ESG Investor FAQs

ESG and our shareholders

We recognise that there are parts of our business model of particular relevance to investors when looking at ESG matters, most notably that we operate in the defence and nuclear markets. Below we highlight some frequently asked questions from our shareholders:

  • We do not design, manufacture, maintain or deal in nuclear weapons or their components
  • We do however provide life-cycle engineering of equipment and containment for AWE fissile facilities

In the UK, nuclear delivery platforms are generally defined as the UK’s SSBN (Ship Submersible Ballistic Nuclear) fleet of Vanguard Class submarines and in future, its replacement programme, the Dreadnought Class

We manufacture and assemble components for the joint UK and US SSBN submarine replacement programme

We also design and manufacture handling and ejector systems for the future UK Dreadnought Class submarines

These two areas of manufacture represent less than 2% of FY22 revenue

Babcock has been supporting the UK’s most critical defence capability, the Continuous At Sea Deterrent, for over 50 years

We own and operate critical infrastructure and have technical knowledge of the defence nuclear market

We provide maintenance, through-life support and life-extensions for the UK’s fleet of nuclear-powered submarines. This relates to the fleets of both SSBNs and SSNs (Surface Ship Nuclear – nuclear-powered)

As part of our civil nuclear business we also deliver infrastructure projects for AWE

These areas of support for the wider UK defence nuclear programme represents the defence revenue in our Nuclear sector, approximately 21% of FY22 revenue

We do not make or deal in other weapons or munitions

We do, however, design and manufacture weapons handling and launch systems for international naval platforms used by the UK, Spain, Republic of Korea and Australia

We also have contracts to maintain the UK Royal Navy’s naval weaponry

These areas of support and manufacture represents less than 2% of FY22 revenue

Yes: nuclear power provides a reliable source of low-carbon electricity and is a critical component of countries’ national energy strategies as they move towards net zero carbon

Our civil nuclear business is involved in new build, power generation support, fuel route management and decommissioning in the UK nuclear market

We also use our technical knowledge and reference cases to undertake consultancy work in Canada and Japan, albeit at a small volume currently

Work related to these areas represents approximately 4% of FY22 revenue

Three of the Group’s key performance indicators are linked to our ESG strategy: (i) Total injuries rate, (ii) CO2 emissions, and (iii) Senior management gender diversity

We have two main targets as part of our ESG strategy: (i) to be net zero (Scope 1 and 2) by 2040, and (ii) for at least 30% of our senior management to be female by 2025