BAE Systems Releases Corporate Responsibility Report

April 18, 2007

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BAE Systems has released its 2006 Corporate Responsibility Report (PDF).

According to a stakeholder engagement Q&A included in the report, participants, including representatives from BAE, Environmental Groups, and the UK government, were disappointed that BAE Systems does not yet have a climate change strategy. The participants felt BAE had not yet thought through the implications of climate change for its
business or identified where risks and opportunities might arise.

If BAE adopts a climate change strategy, the participants felt it could improve the company’s relationships with three stakeholder groups:

Some investors want to know that companies in their investment portfolio have a strategy for responding to the
risks and opportunities of climate change.
The UK government has placed climate change high on its agenda following the Stern Review. There have been
parliamentary questions on CO2 emissions from military training flights and discussions on the potential impact of
climate change on national security. The UK Ministry of Defence aims for its office estate to achieve carbon neutrality by 2012 and will expect suppliers to help them reduce their carbon footprint.
Employees would appreciate BAE Systems articulating a clear policy on climate change. It was felt that employees
would respond positively to the company adopting a leadership stance on this issue and this could benefit morale
and productivity.

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