GRI Compliance / Universal Standards

General Disclosures 2016

For Management Response click here.

For Reporting Boundaries and Methodologies click here.

REFStatusDisclosureOur Response

GRI 102-01

Core

Full Disclosure

Name of the organisation

Babcock International Group PLC

GRI 102-02

Core

Full Disclosure

Activities, brands, products and services

  1. A description of the organization’s activities.
  2. Primary brands, products, and services, including an explanation of any products or services that are banned in certain markets.

Babcock is an international defence and security company operating in our focus countries of the UK, Australasia, Canada, France and South Africa, with exports to additional markets with potential to become focus countries.

Our work supports our public sector and blue chip customers on complex long-term programmes and critical services. We provide through-life technical and engineering support, specialist training, asset management and the design and manufacture of a range of defence and specialist equipment. We meet our customers’ key requirements of value for money, increased availability, modernisation and flexibility.

For more information see Our business today, page 4 of our Annual Report.

GRI 102-03

Core

Full Disclosure

Location of headquarters

Location of the organization’s headquarters.

Babcock International Group PLC
33 Wigmore Street
London
W1U 1QX
UK

GRI 102-04

Core

Full Disclosure

Location of operations

Number of countries where the organization operates, and the names of countries where it has significant operations and/or that are relevant to the topics covered in the report.

See response to GRI 102-02

GRI 102-05

Core

Full Disclosure

Ownership and legal form

Nature of ownership and legal form.

Babcock International Group PLC, registered in England and Wales number 02342138 as a public limited company and listed on the London Stock Exchange.

GRI 102-06

Core

Full Disclosure

Markets served

  1. Markets served, including:
    1. geographic locations where products and services are offered;
    2. sectors served;
    3. types of customers and beneficiaries.

Babcock is an international defence and security company operating in our focus countries of the UK, Australasia, Canada, France and South Africa, with exports to additional markets with potential to become focus countries.

For further details on our revenue profile see page 4 of our Annual Report.

GRI 102-07

Core

Full Disclosure

Scale of the organisation

  1. Scale of the organization, including:
    1. total number of employees;
    2. total number of operations;
    3. net sales (for private sector organizations) or net revenues (for public sector organizations);
    4. total capitalization (for private sector organizations) broken down in terms of debt and equity;
    5. quantity of products or services provided.

As of March 2022, Babcock employs over 28,000 people in over 15 countries.

In FY22 the Group earned revenue of £4.1 billion. Further details of the Group’s capital structure can be found in notes 24 (page 211) and 28 (page 223) of the Annual Report. Details of the Group’s financial performance can be found on page 159 onwards of our Annual Report.

GRI 102-08

Core

Full Disclosure

Information on employees and other workers

  1. Total number of employees by employment contract (permanent and temporary), by gender.
  2. Total number of employees by employment contract (permanent and temporary), by region.
  3. Total number of employees by employment type (full-time and part-time), by gender.
  4. Whether a significant portion of the organization’s activities are performed by workers who are not employees. If applicable, a description of the nature and scale of work performed by workers who are not employees.
  5. Any significant variations in the numbers reported in Disclosures 102-8-a, 102-8-b, and 102-8-c (such as seasonal variations in the tourism or agricultural industries).
  6. An explanation of how the data have been compiled, including any assumptions made.

The majority of staff who work for Babcock are permanent employees. However, we do engage temporary resource to bring difficult to recruit skills into the business and meet resource demand at times of peak workload.

Click here to view employees by gender, and by employment contract type.

Click here to view employees by region.

No signification variations in the numbers reported.

No assumptions have been applied to this data, the data source for this is our core HR systems holding data submitted by our employees.

GRI 102-09

Core

Full Disclosure

Supply Chain

A description of the organization’s supply chain, including its main elements as they relate to the organization’s activities, primary brands, products, and services.

To achieve consistent long-term value creation for our interested parties, we have developed a robust supply chain who deliver best in class products, goods and services.

We have over 14,000 supply partners located in 45 countries, of which 6,500 are UK based.

We have a clear risk-based supplier segmentation process which determines the extent to which each supplier will be supported, engaged and developed.

Supplier geographical concentration is aligned to our key business activities which supports the delivery of a globally diverse supply chain that mitigates economic, social and environmental risks to enhance Babcock’s overall resilience.

We recognise that our suppliers operate in different geographic and economic environments, we are committed to ensuring that products and services are delivered in an ethical and socially responsible way that supports our high standards, contributing to the reputation of Babcock and our customers.

Our sector specific characteristics can vary with high dependency on our suppliers’ flexibility to support evolving requirements. Key themes include social value, sustainability, regulatory compliance and technical assurance.

In recognition of our responsibilities in our value chain, we have launched a number of initiatives to continually monitor all key risk categories and mitigate potential risks within our supply chain.

GRI 102-10

Core

Full Disclosure

Significant changes to the organisation and its supply chain

  1. Significant changes to the organization’s size, structure, ownership, or supply chain, including:
    1. Changes in the location of, or changes in, operations, including facility openings, closings, and expansions;
    2. Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organizations);
    3. Changes in the location of suppliers, the structure of the supply chain, or relationships with suppliers, including selection and termination.

For information regarding material acquisitions and disposals for the year ending 31 March 2022, see page 24 of our Annual Report.

There were no material changes to the overall location of suppliers, structure of the supply chain, or our relationships with suppliers during this reporting period. Our supply base remains stable, although we have had organic changes to suppliers which is to be expected given the nature of the business and size of operations.

See the Governance section on page 69 of our Annual Report which references our current Supply Chain structure.

GRI 102-11

Core

Full Disclosure

Precautionary principle or approach

Whether and how the organization applies the Precautionary Principle or approach.

The Board sets the Group’s strategy which we describe on page 6 of our Annual Report and to help deliver this strategy, the Board has now in place procedures for identifying, evaluating and managing the risks inherent in our strategy.

As part of those procedures, the Board reviews and approves the Group’s risk register on a semi-annual basis to ensure alignment with the Group’s strategy. It makes this determination using a risk-rating matrix, which assesses the probability and the impact of each risk occurring.

The Board makes this assessment after taking into consideration the controls and mitigations that the Group has in place.

For further information see Principal Risks section on page 76 of our Annual Report.

For more information on Babcock’s precautionary approach see: GRI 102-15, 102-17, 205 and 206.

GRI 102-12

Core

Full Disclosure

External Initiatives

A list of externally-developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes, or which it endorses.

At a Group level Babcock supports the external initiatives listed below and their principles. In addition, Babcock companies are involved in other external initiatives at a local level.

– Babcock recognise the United Nations Universal Declaration of Human Rights and the standards established by the International Labour Organization (ILO) – see Governance section, page 69 of our Annual Report.

– Social Mobility Pledge: Babcock has committed to putting social mobility at the heart of their purpose.

– Prompt Payment Code: 11 of our Legal Entities are signed up to paying suppliers or partners promptly and within the agreed payment terms (as this is economically beneficial for all parties and the wider economy)

– Babcock has signed up to the Business Ambition for 1.5ºC Pledge to limit global warming in line with the Paris Agreement. This pledge also means Babcock has joined the United Nations Framework Convention on Climate Change (UNFCCC) ‘Race to Zero’ and the ‘We mean business’ coalition.

– Menopause Workplace Pledge: Babcock signed up to take positive action to make sure everyone going through the menopause is supported

– Global Reporting Initiative (GRI): Babcock has reported in accordance with the GRI Standards since 2021

GRI 102-13

Core

Full Disclosure

Membership of associations

A list of the main memberships of industry or other associations, and national or international advocacy organizations.

We are members of several associations, including:

  • 5% Club
  • ADS
  • AEI – Italy
  • Assolombarda – Italy
  • Canada UK Chamber of Commerce
  • CBI
  • Confindustria (Lecco-Sondrio and Rome) – Italy
  • Defence Growth Partnership
  • Institute of Student Employers
  • Make UK
  • Mari-UK
  • RAeS – UK
  • Scottish Engineering
  • Society of Maritime Industries
  • Stonewall
  • Team Defence Information
  • Tech UK
  • Unindustria – Italy
  • Whitehall and Industry Group
  • Women in Science and Engineering

GRI 102-14

Core

Full Disclosure

Statement from senior decision-maker

A statement from the most senior decision-maker of the organization (such as CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy for addressing sustainability.

Refer to CEO review on page 13 of our Annual Report.

GRI 102-15

Full Disclosure

Key impacts, risks and opportunities

A description of key impacts, risks, and opportunities.

Those impacts, risks and opportunities considered most material from both a financial and non-financial perspective are included in our Annual Report, see page 76 onwards.

GRI 102-16

Core

Full Disclosure

Values, principles, standards and norms of behaviours

A description of the organization’s values, principles, standards, and norms of behavior.

Our Purpose and Principles were formally launched this year to support the major cultural shift the business is making.

See page 18 on Cultural Change section on our Annual Report.

GRI 102-17

Full Disclosure

Mechanisms for advice and concerns about ethics

  1. A description of internal and external mechanisms for:
    1. seeking advice about ethical and lawful behavior, and organizational integrity;
    2. reporting concerns about unethical or unlawful behavior, and organizational integrity.

Our Code of Conduct and Supplier Code of Conduct and related guidance provide practical guidance to our employees and others connected to our business on how to conduct business in an ethically sound way in line with our purpose and principles. These are supported by employee training. For more information see page 71 of our Annual Report.

However, where any employee or person connected to our business has any concern that our Codes of Conduct or associated guidance are not being followed, they can contact a confidential whistleblowing hotline, without fear of unfavourable consequences for themselves. This service is available 24 hours a day, 365 days a year, in local languages and is accessible by telephone or at babcockinternational.ethicspoint.com. It is managed by an external company, independent of Babcock, with staff trained to deal with reports. The hotline sends all reports received to the Company Secretary, who sends it to the person with the appropriate experience and training to investigate the report properly. The Company Secretary submits a report to the Board of all the investigations and their result.

GRI 102-18

Core

Full Disclosure

Governance structure

  1. Governance structure of the organization, including committees of the highest governance body.
  2. Committees responsible for decision-making on economic, environmental, and social topics.

Babcock’s governance structure is included in the Governance section of our Annual Report on page 97 including the Corporate ESG Committee responsible for environmental, social and governance topics.

Further information on the role of the Board and its Committees can be found on our website.

GRI 102-19

Full Disclosure

Delegating authority

Process for delegating authority for economic, environmental, and social topics from the highest governance body to senior executives and other employees.

The Board delegates to management by way of a delegation of authority matrix, most often to the Executive Directors who in turn delegate to management committees or managers. See page 97 of our Annual Report.

GRI 102-20

Full Disclosure

Executive-level responsibility for economic, environmental and social topics

  1. Whether the organization has appointed an executive-level position or positions with responsibility for economic, environmental, and social topics.
  2. Whether post holders report directly to the highest governance body.

The Board is ultimately accountable for economic, social and governance topics and delegates to our Chief Executive Officer, David Lockwood for their management. Responsibility for component parts of our ESG programme is shared by members of Babcock’s Executive Committee, all of whom report to the CEO.

GRI 102-21

Full Disclosure

Consulting stakeholders on economic, environmental and social topics

Processes for consultation between stakeholders and the highest governance body on economic, environmental, and social topics.

To capture views of our employees we ran an employee opinion poll in March to identify the top three priority sustainability issues that they think we should be focusing on in order to ‘create a safe and secure world, together’. We also asked our investors for their views on sustainability priorities.

This year, we intend to survey our key suppliers and several customer stakeholders within contracts across the sectors and regions.

See page 55 in the Materiality Assessment on our Annual Report.

GRI 102-22

Full Disclosure

Composition of the highest governance body and its committees

  1. Composition of the highest governance body and its committees by:
    1. executive or non-executive;
    2. independence;
    3. tenure on the governance body;
    4. number of each individual’s other significant positions and commitments, and the nature of the commitments;
    5. gender;
    6. membership of under-represented social groups;
    7. competencies relating to economic, environmental, and social topics;
    8. stakeholder representation.

See the Governance section of our Annual Report from page 97.

GRI 102-23

Full Disclosure

Chair of the highest governance body

  1. Whether the chair of the highest governance body is also an executive officer in the organization.
  2. If the chair is also an executive officer, describe his or her function within the organization’s management and the reasons for this arrangement.

The Board chair is a non-executive director and, in accordance with the UK Corporate Governance Code, was independent on appointment.

GRI 102-24

Full Disclosure

Nominating and selecting the highest governance body

  1. Nomination and selection processes for the highest governance body and its committees.
  2. Criteria used for nominating and selecting highest governance body members, including whether and how:
    1. stakeholders (including shareholders) are involved;
    2. diversity is considered;
    3. independence is considered;
    4. expertise and experience relating to economic, environmental, and social topics
      are considered.

The Nominations Committee of the Board, which comprises all the independent non-executive directors and the Chair of the Company, is responsible for keeping the composition of the Board under review and succession planning for the Board and senior leadership of the Group. Criteria for selecting candidates for Board appointments include skills, knowledge, experience, diversity and independence.

For more information see the Nominations committee report in our Annual Report pages 106 to 107.

GRI 102-25

Full Disclosure

Conflicts of Interest

  1. Processes for the highest governance body to ensure conflicts of interest are avoided and managed.
  2. Whether conflicts of interest are disclosed to stakeholders, including, as a minimum:
    1. Cross-board membership;
    2. Cross-shareholding with suppliers and other stakeholders;
    3. Existence of controlling shareholder;
    4. Related party disclosures.

Our Code of Conduct references how potential conflicts of interests are to be managed. The Board has adopted a formal procedure for the disclosure, review, authorisation and management of Directors’ actual and potential conflicts of interest.

More information is included in the Governance statement on our Annual Report on page 103. External interests of the Directors are provided on pages 94 to 95. Major shareholders as at 31 March 2022, none of whom have an interest in more than 10% of the Company, are detailed on page 134 of our Annual Report and Related Party disclosures on page 228.

GRI 102-26

Full Disclosure

Role of highest governance body in setting purpose, values and strategy

Highest governance body’s and senior executives’ roles in the development, approval, and updating of the organization’s purpose, value or mission statements, strategies, policies, and goals related to economic, environmental, and social topics.

The Board’s role is to lead the Group with a view to the creation of strong, sustainable financial performance and long-term shareholder value, to review and approve the Group’s strategic plan and to supervise the conduct of the Group’s activities within a framework of prudent and effective internal controls. This is underpinned by a clear purpose and principles by which we do business, enshrined in our Code of Conduct, all kept under review by the Board.

Further information on the Board’s role in developing the purpose, values, strategies, policies and goals related to economic, environmental and social topics can be found throughout the Strategic report on pages 2 to 89 of our Annual Report and in the Governance section on pages 92 to 139.

GRI 102-27

Full Disclosure

Collective knowledge of the highest governance body

Measures taken to develop and enhance the highest governance body’s collective knowledge of economic, environmental, and social topics.

The Group Head of Sustainability regularly reports to Board meetings and ESG matters are now an integral part of Board strategic discussions.

Our Chair, Ruth Cairnie, is Patron of Women in Defence Charter, an initiative to advance gender diversity within the energy sector.

Non-Executive Director, Lord Parker, has been appointed as Non-Executive Director responsible for workforce engagement.

GRI 102-28

Full Disclosure

Evaluating the highest governance body’s performance

  1. Processes for evaluating the highest governance body’s performance with respect to governance of economic, environmental, and social topics.
  2. Whether such evaluation is independent or not, and its frequency.
  3. Whether such evaluation is a self-assessment.
  4. Actions taken in response to evaluation of the highest governance body’s performance with respect to governance of economic, environmental, and social topics, including, as a minimum, changes in membership and organizational practice.

During the year ending 31 March 2022 the Board underwent an independent, externally led evaluation of its performance which included economic, environmental and social topics integral to our Strategy.

For more information see the Governance section, page 105 of our Annual Report.

GRI 102-29

Full Disclosure

Identifying and managing economic, environmental and social impacts

  1. Highest governance body’s role in identifying and managing economic, environmental, and social topics and their impacts, risks, and opportunities – including its role in the implementation of due diligence processes.
  2. Whether stakeholder consultation is used to support the highest governance body’s identification and management of economic, environmental, and social topics and their impacts, risks, and opportunities.

The Executive Committee is responsible for identifying and managing economic, environmental, and social topics and their impacts, risks, and opportunities as outlined in GRI 102-20. Our Sustainability Strategy has been approved by the Board and regular updates are given on key topics including carbon strategy, climate risk, community engagement and inclusion and diversity. See the Governance section, page 97 of our Annual Report.

Our sustainability strategy will continue to evolve with the interests of our stakeholders, as well as those of Babcock. This year we asked some of our key stakeholders for their views on our material topics to ensure that we focus on issues that matter most to them and the findings will help influence our sustainability agenda and our priorities.

GRI 102-30

Full Disclosure

Effectiveness of risk management processes

Highest governance body’s role in reviewing the effectiveness of the organization’s risk management processes for economic, environmental, and social topics.

The Board is responsible for the Group’s risk management and internal control systems and delegates certain risk management activities to the Audit Committee, including the annual review of the systems’ effectiveness.

Details of the Group’s risk management processes can be found in our Annual Report on page 76.

GRI 102-31

Full Disclosure

Review of economic, environmental and social topics

Frequency of the highest governance body’s review of economic, environmental, and social topics and their impacts, risks, and opportunities.

The Audit Committee reviews aspects of the risk management and control system at its meetings, at least four times a year, and Executive Committee reviews quarterly principal risks, emerging risks and mitigations.

GRI 102-32

Full Disclosure

Highest governance body’s role in sustainability reporting

The highest committee or position that formally reviews and approves the organization’s sustainability report and ensures that all material topics are covered.

Our Annual Report, including the ESG strategy section, is approved by the Board.

GRI 102-33

Full Disclosure

Communicating critical concerns

Process for communicating critical concerns to the highest governance body.

Our principal risks and how we manage them to ensure that critical concerns reach the Board in a timely fashion are detailed on pages 76 to 87 of our Annual Report.

 

GRI 102-34

Full Disclosure

Nature and total number of critical concerns

  1. Total number and nature of critical concerns that were communicated to the highest governance body.
  2. Mechanism(s) used to address and resolve critical concerns.

Our principal risks with details of how we mitigate against them can be found on pages 76 to 87 of our Annual Report.

GRI 102-35

Full Disclosure

Remuneration policies

  1. Remuneration policies for the highest governance body and senior executives for the following types of remuneration:
    1. Fixed pay and variable pay, including performance-based pay, equity-based pay, bonuses, and deferred or vested shares;
    2. Sign-on bonuses or recruitment incentive payments;
    3. Termination payments;
    4. Clawbacks;
    5. Retirement benefits, including the difference between benefit schemes and contribution rates for the highest governance body, senior executives, and all other employees.
  2. How performance criteria in the remuneration policies relate to the highest governance body’s and senior executives’ objectives for economic, environmental, and social topics.

The Remuneration Committee report in our Annual Report, see page 113, includes our remuneration policy. As explained in that report, remuneration is driven by both financial and non-financial metrics, which in some cases include environmental as well as economic goals.

GRI 102-36

Full Disclosure

Process for determining remuneration

  1. Process for determining remuneration.
  2. Whether remuneration consultants are involved in determining remuneration and whether they are independent of management.
  3. Any other relationships that the remuneration consultants have with the organization.

Remuneration is determined by the Remuneration Committee as per the Remuneration Policy, which is approved by the shareholders. The Remuneration policy for Executive Directors is considered with the remuneration philosophy and principles that underpin remuneration for the wider group in mind.

Ellason are the appointed advisors to the Remuneration Committee. Ellason reports directly to the committee Chair and provides objective and independent analysis, information and advice on all aspects of executive remuneration and market practice, within the contact of the objectives and policy set by the committee.

More information is available in the Remuneration Committee report on pages 113 to 133 of our Annual Report. Details of independent third-party remuneration consultants are on page 125.

GRI 102-37

Full Disclosure

Stakeholders’ involvement in remuneration

  1. How stakeholders’ views are sought and taken into account regarding remuneration.
  2. If applicable, the results of votes on remuneration policies and proposals.

When determining remuneration, the Committee takes into account views of leading shareholders and best practice guidelines issues by institutional shareholder bodies. The Committee welcomes feedback from shareholders on the Remuneration policy and arrangements and commits to undertaking consultation with leading shareholders in advance of any significant changes to the remuneration policy.

The last shareholder vote on the Directors Remuneration Policy saw 87.95% approval rate at the Annual General Meeting (2021).

Our policy regarding consideration of employee and shareholder views in connection with Executive Directors’ remuneration can be found on page 113 of our Annual Report.

GRI 102-38

Partial Disclosure

Annual total compensation ratio

Ratio of the annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median annual total compensation for all employees (excluding the highest-paid individual) in the same country.

We disclose the ratio between the CEO’s salary and total remuneration and that of the lower quartile, median and upper quartile UK-based employee in our Annual Report on page 131.

Omission: data by country.

GRI 102-39

Partial Disclosure

Percentage increase in annual total compensation ratio

Ratio of the percentage increase in annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median percentage increase in annual total compensation for all employees (excluding the highest-paid individual) in the same country.

We disclose the percentage change in remuneration from the prior year for the CEO compared to the average UK employee in our Annual Report on page 130.

Omission: data by country.

GRI 102-40

Core

Full Disclosure

List of stakeholder groups

A list of stakeholder groups engaged by the organization.

We engage with internal and external stakeholders on a regular basis, ranging from customers, investors, employees, regulators, suppliers and communities. A list of key stakeholders is included on our website and in the Stakeholder engagement section, on page 52 of our Annual Report.

GRI 102-41

Core

Full Disclosure

Collective bargaining agreements

Percentage of total employees covered by collective bargaining agreements.

Globally 69% of Babcock’s employees are covered by collective bargaining agreements (the remainder are represented through our employee forum).

GRI 102-42

Core

Full Disclosure

Identifying and selecting stakeholders

The basis for identifying and selecting stakeholders with whom to engage.

Our stakeholders are identified as all those who affect, are affected or could be affected by Babcock’s business. Babcock is committed to proactively engaging with groups that fit this criteria to ensure that our values remain consistent with theirs and to place an appropriate level of focus on shared key issues. We engage a range of external stakeholders, including customers, investors, employees, regulatory and industry bodies, our supply chain and local communities to understand how they view our activities, and how they consider our performance and reputation economically, socially and environmentally.

GRI 102-43

Core

Full Disclosure

Approach to stakeholder engagement

The organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process.

We engage a range of external stakeholders, including customers, investors, employees, regulatory and industry bodies, our supply chain and local communities to understand how they view our activities. As set out in the Stakeholder engagement section on page 52 of our Annual Report, the method of communication and therefore frequency of communication varies depending on how Babcock best engages with each stakeholder.

GRI 102-44

Core

Full Disclosure

Key topics and concerns raised

  1. Key topics and concerns that have been raised through stakeholder engagement, including:
    1. how the organization has responded to those key topics and concerns, including through its reporting;
    2. the stakeholder groups that raised each of the key topics and concerns.

We have run employee engagement focus groups, surveys and listening forums, which have highlighted communication, career development and leadership as priorities for our employees.

Examples of our work to improve across these areas are as follows:

  • The introduction of Agile working to enable a better and sustainable working culture for all employees.
  • Our new hires into the UK business now have a dedicated pre-onboarding online platform which is designed to engage and familiarise them to the business to provide a smooth transition.
  • We have also implemented a new People Centre, so employees have a centralised location to receive quick HR advice.

Whilst the past year has focused on online engagement, the balance is turning back to more face-to-face engagement as we return to workplaces. During FY22/23 our plan is to deliver a global employee engagement survey that enables consistent and benchmarked measurement. In turn this will enable us to focus our efforts on driving meaningful change and enabling high performance. Together with this, we will be launching our new all-encompassing platform which will safely hold accurate, easily accessible people data.

GRI 102-45

Core

Full Disclosure

Entities included in the consolidated financial accounts

  1. A list of all entities included in the organization’s consolidated financial statements or equivalent documents.
  2. Whether any entity included in the organization’s consolidated financial statements or equivalent documents is not covered by the report.

Our Financial statements can be found in our Annual Report from page 159. Please refer to the Group entities listed in note 35 on page 229 of our Annual Report.

GRI 102-46

Core

Full Disclosure

Defining report content and topic boundaries

  1. An explanation of the process for defining the report content and the topic Boundaries.
  2. An explanation of how the organization has implemented the Reporting Principles for defining report content.

Through stakeholder and financial analysis, we have identified the Environmental, Social and Governance issues most material to Babcock and most important to Babcock’s stakeholders. At a minimum our reporting includes these issues.

See response to items GRI 101-01 to 101-10 for how we have implemented the reporting principles for defining report content.

GRI 102-47

Core

Full Disclosure

List of material topics

A list of the material topics identified in the process for defining report content.

For material topics see ESG strategy section, page 54 of our Annual Report.

GRI 102-48

Core

Full Disclosure

Restatements of information

The effect of any restatements of information given in previous reports, and the reasons for such restatements.

If required, Babcock would restate environmental data for the baseline year and intervening years to reflect any changes in the Group structure arising from mergers and acquisitions, changes to the base year, the nature of the business or measurement methods to ensure accuracy, consistency and relevance of the reported information to enable a full and accurate year-on-year comparison. No material restatements have been required for the year ended 31 March 2022, however where appropriate we will adjust prior year figures to include data unavailable last year. Figures for the year ended 31 March 2022 include an element of estimated data.

GRI 102-49

Core

Full Disclosure

Changes in reporting

Significant changes from previous reporting periods in the list of material topics and topic Boundaries.

There are no significant changes from previous reporting.

GRI 102-50

Core

Full Disclosure

Reporting period

Reporting period for the information provided.

Year ended 31 March 2022

GRI 102-51

Core

Full Disclosure

Date of most recent report

If applicable, the date of the most recent previous report.

15 August 2022

GRI 102-52

Core

Full Disclosure

Reporting cycle

Reporting cycle.

Annual

GRI 102-53

Core

Full Disclosure

Contact point for questions regarding the report

The contact point for questions regarding the report or its contents.

Babcock International Group PLC
33 Wigmore Street
London
W1U 1QX
UK

[email protected]

GRI 102-54

Core

Full Disclosure

Claims of reporting in accordance with the GRI standards

  1. The claim made by the organization, if it has prepared a report in accordance with the GRI Standards, either:
    1. This report has been prepared in accordance with the GRI Standards: “Core option”;
    2. This report has been prepared in accordance with the GRI Standards: “Comprehensive option”.

We have prepared this report in accordance with the GRI Standards: Core option.

Refer to the table on page 74 of our Annual Report.

GRI 102-55

Core

Full Disclosure

GRI content index

  1. The GRI content index, which specifies each of the GRI Standards used and lists all disclosures included in the report.
  2. For each disclosure, the content index shall include:
    1. the number of the disclosure (for disclosures covered by the GRI Standards);
    2. the page number(s) or URL(s) where the information can be found, either within the report or in other published materials;
    3. if applicable, and where permitted, the reason(s) for omission when a required disclosure cannot be made.

This index serves as the GRI content index and is summarised by the content index on page 74 of our Annual Report.

GRI 102-56

Core

Full Disclosure

External assurance

  1. A description of the organization’s policy and current practice with regard to seeking external assurance for the report.
  2. If the report has been externally assured:
    1. A reference to the external assurance report, statements, or opinions. If not included in the assurance report accompanying the sustainability report, a description of what has and what has not been assured and on what basis, including the assurance standards used, the level of assurance obtained, and any limitations of the assurance process;
    2. The relationship between the organization and the assurance provider;
    3. Whether and how the highest governance body or senior executives are involved in seeking external assurance for the organization’s sustainability report.

The Group is committed to reporting accurate and reliable non-financial information, and the information reported is subject to detailed and thorough internal review. For the year ended 31 March 2022 the Group has not sought external assurance for the Sustainable Business section of the Annual Report.