Reporting Boundaries and Methodologies

Babcock’s first GRI Reporting Standards describe the environmental, social and governance (ESG) disclosures set out in our Annual report. They demonstrate Babcock’s commitment to sustainable development which create value for all our stakeholders, including our local communities.

This Report has been prepared in accordance with GRI Standards according to the Core option. Outlined below is the process for data collection and verification related to our ESG disclosures, as published in our Annual Report and GRI Disclosures.

Reporting period

Our ESG reporting covers Babcock International Group in the financial year ended 31 March 2021.


Reporting boundaries

The reporting process, collation of the data and drafting of the ESG Report, is managed by the Sustainability team prior to review and verification by functional owners and subject matter experts using their local systems and processes.

The Report’s contents have been defined according to the principles of accuracy, balance, clarity, comparability, reliability and timeliness.

Whilst the aim of our reporting processes is to provide data that is complete, accurate and reliable with built in verification, it must be noted that this report has required numerous complex streams of data and it is not possible to guarantee this. For clarity, any limitations to the reporting boundary or clarifications are indicated in the relevant sections of the document.

This document was approved by our Chief Corporate Affairs Officer. Our sustainability data has not been subject to external assurance unless indicated.


Exceptions

We have listed below the disclosures where Babcock is unable to provide results because the information is unavailable, not relevant or not material to our business:

  • GRI 301: Materials 2016
  • GRI 304: Biodiversity 2016
  • GRI 410: Security Practices 2016
  • GRI 414: Supplier Social Assessment 2016
  • GRI 416: Customer Health and Safety 2016
  • GRI 417: Marketing and Labelling 2016
  • GRI 418: Customer Privacy 2016

Greenhouse Gas Emissions

We have set a net zero emissions target for 2040. We have set out a roadmap with milestones to achieve our new goals, linked to our KPI on CO2e emissions for measuring our progress.

Our emissions data is reported in line with the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard under the ‘Operational Control’ approach.

Figures for UK operations follow conversion factors published by BEIS. Non-UK operations utilise emission factors applicable to the fuel source and location. Appropriate conversion factors have been used to calculate the underlying energy consumption figures. Scope 1, 2 and 3 sources have been divided by the annual revenue to provide the intensity ratio (tCO2e per £m). Figures for prior years have been adjusted to include data unavailable last year, and figures for this year include an element of estimated data. Certain data, estimated to be immaterial to the Group’s emissions, has been omitted as it has not been practical to obtain (including operations in Oman, South Korea, Canada and Australia). Metering and monitoring improvements are being implemented to capture these data streams.

During the reporting period our approach to energy and carbon management included a holistic review and the re-establishment of our baseline. We have developed our new net zero carbon strategy, Plan Zero 40, which details our journey to net zero.


Community Engagement

We play an active part in our local communities to enhance development and inspire the next generation, with our offices supporting a range of charities and good causes from local sport clubs to local theatres.

During the year we supported a broad range of activities for local communities and the armed forces community. This includes Science, Technology, Engineering and Maths (STEM) programmes, strengthening our relationship with indigenous peoples, support for armed forces and reserves, partnering with a broad range of academic establishments to support funded research and local sponsorship.

The number of active STEM ambassadors and the volume of their activities is collected by an external platform that we are able to access for reporting purposes. We report the number of our STEM Ambassadors in our Annual Report.

Armed Forces data is collected internally, partly in our HR Information System (SuccessFactors) and partly manually. We report data to the MOD and within our Annual Report.

Donations and sponsorships are recorded at a local business level.


Health, Safety and Wellbeing

The mission of the Group is that everyone goes “Home Safe Every Day”. Our vision is that Health and Safety is at the heart of all that we do.

Our focus for FY22 will be on building on the strategy and creating a second wave of Group-wide Health, Safety and Environment standards, engagement with our people and the second part of the safety commitments survey, together with a Group-wide communications campaign on our new safety commitments.

Total severe injuries is defined as lost-time injuries, restricted work cases and medical treatment cases (including any loss of consciousness). The number and rate of severe injuries is expressed as number of lost-time injuries x 100,000 hrs worked.

Total recordable accident is defined as work-related injuries, including those occurring away from our premises whilst on business assignment, resulting in absence of at least one complete working day/ shift, not including any home to work commuting incidents. The number and rate of recordable work-related injuries is expressed as number of injuries x 100,000 hrs worked.

Contractor details are included within employees figure. We are responsible for contractors health and safety and therefore we do not differentiate between contractors and employees.

Safety data is collected and reported by all sites using the group-wide incident reporting system. Our internal processes of recording and reporting incidents has been third-party verified in the most recent financial year period.


Diversity and Inclusion

Diversity and inclusion in recruitment and in all our people processes is critical to ensuring we create a workplace culture where individuals can flourish and contribute to the shared success of the business.

Data for over 93% of our employees is held in our HR Information System (SuccessFactors). Data for the other 7% is held in local HR Systems for their respective country or entity, this is then manually aggregated to form a complete picture for our global workforce. Note that while we hold employees data in SuccessFactors, employees might not have disclosed diversity data. Whilst it’s mandatory to respond, employees can respond with “prefer not to say”.

The data has been calculated in line with the GRI guidance provided per question.

The data included in our responses includes data covering our global workforce, any exceptions to this have been noted in the individual response.

Any assumptions have been detailed in the individual question responses.


Talent and Development

Recruiting, maintaining and developing the best talent through a robust talent pipeline is key to ensuring that we maintain a competent workforce with the capacity to meet current and future needs.

Data for over 93% of our employees is held in our HR Information System (SuccessFactors). Data for the other 7% is held in local HR Systems for their respective country or entity, this is then manually aggregated to form a complete picture for our global workforce.

The data has been calculated in line with the GRI guidance provided per question.

The data included in our responses includes data covering our global workforce, any exceptions to this have been noted in the individual response.

Any assumptions have been detailed in the individual question responses.


Business, Ethics and Integrity

We have policies and procedures in place to ensure that employees are aware of business ethics and the importance of information security/cybersecurity.

A number of training courses such as Acceptable Use Policy, Cyber Security Awareness and Anti-bribery and Corruption, are mandatory for Babcock employees and must be completed annually.

Employees that have a full Picasso account, will have to complete all mandatory training courses whilst employees that have a light Picasso account (i.e., some contingent workers, warehouse operatives, etc.) are only required to undergo two of the mandatory courses: Cyber Security Awareness and Acceptable Use Policy.

Where required, we create training materials in local languages i.e., Dutch, French, Italian, Spanish and Portuguese.

If an employee does not complete these courses, and any required refreshers/updates, their IT access will be revoked for security reasons. They will not be able to access any external websites, send external emails or use removable media (such as USB sticks) until they have completed all outstanding courses. Once the required training has been completed, their access will be restored overnight, ready for the following day.

All new Babcock employees using our network must also complete mandatory training before they are given the above access rights.

Any employee who is absent from work due to long-term sickness, maternity or other extended leave, for the period over which the activity is required to be completed is considered out of scope.


Data and Cyber Security

Babcock has a governance structure in place to ensure data security risks are identified, impact assessed and that necessary mitigating actions are recorded and implemented. Records of all information assets are held in a central register and asset owners (IAOs) are assigned with responsibility for assessment and management of associated risks in alignment with Babcock’s overall risk appetite. Senior Information Risk Owners (SIROs) are responsible for data security within their respective areas and this includes escalation of data security risks to the overall business risk register.

Products generated by Babcock are required to go through a robust accreditation process to ensure risk assessments have carried out and that necessary standards are met.

The Group Security Committee oversees the Group’s security and information assurance management infrastructure.

Our IT infrastructure and information security management systems have been audited by external auditors in the last fiscal year and we conduct third-party vulnerability analysis including simulated hacker attacks.


Governance Accountability and Culture

We maintain internal policies and procedures in order to ensure that the Group complies with all applicable laws and regulations. We also have suitably qualified and experienced employees and/or experts’ external advisors to advise and assist on regulatory compliance. We have management systems involving competent personnel with clear accountabilities for operational regulatory compliance.

Our Code of Conduct, together with our Ethics policy, sets out the clear expectations that we have of our employees. We seek to reinforce these values with all employees through a number of different processes, for example, our training.

Our whistleblowing telephone service and online portal is confidential and is available 24 hours a day, seven days a week in over 20 countries and languages. The independent confidential reporting service is operated by an independent company. Employees can leave their name and contact details if they wish or choose to leave a completely anonymous message. Employees’ concerns will be relayed, on a confidential basis, to senior Head Office management who will make sure that they are investigated.


Sustainable Supply Chain

We are committed to conducting business honestly, transparently and with integrity. To protect the Company and reduce risks, we have set out a policy on how we should conduct business, which we summarise in the form of the Babcock Code of Business Conduct. Compliance with this policy is compulsory for our employees, business advisors and business partners (or, in the case of business advisors and partners, they must have equivalent standards and procedures in their own businesses).

We believe that a culture of respect for, and protection of, human rights is embedded throughout our business and can be demonstrated by our commitment to principled conduct in everything we do. Our Modern Slavery Transparency Statement, which is referenced again in our Diverse and robust supply chain section, is reviewed and approved annually by the Board.

We recognise the very real risk of malicious cyber breach and work hard to ensure both our customers’ and our own information assets remain protected. Babcock’s Group Security Board meets quarterly to provide governance covering cyber and other security and informational assurance risks, issues and threats facing the Group. Babcock’s core IT services are certified to ISO27001 (Information Security) and ISO22301 (Business Continuity). In addition, following a recent external assessment, we retained our Cyber Essentials Plus certification which is mandatory for all suppliers of Government contracts that involve handling personal information and providing certain IT products and services.

The focus for FY22 is to work towards aligning procurement processes and standards with ISO 20400 and this includes ensuring that we consider circular economy principles including recycling and disposal options.

We follow the Payment Practices and Performance Regulations which require us to report on a half-yearly basis on our payment practices, policies and performance. This information is published through an online service provided by the government and is available to the public.