UK defence organisations are making progress against their environmental, social and governance (ESG) goals, a new report has found.
According to the inaugural UK Defence ESG Charter Report, defence organisations are sourcing 50% of their energy from renewable sources, have increased employment diversity by a third and have made a significant reduction in the intergenerational STEM skills gap.
Published by trade association ADS, founders of the UK Defence ESG Charter, the report outlines how the seven defence companies who have signed the charter — Airbus, Babcock, BAE Systems, Leonardo, MBDA, QinetiQ, and Thales — have seen a one-third reduction in their combined Scope 1 & 2 GHG emissions.
The report has also highlighted the sector’s ongoing progress to improve diversity, equity and inclusion across all levels. On gender equality, 20,500 women were employed by Charter signatories in 2023, representing a 28% year-on-year increase. Furthermore, signatories have demonstrated increases in early careers employment opportunities, with a 20% increase in graduate scheme employment and 25% increase in apprenticeship employment respectively.
Minister for Defence Procurement and Industry, Rt Hon Maria Eagle MP, said: “The UK defence industry produces world-class equipment that helps keep us and our allies safe. The companies support tens of thousands of skilled jobs and apprentices across the country, all while maintaining the strictest standards of governance.
“Through our Defence Industrial Strategy work we are backing industry to be an engine for UK economic growth. The efforts demonstrated by the sector in the ESG Charter report are a reassuring reminder of our collective commitments to environment, social and governance principles.”
Kevin Craven, CEO of ADS, described the report as the “beginning of a long journey” and encouraged more stakeholders to sign up to the report’s aims.
He said, “Marking the start of a much-anticipated process, this report has highlighted that – against a backdrop of growing security challenges – it remains crucial that we continue to grow our industry sustainably.”
“Just one year since the launch of the Charter, it’s fantastic to support companies in fulfilling their commitments and witnessing their progress to diversity, decarbonisation, and upholding high regulatory standards. Being a good corporate citizen remains a key principle if we are to increase the value of our sector for the UK economy and our place in UK society.”
Operating under the highest levels of regulation and compliance, the report has also shown that our Charter signatories fulfil the UK’s standards on cybersecurity and information security management (ISO27001). By adhering to high standards of governance and sustaining a comprehensive export control system, the sector is well placed to support the growth of a stronger, safer, and more prosperous nation.
The inaugural Edition of the UK Defence ESG Charter Report reflects how far industries have come in recent years on their individual ESG journeys. Going forward, the Charter network, including eight new signatories, will continue to reflect industry progress through data points and real-life case studies.
The UK Defence ESG Charter was launched in January 2024 by seven leading prime organisations.
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