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Environmental, Social & Governance Report

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Environmental, Social & Governance Report ESG Environmental, Social & Governance Report Aerojet Rocketdyne 2020 ESG Report Table of Contents About Us Aerojet Rocketdyne is a world-recognized supports our business and our efforts to meet Section One - Social Responsibility technology-based engineering and or exceed the expectations of our customers, Aerojet Rocketdyne Foundation .......................................................... 7 manufacturing company that develops and deliver best-in-class products and services, Employee Volunteer and Giving .......................................................... 8 produces specialized power and propulsion and uphold our high ethical standards while Sponsorship and Donations ................................................................ 8 systems, as well as armament systems. We conducting business with a regard for the develop and manufacture liquid and solid rocket preservation and protection of human safety, Employees and Community ................................................................. 9 propulsion, air-breathing hypersonic engines, health, and the natural environment. Human Resources and electric power and propulsion for space, Section Two - Our Shared Values of Accountability, defense, civil and commercial applications. Tuition Assistance Program ............................................................... 13 Adaptability, Excellence, Integrity and In addition, we are engaged in the rezoning, Scholarship Program ......................................................................... 14 Teamwork are intended to align our workforce entitlement, sale and leasing of our excess real Employee Resource Group ............................................................... 14 and shape our culture, enabling us to create a estate assets. collaborative environment in which we can do Wellness ............................................................................................ 15 We have demonstrated a legacy of successfully great things. Recruitment and Employment ........................................................... 16 meeting the most challenging missions Inclusion and Diversity ....................................................................... 17 At Aerojet Rocketdyne, we believe that doing by producing some of the world’s most what’s right is more than just obeying laws and technologically advanced propulsion systems to Section Three - Environmental Stewardship regulations. We hold ourselves to a high ethical meet our nation’s critical needs. Our strategic standard even when the law doesn’t require it. Safety ................................................................................................ 21 focus is on creating and maintaining a broad Our Code of Conduct guides our day-to-day Remediation ...................................................................................... 22 spectrum of propulsion and energetic products business activity. We require all employees, Sustainability ..................................................................................... 23 assisted by the growing market demand for our contractors and Board members to abide by innovative energy management technologies. our code. Section Four - Governance and Ethics At Aerojet Rocketdyne, our Rocket Values are Aerojet Rocketdyne aspires to operate Corporate Governance ...................................................................... 27 fundamental to who we are and how we run responsibly, and this report describes many Board of Directors .............................................................................. 27 our business. of our important initiatives to further the Audit Committee ................................................................................ 28 Our Framework Values of Customer Focus; environmental, social and governance matters Governance and Nominating ............................................................. 28 Ethics & Compliance; Quality; and Safety, that impact our people, operations, and Organization and Compensation ....................................................... 29 Health & Environment form the foundation that communities. Non-Standing Board Committees ...................................................... 29 SECTION ONE Social Responsibility Aerojet Rocketdyne Foundation The Aerojet Rocketdyne Foundation is a separate nonprofit aerospace and defense industry. The Foundation provides public benefit corporation governed by a board of directors grants to national organizations as well as local groups in our comprised of employee volunteers of Aerojet Rocketdyne communities in the form of education gift matching, STEM Holdings, Inc. and Aerojet Rocketdyne. The Foundation’s program support and scholarships. Through the Education giving focus is primarily around science, technology, Gift Matching program, the Foundation matches employee engineering and mathematics (“STEM”) education in order to donations to schools and universities dollar-for-dollar, up to help develop future engineers and scientists to support the $1,000 per employee, per year. In 2020, the Foundation distributed nearly $825,000 in grants, scholarships and matching gifts. • $70,252 toward the Education Gift Matching program • $11,480 for American Red Cross disaster relief matching (hurricane and wildfire relief) • $80,475 toward National Merit and local high school STEM scholarships • $59,145 to the COVID-19 Relief Matching program, bringing the total impact to $118,290 (this program was extended through February 2021) • $250,000 was granted to COVID-19 relief efforts in the communities where Aerojet Rocketdyne employees live and work • The remainder was community-based STEM grants (science centers, rocket and robotics teams and other STEM partners’ programs) To date, the Aerojet Rocketdyne Foundation has distributed nearly $14.5 million in support of education and community- based nonprofits since its inception in 1999. 7 Employee Volunteer and Giving Program Aerojet Rocketdyne Employees Care About Their Community Aerojet Rocketdyne Cares is Aerojet Rocketdyne’s in the database. Each quarter, five employees are randomly Aerojet Rocketdyne employees also care about their Employees also volunteer to maintain community gardens at enterprise-wide program that supports employees giving selected, and the charity or school where they volunteered environment and express that through their activities in their our Stennis Space Center location, and Soil Born farms at our and volunteering in their communities. In connection with the receives a $500 contribution from the Company. A year-end local communities. Employees have participated, and continue Sacramento site. The Company has formally adopted Topanga program, employees use a database to log their volunteer volunteer appreciation and recognition event is also held at to participate in a number of local community cleanup projects Canyon State Beach to clean up three times a year, located hours and annual giving goals. each Company site to honor top volunteers. such as the Adopt-a-Highway/trash pickup projects at the near its Los Angeles site. Company’s Camden, Orange and West Palm Beach sites. Since the inception of the Aerojet Rocketdyne Cares In 2020, employees donated nearly $300,000 to nonprofits Volunteer program in 2008, employees have logged almost and schools through the Aerojet Rocketdyne Cares Giving 200,000 hours of volunteer service. To recognize and reward program. Donations made through this program that are volunteer efforts, the Aerojet Rocketdyne Cares program has eligible for the Foundation’s Education Gift Matching program a quarterly drawing for employees who log volunteer hours are automatically matched. Giving Back - Sponsorships and Donations Aerojet Rocketdyne has a strong history of strategic support programs, civic responsibility, such as community charitable giving and sponsorships at national and local levels events and charities, and other local community support that include STEM and education initiatives, veteran/military initiatives. Enterprise funding for 2020 sponsorships exceeded $790,000 and was comprised of the following: • Defense & Space Activities – 42% • Community & STEM Activities – 31% • National Organizations – 21% • Local Chambers of Commerce – 5% • Veterans Associations – 1% 8 9 SECTION TWO Human Resources At Aerojet Rocketdyne, the Human Resources organization the Company for more than 50 years. Our voluntary attrition is aligned with the business to support the development of rate in 2020, including retirements, was 6.9%. Excluding proactive, smart solutions to the challenges of today and retirements, the voluntary attrition rate was 5.3%. tomorrow by igniting the power of our people and enabling the success of the Company. Human Resources engages We invest substantially in the training and development of our with executive leadership, functional management, and the workforce. In 2020, our employees completed almost 90,000 full spectrum of our employee population to support the hours of required training and nearly 16,000 hours of elective Company’s engine of success – its workforce – enabling it to developmental training. The courses completed help to equip deliver full power. each individual with the knowledge and skills necessary to perform their own roles as well as to facilitate their professional Our company is comprised of a talented, diverse and stable growth within their careers. workforce. As of Dec. 31, 2020, Aerojet Rocketdyne’s workforce consisted of 4,941 employees,
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