident Rate which, along with the number of major injuries, is used to determine an element of executive bonus. Please see our Annual Report 2022 page 72. We also report on our lost-time injury frequency rate and fatalities on our ESG Performance Data.

The Company sets out four principles that describe its approach to the safety of products: accountability; level of safety; conforming products; and learning and sharing information. 

 

They apply throughout the life of the product and throughout the supply chain. 

 

Certain responsibilities for the safety of our products can continue well beyond the contractual life of most projects. The level of safety required for each product is achieved through the application of robust processes, specific training and the thoughtful and responsible attitudes and behaviours of many individuals who are alert to the safety implication of their actions whilst working within a product safety management system.

 

Where local legal and regulatory standards apply which differ from those set out in our Product Safety policy, our businesses shall apply such local standards, so long as they do not add undue risk to the product.

We continue to promote mental health awareness programmes across the organisation and have worked diligently to increase our communications and engagement channels along with introducing training for employees to raise awareness of the importance of mental wellbeing. We have also raised wellbeing and mental health with middle management, highlighting its importance to the business and providing our managers with guidance on how to support themselves and colleagues.

Through our Employee Assistance Programmes, our employees can access physical and mental health advice and support for themselves and family members. This support is available 24 hours a day, 365 days of the year. We have also continued to provide a digital platform to empower employees to take a proactive and preventative approach to mental health and wellbeing.