CSR Report 2007 (PDF 4.7MB)
Transcription
CSR Report 2007 (PDF 4.7MB)
Contents i Company Profile 6 Managing and Monitoring Our Progress CSR Highlights 2007 11 Looking After Our People Performance at a Glance 14 Health and Safety 2 CEO’s Introduction 17 Caring for the Environment 3 Our Corporate Social Responsibility Vision 22 Working with Communities 24 Leading in Our Marketplace CSR Timeline 25 Verification About this Report 1 4 Company Profile About this Report BBA Aviation plc is a leading provider of aviation services and systems, employing approximately 10,700 people in 11 countries on five continents. Our Company’s major geographic markets include the USA, Asia, the UK, and Europe, with our Company headquarters located in London, UK. This Corporate Social Responsibility (CSR) Report aims to help our customers, shareholders, suppliers, and other external parties to understand how we approach CSR and manage our performance on various environmental, social, and ethical issues. This annual Report will be communicated separately to our employees through an information pamphlet that will be distributed to all employees at every BBA Aviation facility. BBA Aviation focuses on serving two primary markets— Flight Support and Aftermarket Services and Systems. This CSR Report covers all of BBA Aviation’s operations from 1st January 2007 to 31st December 2007. It is our second CSR Report as BBA Aviation plc. Our Company’s CSR performance from 2001 through 2005 was reported as part of the BBA Group plc, from which we were created in 2006. Our Flight Support services (Signature Flight Support (SFS) and Aircraft Service International Group (ASIG)) include ground handling, cargo handling, passenger services, refuelling, de-icing, and other services to both the business and commercial aviation markets. SFS is the world’s largest fixed base operation (FBO) and distribution network for business aviation services. ASIG is a leading fueller of commercial aircraft in the USA and UK. For additional information on our Company’s CSR activities, including copies of our previous CSR Reports, we invite you to visit our website: www.bbaaviation.com. BBA Aviation’s Aftermarket Services and Systems activities, Engine Repair and Overhaul (ERO), APPH, and Legacy Support include the supply of aircraft parts, overhaul of jet engines, and legacy product support. Our services also include the design, manufacture, and overhaul of aircraft hydraulics, landing gear, and other aircraft equipment. BBA Aviation plc was created in November 2006 through the demerger of Fiberweb from BBA Group plc. For more information on our Company, please visit: www.bbaaviation.com. Key Financial Highlights 2007 Total Revenue: £979.4 million (up 3% on 2006) Underlying Operating Profit: £105.7 million (up 3% on 2006) 2i CSR Highlights 2007 • CSR Management System—We have identified businessspecific measures in the four key areas of health and safety, environment, community, and people, and are working with the individual business units to set improvement targets and monitor performance through quarterly business reviews. • Leadership Development—We introduced a new performance management process and leadership development programmes, which include leaders and potential leaders from across BBA Aviation. • Wellness—Employee wellness programmes have been set up at many of the business units to improve the overall quality of life of our employees. • Safety Improvement—Our Recordable Incident Rate (RIR) improved, dropping from 6.6 to 6.3 during the year. • Alternative Fuels—ASIG was involved in an industry working group evaluating the use of environmentally progressive alternative fuels within the aviation industry. • CSR Policy—BBA Aviation senior managers developed and are implementing an updated CSR Policy to guide our efforts. • Improved HS&E Reporting Systems—During 2007, a new electronic HS&E reporting, recording, and root cause process was implemented within ASIG and SFS Americas. We are rolling out this programme across the Company, and are instituting a more detailed senior management review of all recordable incidents and root cause analysis. • Green Building—SFS’s facility at the San Francisco International Airport began a renovation project incorporating green building design and use of alternative energy. SFS’s new FBO facility at Boston Logan International Airport also incorporated sustainable design features to achieve Leadership in Energy and Environmental Design (LEED) certification in 2008. • Apprenticeships—Support of apprenticeship programmes and other continuing education schemes throughout the business units has continued and expanded. • Supply Chain—APPH conducted a conference on supply chain issues, including breakout sessions on CSR-related topics. 1 CEO’s Introduction BBA Aviation can trace its roots back to 1879, when William Fenton returned to Dundee, Scotland from Sweden to start trading as a woven belt and pipe maker. Since then we have endured and prospered by responding rapidly to the radical and global social, political, and economic changes that have taken place over the last 129 years. During this time, we have continually evolved and reinvented ourselves to address these challenges and to take advantage of the opportunities they have created. improvement in its environmental efficiency, and we continue to support the effort to further improve the sustainability of aviation into the future. We take great pride, for example, in ASIG’s participation in a number of industry bodies evaluating the potential for alternative fuels in commercial aviation, such as the Commercial Aviation Alternative Fuels Initiative (CAAFI), and the International Air Transportation Association’s Technical Fuel Group (TFG) and Fuel Suppliers Advisory Panel (FSAP). We will continue to support such initiatives in the future. Within BBA Aviation, in 2007 we restructured our CSR Steering Committee to include a greater number of operational executives to provide improved direction to our CSR initiatives. At its recommendation, we have adopted a revised CSR Policy that was ratified by our Company’s Executive Committee and Board in 2008. The revisions to this Policy will result in a continuing focus on and commitment to CSR, particularly in the areas of energy use and carbon emissions. We have made significant progress in integrating the issues of CSR into the way we run our businesses and monitor their performance. The development of key CSR performance indicators that are measureable and meaningful continues, as does the standardisation of these measures across the Group where it makes sense. Developing strategies and action plans to drive continuous improvements in CSR are being incorporated into our strategic and operational planning and performance review process. Completion of the demerger of Fiberweb in November 2006 marked the beginning of the next exciting stage in our evolution. During 2007, our first year as a focused aviation and systems support group, we have made good progress in defining our management model and embedding the cultural change necessary to support our vision as a dynamic, world-class supplier to the global aviation industry, continuously delivering exceptional performance. Health and safety, in particular, continues to receive a high level of management attention. We acknowledge that rampside is a dangerous place in which to operate. Health and safety is now part of the key performance objectives of our senior management, and we have recently appointed a Group Director of Health, Safety, and Environment to share cross-business learning and best practice, and drive continuous improvement in these key areas. As a result, the Company has seen positive improvements in our health and safety performance, and this will continue to be an area of fundamental focus for us in 2008 and beyond. Our management model is based on independent business units, run by capable, empowered, and entrepreneurial management under wider strategic sponsorship with central coordination and oversight. An overarching vision, mission, and set of values and associated behaviors defines all of our business units and builds on BBA Aviation’s performancedriven culture, which is being enhanced by closer crossbusiness information, process, and technology sharing. Our people are key in driving this change and delivering the vision. They are our most valuable resource. Just as we invest in our businesses, we will increasingly invest in our people, developing, supporting, and providing them with the training, challenges, and experiences to realise their potential and to position BBA Aviation to take maximum advantage of its many exciting opportunities in this next phase of the Group’s development. In summary, BBA Aviation has a rich heritage, capable management, and strong individual businesses. We are in the process of undergoing a significant change in support of our vision and mission, where sustainability and corporate social responsibility are core. We have made good further progress in 2007 in a number of areas, and continuing changes in organisational design, resource allocation, management processes, and reward systems will ensure that we continue to drive and deliver continuous improvement in these core areas of our business in the future. Sustainability is core to our overarching vision, and BBA Aviation businesses have focused on CSR in its various guises for some time, measuring, taking actions, and improving the impact they have on their environment. Although we have a relatively small environmental and social footprint, we are conscious that we service an industry that continues to attract adverse comment regarding its impact on the environment and its contribution to climate change. The industry continues to work diligently to drive Simon Pryce August 2008 2 Our Corporate Social Responsibility Vision VISION S TAT E M E N T BBA Aviation’s vision is to create long-term sustainable stakeholder value. We aim to impact positively on society and the environment through the operation of our companies and the conduct of our personnel. This responsibility includes open and frequent communications with stakeholders, employees, and customers, as well as with the communities where our companies operate, on matters of health, safety, and environmental protection and preservation, and fair and equitable competition and employment practices. It is the individual responsibility of all BBA Aviation managers to ensure that these critical corporate values are reflected in daily business operations. Throughout 2007, BBA Aviation facilities have made concerted efforts to uphold our Corporate Social Responsibility Vision and to work in a manner that supports the six key values that underpin the way we do business—Integrity, Responsibility, Safety, Service, People, Performance. Integrity Service We earn the trust and respect of our shareholders, employees, customers and business partners by being honest, fair and open and by honouring our commitments. We strive continually to enhance the value of our service to customers by anticipating their needs, finding effective and innovative solutions to their problems, and investing in new systems, products and technology. Responsibility People We are committed to living by the principles and practices established by our Group corporate and social responsibility and business ethics policies, which enable us to manage effectively our impact on society and the environment. We are committed to investing in our people, to their development through training and to providing them with opportunities for rewarding careers that support our leadership position in the aviation markets. Safety Performance We are fundamentally and proactively committed to safety and security—the identification, evaluation and elimination of hazards that could cause harm to people, property and our environment. We focus continually on business performance. Reliably delivering the results we promise is essential to success in BBA Aviation and to continued confidence in the future of our business amongst our stakeholders. 3 CSR Timeline Over the past several years, BBA Aviation has made significant strides in our mission to create long-term sustainable stakeholder value. As our performance has improved in this arena, we have shifted our focus from a reactive one of basic regulatory compliance and prevention of serious injuries, to one that seeks to incorporate a wide range of environmental and social considerations into all aspects of our business for the betterment of our Company and society as a whole. BBA Aviation’s CSR Vision is an ideal, and getting there is a constantly evolving process. The timeline below highlights some of the key milestones on BBA Aviation’s CSR journey so far. 1996 1997 Group HS&E Manager role established Implemented Group HS&E management programme Initiated BBA Group HS&E forums BBA Group HS&E Mission and Policy Statements developed 1999 2000 Initiated BBA Group HS&E baseline assessments Development and adoption of Group standards and Guidance Notes 2001 Development of Group HS&E website Participation in the first annual Business in the Environment (BiE) Survey First annual CSR Report published Development of the Environmental Index reporting system 2003 Development of the BBA Group HS&E self-assessment programme Confidential call line installed for BBA Group employees to anonymously report any ethical concerns Updated CSR Policy Formation of the CSR Steering Committee 2005 2006 Several UK facilities work with the Carbon Trust to conduct energy audits Established a Group-wide Human Resources Director post 2008 Continued RIR reduction from 6.6 to 6.3 Focus on accident investigation; development of Guidance Note 205 Participation in the first annual Business in the Community (BitC) Survey 2004 Implementation of the behaviouralbased safety (BBS) process 2007 2002 LEED certification of SFS’s new terminal building at Boston’s Logan International Airport 4 Appointment of Non-Executive Board Member for CSR Oversight Introduction of the Severity Index (SI) key performance indicator for injuries Addition of Corporate Social Responsibility and Code of Business Ethics policies to BBA Group’s Policy Manual Reduced the Recordable Incident Rate (RIR) from 6.8 to 6.6 SI rates reach an all-time low of 44.5 Received a tenyear succession contract with San Francisco Int’l. Airport, in part because of our commitment to CSR CSR P O L I C Y (introduced in April 2008) We believe that healthy competition in the marketplace, pursued responsibly, is the best way of delivering value to all our stakeholders. This means that we will aim to provide sustainable growth in our business performance for our shareholders, and strive to maintain both short and long-term success. At the same time, we will assess and manage our key CSR risks, setting annual targets and long-term objectives at a local and corporate level, focusing on priority issues. 1 Business Ethics • We will endeavour to run our business with integrity and transparency. 6 Environment • We will manage and strive to reduce our environmental impact, particularly our contribution to climate change. • We are committed to conducting our operations in compliance with national legislation in the countries where they are located. • We will support innovative developments in technologies that support our business objectives and can offer environmental and social benefits. • We will benchmark ourselves against best practice standards and seek to pursue a best practice approach wherever practical. 7 Suppliers • We will seek to promote the application of our CSR Policy by our suppliers. 2 Engagement and Transparency 8 Customers • We will work with our customers as business partners in striving to deliver CSR objectives and sustainability in the aviation sector. • We will engage regularly with our stakeholders to understand their priorities, and discuss opportunities and challenges in order to make better business decisions. • We will report transparently in line with best practice standards of accountability, supported by independent verification. 9 Community • We will seek to benefit local communities where we operate through community investment and charitable giving. 3 Employees • We aim to provide equality of opportunity and diversity through our employment policies in line with local labour laws. • We will work with the objective that local communities benefit from the employment and career development opportunities that exist within our operations. • We will provide fair opportunities to local suppliers to maximise our positive economic impacts at a local level. • We will encourage our employees to reach their full potential, and support them through training and development. COMPLIANCE Compliance with this Policy will be treated in the same manner as other BBA Aviation policies. All Managing Directors will be required to sign a disclosure statement twice each year acknowledging their receipt of a copy of this Policy; their dissemination of the Policy to their direct reports; and their disclosure of any known violations of the Policy, to the extent not previously reported as required under the Policy. • We will strive to provide a workplace that is fair, motivational, employee-friendly and a good working environment. 4 Health and Safety • We are committed to achieving a working environment which is safe and secure, and supports healthy lifestyles. • We will aim to achieve and promote best practices on H&S specific to the aviation industry. This Policy and compliance with it will be the subject of review as part of the BBA Aviation Internal Audit Programme. 5 Human Rights • We respect the principles of the Universal Declaration of Human Rights and the International Labour Organisation core conventions and are guided by their provisions in the conduct of our business. 55 Managing and Monitoring Our Progress Message from the Director for CSR Oversight I am pleased to report that during 2007 BBA Aviation and our individual business units continued to take great strides to incorporate CSR philosophy into our core business processes and practices. As BBA Aviation’s Director for CSR Oversight, it is my role to see to it that CSR is truly a major part of the way we conduct business. I work closely with our Board of Directors and Executive Committee to meet our CSR goals. Both the Board and the Executive Committee are pleased with the progress being made in incorporating all aspects of CSR into BBA Aviation. The Board is highly supportive of the evolution our Company is going through, and of Simon Pryce’s leadership in guiding us through that evolution to become a more focused aviation services and systems support group. We anticipate that additional CSR-related improvements will be made in the future as CSR continues to bring our Company financial and other business-related benefits. As indicated in our Company’s 2006 CSR Report, we were all saddened to report that a fatal accident occurred in April 2007 within our operation at the Detroit Metropolitan Airport. In keeping with our commitment to safety, we have applied appropriate remedial measures to help prevent future accidents, including strengthening skill sets and training with respect to safety. I look forward to continuing to work with our Board, Executive Committee, and the rest of BBA Aviation management to further incorporate CSR into our Company in the future. Mark Harper Managing and Monitoring Our Progress We realise that it is critical to regularly monitor, measure, and analyse our CSR performance in order to continue to improve in the future. BBA Aviation’s managers routinely analyse CSR performance trends and integrate best practices into our Company’s future planning processes. We also regularly monitor and measure the CSR progress we are making across our businesses. This detailed plan for managing and monitoring CSR performance enables us to identify areas where our efforts are succeeding. It also allows us to focus on areas that will require additional attention in the future. Promoting Industry Safety BBA Aviation participates in a number of aviation industry groups that work to promote sound management principles and best safety practices. One such group is the National Safety Council International Air Transport Section (ARTEX). Kimberly Tuyn, Director Group HS&E, has been a member of ARTEX for the last two years. The purpose of ARTEX is to: • Foster safety services in air transportation and related activities on a national and international scale. • Develop and share information and best practices. • Analyse personal injuries/illnesses and property damage statistics to determine trends and areas that need further attention. • Provide education and training programmes in the interest of aviation-related occupational safety and health. Since 1997, Dennis Duncan, Regional HS&E Manager for ASIG, has participated in another programme dedicated to enhancing aviation safety: Delta Airlines’ Underwing Partners Safety Leadership Team (UPSLT). UPSLT is made up of companies that work with and support Delta Airlines. Meetings to share best practices are held quarterly, with members taking turns hosting and giving presentations. BBA Aviation hosted one of these meetings during the summer of 2007, during which Kimberly Tuyn presented how BBA Aviation’s safety team is organised. Dennis Duncan also gave a presentation on how to help frontline supervisors become observers and followers of safety practices and transform themselves into safety champions who can coach fellow employees in the field. The following are the specific ways our Company monitors and analyses our CSR performance, both internally and externally, in order to continually improve. Internal Governance During 2007, BBA Aviation’s CSR Steering Committee continued to meet at least quarterly to provide leadership and guidance on matters of social responsibility. A significant focus of the Committee in recent years has been to review and refresh our Company’s approach to CSR, and to develop stronger linkages to our strategic objectives and vision. Specifically, the CSR Steering Committee is charged with: • Identifying CSR priorities and risks, and helping to affect change in the operations of our business. • Supporting our CSR initiatives as advocates within BBA Aviation. • Reviewing our CSR programmes and performance, and identifying strengths and weaknesses in the implementation of CSR strategy. • Recommending, where necessary, new CSR policies and changes to existing CSR governance structures. BBA Aviation’s CSR Steering Committee adopted a new CSR Policy (see page 5) that was ratified by our Company’s Executive Committee and Board in early 2008. The CSR Steering Committee is now working on improved measurement methods that will be integrated throughout all business units to ensure that meaningful progress is being made. Providing CSR leadership within BBA Aviation continues to be part of the duties of all our managers. We believe that giving CSR this high level of attention will result in increased CSR activity throughout our Company and our individual business units in the future. One of the ways BBA Aviation’s commitment to CSR is made clear to our customers and employees is through our Company policies. Managers of our various businesses and our HS&E managers are expected to ensure that employees are aware of the high priority we place on CSR. In fact, the performance of these managers is measured, in part, by how well they comply with our CSR policies at their individual operations. During 2007, several of our Company’s policies related to CSR were modified and reissued in 2008. Our policies cover: Corporate Social Responsibility; Code of Business Ethics; 7 Managing and Monitoring Our Progress Disclosure of Unethical Conduct; Competition Law Compliance; Data Protection and Privacy; Gifts and Entertainment; Bribery and Corruption; and Equal Opportunity and Anti-Harassment. Our Company’s CSR policies are included in the BBA Aviation Legal Policies Manual, which is distributed to all senior managers. Managers are regularly required to confirm that they understand these policies and are implementing them within their operations. 85%). In 2007, we maintained our position as a top 100 company; however, we were disappointed to find our score fell to 72.5%. We believe that this resulted from substantial improvement of other companies and tightening of the scoring system, not as a result of any regression on the part of BBA Aviation. We are using this new information as an opportunity to further strengthen the specific areas in which we did very well, and to focus greater attention and resources on those areas where improvements can be made. Having CSR as a core part of our business also means assessing and monitoring any new companies that we acquire. We conduct baseline assessments when we initially acquire a business to determine how well that business is performing relative to CSR and to identify areas where we believe there is room for improvement. We then work with that new company to help ensure its success in promoting the highest CSR standards. Internal Control Measures In 2007, BBA Aviation performed an internal control assessment, and findings suggested that the business units would benefit from additional input at the Company level. As a result, the quarterly business reviews now include CSR as a standard agenda item for each business unit to report on to senior management. In addition, BBA Aviation’s Internal Audit team is responsible for conducting annual reviews and verifying compliance of our individual businesses with our Company’s CSR policies. We are confident that our recently issued CSR Policy and the accompanying measurement practices being developed by the CSR Steering Committee will provide our business units with the additional direction and support needed for the future. Our Company has other internal control measures. For example, HS&E management practices and regulatory compliance are assessed at BBA Aviation facilities on an annual basis. Within the ASIG and SFS businesses in the Americas, all locations undergo an annual audit conducted by corporate HS&E auditors. Within the other business units, facilities undergo an annual HS&E self-assessment, with several facilities also receiving an external verification audit. Both the HS&E audit and self-assessment programmes include a number of CSR-related questions. External Benchmarking Business in the Community (BitC) Corporate Responsibility Index BBA Aviation believes that external benchmarking is an effective means of assisting our Company in identifying areas of CSR that require additional attention in the future. For the last five years, we have participated in the UKbased Business in the Community (BitC) indices. Over the previous four BitC indices, there was some modest variability in our Company’s score from year to year (81% - Specifically, our 2007 BitC score showed that we made substantial improvements over 2006 in the following areas: Board Reporting, Board Remuneration and Bonuses, Performance Management, Integration of CSR, and Stakeholder Engagement. Areas that provide our greatest opportunities for improvement in the future include Environment, Community, Product/Process Stewardship, Supply Chain Management, Influence over Rules, Workplace Management, Employee Development, and Wellness. Our 2007 BitC assessment report can be found on the BBA Aviation website: www.bbaaviation.com. Stakeholder Dialogue Investor Engagement BBA Aviation continues to actively participate in FTSE4Good, the Socially Responsible Investment (SRI) index that assesses a company’s CSR strategy and performance. Our Company has also continued to respond to the Carbon Disclosure Project (CDP) questionnaire. Our response can be found at www.cdproject.net. In addition, we remain engaged with Trucost Plc, an environmental research organisation that was established to help companies and investors understand the environmental impacts of business activities. In 2007, BBA Aviation also participated in two CSRrelated surveys. We once again completed a survey for the Ethical Investment Research Services (EIRIS), a UKbased organisation that provides independent research into the social, environmental, and ethical performance of companies. Our Company also completed the Investec Assessment Management Climate Change Survey. This online survey collects information on how Managing and Monitoring Our Progress “Once again, we are humbled and honoured to be recognised by our customers in this way... This award only encourages us to redouble our efforts in safety, quality, reliability, and offering the best value possible to our customers.” Keith P. Ryan, ASIG President, on ASIG’s Best Airport Fuel Operator recognition FTSE 350 companies view climate change, and what steps they are taking to manage it. community organisations. This recognition reinforces our commitment to CSR principles—from safety excellence and environmental stewardship, to charitable giving and community involvement. The following achievements are among the highlights of 2007. Customer and Employee Engagement BBA Aviation’s businesses have a number of mechanisms in place to solicit information from customers and other stakeholders on a variety of topics, including CSR-related issues. These mechanisms include the following: Best Airport Fuel Operator Awarded to ASIG ASIG has been named Best Airport Fuel Operator for the fourth straight year in an independent survey conducted by the Armbrust Aviation Group Jet Fuel Report. ASIG ranked number one against competitors in service categories for safety standards, quality of staff, data management, price, and innovation. • ASIG conducts monthly review meetings with key customers. Online customer satisfaction surveys will be introduced in 2008, and will have standard questions on such topics as environmental and safety performance. ASIG also includes in its standard sales material basic information concerning its CSR efforts, and shares BBA Aviation’s CSR publications with various stakeholders. • SFS is using People Metrics, a research firm, to carry out surveys to develop and enhance customer service standards training. SFS management personnel review customer satisfaction goals on a regular basis. • Executive Beechcraft has a website that allows customers to provide feedback or ask questions about systems or concerns. Customers have provided positive feedback on Executive Beechcraft’s recycling initiative. • During 2007, L.E.K. Consulting initiated a customer survey on behalf of the APPH Group. This survey covered all aspects of performance, including response times, schedule adherence, and innovation. • ERO uses electronic, telephone, and direct mail customer surveys to solicit feedback, as well as mandatory weekly calls by customer service representatives. ERO also hosted a breakfast for its suppliers and customers regarding cooperative interaction with the Red Cross. ASIG Is Four-Time Recipient of Delta Air Lines’ Safety Award The Triple Crown is Delta Air Lines’ highest operational safety award, recognising local operations and supplier partners for critical elements of teamwork, time management, and operational excellence in achieving a safe, on-time operation. In November 2007, ASIG’s Salt Lake City fueling operation received the Triple Crown Award for the fourth time. Premier Turbines Demonstrates Excellence in Energy Efficiency Crowder College’s Alternative Energy Department in Neosho, Missouri, awarded BBA Aviation’s Premier Turbines the Energy Excellence Conservation Award at the 2nd Annual Energy, Environment, and Efficiencies (E3) Conference in November 2007. The award recognises Premier Turbines for demonstrating outstanding efforts in instituting, utilising, and providing energy-efficient products and services. Local Community Achievements—Awards BBA Aviation facilities and employees take pride in knowing that they have made positive contributions to their surrounding communities. Many of these activities have garnered the attention of outside groups, such as industry associations, government agencies, and ASIG Receives British Safety Council Recognition The British Safety Council is one of the world’s leading occupational health, safety, and environmental 9 Managing and Monitoring Our Progress organisations. In 2007, ASIG was accredited with the British Safety Council’s Five Star Health and Safety Management System Audit rating. • Aviation Ground Safety Council (AGSC) www.agsc.org.uk • British Business and General Aviation Association (BBGA) - www.bbga.aero/ • East Newton Co. R-VI School District Board www.enr6.k12.mo.us • Florida Aviation Trade Association (FATA) www.fata.aero • Flight Safety Foundation (FSF) - www.flightsafety.org • Fuel Suppliers Advisory Panel (FSAP) www.iata.org/workgroups/cfg • Greater Ozarks APICS Chapter - www.goapics.org Dallas Airmotive International (DAI) Named Top Partner Mark Berg, DAI Customer Service Manager, was honoured to accept the Top Partner Award from Southwestern Illinois College (SWIC). This award serves to recognise individuals and companies for their contribution to strengthening SWIC’s Airframe and Powerplant (A&P) programme within the college and community. Sharing and Promoting Best Practice in the Aviation Sector An important part of a strong CSR programme is sharing best practices with others in the aviation industry. BBA Aviation is proud of our Company’s participation in many voluntary business associations and initiatives throughout the industry. This participation across our Company not only allows us to share best CSR practices, but also gives us an opportunity to learn from the experiences of other organisations. Sharing best practices also helps to promote greater HS&E and social awareness throughout the aviation industry as a whole. Among the organisations in which we play an active role are the following: • Aeronautical Repair Station Association (ARSA) www.arsa.org • Aero Club of Washington - www.aeroclub.org • Aircraft Maintenance Technology (AMT) www.amtonline.com • Air Transport Association of America (ATA) www.airlines.org • American Association of Airport Executives (AAAE) www.aaae.org • Army Aviation Association of America (AAAA) www.quad-a.org • Greater Washington Business Aviation Association (GWBAA) - www.gwbaa.com • International Air Transport Association (IATA) www.iata.org • Kansas City Area Development Council (KCADC) www.thinkonekc.com • Midway Special Road District (Missouri) www.auditor.mo.gov • National Air Transportation Association (NATA) www.nata.aero/ • National Aeronautic Association (NAA) - www.naa.aero/ • National Business Aviation Association (NBAA) www.nbaa.org • National Contract Management Association (NCMA) www.ncmahq.org • National Safety Council (NSC) - www.nsc.org • National Examination Board in Occupational Safety and Health (NEBOSH) - www.nebosh.org.uk • Neosho (Missouri) Area Chamber of Commerce www.neoshocc.com • North West Aerospace Alliance (NWAA) www.aerospace.co.uk • Professional Aviation Maintenance Association (PAMA) www.pama.org • Society of British Aerospace Companies (SBAC) www.sbac.co.uk • Southwest Illinois College Advisory Board for A&P Programme - www.swic.edu • Technical Fuel Group (TFG) www.iata.org/workgroups/tfg • University of Texas-Dallas: History of Aviation www.utdallas.edu/library • Women in Aviation International (WAI) - www.wai.org Looking After Our People People are a top priority at BBA Aviation. As stated in one of our six core values, we are committed to investing in our employees and their development, and to providing them with rewarding careers. Protecting our employees’ health and safety is a key part of investing in our people. BBA Aviation employs approximately 10,700 people in 11 countries on five continents. In order for our employees to reach their full potential, we believe that we must provide them with a safe and secure work environment. By doing this, and by giving them the training they need to advance in their careers, it is our aim to effectively counter the history of high employee turnover prevalent within the aviation services market. Investing in our people means not solely investing in them at work, but also providing them with the resources they need to grow as individuals outside of the work environment. BBA Aviation takes pride in addressing our employees’ entire wellbeing, including both physical and emotional, as part of our commitment to their health and safety. Fair Treatment, Diversity, and Business Ethics BBA Aviation is committed to operating in a nondiscriminatory manner and to creating greater diversity in our workforce wherever possible. These goals are a high priority of senior management, and are regularly communicated to individual business managers and to all of our employees. We believe that greater diversity in our own workforce will assist our Company in better relating to the increasingly diverse populations of the communities in which we operate. Our Company is aware that it is important to have strong written policies on non-discrimination and the fair treatment of all employees. Two different Company policies on Equal Opportunity and Anti-Harassment promote the fair treatment of all employees regardless of age, race, religion, nationality, sex, marital status, or disability. They also deal with harassment against employees based on their age, race, religion, nationality, sex, marital status, or disability. BBA Aviation’s Corporate Social Responsibility and Code of Business Ethics Policies require employees to treat each other fairly and to operate in a highly ethical manner. This includes not discriminating against job applicants and employees based on their race, religion, creed, colour, gender, disability, national origin, age, military status, veteran status, sexual orientation, or marital status. Where appropriate, individual sites have also established affirmative action goals to further improve our workforce diversity. BBA Aviation believes it is critical to give our employees an opportunity to anonymously report any complaints about not being treated in a fair or ethical manner. In 2004, the Company installed a confidential call line, which continues to be in operation today. We take all comments and complaints received on this call line very seriously, and prohibit retaliation against concerned employees. Call line use is regularly monitored by the Audit Committee of BBA Aviation’s Board of Directors, and all complaints are promptly and thoroughly investigated by Company management. Employee Relations Our Company promotes open and ongoing dialogue with our employees. We believe that our employees are in the best position to make suggestions as to how we can improve as a Company, including how we can enhance our CSR and Looking After Our People BBA Aviation Code of Business Ethics (excerpt) The Company’s commitment to the highest level of ethical conduct should be reflected in the business activities of all BBA Aviation companies including, but not limited to, relationships with employees, customers, suppliers, competitors, the government, and the public, including our shareholders. All of our employees, officers, and directors must conduct themselves according to the language and spirit of this Code and seek to avoid even the appearance of improper behaviour. HS&E programmes. This open dialogue is encouraged by management at all of our businesses. Approximately 35% of our employees are members of unions or are covered by collective bargaining agreements. It is important for managers at these facilities to have open and ongoing conversations with both their union employees and the employees’ labour representatives. Human Rights The United Nation’s Universal Declaration of Human Rights clearly recognises that dignity and equality are inherent rights of all persons. At BBA Aviation, we recognise the principles of the Universal Declaration of Human Rights and the International Labour Organisation core conventions, and believe that we must treat all persons in accordance with these highly important principles. Our human rights policies extend to all our employees across the globe. Our standards in this area include such employment-related issues as child labour, forced labour, and general working conditions. Treating all persons with fairness and dignity is a core part of our overall CSR philosophy. Employees are encouraged to learn more about our commitment to human rights and how it ties into our CSR policies by reviewing our Company’s Legal Policies Manual. Training and Development One of BBA Aviation’s ongoing goals is to assist our employees in reaching their full potential. Our Company is well aware of the fact that our overall business success is dependent on the success of our individual employees within the careers they have chosen. Correspondingly, BBA Aviation’s employees are given opportunities not only to succeed in their current jobs, but to also receive training, career progression planning, and additional assistance so they can successfully transition into other desired careers within our Company. Career progression planning is an important part of career development at all of our facilities. Such planning includes helping employees define both personal and professional goals, then working with them to create specific plans aimed at meeting those goals. We offer our people the resources and opportunities to learn new skills that will enable them to grow personally and professionally. Career profiling, annual performance reviews, and continuing open discussions with managers are key parts of this process. BBA Aviation provides employees with many different internal training opportunities. Among these are HS&E and CSR topics, computer applications, driver awareness, and first aid. We also provide our people with other forms of skills development, continuing education, and personal assistance. These include the following: • Several BBA Aviation facilities have instituted apprenticeship programmes to train potential new employees, particularly in areas where staff recruitment is difficult. • Facilities across the business units have programmes that reimburse employees for expenses related to approved courses taken in relation to Company needs, such as conferences, seminars, memberships, continuing education courses, and/or professional exams. Similar programmes are designed to assist employees with completing their formal education, thereby improving their job skills and increasing opportunities for promotion. For example, APPH pays all reasonable tuition fees for those employees wishing to further their education and allows some flex time to enable them to pursue their goals. • APPH prepares an annual business plan from which all operations produce key performance indicators (KPIs). These KPIs are then incorporated into the annual performance appraisal process. Annual appraisals pinpoint the employee training and development needs that are required to meet the business plan. • ASIG and SFS use a management development programme knows as Pathways, which provides targeted training for existing managers and those interested in management or professional development opportunities. Pathways is comprised of a series of internally and externally offered management and personal development courses focusing on eight critical success factors: leadership, management, communication, personal effectiveness, customer service, technical knowledge, finance administration, and strategic thinking. Continuing Education Programmes Developing and retaining skilled workers remains a key challenge for BBA Aviation. Therefore, in addition to our employee education efforts, we also support a number of apprenticeship and ongoing education programmes designed to create skilled workers. APPH and H+S Aviation continue to run apprenticeship programmes aimed at training a new generation of skilled employees in the areas of craft, technician, commercial, and engineering. APPH is partnered with the North West Training Council (NWTC), which provides apprenticeship candidates. In 2007, APPH had nearly 20 apprentices. These individuals complete a four-year programme, splitting their time between the classroom at the NWTC and working at APPH. Management Team Training In November 2007, more than 80 members of BBA Aviation’s senior management team participated in a management conference, which included several discussions on various CSRrelated topics. The conference also included a presentation on BBA Aviation’s overall dedication to CSR and our Company’s CSR performance. This conference is part of the commitment our Company has made to ensure that all of our senior managers have a good understanding of CSR and that they promote BBA Aviation’s CSR programmes and policies within their individual business units. Our intent is to make this an annual event. BBA Aviation has also introduced a new performance management process and leadership development programmes, which include leaders and potential leaders from all divisions across the Company. BBA Aviation also supports local university programmes: • In 2007, Premier Turbines began working with Crowder College and the Federal Aviation Administration (FAA) to develop an aircraft maintenance technician training programme expected to begin in the autumn of 2008. Premier will support this effort by providing aerospace materials for the hands-on portions of the classes and by serving as a teaching resource. • APPH Wichita supported four students from a Wichita State University master’s degree class on business and manufacturing processes. The students toured the APPH Wichita facility and used it as a case study for their class. • The General Manager from SFS at Denver Centennial Airport (APA) sits on the steering committee for the Aviation Department of the Metropolitan State College of Denver, speaks in management classes, and helps students with career development. 13 Health and Safety Kimberly Tuyn: New Director Group HS&E Kimberly Tuyn, who stepped into her new position of Director Group Health, Safety, and Environment on 1 March 2008, is no stranger to BBA Aviation or to our Company’s HS&E and CSR policies. Tuyn, who has served as ASIG’s Director of Safety for the past three years, will focus her attention in her new position on the following goals: Identifying, then assessing and eliminating hazards, is a key part of our Company’s health and safety programme. BBA Aviation’s commitment to our people includes ensuring a safe and secure working environment. We are aware that the success of any health and safety programme is greatly dependent on leadership from top management. At BBA Aviation, three senior-level HS&E managers and a number of other divisional and site-based managers regularly evaluate health and safety-related site performance. These senior-level managers are part of a larger team of HS&E professionals operating throughout our organisation, who regularly assess any health and safety risks to our employees, our property, or our environment. During 2007, we agreed that continued improvement in HS&E performance throughout our Company would benefit from the establishment of a Director of HS&E position at the highest Company level. Following an exhaustive internal and external recruiting and evaluation process, BBA Aviation was pleased to be able to promote from within our own organisation. Kimberly Tuyn was appointed Director Group Health, Safety, and Environment, reporting directly to the CEO. She has also joined the CSR Steering Committee. HS&E Audit Process BBA Aviation’s HS&E self-assessment tools and internal audits continue to be valuable resources that enable our facilities to demonstrate ongoing HS&E compliance, adherence to our Company’s CSR policies and procedures, and continuous improvement based on industry standards. • Developing and implementing a robust HS&E strategy linked to BBA Aviation’s business goals and values. • Driving “best-in-class” practices and process developments. • Overseeing HS&E coordination and compliance. • Standardising HS&E measurement, reporting, audit, and root cause analysis across all BBA Aviation businesses. BBA Aviation’s Executive Committee believes that creating this new role at the Group level will help to accelerate improvements in many areas related to HS&E, including providing strategic direction. Tuyn reports directly to CEO Simon Pryce. that questions are appropriately understood and responses reflect the facility’s performance. External verification of data is currently taking place within the Europe/Asia facilities, while internal verification is taking place at facilities within the Americas. A team of HS&E auditing professionals at the Company level will continue to carry out the internal audits. Among the many topics included in these verifications are environmental matrices, waste reduction, solid and hazardous waste, confined spaces, ventilation, electrical safety, machine guarding, legal compliance, air quality management, communication, and safety and environmental awareness training. We completed this verification process again in 2007, and continue to find that it improves our facilities’ understanding of the benefits of ownership gained by completing the selfassessment. It also helps our facilities to further integrate the self-assessment programme into their management systems. These tools assess compliance and best management practices associated with HS&E management, standard operating procedures, and aviation topics. BBA Aviation plans to continue using these tools in 2008 to ensure that our facilities develop and implement systems that meet regulatory requirements and achieve best practice standards. Each year, BBA Aviation facilities are required to complete an online self-assessment of their own facilities. Aside from ASIG and SFS in the Americas, all of the BBA Aviation facilities use the self-assessment tool that is housed on the BBA Aviation HS&E website. Health & Safety Performance BBA Aviation continuously monitors and documents our Company’s health and safety performance. These performance records are used to assist us in developing future improvement plans. Among the data we track and compile are workers’ compensation claims, lost workdays, accident severity, and other recordable incident data. This information is reported to our Board, Executive Committee, and senior management. Our Company also sets annual performance targets for all of our businesses based on our future health and safety improvement plans. Our Company contacts a representative number of facilities annually to assess and verify their data, and to make sure BBA Aviation maintained our record of minimal penalties for non-compliance with applicable health and safety Health and Safety “Thanks to the quality of our people and training, we have a safety record that our customers rely on. It’s as simple as that.” Dennis Duncan, ASIG Regional HS&E Manager Although not all facilities were able to achieve the ambitious targets that were set for 2007, we are pleased to report that BBA Aviation’s Company-wide performance improved over 2006. BBA Aviation recorded a Company-wide RIR of 6.3, which was slightly higher than the 2007 target of 6.2, but was below the 2007 industry average of 7.1 and our 2006 RIR of 6.6. This performance was aided by significant advances in 2007 at APPH, Legacy Support, and SFS Americas over their 2006 performance. Legacy Support exceeded its worldwide RIR target of 1.8 by registering a rate of 1.0. regulations from our operations in 2007. BBA Aviation paid $13,375 to health and safety regulatory agencies for health and safety non-compliances occurring in 2007. In all cases when BBA Aviation receives or becomes aware of a violation, we take the situation very seriously and implement corrective actions to prevent recurrence. Recordable Incident Rates To create Company-wide consistency, each facility uses Recordable Incident Rates (RIRs) as the primary health and safety performance metric. RIRs measure the number of recordable injuries for every 200,000 hours worked. BBA Aviation employs even broader global criteria for defining a recordable incident than the US Occupational Safety and Health Administration (OSHA) and the UK Health and Safety Executive (HSE), including injuries where more than one day is lost and incidents that require medical treatment even if no workdays are lost. Severity Index Introduced in 2004, BBA Aviation’s Severity Index (SI) rating provides an additional measure of overall health and safety performance. The SI monitors severity of injuries and return-to-work schemes in place at each facility by tracking lost workdays that result from workplace injuries. The SI rating guides BBA Aviation in our efforts to target and assist those facilities experiencing significant lost workdays. In 2006, we achieved an all-time SI low of 44.5 Every facility is required to establish annual RIR improvement targets based on previous health and safety performance, taking into account any fundamental changes in the business, applicable industry standards, and local factors. In alignment through a combination of improved facility management of absences and the engagement of return-to-work (light duty) programmes. In 2007, Company-wide SI rates increased to 61.9, with the largest increases coming from ASIG Americas and SFS Americas. SFS Europe was able to reduce its SI rate from 12.9 to 9.4. with our Company’s goal to become an industry leader in health and safety performance, we challenge our individual facilities to set their targets at “better than” industry standards. While the SI metric has assisted in driving attention to the importance of return-to-work programmes, our performance throughout 2007 has returned to the same level as we 15 Health and Safety achieved in 2005. The increase resulted primarily from a couple of incidents that caused extended absences of the affected employees, as well as a general loss of focus on the importance of re-engaging employees in their work in a timely manner. During 2008, we will be establishing new metrics for measuring and assessing our safety performance, including metrics that are intended to be leading indicators of our performance. It is our intent that these new metrics will allow more real-time tracking of our safety performance and will identify areas of concern before the incidents occur. Our 2007 safety performance unfortunately included a fatal vehicle accident that occurred at the Detroit Metropolitan Airport. Our entire organisation was shocked and saddened by this loss. Since that accident, we have implemented appropriate remedial measures to help ensure that such an accident does not occur again. Our Company’s goal remains to become a safety and health leader in our industry by continuing to develop and enhance the safety improvement programmes we now have in place. BBA Aviation’s 2007 RIR performance indicates progress in this area; however, we recognise that our efforts are not yet complete. We will continue to work on both our RIR and SI performance to improve the safety of all of our employees in the future. Health & Safety Initiatives During 2007, a number of health and safety initiatives were carried out across our Company. Implementation of a behavioural-based safety (BBS) programme continued at the DAI Forest Park and H+S Aviation facilities. Implementation is now 100% complete at Forest Park. The introduction of Lean Manufacturing processes at APPH facilities has resulted in improved ergonomic shop layouts, which have reduced the amount of manual handling required of employees. ASIG instituted a new Personal Protection Equipment (PPE) programme for eyes, hands, and feet, which has reduced injuries by 16%. With a number of locations achieving OHSAS accreditation, systems have also been put into place to continually improve health and safety performance. HS&E Training BBA Aviation continues to invest in HS&E training to improve our overall focus on health, safety, and environmental issues. Carried out primarily at the facility level, our businesses undertake training exercises that address facility-specific HS&E concerns. For example, in 2007, ASIG’s UK operations trained and certified staff in manual handling techniques. Employees who attended this initial training have not only improved their own understanding, but will also be able to coach fellow employees, thereby reducing areas of manual handling and associated injuries. A two-day safety training seminar was held for HS&E coordinators from BBA Aviation’s ERO, Legacy Support, and APPH facilities across the US. The seminar included discussions regarding injury prevention, risk management, and the development of a new Safety Programme Leadership Manual and HS&E templates. These discussions allowed the facilities to have open discussions regarding HS&E concerns and solutions. In addition, BBA Aviation in Europe and Asia held four of its Tips and Tricks seminars throughout the year. Open to all employees, these seminars provide an opportunity for middle management to share knowledge and best practices, and to further improve health and safety management. Wellness In 2007, a number of BBA Aviation’s facilities across the business units began developing wellness programmes that are designed to increase wellness and productivity, and to contribute to the overall health of BBA Aviation, our employees, and their families. For example, many locations are implementing initiatives to help employees quit smoking; offering reduced or free gym memberships; providing free or discounted health assessments; and sponsoring blood drive and flu shot clinics. In the UK, SFS employees are also encouraged to increase their physical activity through the Cyclescheme, which provides tax incentives for employees to purchase bicycles for commuting to work. Communicating the importance of wellness to employees—through seminars, employee newsletters, and bulletin board postings—has also increased at many of our individual business units. Through these efforts, we hope to promote greater awareness of health-related issues and encourage healthy activities and lifestyles amongst all BBA Aviation employees. We have found that in addition to helping create healthy employees, our wellness programmes often also result in increased productivity and job satisfaction, and an economic benefit in terms of employee health care coverage. Caring for the Environment “It’s just good business to do everything we can to use technology, materials, and processes that have minimal impact on the environment. Everyone benefits. We’ve made great strides in the past few years in this area. We have dedicated efforts to identify opportunities for improvement and continue to encourage our factories to be active participants in a safer, cleaner environment.” Hugh McElroy, President of BBA Aviation Engine Repair and Overhaul company DAI BBA Aviation takes our responsibility in caring for the environment very seriously. Our Company continues to take steps to reduce energy consumption, water usage, and the creation of waste. These and other actions will help ensure a safe and healthy environment both for our own employees and for other members of the broader communities in which we operate. managers’ duties are identifying, evaluating, and managing any risks to the environment associated with the operation of our businesses. Senior management at BBA Aviation is committed to reducing greenhouse gas (GHG) emissions at our individual facilities, and to using less water, generating less waste, and reducing energy consumption Company-wide, while continuing to conform to all applicable environmental regulations. In 2007, BBA Aviation did not receive any fines for noncompliance with environmental regulations. Environmental management is a key responsibility of senior-level managers at our Company. Among these 17 Caring for the Environment Our Environmental Index BBA Aviation requires our individual facilities to regularly monitor and report all environmental impacts. Our personnel conduct annual self-assessments and site audits, and then develop site improvements plans to drive environmental performance. We also formally collect key performance information related to BBA Aviation’s global business environmental impacts through an Environmental Index of all our facilities. During 2007, the ASIG and SFS Americas business units initiated a new process for gathering environmental performance data—SHEBBA (Safety, Health, Environment BBA)—that is more comprehensive and detailed than the previously used system. When comparing the 2007 data gathered through SHEBBA against previous years’ data, however, some potential inconsistencies were identified in the manner in which sites were reporting. Despite efforts to resolve these apparent inconsistencies, several differences still remain, particularly in the areas of waste recycling and waste reduction. As a result, we have not included waste data in the 2007 CSR Report. As part of this new reporting process, we made a number of changes aimed at increasing the accuracy of the collected data: • The reporting frequency for the new system was increased from semiannually to monthly. • Implementation of the new process provided an opportunity for additional training for individual facilities on how to collect, manage, and report their data. • Our internal audit process was updated in 2007 to include verification of these environmental metrics. The additional focus placed on these metrics through the SHEBBA process and associated training has led to the collection of more comprehensive data. As a result, we believe that the increases being reporting in our 2007 metrics are less of a reflection on our actual performance and more a result of the improvements that we have undertaken to improve our measurement and reporting procedures. During 2008, the use of the SHEBBA reporting tool will be expanded to include all BBA facilities globally. As we expand the use of this new reporting tool, we are continuing to refine the new reporting process and evaluate our performance in these areas to establish an accurate representation of the environmental progress BBA Aviation has made as an organisation. This evaluation may result in modifications to our reported past performance in subsequent CSR Reports. During 2008, BBA Aviation will not only undertake aggressive efforts to investigate our 2007 data, we will also be incorporating additional quality control measures into the ongoing reporting process to improve the accuracy and reliability of the data gathered. Alternative Aviation Fuels As part of its strong commitment to the environment, ASIG participates in a number of industry organisations that evaluate the potential for using alternative fuels for commercial aviation. Among these groups are the Commercial Aviation Alternative Fuels Initiative (CAAFI), and the International Air Transportation Association’s Technical Fuel Group (TFG) and Fuel Suppliers Advisory Panel (FSAP). CAAFI is an international coalition of airlines, aircraft and equipment manufacturers, fuel suppliers, universities, government agencies, and nongovernmental organisations. CAAFI’s mission is to enhance aviation security and environmental sustainability through the development of environmentally progressive alternative fuels. The TFG works with industry suppliers and service providers on such issues as investigating the potential offered by alternative fuels. The FSAP ensures good coordination between the airlines and the fuel supplier community. In November 2007, ASIG participated in a CAAFI conference on how to take alternative fuels to market. With input from ASIG and others, more than 40 recommendations were made to further the development and deployment of alternative fuels within the aviation industry. Among these were: • Seeking a generic specification for all 50/50 blends of isoparaffinic (IPK) fuels, including renewable/non-renewable blends with the potential to reduce carbon emissions and serve as a single fuel for both commercial and military aviation needs. • Compiling and analysing emission data from flight, ground, and combustor tests for alternative fuels. • Identifying opportunities created by alternative fuels’ characteristics to reduce weight, fuel burn, and particulate matter emissions. • Identifying solutions to overcome the constraints alternative fuels place on water supplies due to the role water plays in their production. Caring for the Environment Energy Energy consumption continues to be a key issue for BBA Aviation and every one of our individual businesses. Although total energy consumption increased slightly from 2006 to 2007, many facilities did incorporate a number of energy saving initiatives throughout the year in addition to the green building initiatives at the Boston and San Francisco Airports (see page 21). Aviation’s impact on the environment are areas in which we will continue to invest resources. For example, H+S Aviation decreased natural gas usage by approximately 50% in 2007 through the use of an energy management system that was installed on the gas heating system. Other BBA Aviation facilities have also reduced energy consumption by installing and utilising more efficient light bulbs; motion or light sensitive sensors to control lighting; insulated metal walls; high efficiency heating, ventilation, and air conditioning (HVAC) systems; and programmable thermostats. In addition, some facilities with hangar buildings have installed switches to shut down the hangar heating plants when the doors are opened in order to reduce heating needs. Turning off all non-essential lighting, heating, fans, or other equipment during second and third shifts has further minimised energy usage. Many of our facilities are already implementing initiatives to address the GHG emissions challenge. The APPH Bolton facility has installed a new rotary screw compressor in its Filter Division, which will reduce carbon emissions by an estimated five tonnes per year, at a savings of approximately £3,000 per year. Several facilities have also taken measures to optimise transportation, a large source of GHG emissions. For example, Premier Turbines and H+S Aviation consolidate low priority shipments and use Less-Than-Truckload (LTL) carriers when possible. Other facilities are encouraging employees to carpool to and from work or to commute via bicycle. Compressed natural gas (CNG) or battery-operated vehicles and electric baggage conveyors are also being used at more facilities. The initiatives to reduce energy consumption described above will also result in decreased GHG emissions for those facilities. Reducing our energy consumption will remain an environmental priority for BBA Aviation as global demands and prices for energy increase. With support and commitment from senior management, we anticipate continued reductions across our individual facilities over the coming years as we take the lessons learned from the initiatives in place at individual facilities and apply them across the business units. Water BBA Aviation’s total water consumption decreased from 2006 to 2007, primarily as a result of utility audits and reduction efforts at individual facilities throughout the Company. Many facilities continued their efforts to reduce water consumption Greenhouse Gas (GHG) Emissions As new regulations and demands from stakeholders surrounding climate change continue to grow, BBA Aviation has responded by investing more resources in identifying risks and opportunities related to our GHG emissions. We track GHG emissions that are the result of electricity, fuel oil, and natural gas usage at our facilities. Given our increase in energy consumption, it follows that we also experienced an increase in GHG emissions in 2007. 2007 In conjunction with energy consumption, managing our GHG emissions and identifying ways to reduce BBA 19 Caring for the Environment through the use of drought-resistant vegetation and more efficient automatic watering systems. Several facilities set individual targets for water consumption in 2007, and achieved reductions of 10% or more over 2006. Environmental Management Systems Implementing an environmental management system (EMS) helps companies meet compliance and performance goals, as well as increase operational efficiency and reduce energy usage. As part of BBA Aviation’s efforts to reduce our environmental impacts, several of our sites achieved ISO 14001 certification in 2007, with many more facilities planning to achieve certification in the next few years. For example, ERO began an ISO 14001 certification initiative in 2007, with a gap analysis planned for 2008. Several of APPH’s facilities have already been certified, and the goal is to achieve ISO 14001 certification for all APPH facilities by 2010. In preparation for ISO 14001 certification, H+S Aviation has established a “Green Team” comprising representatives from all areas of the business to look at further initiatives related to waste reduction. Facilities that do not have an externally certified EMS have individuals who are responsible for implementing an internal EMS that covers significant environmental impacts. These sites follow BBA Aviation’s environmental standards and management practices, and participate in the HS&E audit and self-assessment programmes. Due Diligence Our due diligence policy remains unchanged: before buying or selling any business interests, we conduct preacquisition and pre-divestiture due diligence assessments to determine whether these businesses have any potential health, safety, or environmental risks. These due diligence assessments not only protect our Company, but also protect the communities in which we operate. Achieving Environmental Improvement and Setting Targets One of our Company’s environmental goals is to set Company-wide external environmental targets. We are working on this goal, while at the same time continuing to require our individual facilities and local operations to set their own targets, based on the Environmental Index results. We believe that looking closely at the performance of both our individual facilities and our Company as a whole is the best way to ensure that we achieve all our environmental goals. Caring for the Environment - Green Buildings “SFS’s new Boston terminal makes full use of sustainable materials and low voltage lighting. Natural light floods the building, reduces the need for electric lights, and improves the working environment. The design also works hard to promote the use of bicycles and public transport; there are showers, bike racks, and parking spaces set aside for pooled cars.” Craig Hanson, Architect for Schenkel Shultz Leading the Way in Sustainable Design BBA Aviation and our individual businesses are committed to being leaders in the industry in preserving and protecting the environment. In 2007, SFS opened a new general aviation facility at Boston Logan International Airport (BOS), which incorporates sustainable design features. SFS also began work on renovating and expanding its facility at the San Francisco International Airport (SFO), which will include the use of “green design” principles. The Boston Airport project was Leadership in Energy and Environmental Design (LEED) certified in early 2008. Among the many environmental aspects of the project include the following: SFS’s San Francisco Airport project, scheduled for completion in late 2008, incorporates the use of various design principles aimed at increasing energy efficiency and making use of alternative energy sources. The first phase of this project, which began in 2007, includes replacing all light fixtures with more efficient types, using low VOC paint, installing low emission carpeting, increasing use of building materials containing recycled content, utilising low water usage urinals, adding insulation, installing occupancy sensor controlled lighting, and light harvesting to maximise the use of natural lighting. All hangars will also be equipped with sensors to shut off the heaters when the hangar doors are open. The increased efficiency lighting alone is expected to cut energy usage by 50% in the hangars. • Reduced water consumption from using a high efficiency irrigation system and planting native vegetation. • Installation of high efficiency heating, ventilation, and air conditioning (HVAC) systems and lighting. • Purchase of alternative energy vehicles for ground service equipment. • Implementation of waste management and recycling programmes. • Increased use of materials that contain recycled content, including concrete, asphalt, steel, aluminum, and carpeting. • Installation of wood-based building materials certified in accordance with the Forest Stewardship Council’s criteria for sustainable forestry practices. • Maximised indoor air quality through the use of low VOC content materials and the installation of a filtration system with greater capture efficiency. • Utilisation of natural lighting to limit the need for electrical lighting. • The use of incentive programmes for employees to take public transportation. • Installation of bicycle storage racks and showers to encourage employees to commute to work on bicycle. • Recharging stations and dedicated parking spots for electric vehicles. • Reserved parking spaces for carpool vehicles to encourage employees to ride to work together. The second phase of the project includes expansion of the FBO; installation of new high efficiency HVAC systems; and installation of alternative energy sources, including roof-mounted photovoltaic cells and wind turbines. The final phase of this project includes the construction of a new hangar, which will incorporate the same features as the renovated hangars. SFS anticipates that this will be the first ever LEED new construction certified hangar. The project will be used as a guide by SFS in planning other environmentally conscious projects around the US. 21 21 Working with Communities “There simply are no words to express our heartfelt gratitude for the overwhelming support and generosity that the entire SFS family has showered upon Give Kids The World over the years. They have shared their time, talents, and hearts through countless volunteer hours, creative fundraisers, and awareness building... Our gratitude to SFS is truly boundless.” Pamela Landwirth, Give Kids The World President Giving back to the communities in which we operate is an important philosophy at BBA Aviation. During 2007, we provided cash contributions of £110,000 to charities and organisations in our communities. This philosophy permeates our organisation, both at the management level and at the level of individual employees. Due to the diverse nature and geographic locations of our individual businesses, we have found that it works best to allow local facilities to identify charities and community projects within their own communities. This identification takes place in the broader context of our Company’s strategic planning process. BBA Aviation’s CSR Steering Committee assists individual facilities in selecting community schemes that will benefit both the local community and our Company. Participation in such schemes takes many forms. Sometimes it involves direct financial contributions from employees or from the individual facility. Other times it involves apprenticeship programmes, one-on-one mentoring from employees, or volunteered time to assist young people in improving the quality of their lives outside of work and school. Among the many individuals who have benefited from these community schemes are at-risk teenagers, children with terminal illnesses, and special needs children with physical or cognitive disabilities. It is not only the recipients of such schemes who benefit, however. We have found that the greater our Company’s participation in the wider community, the better the relations between that community and our Company. BBA Aviation believes it is important to not only provide employment within the communities where we operate, but to also give back in other ways. The following examples highlight just a few of the charitable causes that our Company has supported during 2007. American Red Cross In 2007, Hugh McElroy, President of BBA Aviation Engine Repair and Overhaul company DAI, accepted the American Red Cross Dallas Area Chapter’s Humanitarian Award for DAI’s commitment to serving those in need through various Red Cross initiatives. DAI was recognised for creating a corporate environment that fosters employee participation and support, such as their ongoing involvement in the “Ready When the Time Comes” programme. Cheryl Sutterfield-Jones, American Red Cross Dallas Area Chapter CEO, commented on DAI’s service, “Volunteers are the heart of the American Red Cross. Without them, it would be impossible for the Red Cross to answer the calls for assistance and training from the community every time, whenever and wherever we are needed.” Give Kids The World For children with life-threatening illnesses, a chance to receive a special wish cannot be underestimated. Give Kids The World (GKTW) Village is a 70-acre, nonprofit resort in Central Florida that creates magical memories for children with life-threatening illnesses and their families. GKTW provides accommodations at its whimsical resort, donated attractions tickets, meals, and more for a week-long, costfree fantasy vacation. SFS has been a strong supporter of GKTW since 2001. Throughout that time, SFS employees, business partners, customers, and friends have raised nearly $1 million for GKTW through a variety of fundraising campaigns and community events. Working with Communities On 11 May 2007, SFS partnered with another BBA Aviation business, DAI, to host the 20th Annual Love Field Golf Classic. The event attracted 96 golfers and raised close to $60,000 for three worthy causes, including GKTW. During 2007, the total amount raised by SFS for GKTW was $226,000. The monies raised in 2007 are being used toward the SFS “Hub of Hope” project, which consists of the construction of 10 new villas for families that will be located in the Fairy Tale Forest section of the GKTW Village. Starlight Children’s Foundation Granting wishes and providing hospital entertainment for seriously and terminally ill children is a major goal of the Starlight Children’s Foundation. Thanks to strong support from SFS’s Europe, Middle East, and Africa (EMEA) operations, many of these children’s lives will be a little brighter. In addition to BBA Aviation’s £1,000 donation, SFS’s EMEA operations provide financial support through the “Give as You Earn” scheme, which allows employees to make donations through payroll deductions. The Luton facility held a Golf Day to raise money. David Best, Managing Director, EMEA, and Steve Gulvin, Regional Manager, EMEA, raised £8,000 by participating in a charity cycle ride from London to Paris. Money raised from the charity cycle ride was used to purchase 10 brightly coloured “distraction boxes” containing toys to entertain children during treatment and examinations at hospitals. 23 Leading in Our Marketplace BBA Aviation is a leader in our industry. In order to maintain that leadership position, it is important that we share our strong CSR philosophy with others, including our customers and our suppliers. Our Company works hard to achieve success by being ethical and reliable and a model for others in the areas of HS&E and CSR. We believe that continuing to focus on these issues will help ensure us a leadership position in the marketplace in the future. Working with Our Supply Chain BBA Aviation believes that our CSR responsibilities include not only promoting CSR throughout our own Company, but also encouraging our customers and suppliers to adopt strong CSR principles. Our Company’s individual facilities are poised to offer assistance to suppliers to ensure that any new products being developed are good for the environment and the health and safety of the public. Such assistance by our facilities is required under our Company’s Product and Process Stewardship Guidance Note. Our Supply Chain Management Guidance Note further helps individual facilities ensure that all supply decisions are made in accordance with ethical and environmental principles. BBA Aviation continues to promote the importance of our CSR philosophy to both our suppliers and our customers. At SFS Cape Town, for example, our Company’s CSR brochures are clearly displayed in brochure racks in the flight lounge and reception area. ASIG includes information regarding ongoing CSR efforts in all of its standard sales material. In March 2007, APPH hosted a supply chain conference for over 60 members of key suppliers and client companies. Attendees broke into smaller groups and took turns rotating through sessions covering environmental issues, CSR, communication, and lean manufacturing. The conference also provided an opportunity for the companies to share what they are doing in relation to these topics and to identify areas for improvement. APPH also conducted surveys to assess the performance of their suppliers in the categories of health and safety, quality, target setting, processes, and people. Questions ranged from whether a facility has an environmental policy to whether it is establishing and tracking key performance indicators. APPH assigned scores for each category, and also established performance benchmarks for how the companies should be performing. APPH plans to conduct additional audits in 2008. We believe that this active promotion of CSR principles will result in suppliers and customers reviewing their own CSR policies to ensure that they meet our high standards. In this way, we will be able to achieve the highest level of CSR performance throughout every area in which we do business. Competition BBA Aviation is proud of the fact that our CSR programmes and performance have helped us win new contracts from customers (e.g., SFS San Francisco). We believe that this shows the increasing importance of including CSR as a major component of our Company’s overall operating philosophy. While BBA Aviation is already considered a leader in the industry, we are aware that many competitors do exist. Because of this, it is to our Company’s business advantage to find ways to differentiate ourselves from our competitors. One very successful way we have done this is by showing potential customers our proven track record in the areas of CSR and HS&E. More and more potential customers are, in fact, asking for this information in their proposals. We believe that continuing our strong CSR-related efforts will enable us to win even more contracts in the future from entities that hold similar CSR philosophies. Our Company also continues to take steps to ensure that we are in compliance with fair competition laws. We accomplish this, in part, by assisting our employees through the compliance process via our Competition Law Compliance Policy, a written document that has been in effect for many years. Training on this Policy is provided to all senior management throughout the businesses. Employees who have concerns about this Policy or who may believe they have conflicts with the Policy are strongly urged to let us know so we can take any necessary actions. Employees who wish to raise concerns but do not want to be identified are able to use the confidential call line. Policy on Gifts BBA Aviation has a dedicated corporate policy on Gifts and Entertainment, which outlines the ethical behaviour expected of our employees. We will act against any employee who contravenes this Policy. BBA Aviation does not give political donations. Verification Statement RMT, Inc. has been requested by BBA Aviation to review and verify its 2007 CSR Report. Ultimately, collection of data and presentation of information in the Report remains the responsibility of BBA Aviation Directors. RMT has been tasked with providing an opinion of the Report based upon our verification. Our responsibility in performing this work is to the management of BBA Aviation only and in accordance with the terms of reference agreed with them. Therefore, we do not accept or assume any responsibility for any other purposes or organisation. Any reliance that a third party places on the Report is entirely at its own risk. A separate department of RMT is an external advisor to BBA Aviation, providing ongoing assistance on matters of health, safety, and environmental compliance. • The Company has continued to enhance and develop a sound and comprehensive system of electronic data collection. This system, along with other mechanisms, is used by BBA Aviation facilities to report performance on CSR topics. • The Report accurately presents BBA Aviation policies and systems for the identification, enhancement, and management of environmental, health, safety, and social issues. • BBA Aviation has responded to feedback from external stakeholders and has presented this Report in a format that facilitates communication both internally and externally. Scope and Objectives The data contained in the Report is consistent with the underlying data available at the Company level. The verification was conducted by RMT as a desk study with the following objectives: Paul Ressmeyer RMT, Inc. August 2008 • Provide an opinion on whether the Report accurately presents BBA Aviation’s policies and systems. • Confirm that the data presented in the Report is an accurate and complete representation of the data contained in data management systems at the Company level. Activities Conducted In order to achieve our stated objectives, the following activities were conducted to test the scope and balance of information provided in the Report: • Reviewed relevant documentation available at the Company level. • Conducted random checks of the contents of the Report against documentation and information available at the Company level. • Checked the data presented in the Report against management systems at the Company level. • Checked evidence to test claims made in the Report regarding BBA Aviation CSR performance. Relevant documentation constituted information available on BBA Aviation’s Internet site, its Intranet HS&E management system, working documents that support the Report statistics, and select BBA Aviation business policies. Findings As a result of the verification activities conducted, we can confirm the following: 25 We encourage dialogue with all stakeholder groups who have an interest in our business activities, and invite you to share your thoughts on this Report and our CSR activities. Please fill out the enclosed postcard, e-mail [email protected], or write to Corporate Social Responsibility, BBA Aviation plc, 20 Balderton Street, London, W1K 6TL, UK. The hard copy of this CSR Report was printed on PhoeniXmotion Xenon paper, which carries the FSC (Forest Stewardship Council) certification. It is made with ECF pulp (Elemental Chlorine-free), is acid-free, has a natural pH and is fully recyclable. BBA Aviation plc Registered Office 20 Balderton Street, London W1K 6TL Tel. +44 (0)20 7514 3999 FAX +44 (0)20 7408 2318 Registered in England Company Number: 53688 www.bbaaviation.com