Corporate Responsibility & Sustainability
2009
The most important thing we build is trust Cobham’s products and services have been at the heart of sophisticated military and civil systems for 75 years, keeping people safe, improving communications, and enhancing the capability of land, marine, air and space platforms. The Group has four divisions employing some 12,000 people on five continents, with customers and partners in more than 100 countries.
Contents Data Verification Cobham is committed to providing reliable Messages 3 information regarding its Corporate Chief Executive Officer 3 Responsibility & Sustainability (CR&S) Director, Corporate Responsibility & Sustainability 3 performance. Verification of internal data supplied by Cobham’s business units has taken Cobham at a glance 4 place since 2004. For the 2009 reporting year, data from 16 business units, representing 59% Vision, strategy and governance 6 of the Group by turnover, was verified Vision 6 internally. Strategy 7 Growth 7 The data verification process comprised Technology 7 reviewing the selected business units’ data for Talent 7 errors, omissions and significant changes in Transformation 7 comparison with 2008 data. Where errors, Governance 8 omissions and anomalies are identified these are checked with the business unit to obtain Key focus areas 9 corrected and justified data. Consolidated data Stakeholder Engagement 10 2 is reconciled to account for acquisitions and Talent Management 13 disposals, and changes in exchange rates. | Contents Talent Development 13 Reporting excludes joint ventures. Diversity and Equality 14 Business Ethics 15 Safety, Health and the Environment 17 Occupational Safety & Health 18 Flight Safety 19 Environment 20
Performance summary 23
Front cover image Image courtesy Troy Brajkovich, Project Kaisei Cobham SATCOM provided Project Kaisei with a communications antenna to help support their research of the North Pacific Gyre. For more information see page 12.
www.cobham.com Messages
Chief Executive Officer
Corporate responsibility and sustainability committee that has developed a standardized continues to represent a key consideration in reporting and management approach. The our day to day business. Combined with our information obtained through these activities proven financial management and controls we is helping us shape our strategy to ensure we will continue to deliver added shareholder value. continue to remain a growing, dynamic international business. As Chief Executive We are currently focusing our efforts in four Officer, I ensure that the Board is kept areas. Firstly, engaging our key stakeholders to appraised of our work and takes account of identify current and emerging social and these issues in its Annual Risk Assessment and environmental risks and opportunities. monitors its progress throughout the year. Secondly, focusing on retaining, developing and attracting talent through dedicated We welcome your feedback and with your programmes. Thirdly, implementing our Code support we will continue to make Cobham of Business Conduct across the Group and even more successful as a responsible and finally, improving our management approach sustainable business that protects the lives to Safety, Health and Environment (S|H|E). This and livelihoods of people around the globe. report presents the improvements we have made during 2009 and sets out what we plan to achieve during 2010.
Notably, we have completed a Group-wide employee survey on our business strategy, successfully launched the Sir Alan Cobham Andy Stevens 3 Award employee recognition programme, Chief Executive Officer | appointed Ethics Officers in each of our Messages divisions and established a Group wide S|H|E
Director, Corporate Responsibility & Sustainability
At Cobham we recognise that acting • Developing a standardised Safety, Health responsibly towards our stakeholders adds and Environment management approach long-term value. During 2009 we continued • Achieving our 2010 energy efficiency target our journey by focussing on building the a year early foundations for integrating this approach into our business. We have achieved much in a We are not complacent and recognise that short timeframe. Included among our there is a lot more to do. We are committed to notable achievements in 2009 were: continuously improving our approach and engaging our stakeholders to help us better • Articulating our vision for integrating align our development plans. In 2010 we will Corporate Responsibility & Sustainability continue to implement and embed our into the business standardised management approach, build • Adding talent management as a key competency and find better ways to engage focus area our stakeholders. • Initiating the Sir Alan Cobham Award employee recognition programme • Launching a global ethics helpline • Establishing a Group Safety, Health and Environment Committee James Streater Director, Corporate Responsibility & Sustainability
Cobham plc | 2009 Corporate Responsibility & Sustainability Report Cobham at a glance
Cobham provides surveillance solutions to law enforcement, military, national security Cobham provides digital vehicle intercom systems to more than 18 armies worldwide. and border patrol agencies in more than 80 countries Image courtesy of the US Department of Defense
Cobham Avionics and Cobham Defence Surveillance Division Systems Division
Supporting people and platforms to see and be seen Providing a 360 degree mission perspective to decision makers
Capabilities Capabilities • Avionics – integrated systems and communication solutions • Sensor systems – radar, communication and electronic warfare • Surveillance solutions – audio, visual, tracking, locating, cellular, • Antenna systems – microwave antennas, composites and masts sensor, covert surveillance and search and rescue solutions • Defence communications – tactical communication, command 4 for government and civil agencies and control systems | Cobham at a glance at Cobham • SATCOM – land, marine and airborne communication systems • Analytic solutions – high end scientific, engineering and technical assistance for defence and national security
Principal locations Employees* Principal locations Employees* USA, UK, Canada, Denmark, USA, UK, Mexico, Finland, France, South Africa 2,947 Sweden 5,325 2008: 3,280 2008: 5,285
Revenue** Revenue** £487.3m £873.0m 2008: £432.8m 2008: £529.3m 26% 46% 26% 46% 2008: 29% 2008: 36%
Trading profit Trading profit £84.6m £164.4m 2008: £71.7m 2008: £105.2m 25% 49% 25% 49% of trading profit 2008: 28% of trading profit 2008: 41%
www.cobham.com Successful ‘wet contact’ aerial refuelling trials took place with the F-35B, short-take-off- One of four Beechcraft King Air B350 for the Military Flying Training Services (MFTS) and-vertical landing (STOVL) variant. Image courtesy of Lockheed Martin Royal Navy rear crew training contract
Cobham Mission Cobham Aviation Systems Division Services Division
Mission systems for extreme environments Outsourced aviation services
Capabilities Capabilities • Air-to-air refuelling systems • Warfare training • Weapons carriage and release systems • Special mission operations • Safety and survival systems • Flight inspection services • Weapons systems • Support services 5 | • Space systems • Airline – outsourced commercial aviation a glance at Cobham • Freight services • Aerospace engineering
Principal locations Employees* Principal locations Employees* USA, UK 1,533 UK, Australia, Germany 1,733 2008: 1,715 2008: 1,760
Revenue** Revenue** £317.0m £230.9m 2008: £302.0m 2008: £221.9m 17% 12% 17% 12% 2008: 20% 2008: 15%
Trading profit Trading profit £56.8m £31.3m 2008: £52.2m 2008: £24.8m 17% 9% 17% 9% of trading profit 2008: 21% of trading profit 2008: 10%
* At year end ** Includes inter divisional trading.
Cobham plc | 2009 Corporate Responsibility & Sustainability Report Vision, strategy and governance Vision
The most important thing we build is trust
Vision
To be the most trusted global partner for leading edge aerospace and defence technologies
Values
Trust Talent Technology
Strategic objectives 1 2 3 4 5 6
Be a leading subsystems Be in the top three Grow faster organically Materially enhance Develop a global Have an efficient supplier with a in each of our than the markets in growth through market presence organisation with a high comprehensive range of chosen markets which we operate strategic acquisitions with a unified brand performance culture distinctive technologies and identity and motivated people
6 | Vision, strategy and governance and strategy Vision,
Enablers Growth Technology Talent Transformation
Focus on the customer and Invest in advanced, market Develop key leadership and Create scalable Strategic performance management driven technologies technology capabilities Business Units able to incorporate acquisitions Build on a significant and growing Exploit core technologies in Actively manage careers with US presence adjacent markets opportunities across markets Drive economies of scale and internationally across divisions Develop capabilities in emerging Increase PV investment to 6% of growth markets Technology Divisions’ revenue Be an employer of choice Share expertise and consistently – attracting, recruiting, retaining apply core Cobham processes Grow export business in Create a vibrant technical community and motivating the best talent home markets with strong external links Build and leverage the Cobham brand Be an acquirer of choice Develop products and services that consider the environment in their design
“Having an integrated, responsible and sustainable approach to our operations makes good business sense and is expected by our employees, customers and shareholders.”
Richard Tyson President, Cobham Avionics & Surveillance Division
www.cobham.com
Strategy
We delivered double digit earnings growth in 2009 whilst reducing our Carbon, Waste and Water Footprint. This demonstrates the business case for environmental sustainability.
Total revenue Growth being a key differentiator particularly within £1,880.4m (2008: £1,466.5m) Engaging customers by understanding their the graduate community. Cobham needs and level of satisfaction with our recognises this challenge and continues to 28% products and services in turn enables build talent management programmes to development of new products and services attract and retain a high performance Total Carbon Footprint and the improvement of existing offerings. The workforce that is engaged, motivated and
465,476 tonnes CO2e value chain has an increasing focus on challenged. (2008: 483,819 tonnes CO e) 2 corporate responsibility and sustainability and is responding to the major global social and Transformation -3.8% environmental challenges of our time. These Standardisation of Cobham’s business challenges are greatest in the emerging processes and the fostering of organisational Total Waste Footprint markets. An integrated approach to corporate learning is a key component in the process of 7,844 tonnes (2008: 12,604 tonnes) responsibility and sustainability will enable the transforming the Group. Planning and meeting of these challenges and support our implementation of standardised processes -38% customers in meeting theirs. for issues such as business ethics, compliance, health & safety, environment and Total Water Footprint Technology philanthropy is underway and being aligned 231,207 m3 (2008: 395,494 m3) The economic downturn continued to impact with existing business processes. Building traditional sources of military revenue in home Cobham’s core values into standardised -42% markets and key customers have responded by processes helps to create a shared sense of applying their core expertise into emerging identity that strengthens our brand. growth opportunities such as renewable 7 | energy and environmental defence. The governance and strategy Vision, downturn has also impacted the global aviation industry, and Cobham’s focus on the design of Cobham’s vision for Corporate leading-edge aerospace and defence Responsibility & Sustainability is: technologies with the environment in mind enables us to support our customers in • To be fully integrated into corporate pursuing new growth opportunities while governance, strategy, performance reducing the operating costs of their platforms. management, reporting and assurance • To act responsibly with all Talent stakeholders Competing for high performance talent • To inspire and motivate employees remains a significant area of focus for Cobham. • To work smarter, not harder For knowledge workers, the ability to make a positive difference in the world is recognised as Achieving this vision will add value to all stakeholders.
“The success of our strategy hinges on our ability to attract, develop and retain outstanding talent. A well developed and integrated CR&S strategy is a key part of this; Cobham will not be a desirable place to work unless we take our responsibilities seriously, looking after our people, the
Pete Raby Executive Vice President communities in which they live and work, of Operations and the wider environment and creating a company in which we are proud to work.”
Cobham plc | 2009 Corporate Responsibility & Sustainability Report
Governance
Cobham’s governance reflects the increasing importance of corporate External Recognition responsibility and sustainability as a core business management strategy. Corporate responsibility and sustainability is embedded within the Company’s Cobham Sensor Systems in San Diego (formally REMEC Defense and Space) was named by the governance policies and is being integrated within our business processes. San Diego Business Journal as one of the 50 Best Places To Work In San Diego and the ninth best in the large Company Category Cobham’s corporate responsibility and The role of the Corporate Responsibility & (250+ employees). sustainability direction is steered by the Sustainability committee is to: Corporate Responsibility & Sustainability Committee formed in 2008. The committee • Review the effectiveness of internal is chaired by the Chief Executive Officer who processes and controls for identifying risks has overall accountability for such matters. and opportunities in relation to material The Director, Corporate Responsibility & environmental, social and governance issues Sustainability has responsibility for the • Review and challenge Cobham’s development and implementation of performance on managing these issues the strategy. • Monitor the integrity and effectiveness of the Group’s communications on its External Recognition Membership of the Corporate Responsibility & performance Sustainability committee during 2009 Cobham Surveillance in comprised the Chief Executive Officer, Chief The Corporate Responsibility & Sustainability Segensworth was Operating Officer, Group Communications committee is served by two sub-committees: honoured with its first Queen’s Award for Director, Chief Legal Officer and Company the Business Ethics & Compliance Committee Enterprise for Secretary, Executive Vice President for Cobham (see page 16) formed in 2008 and the Safety, International Trade, Corporate North America and Director, Health & Environment Committee formed in after trebling the size of Corporate Responsibility & Sustainability. 2009. (See page 17) its overseas exports 8 from 2006 to 2009. | Vision, strategy and governance and strategy Vision,
Allan Cook former Chief Executive Andy Stevens Chief Executive Officer Julian Hellebrand Chief of Staff Officer (former Chief Operating Officer) (former Group Communications Director)
Eleanor Evans Chief Legal Charlie Stuff Executive Vice President James Streater Director, Corporate Officer and Company Secretary Cobham Corporate North America Responsibility & Sustainability
www.cobham.com Key focus areas
Cobham’s Corporate Responsibility & Sustainability focus areas are as follows:
Stakeholder Talent Business Safety, Health Engagement Management Ethics & Environment
Engaging key stakeholders to Engaging, challenging and motivating Acting ethically and responsibly Providing safe working conditions understand their concerns as well as people to attract, develop and retain towards key stakeholders and practices, as well as reducing current and emerging issues in the a high-performance work force environmental impacts operating environment
Cobham’s strategy is to standardise and systemise management Further information on Cobham’s policies, approaches in its focus areas and to fully integrate them into its core strategies and performance for each focus business processes such that its performance can be effectively and area are provided in the following report. A efficiently monitored, challenged and improved. summary of key performance indicators is included at on page 23.
Product Diversification and New “We are driving to implement Product Diversification and Technologies – Case Study standard operating procedures New Technologies – Case Study Enhancing Air Ambulance across the business. It is a Improving Safety in South Africa’s Communications Deep Mines fundamental design principle for our new operating framework 9 | that we embed rigorous areas Key focus standards for ethical behaviour, employee safety and environmental sustainability. Standard procedures help us to simplify the organisation and Image courtesy of Yorkshire Air Ambulance raise standards of performance to meet the ever increasing Cobham Antenna Systems in Marlow, was selected to supply the latest dual-TETRA radio demands of the marketplace.” system to the Air Ambulance Trusts in England. Cobham will supply 18 systems, together with a ten-year support package and should eventually lead to the majority of air ambulances in England being fitted with the Cobham system. TETRA systems provide the air ambulance crews with flexible, secure communications with; their Martin Dewey, Cobham Surveillance, with John Brandt ground controllers, ambulances, police, fire and reseller in South Africa other Airwave users. This is a quantum improvement over communications systems Cobham Surveillance in Segensworth has previously available to air ambulance users. The successfully trialled its COFDM (Coded radios also have the capability to transmit data, Orthogonal Frequency Division Multiplexing) David Johnston Executive Vice technology below ground in the Moab Khotsong for example patient vital signs and the President of Strategy GPS-based location of the aircraft through the mine in South Africa. The technology transmits Airwave network. real time audio and video to the surface control tower enabling rapid emergency response to any life threatening situations thereby improving mineworker’s safety.
Cobham plc | 2009 Corporate Responsibility & Sustainability Report Stakeholder Engagement
Cobham plc Employees
During 2009, a register of Employee Survey - Overall Results stakeholder engagements with key stakeholders was developed which Negative Response Positive Response identified the need for an improved Attitudes to the Cobham Group -28% 72% process to map stakeholders and engagement processes, define Attitudes to the Business Unit -25% 75% material issues more clearly and link Attitudes to their Role -27% 73% the findings to risk management Attitudes to Safety -15% 85%
and strategic planning processes. Attitudes to the Code of Conduct -17% 83%
A Cobham-wide employee attitude survey was -100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100% undertaken during the last quarter of 2009 focussing on corporate strategy, business Cobham responded to the Carbon Disclosure be hurt or killed. Cobham is a leading developer 10 ethics and safety. The survey achieved a 40 percent response rate and indicated Project in 2009, achieving a Carbon Disclosure of hand-held and vehicle-mounted technologies | Key focus areas Key focus significantly more positive responses than Leaders Index score similar to or better than that detect and neutralise such weapons. negative. Action plans are being developed to the majority of our sector peers. We are prioritise and address the findings to reviewing our peers approach to identify any continuously improve performance. other opportunities to improve our management of this issue.
We received several inquiries from the investment community regarding our involvement with controversial weapons such as cluster munitions or anti-personnel mines. Cobham’s position on this issue is that it does not make or sell cluster munitions or anti- personnel mines and does not approve of their 2009 saw the launch of the first annual Group use where there is any potential for civilians to wide employee recognition programme. The Sir Alan Cobham Award, named after the Group’s innovative founder, was created as a 2009 Sir Alan Cobham Award Results peer nomination programme to allow Customer Satisfaction employeesCorporate to nominate Responsibility colleagues & Sustainability for going 1111 Platinum above andTeam beyond Work their everyday duties in the 3 24 33Gold areas of TechnicalEmployee Engagement Innovation, Employee 8 57 10 Silver Engagement,Technical Customer Innovation Satisfaction, Team 27 11 40 81Bronze Work and Corporate Responsibility & Sustainability. The nominations are assessed by Customer Satisfaction an internal panel, with the overall winners Corporate Responsibility & Sustainability 1111 Platinum selected by the Chief Executive Officer. A total Team Work 3 24 33Gold of 172 nominations were received during 2009 Employee Engagement 8 57 10 Silver with the winners being selected during the first Technical Innovation 27 11 40 81Bronze half of 2010.
www.cobham.com Stakeholder Engagement
Cobham sponsored and supported the Examples include the following: following organisations in 2009: Cobham Mission Equipment in Wimborne • Help for Heroes (UK) donated a team of over 20 graduates and • The Science Museum (London, UK) apprentices to create a new jungle themed • Intrepid Sea, Air and Space Museum outdoor learning and garden area for a local (New York, USA) primary school. In addition to bringing the pupils • Schools in Aerospace (UK) ideas to reality, the team donated new benches • Young Engineers (UK) which were created by the apprentices.
In addition, many business units support Cobham Mission Equipment in Wimborne apprentices charities that are locally important to them and graduates ‘Care in the Community’ project” as well as sponsor events and teams in their local communities. Cobham plc’s India Liaison Office Cobham Sensor Systems in Lansdale sent a sponsored a children’s baseball team during team of 12 volunteers to the local “One In “As a company, Cobham is striving the 2009 season. The New Delhi Little League Commitment Multicultural Community to better serve its stakeholders and involves over 400 children between the ages Center”, an organisation with a mission to help the communities in which we of six and 15 over 20 countries and is based immigrants acclimatise to living in the USA. The operate by putting corporate at the US Embassy’s baseball field. The team donated a day each of their time to assist responsibility and sustainability at “Cobham Mets” have a healthy sense of in the refurbishment of the centre. the heart of its strategic and competition however the emphasis is firmly on fun for the children. Cobham Sensor Systems in Lansdale raised operational planning. While we still more than US$5,000 for the National Multiple have much to do there has been Cobham Antenna Systems in Marlow Sclerosis Society through a sponsored six mile 11 | good progress over the past year” stepped out for charity this summer taking part walk by a team of Cobham employees. areas Key focus in a fun run, a night walk and a cycle race. Cobham Life Support in Davenport fielded Cobham plc in Wimborne’s Finance a 39-strong team for the 2009 Race for a Cure, department were involved in resurrecting the a five kilometre run to raise funds for breast garden area of Julia’s House, a hospice for cancer raising a total of US$250,000. children with life limiting conditions. Duties included painting the decking and fences, cleaning all of the building’s gutters and re-building the dilapidated water feature.
David Squires President, Cobham Mission Systems Division
Cobham Aviation Services UK in Christchurch welcomed 12 children from Chernobyl, part of the Chernobyl Children’s Lifetime Link Charity, to the South of England for an action packed day learning about Cobham’s work with the Royal Navy and Royal Air Force and exploring an aircraft maintenance hangar and Falcon aircraft.
Larissa Gillett and Captain Gary Wakefield at Cobham Aviation Services UK in Christchurch with children from Chernobyl
Cobham plc | 2009 Corporate Responsibility & Sustainability Report Stakeholder Engagement
Cobham SATCOM in Orlando donated the satellite equipment and associated support necessary to University of Central Florida’s “Interactive Expeditions” distance learning sessions from India, focusing on the country’s ethnobiology, biodiversity, and culture.
Interactive Expeditions distance learning equipment in India, donated by Cobham SATCOM in Orlando
Cobham communications antenna enables Cobham Sensor Systems in San Diego documentation of ocean cleanup expedition was the presenting sponsor at a “Welcome Home” event for nearly 2,000 active duty US Marines and sailors at Marine Corps Air Station Miramar. The base Commanding Officer Col. Christopher O’Connor and 3rd “At Cobham we are increasingly Marine Aircraft Wing Commanding General Terry Robling addressed the service members 12 focused on the task of ensuring who returned from overseas deployments. | Key focus areas Key focus that the way we do business Marine Corps Community Services organised a reflects our responsibilities to the relaxing afternoon to honour these heroes, communities in which we complete with food, celebrities and operate, the safety, health & entertainment. wellbeing of our employees & our
belief in the highest standards of The total amount donated during 2009 was ethical behaviour & performance” £85,423 (2008: £84,594). Of this sum, individual donations in excess of £2,000 to UK charities were made to the value of £10,000 to armed services charities and £6,350 to business Cobham SATCOM in Concord teamed with enterprise charities. Project Kaisei to help support their research of the North Pacific Gyre, an area of the Pacific It is Cobham’s policy that contributions to Ocean polluted by a vast mass of floating political parties or candidates are strictly plastic and other debris. Cobham provided the prohibited, as such, no contributions were project with a communications antenna that made to political organisations during 2009. allowed the project team to access voice and Martin Burgess Executive Vice President Cobham recognises that its time, of Human Resources internet connectivity through airtime provided by Marlink. expertise and some of its products are far more valuable than its cash donations. As a result, Cobham will conduct a strategic review of all its philanthropic activity during 2010 to look into ways in which Cobham can best serve the communities in which it operates and the developing world.
www.cobham.com
Talent Management
Cobham’s success in the technology management, procurement, finance, supply market is defined by one constant; chain and human resources thereby providing the organisation with the best career advancement and progression in people will invariably secure the chosen fields of expertise without the requirement to switch professions best results. • Divisional High Potential – identifying and developing individuals throughout the Talent Development Divisions with the capacity to step into Talent development is underpinned by senior divisional positions. One hundred and Cobham’s robust Performance Management forty-four employees have participated in Jeremy Wensinger President, system which allows talented individuals to this scheme to date and a further 64 have Cobham Defence Systems Division flourish and drive the business forward. The been identified for inclusion primary mechanism used to develop talent is • Senior Development Programme – “I am personally committed to the electronic Personal Development Review developing adaptable, talented individuals ensuring that we offer a (e-PDR) which allows employees to discuss capable of taking on senior leadership roles compelling environment for our their performance with their managers, set within the business. Eighty-four employees their business and personal goals together and talent. Our future success is have participated in this scheme to date and incumbent upon our continued track their progress throughout the year. a further sixteen have been identified for inclusion commitment to the environment The e-PDR is used to identify individuals across • Executive Development Programme – and programs that drive different levels of the organisation for a suite continuous professional development for environmental sustainability.” of tailored talent management programmes. the senior management team These programmes include: These programmes ensure that Cobham’s • Apprenticeship Scheme – an entry level Product Diversification and New talent pipeline is well populated and supports Technologies – Case Study technical route for those not seeking to effective succession planning. 13 immediately enter tertiary education. The Enhancing the Disarming of IEDs | Key focus areas Key focus programme has been operating successfully To harness the full potential of our talent at Wimborne, UK for a number of years and management strategy, Cobham has embraced is now being implemented in several other the principles of Strategic Workforce Planning UK facilities to identify the workforce implications of • Graduate Development Programme – business strategies and using our Talent securing new talent from selected tertiary Management programmes to support and education institutions in the UK. Thirty-three enable success. The HR team supports the UK graduates were on placement business in determining their workforce The use of unmanned ground vehicles in theatre enables soldiers to perform certain tasks while throughout the Group during 2009 and an requirements in order to enable successful intake of US graduates into our American maintaining a safe distance from the enemy. application of their business strategies over the Cobham Surveillance in Nashua’s COFDM (Code businesses will occur in 2010 next five years. Once these requirements have Orthogonal Frequency Division Multiplexing) • Mission Critical Workforce – producing been outlined the Talent Management capability extends the range of the remote leaders and specialists in specific functional programmes can be deployed to create the control of multiple unmanned ground robot platforms to disarm IED’s (Improvised Explosive areas such as engineering, life cycle desired future workforce profile. Device’s) at greater distances improving safety.
Martyn Dickson, Apprentice at Cobham Mission Equipment in Wimborne
Cobham plc | 2009 Corporate Responsibility & Sustainability Report
Talent Management
Strategic Workforce Planning will also enable us Diversity and Equality Employee Recognition to procure the future skills that the Company Information on diversity and equality is will require where they may not exist already. collected from each business unit on an annual This will be achieved through appropriate basis. During 2009, the total percentage of learning and development – such as females working within Cobham fell from 30% international assignments – managed through in 2008 to 29% in 2009. the individual’s Performance Management, or by the transfer of a suitably skilled individual With respect to diversity within management from elsewhere – either internally or via roles, the percentage of females in a external recruitment. management or senior management role was recorded as 18% compared to 2008 figures of In order to support this internal mobility and 23% and ethnic minorities percentages fell the attraction of top external talent, plans for from 11% to 9%. 2010 include development of a new careers Gerry Bishop with his family collecting his MBE website and the launch of a dedicated Gender Diversity recruitment team. Cobham was pleased to announce that UK Percentage of females in total workforce employee Gerry Bishop, Cobham’s Employee Development Manager, has been awarded Cobham is committed in developing the skills Member of the Most Excellent Order of and competencies of its employees. During 2009 29.02% The British Empire (MBE) in the New Years 2009, over 203,741 hours (2008 = 164,668 2008 29.60% Honours list for services to the defence industry. hours) was spent on training employees across 2007 28.64% areas of professional and Technical Development, Safety, Health and Environment, Business Ethics and Management. On average Age Diversity this reflects 17 hours training per employee Percentage of workforce by age groups 14 during 2009, an increase from 13 hours per
| 2009 618402610 Key focus areas Key focus employee in 2008. 2008 61940269 2007 72240247
<25 26-35 36-49 50-59 >60
UK employee Colin Chitty, Managing Director of Cobham’s flight inspection business, was Ethnic Diversity appointed a Member of the Most Percentage of ethnic minorities within Excellent Order of The British Empire total workforce (MBE) in the Queen’s Birthday Honours list published on 13 June 2009. The honour is for services to the aviation industry. 2009 17% 2008 16% 2007 18% Warren Tucker Chief Financial Officer
“We are a people business; While Cobham is an equal opportunity attracting, retaining and employer, it recognises that it must strive to inspiring them are critical. make the workplace more accessible for all, We will not do this unless we something which is essential to attracting high have regard to community, performance talent and fostering innovation. environment and wellbeing” This is an area we intend to focus on more closely in future. Australian employee Peter Nottage, CEO of Cobham Aviation Services Australia, was awarded on 29 October 2009 the Australian Bi-Centennial Award for his dynamic, far reaching and very influential work for Australian aviation.
www.cobham.com
Business Ethics
Code of Business Conduct
Cobham has operated a Code of Business Conduct (“Code”) for several years because acting ethically and responsibly towards key stakeholders The most important thing we build is trust 15 creates fundamental value. The Group pursues and values the highest | standards of ethical behaviour in all aspects of its business, and expects areas Key focus the highest standards of ethical behaviour in everything it does. Our leaders are required to lead by example; ethics and integrity is a way of Cobham’s Code of business at Cobham, reflected in the Group’s values and tag line – Business Conduct The most important thing we build is trust. brochure is available to all employees
Cobham has signed up to, fully supports, and is As of year end 2009, a substantial proportion Additional compliance training on selective implementing two industry standards on of all employees had completed ethical topics is being provided. Training is provided ethical conduct. The first is the Aerospace and awareness training. Our ethical training through a mixture of on-line training, written Defence Industries Association of Europe’s programme will continue to be developed such briefings and face to face and video/DVD (ASD) Common Industry Standards for that business ethics issues are communicated presentations. European Aerospace and Defence. The second and training provided at every level in Cobham. is ASD’s and The Aerospace Industries Cobham’s Business Ethics programme is Association of America’s (AIA) Global Principles On completion of the training, employees are managed by a Business Ethics and Compliance of Business Ethics for the Aerospace and required to acknowledge and confirm that they Committee (BE&CC) comprised of senior Defence Industry. have read the Code, understand its provisions Cobham executives. The Group’s approach and will follow it in their business activities. focuses on use of a global ethics helpline, The Code sets out Cobham’s approach to Refresher certificates require an additional administered by EthicsPoint in support of legal and ethical conduct and specifies acknowledgement that employees have a the Code. employees’ responsibilities. It covers matters responsibility to bring violations of the Code of personal integrity, employee relationships, to the attention of their supervisors or report The global helpline was launched in July 2009, relationships with customers, suppliers, the them via the helpline referred to below. is available in local countries and is well community and others, and possible breaches They also require a confirmation that the publicised across the Group. The helpline allows of the Code. In 2009 the Code was translated employee has not violated the Code and that anonymous calls and e-mail interaction with into Latin American Spanish, French, German, they have no knowledge of any unreported ethics officers. The EthicsPoint system Danish, Finnish and Swedish. ethics violations.
Cobham plc | 2009 Corporate Responsibility & Sustainability Report
Business Ethics
facilitates a Group wide confidential case tracking system thus enabling us to track cases Employee Survey – Code of Business Conduct in a variety of ways and to report on a regular Negative Response Positive Response basis, the results of investigations and any disciplinary action taken, to the Group I believe Cobham plc is doing a good job in raising awareness about the Code of Business Conduct -19% 81% Executive and Board. I think Cobham plc’s Code of Business Conduct is clear and easy to understand -17% 83% I believe that Cobham plc lives up The Group has also appointed Business Ethics to the values expressed in the Code -17% 83%
and Compliance Officers (“BECOs”) for each I know how to report a concern -14% 86% Cobham business unit whose principal I believe that if I do report a concern I will -22% 78% responsibilities include implementation of the be listened to and action will be taken I believe that Cobham plc treats potential ethics awareness training programme and the breaches of ethics issues seriously -11% 89% provision of a sounding board for employees’ concerns. The BECOs are further supported by -100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100% Divisional Ethics Officers and the BE&CC.
The results from the first Group wide employee Cobham employs various systems, plans In 2010 the Group plans to: opinion survey conducted in September 2009, and tools to: as they relate to ethical issues are set out • Place a copy of the Code on the Cobham below. The results are overwhelming positive • Track corrective actions to completion internet site and it is important to note that this survey • Actively manage and promote ethical • Continue ethical awareness training pre-dated the roll out of ethical awareness behaviour in employee performance • Work closely with BECOs to ensure they are training to non-US employees which occurred management systems supported in their important roles in the last quarter of 2009. • Assess employee awareness of the Code • Further deploy the requirement for all and adherence to the values in the Code Cobham’s employees to abide by the Code 16 and to act with integrity at all times | Key focus areas Key focus
Business Ethics and Compliance Committee (BE&CC) “At Cobham acting ethically and responsibly towards our key stakeholders is of paramount importance and creates fundamental value. Our Code of Business Conduct sets out our values and every employee is required to comply with it. Compliance is the individual responsibility of every employee and if any stakeholder believes there is a violation of our Code they are encouraged to speak out, without fear of retaliation. All potential violations are investigated, the process is overseen by senior management Eleanor Evans Chief Legal Officer and Company Secretary and appropriate actions are taken.”
Martin Burgess Executive Vice Richard Tyson President, Cobham Kelly Coffield President, President of Human Resources Avionics and Surveillance Division Cobham Life Support
www.cobham.com
Safety, Health and the Environment
Safety, health and environment Achievement of ‘Zero Harm’ will not be easy and have visibility at the highest level represents a cultural shift from historical and within Cobham and are considered traditional S|H|E management practices but this essential to the way business is approach will add value to Cobham by positively impacting our employees, our communities, our conducted across the Group. customers and the world we live in. Cobham’s goal is to achieve zero occupational illnesses and injuries The strategy comprises six core elements which and to minimise its environmental are being developed and implemented over an impacts. This is captured through agreed two year plan during 2009 and 2010: the Group’s ‘Zero Harm’ strategy.
Strategy Element 2009 2010
Developing and implementing a standardised Safety, Health and Environment management approach • • Building key Safety, Health and Environment performance indicators into our management scorecards • • Completing a Group-wide employee safety climate survey • Embedding Safety, Health and Environment within the Group’s standard operating framework • Developing and implementing a Safety, Health and Environment competency framework • Creating a reward programme for excellent Safety, Health and Environment behaviour • 17 | Key focus areas Key focus Responsibility for development of the strategy • A Group level Safety, Health and • A set of standardised tools to undertake gap rests with the Group Safety, Health and Environment policy signed by the Chief analysis and self assessment against the ten Environment Committee under the direction Executive Officer which takes precedence Safety, Health and Environment of the Corporate Responsibility & Sustainability over all other Safety, Health and Management Standards Committee, while accountability and Environment policies within the company • A set of external resource links, tools, responsibility for implementation rests with templates, case studies and best practice operational line management. Membership of information available for download the Safety, Health and Environment committee • A Safety, Health and Environment comprises senior practitioners and operations Leadership & community network and discussion forum Management personnel within the businesses and is chaired Commitment for addressing S|H|E management issues as by the Director, Corporate Responsibility & they arise Monitoring & Sustainability with support from the Group Risk Assurance • A news announcement service to raise & Insurance Manager. awareness and inform the Safety, Health and Communication Risk & Engagement Management Environment community regarding items of Since its inception in early 2009, the Safety, interest such as climate change, changes in Incident Emergency Health and Environment Committee has Management Management legislation (e.g. REACH and RoHS) and Safety, developed the standardised Safety, Health and Regulatory Health and Environment alerts arising from Planning & & Corporate Environment management approach that is Resources Competency Compliance accidents and incidents being implemented across all Cobham Continuous Improvement locations in accordance with an agreed plan. The standardised management approach comprises several elements which are housed • A set of ten Safety, Health and Environment in an internal web-based Safety, Health and Management Standards and associated Environment portal and include: guidance that provide direction on how The Group Safety, Health and safety, health and environment is to be Environment policy and Safety, Health managed across the Group in accordance and Environment Management with three increasing performance levels Standards are available to download for (Foundation, First Target and World Class) the Corporate Responsibility section of the www.cobham.com website
Cobham plc | 2009 Corporate Responsibility & Sustainability Report
Safety, Health and the Environment
In addition, the Safety, Health and Environment Committee has developed a set of lagging Accident Breakdown by Type safety Key Performance Indicators (KPIs) to % allow better comparison with both UK and 1 Repetitive strain 21 USA sector peers and are reported quarterly 11% 2 Slips and trips on same level 12 on a 12 month rolling average to smooth out 1% 21% 3 Manual handling 11 1% 4% 14 significant fluctuations for trend analysis. 4 Struck by moving object 8 1 These include: 5 Fall from height 7 4% 11 13 12 6 Contact with electricity 6 10 4% • Major Accident Incident Rate (MAIR) – 7 Contact with moving parts 5 9 2 Number of occupational illnesses or injuries 8 Exposure to harmful substances 5 8 5% 12% resulting in 3 or more days absence per 9 Contact with a fixed or stationary object 4 7 100,000 employees (for benchmarking 10 Struck by falling object 4 5% 6 3 against UK sector peers) 11 Explosion 4 5 • Days Away Incident Rate (DAIR) – Number 4 12 Struck by moving vehicle 1 6% 11% of occupational illnesses or injuries resulting 13 Other occupational health (e.g. stress) 1 7% 8% in 1 or more days absence per 100 14 Other (cuts, hearing loss, foreign object in eye etc) 11 employees (for benchmarking against USA sector peers) • Recordable Incidence Rate (RIR) – Number Employee Survey – Safety Climate of occupational injuries resulting in greater
than first aid treatment per 100 employees Negative Response Positive Response (for benchmarking against USA sector peers) • Severity Index – Number of lost working My manager regularly demonstrates that safety is important -18 % 82% days due to occupational illnesses and The supervision I receive enables -10% 90% 18 injuries per 100 employees (for me to do my work safely I have easy access to the necessary tools
| -10% 90% Key focus areas Key focus benchmarking against USA sector peers) and equipment to do my job safely I can report unsafe practices without fear of negative consequences -9% 91% A safety climate survey was completed in the Following an incident, lessons learned last quarter of 2009 as part of the Group wide are communicated effectively -22% 78% employee survey to baseline perceptions in I feel well informed about safety issues -15% 85% relation to safety. Approximately 40% of My suggestions on how to improve safety are valued -15% 85% employees responded and the overall result indicated a positive perception in relation to I get the training I need to do my job safely -13% 87% Managers/supervisors acknowledge safety within Cobham. me when I work -35% safely 65% I believe accidents at my -4% 96% The 2009 data collaboration process was workplace can be prevented
refined with the introduction of an online data -100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100% gathering tool, which has simplified the collection process and reduced manual entry errors by highlighting inconsistencies at source. Occupational Safety & Health Two of our business units reported that they The tool collects data on the areas of Over 90% of our business units had written had received a total of five statutory notices Environmental Management, Energy current health and safety policies in place from their respective health & safety regulators Consumption, Water Consumption, Waste and during 2009. Nearly 90% of the business units during site inspections and that the issues Recycling, HR and Health and Safety. In reported that their policies have been made identified had been corrected. No fines and/or addition to this, each business unit’s data is available to the majority of employees, visitors prosecutions were received during 2009. signed off by the respective General Manager and contractors at their facilities. Over two in a Data Declaration to verify the quality of thirds of our business units reported that they During 2009, the major accident incident rate the data input. had linked their policies to the Group policy increased to pre-2007 levels with a and that over 85% of our business units had corresponding increase in the number of lost provided all employees with a health and working days. We believe that there are a safety induction. We expect these numbers to number of contributory factors to explain this increase to 100% as we embed our S|H|E increase. Firstly, with embarkation of our Zero Management Standards. Harm strategy, and the embedding of our S|H|E
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Safety, Health and the Environment
Flight Safety Cobham has two Strategic Business Units “Safety is paramount in our (SBUs) within its Aviation Services Division business. We are committed to which undertake significant flight operations. developing a positive and These are based in the UK and Australia. While proactive culture which will each SBU manages flight safety independently ensure that our responsibilities all flight operations are conducted in line with global aviation standards and to ensure that regarding Safety, Health and the safety is the number one priority. The senior Environment are in excess of management teams strive to encourage a ‘just’ legislative requirements. The safety culture and utilise robust Safety assurance of the wellbeing of Management Systems (SMS) led by dedicated our employees and our staff to identify hazards, assess risks, establish environmental impact is mitigation processes and ensure compliance with all legislative safety requirements. Management led, with the involvement and co-operation The Australian SBU, the substantially larger of all employees.” operation of the two, operates a comprehensive Flight Surveillance Program Cobham Aviation Services UK employees that encompasses all aircraft in its fleet and is based on the University of Texas Line Operational Safety Audit principles designed to Management Standards, we are working to identify threats and errors on routine flights for create a just and equitable reporting culture. It trend analysis to reduce their prevalence. is well documented that accident statistics often increase when such reporting cultures Flight safety performance during 2009 was 19 | are initially developed as personnel feel more extremely good. The Division conducted a areas Key focus able to report their injuries and illnesses. significant number of internal, and received Secondly, we have raised awareness across our several planned external, audits from both the business of the need to provide accurate data regulator and clients which generally only and improved our data reporting processes. received minor observations. Cobham remains Steve Fitz-Gerald President, Lastly, accident rates can often increase in with a ‘chronic unease’ when it comes to flight Cobham Aviation Services Division times of economic downturn when employees safety to guard against complacency. During are known to become more individually rather 2010 our Australian SBU will complete a full than team focussed. It is possible that any or all review of its SMS to ensure its compliance with of these contributory factors are present as increased industry regulations that will be well as others that we are not aware of. We implemented through the year. believe that our proposed plans to improve our S|H|E management processes, as set out above, will generate the positive safety climate and KPIs 2007 2008 2009 reduction in occupational illnesses and injuries 1 we desire. We will continue to monitor the Major Accident Incident Rate (MAIR) 548 260 670 situation closely and intervene in problem Days Away Incident Rate (DAIR) 2 - - 0.94 areas if necessary. Recordable Incident Rate (RIR) 3 - - 1.70
The majority of occupational injury and illness Severity Index 4 - - 29.01 requiring greater than first aid treatment Lost Working Days 1,317 1,638 3,336 resulted from repetitive motion, slips & trips and manual handling which accounted for 44% of all injuries resulting in greater than first aid 1 MAIR – Number of occupational illnesses or injuries resulting in 3 with the remainder spread over a variety of or more days absence per 100,000 employees 2 DAIR – Number of occupational illnesses or injuries resulting in 1 or accident types. This is consistent with our more days absence per 100 employees analysis of previous years’ data and it is our 3 RIR – Number of occupational illnesses or injuries resulting more than first aid treatment per 100 employees intention to increase awareness and emphasis 4 Severity Index – Number of lost working days per 100 employees relating to ergonomic and in particular, repetitive motion, injuries going forward.
Cobham plc | 2009 Corporate Responsibility & Sustainability Report
Safety, Health and the Environment
Environment During 2009, Cobham achieved the following External Recognition Cobham recognises that its day-to-day performance in relation to environmental activities have an affect on the local and global management of its business units: environment. To this end, Cobham is committed to minimising its environmental • Zero breaches of environmental licences or impact by improving environmental permits (Target = Zero) management processes, driving energy and • Three fines were received costing a total of resource efficiency. GBP £7,855 (Target = Zero) Cobham Sensor Systems in San Diego has been selected as one of the 2009 Waste Reduction Awards Program (WRAP) Business Unit Environmental Management Key Performance Indicators winners by the California Department of Resources Recycling and Recovery (CalRecycle). 2009 38% Externally verified - 2008 30% ISO 14001/EMAS or similar Target 100%
2009 90% “A focused and integrated Written Environmental Policy 2008 78% approach to CR&S is essential if Target 100%
we are to successfully deliver our Energy, water or waste intensive 2009 14% strategy. Our stakeholders expect processes commissioned 2008 3%
us to maintain the highest Energy, water or waste intensive 2009 13% standards at all times, processes decommissioned 2008 11% demonstrating that the most 2009 70% Initiatives to improve energy, water or 2008 43% important thing we build is trust.” waste efficiency commissioned 20 Target 100% | Key focus areas Key focus 2009 24% Quantified energy, water or 2008 18% waste reduction targets Target 100%
2009 57% Initiatives to improve 2008 Not captured environmental compliance Target 100%
2009 40% Environmental criteria in 2008 Not captured Julian Hellebrand Chief of Staff supplier selection Target 100%
Product Diversification and New Technologies – Case The Group sets environmental performance Environmental performance targets will Study Enabling Safe Airborne targets on energy efficiency, water use and continue to be revisited to challenge the Deployment of Royal Marine Boats waste management. These were revised at the Group to improve its performance. A from Hercules C130J end of the 2007 (due to early achievement of carbon emissions target will be added to the original targets) to set out what Cobham the Group’s environmental performance Cobham Technical Services in Leatherhead, plans to achieve by the end of 2010 as follows: targets during 2010. assessed the safety hazards associated with the maintenance, loading, transportation, despatch and recovery of a new Rigid Inflatable Boat system from a Hercules C-130J as used by the Environmental Performance Targets Royal Marines. Cobham Technical Services has Performance Performance Target Performance Target Status an international reputation for producing Area (end 2010) (end 2009) (end 2009) thorough and effective safety cases for high integrity systems. Energy Usage 1,049 MWh/£m 953 MWh/£m Exceeded
Water Usage 113 m3/£m 123 m3/£m On target
Waste Generation 3.7 tonnes/£m 4.17 tonnes/£m On target
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Safety, Health and the Environment
Energy and Carbon Emissions During 2009, the Group’s total energy consumption of 1,792,531 MWh comprised 89.2% aviation fuel, 7.3% electricity and 3.3% natural gas with the remaining 0.2% being due to heating oil and other sources. While consumption of aviation fuel remains the Group’s largest source of carbon emissions, this reduced by approximately 5% when compared to the 2008 figure.
Cobham’s total carbon footprint decreased from 483,819 5 tonnes in 2008 to 465,476 tonnes during 2009. Normalisation of the carbon data in relation to turnover demonstrates a year on year reduction in tonnes of CO2 equivalent per £ million turnover. Cobham Mission Equipment’s new site in Wimborne is due to be completed at the end of 2010. This site has been designed with sustainability in mind; renovating, recycling and extending the original building and incorporating the latest technology in energy, water and waste efficiency
Energy Efficiency Performance Source of Purchased Electricity Product Diversification and New Technologies – Case Study MWh MWh/£m 117,630 Cobham Sensor Systems in San Diego 120,000 21 2000 | Key focus areas Key focus 100,000 1563 89,440 1500 80,000 1255 Target 1049 65,726 MWh/£m 1000 953 2010 60,000
40,000 500 20,000 10,667 13,263 7,315 A simple change in the software code has improved 2007 2008 2009 Reflow Oven efficiency 0 0 2007 2008 2009 Daily operations require the use of Nitrogen Electricity from Non Renewable Resources reflow ovens. The ovens require large volumes of Nitrogen gas due to being on during and in Group Carbon Footprint by Electricity from Renewable Resources Turnover (Scopes 1,2 and 3) between shifts, which causes unnecessary wastage and costs. Software was created to run (tonnes CO2e/£m) the ovens in “idle-mode” without the use of Nitrogen cover gas. This programme Aviation Fuel Consumption automatically idles the oven between shifts at 2009 248 night and on weekends, saving an estimated 2008 330 US$70,616 a year. 2009 1,599,193 2007 413 6 2008 1,683,155 Initial Cost: 8.5 Man Hours 2007 1,543,267 Benefits: 248,524 3m Nitrogen gas saved
5 Revised 2008 Data – originally 483,817 tonnes Annual Financial Savings: US$70,616 (estimated) 6 Revised 2008 Data – originally 334 tonnes CO2/£m
Cobham plc | 2009 Corporate Responsibility & Sustainability Report
Safety, Health and the Environment
Water Usage Water Efficiency Performance Product Diversification and New Over 2009 total water consumption was Technologies – Case Study reduced by 41.5% from 395,494 7 m3 in 2008 to Monitoring Flood Waters in the UK 231,207m3. The majority of this reduction (43%) m3/£m 300 was in the volume of mains water consumed 270 Cobham Surveillance in Segensworth’s fire while there as a 12% reduction in abstracted ground cameras enabled constant monitoring of 250 critical water levels as torrential rain, gale force water consumed. Approximately 3.51% of winds and snow caused flash floods across the water was recycled during 2009. 200 South of England. Avon Fire and Rescue put the 162 new Cobham technology into action to monitor 150 Waste and Recycling 123 Target the ever rising flood water. Live pictures were 113 m3/£m From 2008 to 2009 Cobham reduced the 2010 transmitted from various sites in Bath back to 100 their command unit on scene at the incidents, amount of waste generated by 37.8%. This is and from there satellite technology was used to attributed to improved operational and 50 relay live images back to a Multi Agency reporting practises across the business. The 2007 2008 2009 Command Meeting. This enabled constant destination of total waste produced shows a 0 monitoring of the situation so the appropriate 4% reduction in waste reused/recycled from resources were able to be deployed at the right time. This saved time and resources and enabled 43% in 2008 to 39% in 2009 and a 7% increase accurate communication of events through the in waste sent to landfill. This is set against the Waste Efficiency Performance chain of command as they unfolded. total amount of waste sent to landfill being reduced by 28% compared to 2008 figures. tonnes/£m 10 Cobham approaches waste reduction through Business Unit Initiative 8.59 the waste hierarchy model: Reduce, Reuse, – Case Study 8 Cobham Aviation Services in Australia Recycle. Reducing the waste at source, will have a downstream affect on the waste 6 22 available to reuse and recycle. Therefore, being 5.10 Target 3.7 | Key focus areas Key focus lean in the production of waste, means that 4.17 4 tonnes/£m the total waste available for recycling will also 2010 be reduced. 2
Product Stewardship 2007 2008 2009 Sixty seven percent of Cobham’s business units 0 reported that they considered environmental Replacement of bottled water with water filtration issues in the design of their products, services systems and refillable water bottles and processes. The majority of these were in informed of changes in guidance and updates Special Mission aircraft carry bottled water on all relation to producer responsibility legislation to the various annexes e.g. Substances of Very surveillance missions to ensure that the aircrew such as REACH, RoHS, WEEE and packaging. High Concern (SVHC) Candidate List. To date, remain hydrated. On average, each crew Cobham Technical Services also reported that the legislation has had a low impact e.g. member would consume a couple of litres of it considered optimisation of the power business units are primarily downstream users water during a six to seven hour mission. With over 3,000 missions per year, the company efficiency of their product designs. For many of substances that are used in accordance with consumed over 40,000 bottles of water per applications, size and weight were also the manufacturer’s proprietary uses. Where annum. Bottled water consumption is so high important considerations, particularly in substances in use have been entered onto the that it is delivered by the pallet load. As the aerospace. SVHC candidate list Cobham has been able to aircraft were already fitted with five litre water substitute these substances for less hazardous containers, a clean, reliable, chilled water source to fill the containers with was a simple, cost While product stewardship is addressed at the alternatives. effective and “greener” alternative. Two high business unit level, corporate is engaged with capacity water filtration systems have been customers and peers through sector As with all industries, Cobham recognises that installed and water bottles are issued to existing association which is looking to establish some substances may be withdrawn from the staff during implementation with new sector-wide environmental metrics and Life marketplace by the supply chain where the employees being issued with a bottle during their induction. Cycle Assessment processes. cost of registration, evaluation and authorisation requirements is considered Initial Cost: A$5,000 Compliance with producer responsibility prohibitive. Cobham is monitoring the situation Benefits: Removal of 40,000 bottles from legislation (e.g. REACH, RoHS) is addressed at through its sector association links to waste stream the business unit level. Corporate provides a continually evaluate the impacts to both Annual Financial Savings: A$40,000 coordinating role in keeping the business units Cobham and the wider industry.
7 Revised 2008 Data – originally 390,242m3
www.cobham.com Performance summary
Sustainability Indicator 2007 2008 2009 Economic Turnover £m 1,061.10 1,466.50 1,880.40 Trading Profit £m 198.9 251.6 337 Dividends (Pence) 4.5 4.96 5.45 Wages and salaries £m 275.2 371.5 491.9 Pensions £m 15.1 23.1 31.8 Social Total number of Full time and Part time employees 9,040 12,697 11,919 Employees taking part in employee satisfaction surveys % 0 0 14 Age diversity Employees aged < 25 % 7.6 6.2 6.0 Employees aged 26 - 35 % 21.6 18.4 18.5 Employees aged 36 - 49 % 39.8 39.8 40.1 Employees aged 50 - 59 % 24.0 26.2 26.1 Employees aged 60 + % 7.0 9.4 9.4 Gender diversity Full time female employees % 28 29 28 Part time female employees % 59 55 60 Total female employees % 29 30 29 Female Senior Managers % 20 23 18 Female Non-senior Managers % 32 24 29 Ethnic minority diversity Senior Managers % 11 11 8 Non-senior Managers % 21 16 18 Rate of voluntary employee turnover % 10 8.5 5.8 23
Average hours of training per year per employee hours 13 13 17 summary Performance Total training in sustainability % 13 10 10 Number of Health and Safety compliance fines/breaches 0 8 5 Total cost of fines/prosecutions for non-compliance with applicable £ 0 10,650 0 Health and Safety legislation Community Giving £ 67,744 84,594 85,423 Environmental Total Energy Consumption MWh 1,658,423 1,840,641 1,792,531 Electricity 1 MWh 73,041 100,107 130,893 Natural Gas MWh 38,121 52,476 58,624 Aviation Fuel 2 MWh 1,543,267 1,683,155 1,599,193 Electricity from Renewable Resources MWh 7,315 10,667 13,263
Total CO2e related to energy consumption tCO2 438,752 483,819 465,476 5 Scope 1 tCO2 407,074 136,105 139,640 5 Scope 2 tCO2 31,678 55,420 61,395 5 4 3 Scope 3 tCO2 (not captured) 292,293 271,879 Total Waste Generated tonnes 5,415 12,604 7,844 Total Hazardous Waste tonnes 615 1,327 684 Total Non-hazardous Waste tonnes 4,800 11,277 7,161 Total Waste reused/ recycled tonnes 2,238 5,372 3,074 Total Waste land filled tonnes 2,931 6,118 4,390 Total Water consumption m3 171,458 395,494 231,207 Number of Environmental compliance fines/breaches 1 0 3 Total cost of fines/prosecutions for non-compliance with applicable £ 7,500 0 7,856 Environmental legislation
1 Renewable and Non renewable Sources 2 Aviation Fuel Categories 1,2 & 3 3 Scope 3 includes: Aviation fuel for non–Cobham owned aircraft, Train, Air and mileage for non company car travel 4 Scope 3 limited to Aviation fuel for non–Cobham owned aircraft only 5 In line with World Resources Insistitue (WRI) Cobham plc | 2009 Corporate Responsibility & Sustainability Report The most important thing we build is trust
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