corporate responsibility and sustainability - cobham plc · pdf fileannual risk assessment....

The most important thing we build is trust

Corporate Responsibility and Sustainability2010

Message from Chief Executive Officer

Message from Director, Corporate Responsibility and Sustainability

2 Cobham plc | 2010 Corporate responsibility and sustainability report

This report summarises

the improvements we

have made during 2010

and sets out what we

plan to achieve during

2011. Corporate

responsibility and

sustainability (CR&S)

is a key driver of shareholder value requiring

integration into all that we do. As Chief

Executive Officer, I ensure that the Board is

kept informed of our progress and takes

account of any material issues during its

annual risk assessment.

Most notably during 2010 we launched the

Excellence in Delivery (EiD) programme which

will transform Cobham by streamlining our

operations and enabling our people to delight

our customers. As part of this programme we

are integrating CR&S into every aspect of our

At Cobham we

recognize that acting

responsibly and

sustainably creates

value. We are working

to make this part of

everything we do. We

will achieve this

through improving key stakeholder

relationships, finding innovative uses of our

technology for positive social and

environmental impact, striving for the

highest ethical standards, developing our

people, pursuing zero harm and engaging in

our communities.

Against a tougher economic backdrop in

2010 we made progress towards our goals

in a number of key areas including:

• Benchmarking ourselves using the

Business in the Community Corporate

Responsibility Index

• Researching our key stakeholder groups

• Commencing the Excellence in Delivery

business. I am very encouraged by the

results to date.

We are proud of our company and the

products and services that we provide

– they keep people safe and improve

communications. Our CR&S programmes are

designed to improve our performance in a

responsible, sustainable manner and look

forward to sharing with you our progress in

the next report. In the interim, I welcome

your feedback.

programme to deliver value for customers

and making Cobham a better place to work

for its employees

• Completing the appointment of ethics

officers in all our business units and ethical

awareness training for 99% of our employees

• Continuing to invest in developing leadership

and mission critical workforce talent

programmes

• Rolling out our standardised safety, health

and environment management approach

• Conducting a strategic review of the Group’s

community involvement activities.

During 2011 we will build on this work with a

focus on integrating CR&S into our

standardised operating processes.

Front cover image An employee from Cobham plc in Wimborne volunteered at Kings World trust for Children, a charity that provides a caring home, an education and skills training for orphan and homeless children in Southern India. In addition to the voluntary work, Cobham employees donated £1,200 to the Trust.

See page 25 for more on “Being part of our communities”

Contents

Messages 2Chief Executive Officer 2

Director, Corporate Responsibility and Sustainability 2

Our corporate responsibility and sustainability reporting 3

Cobham at a glance 4

Vision, strategy and governance 6Vision 6

Strategy 6

Governance 7

Enhancing stakeholder engagement 8

Creating value through innovation with insight 10

Competing for high performing talent 14Talent development 14

Diversity and equality 16

Acting ethically towards all our stakeholders 17

Pursuing zero harm 18Flight safety 19

Occupational safety and health 20

Environmental management 21

Energy and carbon emissions 22

Water consumption 22

Waste generation 22

Product stewardship 24

Being part of our communities 25

Performance summary 27

Cobham’s products and services have been at the heart of sophisticated military and civil systems for more than 75 years, keeping people safe, improving communications, and enhancing the capability of land, marine, air and space platforms. The Group has three divisions employing more than 11,000 people on five continents, with customers and partners in more than 100 countries and annual revenue of some £1.9bn/$3bn.

James StreaterDirector, Corporate Responsibility

and Sustainability

Andy StevensChief Executive Officer

Messages

Our corporate responsibility and sustainability reporting

3www.cobham.com Cobham plc | 2010 Corporate responsibility and sustainability report

Cobham is committed to publicly reporting on its corporate responsibility and sustainability performance. It is recognised that our performance is of interest to a wide range of stakeholders including our employees, customers and shareholders.

to improve its reporting towards best practice in

terms of materiality, inclusiveness, accuracy and

completeness and strives to provide a balanced

approach that highlights its successes,

challenges and development needs as well as

allowing comparability of our performance

through time.

Cobham collects general corporate

responsibility and sustainability information

from its business units on an annual basis and

health and safety information on a quarterly

basis. The information collected is based on the

information requirements necessary to manage

performance and to respond to external

questionnaires. The Global Reporting Initiative

was used as the starting point of identifying the

relevant information to collect and this has been

tailored to meet the needs of the business.

Cobham’s reporting is currently self-declared

and based on internal data verification of annual

data returns provided by its business units

across the globe. This year, data from 100% of

wholly owned business units was reviewed for

omissions, errors and significant variation (5%)

from previous years reporting which have been

checked by the corporate responsibility and

sustainability team with the business units.

As the Group’s reporting improves we

occasionally discover incorrect data,

methodologies or assumptions. All such errors

are identified within the report. The Company is

currently undertaking an external assurance

readiness programme on greenhouse gas

reporting with a view to seeking independent

assurance on this data in 2011.

During 2010 Cobham has reported publicly on

its corporate responsibility and sustainability

performance through a number of channels

including:

• Cobham’s 2010 annual report and accounts

which provides a summary of our key

performance indicators linked to the key

sustainability risks faced by the Group

• This annual corporate responsibility and

sustainability report which provides more

detail on our vision, strategy, governance and

management approach to corporate

responsibility and sustainability

• The corporate responsibility pages of the

Cobham website (www.cobham.com) which

provide key extracts from the annual

corporate responsibility and sustainability

report

• Responses to publicly available surveys such

as the Carbon Disclosure Project

This report covers all wholly owned operational

activities over which Cobham has management

control for the financial year ended 31

December 2010. Data is consolidated for the

Group and reconciled for any acquisitions and

divestitures that take place through the course

of the year. There have been no significant

changes in size, ownership or activities that

materially influence the scope or boundary of

this report in comparison to the previous report

for the financial year ended 31 December 2009.

The content of this report has been defined in

response to the corporate responsibility and

sustainability risks facing the Group as well as

the interests and expectations of a range of

interested stakeholders. Cobham is committed

Total revenue

£1,902.6m (2009: £1,880.4m)

+1.2%Total Carbon Footprint

465,826 tonnes CO2e (2009: 476,148 tonnes CO

2e)

-2.2%Talent

30% of all senior positions were filled through capable internal candidates

Ethics

99.9% of employees had received ethical awareness training

99.3% completed their annual re-certification

Health and Safety

0 Fatalities (2009: 0)

-15.7% Major Accident Incident Rate (MAIR)2010: 565 (2009: 670)

-33.7% Lost Working Days2010: 2,212 (2009: 3,336)

Our co

rpo

rate respo

nsibility an

d sustainability rep

ortin

g

23%of Group revenue

(2009: 26%)

45%of Group revenue

(2009: 46%)

21%of Group

trading profit(2009: 25%)

49%of Group


Cobham at a glance

Technology Divisions

2010 Highlights

Defence SystemsAvionics and Surveillance

Supporting people and platforms to see and be seen Providing a 360 degree mission perspective to decision makers

Capabilities Avionics – integrated systems and communication solutions• Surveillance solutions – audio, visual, tracking, locating, cellular, •

sensor, covert surveillance and search and rescue solutions for government and civil agencies

SATCOM – land, marine and airborne communication systems•

Capabilities Sensor systems – radar, communication and electronic warfare•Antenna systems – microwave antennas, composites and masts• Defence communications – tactical communication, command •

and control systems Analytic solutions – high end scientific, engineering and technical •

assistance for defence and national security

Operating locationsUSA, UK, Canada, Denmark, France, South Africa

Operating locationsUSA, UK, Mexico, Finland, Sweden

Revenue2

£447.4m(2009: £487.3m)

Revenue2

£859.2m(2009: £873.0m)

Trading profit

£72.2m(2009: £84.6m)

Trading profit

£169.0m(2009: £164.4m)

Employees1

2,651 (2009: 2,947)

Employees1

5,134 (2009: 5,325)

FebruaryCobham was awarded a contract from Sikorsky Aircraft Corporation to manufacture advanced composite components and assemblies for the main rotor blades of the United States Marine Corps’ CH-53K Heavy Lift Replacement Helicopter.3

JanuaryCobham’s HeliSAS® Stability Augmentation System and Autopilot received Technical Standard Order certification from the US Federal Aviation Administration.

MarchCobham launched the inaugural Sir Alan Cobham Awards programme, with over 500 employees recognised across five categories.

AprilTwo Cobham businesses were honoured in the2010 Queen’s Awards for Enterprise; one each in the categories of International Trade and Innovation.

MayCobham was awarded a contract for US$46m from Naval Air Systems Command to manufacture the AN/ALQ-99 Low Band Transmitter, designed to protect strike aircraft, ships, and ground troops by disrupting enemy radar and communications.3

JuneCobham was awarded a $17m contract from Raytheon Missile Systems to manufacture microwave modules used in a ground- to-ground or air-to-ground missile applications.

Image courtesy of Raytheon.


Co

bham

at a glance

18%of Group revenue

(2009: 17%)

14%of Group revenue

(2009: 12%)

20%of Group


10%of Group


Service Division

Mission Systems Aviation Services

Mission systems for extreme environments Outsourced aviation services

Capabilities Air-to-air refuelling systems• Weapons carriage and release systems• Safety and survival systems• Weapons systems• Space systems•

CapabilitiesWarfare training• Special mission operations• Flight inspection services• Support services• Airline – outsourced commercial aviation• Freight services• Aerospace engineering•

Operating locationsUSA, UK

Operating locationsUK, Australia, Germany

Revenue2

£344.1m(2009: £317.0m)

Revenue2

£273.5m(2009: £230.9m)

Trading profit

£69.2m(2009: £56.8m)

Trading profit

£36.4m(2009: £31.3m)

Employees1

1,474(2009: 1,533)

Employees1

1,644(2009: 1,733)

1 At year end2 Includes interdivisional trading.3 Use of this Department of Defense image does not

imply Department of Defense endorsement

JulySelected as a major subcontractor to demonstrate autonomous aerial refuelling between two unmanned NASA Global Hawk aircraft.3

AugustCobham delivered its 100th Low Band Transmitter to US Navy ahead of schedule. A system heavily used in current operations in Iraq and Afghanistan.

Image courtesy of Russell Hill.

SeptemberSelected as as partner for the Cabin Core System on China’s indigenous narrow body airliner, the COMAC C919.

OctoberAwarded an Indefinite Delivery/Indefinite Quantity contract worth up to $1.6bn to provide advisory and assistance services to the US Missile Defense Agency.3

NovemberMichael Wareing appointed as a non-executive director with effect from 1 December 2010.

DecemberAnnounced acquisition of RVision Inc., an advanced electro-optical and infrared imaging systems specialist for up to US$48m.


Co

bham

at a glance

Vision, strategy and governance

Vision

Strategy

At Cobham, corporate responsibility and sustainability means building trust with key stakeholders,

future proofing the business against changes in society, resource availability and technology as

well as being responsible towards society and the environment. Cobham’s vision for corporate

responsibility and sustainability to:

• Be fully INTEgRATED into corporate governance, strategy, performance management,

reporting and assurance

• Act ethically and RESPONSIBLy with all stakeholders

• INSPIRE and motivate employees

• Work SMARTER, not harder

Achieving this vision will add value to all Cobham’s stakeholders.

Cobham’s strategy for corporate responsibility and sustainability is primarily to enhance its

stakeholder engagement and to fully integrate responsible business practices into core

business systems (PROCESSES). The second key theme is to engage and educate employees

in what corporate responsibility and sustainability means to Cobham and how they can each

contribute (PEOPLE). The third element is to provide challenging and rewarding work in great

locations (PLACES) and lastly to develop innovative technology that protects lives and

livelihoods (PRODUCTS).

We continued to improve on the majority of our key performance indicators despite the challenging economic situation.

Processes

People

Places

Products

• Stakeholder engagement

• Standard operating framework

• Life cycle management

• Management systems

• Staff and talent management programmes

• Organisational design

• Learning and development

• Employee engagement

• Customer and end user requirements

• Product stewardship

• Supply chain management

• Geographic footprint

• Green buildings

• Logistics and distribution

• Community engagement

Cobham’s vision for corporate responsibility and sustainability is aligned with our corporate vision, values and strategic objectives.

“The corporate responsibility and sustainability programme assists Cobham Aviation Services in gauging the current health

of the organisation and ensuring continuous improvement against our targets. It is an integral part of the day to day business and our commitment to the environment and the community” Peter Nottage, Vice President Cobham Aviation Services


“As a company, Cobham’s long term success is dependent upon our ability to build trust with our key stakeholders. Our corporate responsibility and sustainability programme plays a critical role in establishing and maintaining this bond of trust and I am personally committed to its success.” Randy N. Morgan, President, Cobham Analytic Solutions

Visio

n, strategy an

d governan

ce

Governance

Cobham is fully committed to the highest

standards of corporate governance which is

based on its core values of trust, talent and

technology and supported by it’s code of

business conduct. The approach towards the

governance of Cobham’s corporate

responsibility and sustainability is set out in the


framework, with the overall direction steered

by the corporate responsibility and

sustainability committee. The committee is

chaired by the Chief Executive, who has overall

accountability for such matters, with

membership including the Executive Vice

President of Human Resources, Chief of Staff,

Chief Legal Officer, Executive Vice President

Cobham Corporate North America and

Director of Corporate Responsibility and

Sustainability, the latter having responsibility

for development and implementation of

the strategy.

The purpose of the corporate responsibility

and sustainability committee is to assist the

Group in discharging its duties to promote the

success of the company for the benefit of its

stakeholders and have regard to the matters,

among other things, noted in Section 172 (1)

(a-f) of the UK Companies Act 2006. In

particular, the committee is required to

consider the risks and opportunities relating to

its key focus areas of:

• Enhancing stakeholder engagement

• Attracting and retaining talent

• Acting ethically towards its stakeholders

• Pursuing zero harm

Cobham’s governance reflects the importance of corporate responsibility and sustainability as a core business strategy by embedding it within our governance policies and integrating it into our business processes.

Cobham plc announced the appointment of Michael Wareing as a non-executive director with effect from 1 December 2010. Michael also became chairman of the audit committee in May 2011.Amongst Michael’s other commitments, he is a member of the board of Business in the Community and co-chairman of Business in the Community international (formerly the Global Partner Network) which promotes best practice in corporate social responsibility.

Cobham joined Business in the Community in 2010 and participated in the Corporate Responsibility Index for the first time seeking to benchmark itself against UK and sector peers. Feedback from this process will be reviewed by Cobham’s corporate responsibility and sustainability committee to support development of the strategy going forward.

“Business in the Community’s CR Index is the UK’s leading voluntary benchmark of Corporate Responsibility (CR). It helps companies to integrate and improve CR throughout their operations by providing a systematic approach to managing, measuring and reporting on business impacts in society and on the environment” – BITC CR Index website

The committee is authorised by the Group

Executive to:

• Review the effectiveness of processes and

controls for identifying and managing


risks and opportunities that could

materially affect the Group’s business

performance and reputation

• Review and challenge the performance in

line with the Group’s corporate

responsibility and sustainability vision,

strategy, policies and performance

standards

• Maintain oversight of the strategy and key

policies, noting any recommendations and

inputs from the Board and the Group

Executive

• Monitor the integrity and effectiveness of

the non-financial statements and any

other formal communications relating to

the Group’s corporate responsibility and

sustainability performance.

The corporate responsibility and

sustainability committee is supported by two

subcommittees: the business ethics and

compliance committee and the safety, health

and environment committee.

Resources for corporate responsibility and

sustainability were enhanced during 2010 by

a dedicated full time analyst. A more

extensive assurance program will be planned

for 2011 including those in Cobham’s internal

audit team.


Visio

n, strategy an

d governan

ce


Enhancing stakeholder engagement

Linking key stakeholder issues with shareholder value through corporate strategy and operational performance.

During 2010 Cobham engaged with a diverse array of stakeholders at differing frequencies and through different media. The table below identifies

who we engaged with, the method, how often and the more important issues identified.

Engagement with our stakeholders in 2010

Stakeholders Method of Engagement Frequency Summary of material issues

Customers Formal and informal As required Technological innovation

Quality, cost and delivery

Through life costs

Hazardous materials

Shareholders Financial and non-financial reporting

Annual general meeting

Face to face, telephonic correspondence

with a variety of shareholders

Quarterly and annually

Annually

As required

Defence budget impacts

Business ethics

Staff and talent shortage

Regulators Face to face or telephonic discussion

Written correspondence

As required Legal compliance

Government

(UK & US)

Face to face discussions with government

and elected representatives

As required Future military spending

Contribution to local communities

Contribution to technological innovation

US Government

lobbyists

Face to face discussions As required Industry’s position on key issues

Employees Team Briefings

Employee magazine (Cobham Update)

Intranet

Focus groups

Ethics hotline

Monthly

Quarterly

As required

As required

As required

Corporate strategy

Excellence in Delivery programme

Business ethics

Safety, health and environment

Industry bodies Meetings As required Industry insights and good practice

Impacts of current and pending legislation

Industry’s position on key issues

Industry-wide environmental initiatives

Investment

community

Investor roadshows, face to face and

telephonic discussions

Investor surveys (EIRiS, Bloomberg,

Governance Metrics International,

Carbon Disclosure Project)

As required Defence budget impacts

Staff and talent shortage

Governance issues

Risks and opportunities arising from

climate change

Local communities Press releases

Charitable support

As required Job creation and restructuring

Licence to operate

Enh

ancin

g stakeho

lder en

gagemen

t

“I am personally committed to having an integrated, responsible and sustainable approach to our

operations as this will help us to better serve our stakeholder community” Fred Cahill, Vice President, Cobham Antenna Systems


Cobham understands that building trust with its key stakeholders is essential to growth, operational excellence and long-term value. During 2010,

Cobham conducted a mapping exercise to review its key stakeholder groups, their relative influence and the materiality of their issues to the business.

This exercise identified that Cobham’s primary stakeholder groups comprise the following:

The priority issues identified as important to

both these stakeholder groups and Cobham

included:

• Business ethics, governance and regulation

• Occupational health and safety

• Employee wellbeing

• Community/licence to operate

• Energy efficiency and carbon emissions

• Supply chain management

• Diversity and equality

Stakeholder classification Stakeholder group Stakeholder strategy

Business critical Employees, customers, business partners, shareholders, potential investors, government, regulators, investment analysts, banking community, local communities

Review, maintain and/or enhance existing engagement activities with these groups

Influencers Suppliers, strategic advisors, PR consultants, media, investor research agencies

Monitor and respond to concerns of key influencers

Interested Potential recruits, brokers, NGOs Keep informed on relevant key issues

Other areas of interest to stakeholders

included:

• Potential for involvement in controversial

weapons

• Waste and recycling

• Water management

While these issues are considered important

they are considered of lower materiality due

their potential impact on the business.

AWARDS Corporate Responsibility and Sustainability2008


Cobham Technical Services in Leatherhead was a finalist in the

prestigious 2010 MacRobert Award from

the Royal Academy of Engineering, for its

innovative MINEHOUND dual-sensor

mine detector. MINEHOUND is a

hand-held mine detector incorporating

Cobham’s leading-edge ultra wideband

ground penetrating radar and a

high-performance metal detector

developed by Cobham’s manufacturing

partner for the product, Vallon GmbH,

and was previously featured on the front

cover of our 2008 corporate responsibility

and sustainability report.

AWARDS

Enh

ancin

g stakeho

lder en

gagemen

t

Concord

San Diego

Davenport

Marlow

Troyes

Wimborne

WhiteleyNashua

Lansdale

Prescott

Orchard Park

Exeter

Lowell

San Jose


Creating value through innovation with insight

Cobham creates value through innovation of technologies in the commercial aerospace, defence and security markets through deep customer insight and engineering excellence.

Cobham’s strategy is to create superior

shareholder value by growing market share over

time in attractive segments of the global

commercial aerospace, defence and security

markets where it can achieve scale and leading

market positions. Many of the Group’s products

and services are focused on enhancing

communications and protecting the lives and

livelihoods of civil and military personnel and

assets in hostile and challenging environments.

Engagement with customers and end users has

led to the development of distinctive

technologies and the strengthening of market

positions through acquisition to build scale.

Examples of Cobham’s investment in

technology include:

• Certification of fifth generation air refuelling

pods, along with the Airbus Military A330

Multi Role Transport Tanker, for the Royal

Australian Air Force

• Provision of an autonomous aerial refuelling

system for the Northrop Grumman KQ-X

Global Hawk programme

• Successful demonstration to the US Army of

a 100 user radio system for the Wireless

Network after Next (WNaN) programme

• Launch of a fully portable, networked and

unattended ground sensor (Wireless Sensor

Network Node or ‘Nugget’) for covert

surveillance and asset protection applications

• Launch of Cobham’s smallest, lightest and

lowest cost SwiftBroadband solution (the

unique SB200) allowing satellite connectivity

for data networks, internet, email and

telephony for a new market of smaller aircraft

In addition to its strong tradition of innovation

through deep customer insight over the past 76

years, Cobham announced its Excellence in

Delivery programme in August 2010. The

programme will enhance Cobham’s ability to

deliver value for its customers and make

Cobham a better place for its employees

through a significant investment in world class

systems, infrastructure and training. The

programme is being be rolled out in a phased

manner across 14 principal manufacturing

locations.

End users and customers are increasingly

focusing on reducing through-life operating

costs by demanding products and services that

are more durable, energy efficient, less fossil

fuel dependent and recyclable. Cobham is

integrating these environmental sustainability

requirements into its standard operating

framework and new IT systems which are key

components of the Excellence in Delivery

programme.

Principal Locations14 principal manufacturing locations

AWARDS

Cobham Surveillance in Segensworth received an

Innovation award for

developing its Solo4

wireless digital audio and

video link technology that

improves safety for bomb

disposal teams and law enforcement

personnel by increasing the range at which

they can effectively operate their robotic

bomb disposal equipment. This is the

second Queen’s Award for Enterprise for

this site, following an award in the

International Trade category in 2009.

Creatin

g value through in

novatio

n with in

sight


Mars Rover

Cobham’s rotary joints, antennas and pyrotechnic actuators were part of the mission that took the Mars Rover to the Red Planet.

Shuttle Systems

Every Shuttle astronaut has depended on Cobham oxygen regulators and life support equipment.

Aboard the ISS

Cobham has delivered more than 250 life support components for the International Space Station, including vital subsystems for its Quest Joint Airlock.

Imaging Earth

The UK-DMC satellite, part of a constellation specifically designed to monitor disaster areas such as the 2008 California Bushfires as seen here, includes a purpose-built Cobham antenna.

Air-To-Air Refuelling

Cobham provides 95% of the world’s probe and drogue air-to-air refuelling equipment and has delivered more than 1,000 systems.

Airbus A380

Every Airbus A380 flies with Cobham antennas, airborne servers and routers, communications management systems and oxygen systems.

Enabling Networks

Every US fighter aircraft carries a Cobham antenna and every F/A-22 stealth fighter includes more than 100 Cobham microwave modules.

On Board with Red Bull

Our high speed video transmission technology provides breathtaking live video from the cockpits of Red Bull Air Race competitors, despite punishing 12G turns at 280mph.

Surveillance

Our specialist communications and surveillance equipment is in daily use with more than 125 law enforcement and public safety agencies around the world.

Disarming IEDs

Our digital video compression technology enhances safety for bomb disposal units by increasing the range at which they operate their specialist robots.

Right There With Them

Thanks to Cobham, Vancouver Winter Olympics viewers shared the thrills and spills of the inaugural “Ski Cross” through live video transmitted from their helmets.

Tactical Communication

More than 125,000 Cobham vehicle intercom systems are in service with 18 armed forces around the world.

Composite Capability

Our composite technology is present in the primary radar array face of the Daring Class Type 45 Air Warfare Destroyer and in many unmanned systems.

Life Preserver

Every US Navy pilot wears our personal life support equipment, including life preserver auto-inflation and parachute auto-release systems.

Satellite Saviour

Our satellite communications and emergency position indicating technology has saved more than 27,000 lives on land and sea.

Microwave Modules

Our microwave technology plays a vital role in the US Navy’s Aegis combat control radar system.

Imag

e co

urte

sy A

irbus

S.A

.S

Phot

o co

urte

sy o

f Tim

othy

Rya

n

Space

Aerospace

Land

Maritime

Creatin

g value through in

novatio

n with in

sight


Cobham SATCOM in Cape Town sets new standards in energy efficiency in the

design of the HGA-7001 High Gain Antenna system certified on the Airbus Long Range

family of aircraft and the 470 kbps single channel SwiftBroadband system, whilst

achieving high levels in quality and product capability.

Cobham Surveillance in Segensworth’s

COFDM equipment played a key part in the

effort to track the Gulf of Mexico oil spill. An

intelligence, surveillance and reconnaissance

(ISR) aircraft deployed by Sierra Nevada

Corporation (SNC) flew out over the Gulf using

imagery and mapping capabilities to explore

the oil spill and its overall size. These aircraft are

typically used for border security and defence

applications. SNC’s ISR aircraft features

Cobham’s FM and COFDM video products to

provide real-time transmission of live full

motion video to observers on the ground.

Cobham Life Support in Orchard Park’s gunfire-tolerant oxygen cylinder received a

world-first certification from the United States Department of Defence. The unique carbon-fibre

composite shell can survive the impact of .50 calibre armour piercing gunfire which means that

war fighters using our new oxygen cylinders will no longer have to choose between safety and

performance. This lighter, stronger, safer oxygen cylinder will be used for applications in high

altitude jump systems and emergency oxygen breathing on military transport and fighter

aircraft. In addition, they have the capacity to store more oxygen than any steel cylinder, giving

the option of extending mission duration using fewer cylinders.

Cobham Life Support in Westminster

worked in collaboration with Beacon Power to

help develop the largest composite flywheel

ever produced for commercial application.

This 2000 pound composite flywheel is about

36” in diameter by 60” long with 7” thick walls.

The flywheel acts as a frequency regulator for

electrical power generation, enabling an

emission-free alternative to the current coal

and gas fired practices. It is estimated that each

of Cobham’s flywheels can save up to 60 tons

of CO2 emissions annually, as compared to a

coal-fired power plant.

Creating value through innovation with insight

AWARDS

Cobham Antenna Systems in Marlow received an International

Trade award for increasing

export revenues

continuously over six

years to nearly £60 million

per annum and for selling well over 80% of

its production overseas.

Cobham’s digital audio and video link

technology was recognised as a key

contributor to numerous life-saving

applications including disaster relief and

counter terrorism.

Creatin

g value through in

novatio

n with in

sight


“In a world dependent on fossil energies, the Solar Impulse project is a paradox, almost a provocation. It aims to have an airplane take off and fly autonomously, day and night, propelled uniquely by solar energy. Staying aloft for several days on end, this airplane will fly round the world without fuel or pollution.”

SOLARIMPULSE website (www.solarimpulse.com)

Cobham announced the acquisition of SafeLife Systems, a satellite self-test detection

service based in Knoxville, Tennessee. The newly acquired service gives thousands of

owners of 406 MHz Personal Locator Beacons (PLBs), Emergency Locator Transmitters (ELTs)

and Emergency Position Indicating Radio Beacons (EPIRBs) the ability to send non-distress

messages via text/email to family and friends, letting them know that all is well. It will

become part of the ACR Products line in Cobham’s Life Support strategic business unit.

The following Cobham products have been

selected for use on the Solar Impulse aircraft.

In both cases, Cobham products were selected

due to their small and lightweight design,

energy efficient operation whilst maintaining

the high levels of reliability and operational

performance required.

Cobham Surveillance in Carlsbad

provided a Cobham miniature transmitter

(VMT) with Variable Efficiency Power Amplifier

(VEPA-2W), a crucial telemetry link, to downlink

critical imagery and telemetry data.

Cobham SATCOM in Cape Town

supplied a special version of the SB300

SwiftBroadband (SBB) System to provide

access to the Inmarsat aeronautical high

speed data system for the transfer of

video, telephone and aircraft telemetry to

the Solar Impulse ground control station.

The Solar Impulse aircraft successfully

completed a 26 hour non-stop flight in July

2010 relying solely on solar energy and

producing no environmentally harmful

emissions.

Creatin

g value through in

novatio

n with in

sight


Competing for high performing talent

Attracting, retaining and developing the leadership and mission critical skills necessary for the future workplace in an increasingly competitive talent environment.

Talent development Cobham recognises that investment in its

talent is critical to future growth.

Cobham’s Group Executive sponsor and own

the talent management process. The Group

Executive have stated that talent within

Cobham is fundamental and that we must

continue to develop the skills, knowledge and

behaviours essential for our future. To ensure

that this is addressed in a focussed and

structured way we have established a

framework that supports our ability to:

• Understand where our potential is

• Understand the skills and knowledge we

need

• Provide the mechanisms to develop the right

functional and leadership competencies

A range of talent development programmes

have been established and others are being

developed. These include:

• Apprenticeship Scheme

Owned by Corporate and covering all UK

sites, the scheme partners with local

educational organisations to provide

technical training supporting practical work

experience. Competence standards

continue to rise with graduating apprentices

progressing into engineering and IT roles or

continuing their education as part of the

Cobham Graduate Programme. During 2010,

eleven apprentices joined the existing

twenty-three on the programme. One

apprentice continued onto the Graduate

Development programme and thirteen took

up permanent roles.

• graduate Development Programme

A structured programme owned by

Corporate and targeting leading academic

institutions in the UK and US to deliver

future high performers in technical and

commercial work streams. On passing a

rigorous selection procedure, graduates

complete several placements, in different

parts of the business. The programme

received Royal Aeronautical Society

accreditation during 2010 and the first

graduates are now taking up permanent

roles within the organisation. During 2010,

the programme recruited a further twenty-

three graduates to join the twenty-seven

already on the programme with six graduates

moving off the programme into permanent

roles in Cobham.

• Divisional High Potential Owned by each of the divisions and targeted

at developing employees with the ability to

deliver strategic objectives within mission

critical work streams. During 2010, seventy

employees participated in the programme,

with a high proportion of those being

assigned leading roles within the Group’s

“Excellence in Delivery” programme.

• Senior Development Programme

Owned by Corporate and targeting high

potential individuals as the future senior

leadership of the business. The programme

partners with leading UK and US business

schools and provides participants with

opportunities to develop their senior

leadership skills. During 2010, seven employees

were selected to accompany the twenty-four

currently progressing through the programme.

Success is measured by the number of

employees moving onto high level roles and

of those who have already graduated, 70% of

employees have made this step.

• Executive Development Programme Owned by Corporate and providing senior

management with continuing professional

and personal development.

Underpinning all of the development

programmes is a common, group-wide

performance management process containing:

• A framework of mission critical

competencies against which employees

are assessed

• Performance management tools to assess

employees’ specific objectives and personal

development progress

• Strategic workforce and succession planning

tools to meet the changing needs of the

business and identify high performers for

future role development.

PROFILE

During 2010, more than 30% of all senior positions within Cobham were filled from internal talent development programmes.

Kelly Rabenau, graduate Programme 2007 – 2009“I was part of the

graduate programme

for two years, during

which I completed three placements,

working in quality assurance, human

resources and aftermarket development.

My placements allowed me to gain

experience at a business unit level,

divisional level and Group level. The

rotational structure of the graduate

programme helped me understand issues

and cultures within particular areas of the

business, as well as build contacts across

the Group, which is a great benefit in my

role today. My last placement evolved

into my first permanent role, part of a

Group-wide project team focused on

driving growth through Aftermarket

activities. I consider my time on the

graduate programme to have placed me

in a strong position to launch my career,

through knowledge of the business, a

network of contacts and not least

increased self-confidence. I have since

moved on to my second role, working as

Marketing Specialist focusing on

delivering growth for Cobham in the

airline market.”

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AWARDS

Cobham apprentices are entered into

the apprentice of the year awards, part of

the Engineering Employer’s Federation

(EEF) Future Manufacturing Awards each

year. This award recognises those who

have done the most to seize the training

and development opportunities

presented to them during the first or

fourth year of their apprenticeship

programme. Regional winners are

announced during November with the

national results being released early the

following year. During 2010, Peter

Grimsdale was announced in February as

one of two runners up in the 2009

national finals and Mark Empson won the

2010 EEF First Year Apprentice of the Year

for south west region, announced late

November. Mark has now been entered

into the 2010 national finals, the results of

which will be announced in 2011.

Peter Grimsdale, Cobham Apprentice

(Left) Ben Fowler, fourth year runner up and (right) Mark Empson

Employee training needs are identified by line

managers to underpin competent delivery in

the individual’s current role as well as flagging

space where they have potential to go further.

During 2010, 9700 employees (89%) received

training which includes 157,750 hours technical

and professional development and equating to

over £2.6 million investment by Cobham.

Cobham believes that by paying attention to

identifying potential, addressing the

development needs of its people, aligning them

to the current and future needs of the business,

it will be well placed for a strong future.

“Cobham has an ongoing commitment to identifying and employing top technical talent. We have put in motion a series of initiatives designed to engage the workforce at every level. Providing a workplace that is positive creates opportunities for all employees to participate in a meaningful way. By helping employees reach their potential both personally and professionally, they execute strategies that support our customers and our ultimate success.” Dave Schmitz, President Cobham Sensor Systems in San Diego

PROFILE

Daisy Campbell, graduate Programme 2006 – 2009“Upon completing university, I applied for

the Cobham Graduate Programme as it

ticked all the right boxes – global

company in the aerospace and defence

industry, graduate rotational programme

with the ability to experience many

diverse roles. I entered the programme

with the ambition to progress into a

technical role, as my degree was in

Physics. I had placements in a number of

different roles including customer

support, performance engineering,

human resources, project management/

electronic warfare and employee

recognition. However, I discovered my

true calling whilst doing a placement in

corporate responsibility and sustainability.

At the start of 2010, I joined the corporate

team as an analyst and feel my experience

on the programme has given me a head

start within my permanent position, by

way of an established network of

contacts, self confidence, Group

operational understanding and

adaptability.”

Alex Holt

AWARDS

Cobham apprentice turned graduate

trainee, Alex Holt, became one of only 25

Young Apprenticeship Ambassadors in

the UK

Alex Holt

AWARDS

Arnold Feineman of Cobham Sensor Systems in Lansdale and Thomas Skala

of Cobham Sensor Systems in San Jose, two of Cobham’s most experienced

and innovative electronic warfare (EW)

specialists have been honoured by the

Association of Old Crows (AOCs), the

international EW professional association,

and are now members of the Technology

Hall of Fame. Induction into the Hall of

Fame is reserved for a select group of

prime EW innovators whose work has

resulted in enhanced survivability of the

armed forces or their equipment.

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Competing for high performing talent

Diversity and equalityAs an equal opportunity employer, Cobham

believes that diversity fosters innovation and

increases its available talent pool. The Group’s

equal opportunity policy which is set out in

Cobham’s code of business conduct, outlines:

• The elimination of discrimination in the

workplace and the encouragement of

diversity amongst the workforce through

good management practice and sound

business sense

• The need to ensure the workforce is

representative of society in the locations

where we operate recognising the

limitations imposed through demography

and skills availability

• The selection for employment, promotion,

training or any other opportunity will be on

the basis of aptitude, ability & performance

• That all employees are respected, assisted

and encouraged to develop to their full

potential to maximise the efficiency of the

organisation

• The creation of an environment where

individual differences and the contributions

of all staff are recognised and valued

Information on diversity is collected on an

annual basis. An internal review of the Group’s

diversity in the areas of gender, ethnicity and

age was performed during September 2010.

Based on a review of publicly available data,

Cobham’s diversity generally equals or exceeds

its industry peer group but there is a need to

improve data quality in this area. Cobham

recognises that more work needs to be done by

industry to attract a more diverse workforce

into science, technology, engineering and

mathematics (STEM) related jobs as the

workforce ages and number of STEM related

graduates in Cobham’s home markets

decreases. Further work on the best way to

achieve this and ensure Cobham becomes

known as an employer of choice for all will be

considered during 2011. Actions are likely to

include enhancements to data collection

processes to understand the diversity make up

better (taking into account the legal data

constraints in our key geographies), methods to

promote STEM education in schools and

collaborating with key universities and colleges

to identify the talent of the future.

Cobham’s apprentice and graduate schemes

have proven their ability to deliver the young

talent we need. The experience obtained in

delivering these programmes and their

scalability means that Cobham is in a good

position to meet the future needs of the

business. Business units are encouraged to

engage with their local communities to foster

an interest in STEM education, the aerospace

and defence industry and Cobham. By actively

contributing to their communities our business

units will attract a more diverse talent pool into

STEM and become even more representative

of their communities.

During 2010, ethnic diversity of business units

increased from 17% in 2009 to 20%, however,

both gender and age diversity remained

relatively constant. Females in management

roles increased slightly by 1% to 19% in 2010,

and ethnic minority management positions

remained at the same levels as 2009 at 8%.

gender Diversity

Percentage of females in total workforce

Age Diversity

Percentage of workforce by age groups

Ethnic Diversity

Percentage of ethnic minorities within total workforce

29.0%

2008

2009

29.6%

2010 28.2% 20%2010

16%

17%

2008

2009

<25 26-35 36-49 50-59 >60

2010 6 18 39 28 9

2008

2009

6 18 40 26 10

6 19 40 26 9

AWARDS

Cobham Sensor Systems in San Diego was named Marble winner, taking

top prize in the large company category

at the 2010 Workplace Excellence Awards

which are sponsored by the San Diego

Society for Human Resource

Management and recognises exceptional

human resources practices.

(Left to right): Donna Schmidt, John Schierer, Sandy Ramirez-Ibarra, Ellen Montgomery, Steve Workman, Ezra Clay, Nyla Marson, Greg Geyer, Ally Williams, Mitch Frazier, Gregg Dearman, John DeLeon and Sandy Ash

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Acting ethically towards all our stakeholders

Embedding a strong business ethics culture to minimise liability, manage risk and protect reputation in a highly regulated and global marketplace.

Cobham pursues and rewards the highest

standards of ethical behaviour in all aspects of

its business and considers ethical behaviour to

be an asset to be valued, optimised and realised.

Cobham’s business ethics programme is

managed by a business ethics and compliance

committee comprising senior Cobham

executives.

Cobham’s management approach focuses on

the provision of a code of business conduct

that sets out the required behaviour in matters

of personal integrity, stakeholder relationships

and procedures for dealing with possible

breaches. The code has been translated into

French, German, Danish, Finnish, Swedish and

Latin American Spanish and is publicly available,

in English, on the Cobham website. The code is

supported by an online ethical awareness

programme and a globally available ethics

helpline.

At the end of 2010, nearly all (i.e. 99.9%) of

Cobham’s employees had received ethical

awareness training and 99.3% had completed

their annual re-certification. Training and

certification requires employees to

acknowledge and confirm that they have read

the code, understand its provisions and follow

it in their business activities. These certificates

require an additional acknowledgement that

employees have a responsibility to bring

violations of the code to the attention of their

supervisors or to report them via the helpline.

They also require a confirmation that the

employee has not violated the code and that

they have no knowledge of any unreported

ethics violations. The training programme

will continue to be developed such that

business ethics issues are communicated

and training provided at every level within

Cobham.

The global helpline system facilitates a

Group wide confidential tracking system

enabling us to follow cases in a variety of

ways and to report on a regular basis, the

results of investigations and any disciplinary

action taken, to the Group Executive and

Board. The helpline is well publicised with

posters advertising it at every site in local

languages where relevant. A number of

contacts to the helpline were made in 2009

and 2010, some of which were human

resources matters. Disciplinary action has

been taken where required and, in some

cases, proactive training provided to

individuals and leadership teams. The Group

seeks to capitalise on lessons learned and

monitors for emerging trends or issues at

particular units.

In addition, Cobham has appointed business

ethics and compliance officers at each

business unit. Their principal responsibilities

include implementing the ethics awareness

training programme and providing a sounding

board for employee’s concerns. They are

further supported by divisional ethics officers

and the business ethics and compliance

committee.

Cobham has adopted and implemented two

industry standards on ethical conduct:

• AeroSpace and Defence Industries

Association of Europe’s (ASD) Common

Industry Standards for European

Aerospace and Defence

• Aerospace Industries Association of

America’s (AIA) Global Principles of

Business Ethics for the Aerospace and

Defence Industry.

“Our customers, employees and other stakeholders expect us to maintain and uphold the highest standards in all that we do. I am totally committed to maintaining the highest ethical standards in our businesses and to ensuring that we behave responsibly towards our environment whilst also ensuring we meet, or exceed, all safety, health and environmental standards.”

David Ashton, VP, Cobham Commercial Systems

EthicsPoint

www.cobham.ethicspoint.com

SPEAK OUT!


• Completely confidential system – you can remain anonymous• You can ask a question• Any concerns are investigated fully

We want to hear from youEthics violations hurt everyone

0800 032 8483FREEPHONE, 24 HOURS A DAY, 7 DAYS A WEEK

The business ethics Code of Conduct is available to download from the corporate responsibility section of www.cobham.com

Objectives Objective progress 2010 actual 2009 actual Target

Appointment of ethics officers in business units

Completed Ongoing performance

Completed in all units All units

Ethical awareness training for all employees

Completed 99% complete Substantially completed for all employees

All employees

Sign up to industry standards on ethical conduct

Completed Ongoing implementation

Signatory to ASD and AIA Global Principles

Key industry standards

Actin

g ethically towards all o

ur stakeho

lders


Pursuing zero harm

Providing safer, healthier and environmentally friendlier operations, activities, products and services that will serve to attract and retain talent, raise productivity, improve efficiency and maintain our community licence to operate.

Cobham’s goal is to strive towards zero

occupational illness and injury and minimising

its impact to the environment wherever

practicable. The Group’s safety, health and

environment committee, reporting to the


committee, comprises senior representatives

from across the divisions and is tasked with

setting policy, developing the management

approach to pursue this goal, monitor

performance and ensure all accidents and

incidents are reported, investigated and

escalated where necessary.

The Group’s safety, health and environment

policy is as follows:

• Provide workplaces that are injury-free and

incident-free for all employees, visitors and

contractors

• Enhance the well-being of employees and

local communities

• Where practicable, minimise the impact on

the local and global environment arising

from operations, activities, products and

services.

Cobham’s gobal management approach is

driven through the implementation of

Cobham’s management standards, associated

guidance and tools which have been designed

to continuously improve towards world class

performance. All business units conducted

self-assessments to baseline their performance

against the management standards during

2010 with an expectation that all will achieve

foundation level as a minimum by the end

of 2011.

In addition to the self-assessment process,

corporate assurance includes selected external

validation of self-assessments, legal compliance

and data reporting on an annual basis. The

results are fed back to the business units,

division, Group safety, health and environment

committee and Group Executive.

Safety, health and environmental management

is being embedded into the standard operating

framework through the Excellence in Delivery

programme at the fourteen principal

manufacturing locations. A maturity matrix for

the standard operating framework requires

each principal location to have a dedicated,

competent person and to achieve Level 2 of

the management standards as a minimum. The

management standards have been designed to

map to the equivalent of the internationally

certifiable OHSAS18001 and ISO14001

management standards. All units achieving

Level 2 are encouraged to seek certification

against these standards.

Health and safety performance is reported

quarterly using a set of lagging Key

Performance Indicators (KPIs) designed to

allow comparison to both UK and US peers and

industry benchmarks. These include:

• Major Accident Incident Rate – number of

cases of occupational illness or injury

resulting in 3 or more lost working days per

100,000 employees

• Days Away Case Rate – number of cases of

occupational illness or injury resulting in 1 or

more lost working days per 100 employees

• Recordable Incidence Rate – number of

cases of occupational illness or injury

resulting in more than first aid treatment per

100,000 employees

• Severity Index – number of lost working

days arising from occupational illness or

injury per 100 employees.

During 2010, the Group safety, health and

environment committee identified a number

of leading KPIs for inclusion in the business unit

management scorecard on a quarterly basis.

These will be introduced during 2011.

“Protecting the health of our employees and the environment has always been a priority for us. in fact, as a leading technology provider to the defence industry, building trust and protecting lives is part of our DNA. Our commitment to the individual communities in which we work is one of the reasons we are successful as a global organisation” Bob Canedo, Manager, Safety, Health and Environment at Cobham Sensor Systems in Lowell

AWARDS

Cobham Technical Services in Leatherhead came first in its category

of “Very Large Organisations” in the 2010

Surrey Cycle Challenge with 16% of

employees riding their bikes during the

challenge period. This was organised by

Surrey County Council to encourage

people to cycle to work with a goal of

increasing commuting by bike and

reducing local congestion.

The Group safety, health and environment policy and management standards are available to download from the corporate responsibility section of www.cobham.com

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Flight Safety Cobham Aviation Services operates more than 150

fixed and rotary wing aircraft with operational

bases in Australia, UK and Germany.

All flight operations are conducted in line with

global aviation standards to ensure that safety is

the number one priority. The senior management

team encourages a ‘just’ safety culture and utilise

robust Safety Management Systems (SMS) led by

dedicated staff to identify hazards, assess risks,

establish mitigation processes and ensure

compliance with all legislative safety requirements.

The Australian operation has an active line

oriented surveillance program and flight data

acquisition program that supplement other audit,

reporting, investigation, training and education

activity. These comprise the SMS that identifies

and addresses threats, errors and trends to reduce

their prevalence.

Flight safety performance during 2010 was good.

A significant internal audit program combined with

a number of planned external audits from both

the regulator and clients, was performed resulting

in a generally positive outcome. Cobham remains

with a ‘chronic unease’ when it comes to flight

safety to guard against complacency.

“The release of the safety, health and environment management standards along with the implementation of safety, health and environment self-assessment during 2010, has given our business unit greater understanding of the reasons behind effective safety, health and environmental management. It has highlighted where we are now, how much more we can do, and shown the substantial financial and non-financial benefits associated with effective implementation. Safety, health and environment management is now being fully integrated and embraced as an essential part of our operations, rather than what was previously viewed as an administrative burden.”

Simon Pickin, General Manager, Cobham Antenna Systems in Stevenage and Shepshed

In May 2010, the Australian Transport and Safety Bureau released its final report into an

accident that occurred on 7 February 2008 when a QantasLink Boeing 717-200 aircraft

on a scheduled flight from Cairns, Queensland to Darwin, Northern Territory, landed

hard which resulted in structural damage. Although no injuries to the crew or passengers

were reported, the extent of the damage caused the Australian Transport and Safety

Bureau to classify the occurrence as an accident and issue the following statement:

“The investigation identified a number of relevant safety factors, including the flight crew’s actions and control inputs, the aircraft operator’s stabilised approach criteria and operational documentation, and the visual cues associated with runway 11/29 at Darwin Airport. As a result of this occurrence, the aircraft operator implemented a number of safety actions in relation to enhancing their stabilised approach criteria and pilot training, the monitoring of third party training providers, and the amendment of relevant operational documentation. In addition, the Civil Aviation Safety Authority undertook to prioritise the completion of proposed legislation in relation to third party training providers.”

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Accident Breakdown by type

%

Repetitive strain 23

13

12

10

6

Slips and trips on same level

Contact with a fixed or stationary object

Manual handling

Exposure to harmful substances

1

2

3

4

5

5Contact with moving parts6

4Struck by moving object7

3Fall from height8

2Other occupational health (e.g stress)9

1Struck by falling object10

<1Exposure to explosion11

20Other (e.g. cuts, noise, object in eye,radiation exposure, heat stress)

12

11109

23%

13%

12%10%

6%

5%

4%

3%

2%<1%

<1%

20%

1

2

34

5

6

7

8

12

Pursuing zero harm

2 MAIR – Number of occupational illnesses or injuries resulting in 3 or more days absence per 100,000 employees3 DAIR – Number of occupational illnesses or injuries resulting in 1 or more days absence per 100 employees4 RIR – Number of occupational illnesses or injuries resulting more than first aid treatment per 100 employees5 Severity Index – Number of lost working days per 100 employees

Performance KPIs

Target 2008 2009

2010

Fatalities Zero 0 0 0

Major Accident Incident Rate (MAIR) 2 Zero 260 670 565

Days Away Incident Rate (DAIR) 3 Zero - 0.94 0.71

Recordable Incident Rate (RIR) 4 Zero - 1.70 1.69

Severity Index 5 Zero - 29.01 19.24

Lost Working Days Zero 1,638 3,336 2,212

Occupational safety and health management KPIs

(Percentage of Group by turnover)

97%

98%

93%

100%

2009

2010

2009

2010

Written health and safety policy

Employee health and safety induction

9%

9% 1

100%

2009

2010

Target

Target

94%

94%

67%

100%

2009

2010Health and safety policy available toemployees, visitors and contractors

Target

100%Target

79%

95%

100%

2009

2010Health and safety policy linked

to Group policyTarget

Externally verified – OHSAS18001 or similar

Occupational safety and healthDuring 2010, our lagging KPIs decreased to

circa 2007 levels with a corresponding

decrease in the number of lost working days.

Although this trend is in the right direction,

there remains significant work to be done and

we remain vigilant.

The majority of occupational injury and illness

requiring greater than first aid treatment (i.e.

58%) resulted from repetitive motion, slips

and trips, contact with fixed objects and

manual handling with the remainder spread

over a variety of accident types including cuts,

exposure to harmful substances and contact

with moving parts. This is broadly consistent

with previous years’ data. Awareness has been

increased in relation to ergonomic injuries

through providing educational material to our

business units and embedding a requirement

to address ergonomic issues when conducting

lean manufacturing activities as part of our

standard operating framework. 1 Was 15% in 2009 report, certificate checks found a few not having an equivalence to those requested

Pursuing zero h

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Environmental management KPIs

(Percentage of Group by turnover)

95%

90%

17%

17%

14%

13%

68%

70%

33%

24%

57%

40%

41%

100%

100%

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

Written environmental policy

Energy, water or waste intensiveprocesses commissioned

Energy, water or waste intensiveprocesses decommissioned

Initiatives to improve energy, water orwaste efficiency commissioned

Quantified energy, water orwaste reduction targets

62%

66%

67%

100%

100%

2009

2010

2009

2010

Target

Target

Target

29%

26% 6

100%

2009

2010Externally verified –

ISO 14001/EMAS or similarTarget

100%Target

Target

Initiatives to improveenvironmental compliance

Environmental considerationsincorporated into the

design of products

47%

53%

100%

100%

2009

2010

2009

2010

Target

Target

Environmental criteria insupplier selection

Take part in localenvironmental groups

Environmental managementCobham recognises that its day-to-day

activities have an affect on the local and global

environment. To this end, Cobham is

committed to minimising its environmental

impact by improving environmental

management processes, driving energy and

resource efficiency.

During 2009, Cobham achieved the following

performance in relation to environmental

management of its business units:

Carbon Disclosure Project 2010FTSE 350 ReportOn behalf of 534 investors with assets of US$64 trillion

Report produced for Carbon Disclosure Project by: Carbon Disclosure Project

www.cdproject.net+44 (0) 20 7970 [email protected]

The Carbon Disclosure Project (CDP) saw Cobham improve their Carbon Disclosure Leadership Index score by 19 points to 73. Cobham’s report is available from on the CDP website.

6 Was 30% in 2009 report, certificate checks found a few not having an equivalence to those requested

Cobham’s goal for attaining the 2007 energy, water and waste targets was 2010. As energy was achieved a year early (2009) a revised 2010 target

was set for a 10% reduction in usage when normalised by turnover for 2010.

During 2010, an actual reduction of 4.8% was achieved. Other performance KPIs are detailed below.

KPI Performance 2009 2010 Target Difference Target performance performance Achieved from Target

Energy usage [MWh/£m] 1049 953 907 (2009) -14%

Waste generation [tonnes/£m] 3.70 4.17 3.84 4%

Water usage [m3/£m] 113 123 122 8%

From 2010 targets are to reduce energy, water and waste consumption (normalised by turnover) by 10% every year.

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Energy and carbon emissionsThe total carbon footprint for the Group has

reduced from 253 7 tonnes CO2e/£m in 2009 to

245 tonnes CO2e/£m in 2010. Of the total

carbon footprint, 19.9% of our emissions are

Scope 1, 13.6% Scope 2 and 66.5% are Scope 3.

A further breakdown of emissions is detailed

below.

group Carbon Footprint by Turnover

(Scopes 1, 2 and 3)

Energy Use

(Percentage of total carbon footprint)

245

2009

2010

2008

2537

330

Aviation Fuel

Electricity (renewable and non renewable)

Natural Gas

Business Travel

Heating Oil

2010

2009

82.8

81.2

13.2

1.8 1.8 0.4

2.5 1.5 0.2

14.6

reporting requirement in 2009, where 66% of

the Group by turnover disclosed data on

company owned vehicles (petrol, diesel and

hybrid), non-company owned vehicles, train

travel and air travel (short, medium and long

haul). During 2010 93% of the Group disclosed

data, the with remaining 7% citing that

systems would be in place to report in 2011

Water consumptionDuring 2010, water consumption increased

from 231,2558m3 in 2009 to 231,628m3. This

marks a 0.2% increase in consumption. Four

percent of water used comes from abstracted

sources, with the total water recycled at 12%

which marks an increase of 8% from 2009.

Waste generationThe amount of waste generated showed a

small 7% decrease during 2010 with the total

waste generated totalling 7,313 tonnes. Trade

effluent (9,446 tonnes) was also included in

the scope for data capture during 2010 for the

first time. Total waste recycled has increased

from 39% in 2009 to 53% in 2010 and waste

sent to land fill has reduced by 7%.

Pursuing zero harm

7 Revised 2009 data - originally 248 tonnes CO2e/£m8 Was 231,207m3 in 2009 report, data omitted and correction

applied for 2010

Aviation Fuels:

Category 1 - Cobham purchased for Cobham Aircraft

Category 2 - Cobham purchased for third Party Aircraft

Category 3 - Customer purchased for third Party Aircraft

Emission Source Breakdown

Scope 1 Scope 2 Scope 3

Aviation Fuel Category 1 87.7%

Natural Gas 9.1%

Heating Oil 1.9%

Employee business travel in company owned or controlled diesel vehicles 1.0%

Employee business travel in company owned or controlled petrol vehicles 0.3%

Other (Diesel Generator) 0.1%

Annual mileage of company owned or controlled hybrid vehicles 0.0%

Electricity from non-renewable energy sources 85.7%

Electricity from renewable energy sources 14.3%



Long haul employee business air travel (>2300 miles) 1.1%

Medium haul employee business air travel (>300 miles and <2300 miles) 1.0%

Employee business travel in non company owned vehicles 0.3%

Short haul employee business air travel (<300 miles) 0.1%

Percentage of total carbon footprint 19.9% 13.6% 66.5%

During 2010, the Group’s energy consumption

(excluding business travel) was 1,726,231 MWh.

Of this, 89.6% was due to Aviation fuel, 6.3%

non-renewable and 1.1% renewable electricity,

2.6% natural gas and 0.4% heating oil. Aviation

fuel consumption continues to be the Group’s

largest source of carbon emissions. However,

due to the nature of the service provided,

aviation fuel use is directly controlled by the

customer in both volume and efficiency of

flying, as certain conditions and scenarios must

be simulated. The next largest consumption of

energy is from electricity use, 14% of which is

from renewable sources and natural gas. As

such, Cobham’s primary focus is on improving

efficiency in the locations in which we operate.

In line with Cobham’s continuous improvement

ethic, business travel was introduced as a

Pursuing zero h

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FACILITy IMPROVEMENT CASE STUDy

Cobham Antenna Systems in Suffolk

formally opened its new state-of-the-art,

“Leadership in Energy and Environmental

Design” (LEED) certified composites

manufacturing facility. The facility

represents one of the USA’s few high-

volume production capabilities of advanced

composite products for the aerospace and

defence industries. Industry and state

leaders expect that 200 new jobs will be

created in the first five years of operation.

Complementing existing Cobham

composite facilities in San Diego, this new

facility will manufacture advanced aircraft

engine components, aircraft and rotorcraft

structural products, unmanned aerial

vehicle components, as well as missile and

munitions products for the US aerospace

and defence industry. Cobham built the

facility in accordance with the US Green

Building Council’s internationally recognised

LEED green building certification system.

LEED provides third-party verification that

the facility was designed and built using

FACILITy IMPROVEMENT CASE STUDy

Cobham Mission Equipment and Cobham plc in Wimborne successfully

completed the move to the new improved

facility. With sustainability in mind, the

original building was renovated, recycled,

extended and incorporates the latest

technology in energy efficiency. In addition

to the move, Cobham employees also

reviewed everyday operational processes to

improve the efficiency of current working

practices and working life. This included the

review of office machinery, waste disposal,

archiving and changing/washing facilities

for employees who cycle to work. This new

facility is based on the original factory site.

Twenty four percent of the UK operations

(by turnover) are generated at this new

improved site.

AWARDS

Cobham Sensor Systems in Lowell has been recognised through the Toxics

Use Reduction Act (TURA) Program as a

“TURA 20th Anniversary Leader”. This

award is due to Cobham’s environmental

achievements, open and collaborative

approach helping other companies to do

the same. From leadership within the New

England Lead-Free Consortium, to work

performed to reduce other toxics and

conserve resources, Cobham shared

strategies, assets and expertise with other

Massachusetts companies as well as with

the electronics supply chain.

strategies aimed at improving performance

in energy savings, water efficiency, CO2

emissions reduction, improved indoor

environmental quality, and stewardship of

resources and sensitivity to their effects.

For example, this new facility was built

using locally manufactured and recycled

materials, will use 30% less water than the

baseline calculation, and includes bicycle

storage and changing facilities to promote

alternative transportation.

Cobham Mission Equipment and Cobham plc’s new

facility in Wimborne

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Cobham Antenna Systems in Methuen has introduced energy-

saving equipment following a walk-

through audit held by their utility

company which revealed a number of

areas where energy and cost savings

could be made. Changes included

lighting and shut-off sensors, water

coolers, energy-saving monitors and

manufacturing implemented timers for

run-in stations.

Initial Cost: US$69,945

Benefit: New LCD monitors, 14% reduction in electricity (approx. 227MWh/ 107 tCO

2e saving)

First year Financial savings: US$112,432 (inc. incentive)

Annual Financial Savings: US$20,533

Cobham Antenna Systems in Methuen identified new cutting oil

that has a lower viscosity breakdown.

This meant that rather than changing

the used oil with fresh every 10 weeks

on average, the new cutting oil enabled

machinists to simply add to the existing

oil level in each of the 6 milling

machines.

Initial Cost: Zero

Benefit: 3,375lbs waste oil removed from waste stream, 30 man hours saved from annual maintenance

Annual Financial Savings: US$10,459 (excluding disposal cost savings)

Product stewardshipThirty one business units reported that they

considered environmental issues in the design

of their products, services and processes,

which represents 66% of the Group by turnover.

The majority of these were in relation to

producer responsibility legislation such as

Registration, Evaluation, Authorisation and

restriction of CHemicals (REACH), Restriction of

Hazardous Substances (RoHS) and packaging.

For many business units, size and weight were

also important considerations, particularly in

commercial aerospace.

While product stewardship is addressed at the

business unit level, Cobham is engaged with

customers and peers through industry bodies

which are looking to establish industry-wide

environmental metrics and life cycle

assessment processes.

OPERATIONAL IMPROVEMENT CASE STUDy


Pursuing zero harm

Cobham Antennas Systems in Marlow tackled the inefficiencies in

their operations in the form of a building

management system upgrade which

addressed the control of the heating

ventilation and cooling system and

strategy for the control and improved

monitoring of plant. In addition,

activities such as the replacement of

incandescent lighting to light emitting

diodes and switching plant from idle to

off when outside of operational hours.

Initial Cost: £6,500

Benefits: 17.5% reduction in electricity (approx. 400MWh/ 218 tCO

2e saving),

82% reduction in Gas (approx. 2,231 MWh/413 tCO

2e saving),

13% reduction in water (691m3)

Annual Financial Savings: First year realised savings through benefits above circa. £62,884


Compliance with producer responsibility

legislation (e.g. REACH, RoHS) is addressed at

the business unit level. Cobham provides a

coordinating role in keeping the business units

informed of changes in guidance and updates.

To date, REACH legislation has had a low

impact as business units are primarily

downstream users of substances that are used

in accordance with the manufacturer’s

proprietary uses. Where substances in use have

become threatened Cobham has been able to

substitute these substances for less hazardous

alternatives. It is recognised that some

substances may be withdrawn from the

marketplace by the supply chain where the

cost of registration, evaluation and

authorisation requirements is considered

prohibitive. Cobham is monitoring the situation

through its industry body links to continually

evaluate the impacts to both Cobham and the

wider industry.

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Being part of our communities

Cobham recognises the need for business to contribute to wider society and our local communities in particular.

As an innovative, high technology business,

Cobham is committed to being a good

corporate citizen in its operations throughout

the world. Cobham seeks to enhance its

reputation as a responsible corporate citizen by

using its resources and capabilities to support

charities, community projects and other

worthwhile causes that are in keeping with its

business and stakeholder’s interests. At the

Corporate level Cobham seeks to support

national and international causes that are

common to its business interests and

encourages its subsidiaries to engage with the

communities in which their products and

services are sold and in which their employees

work and live. Contributions to political parties

are strictly forbidden.

One of the most visible forms of engagement

are targeted donations and charitable work by

employees aimed at delivering a sustainable

benefit to the fabric of the community and its

people. Subsidiaries may become involved in

their local communities, make donations to

local charities and community work projects,

and also make long term commitments of

support to other good causes, as they see fit

and their budgets permit.

During 2010, Cobham Corporate supported the

following organisations:

UK• The Science Museum

• Schools in Aerospace

• Young Engineers

USA• Intrepid Sea, Air and Space Museum

• Haiti for Christ

• The Air League Educational Trust

• Team America Rocketry Challenge

• United Service Organization

• Navy League, Lone Sailor

• Association of US Army

In addition to corporate donations, Cobham’s

subsidiaries also donated money raised by

employees. A total of £84,005 was reported to

have been donated to numerous charities.

A strategic review of corporate philanthropy

was undertaken during 2010. The findings of

the review indicated that more activities and

fundraising in local communities occurs than is

always reported. Examples of beneficiaries

include local schools, hospices, shelters, “meals

on wheels” or soup kitchen services. Support

takes the form of financial aid, personal time,

Cobham had a Group wide Haiti fundraising

event on 12 February 2010 where all

employees and business units were

encouraged to participate in fundraising. Over

70% of Cobham employees responded with a

variety of events with the business unit raising

the most money (Orlando) having its fund

raising total matched by Cobham plc. This

resulted in approximately £27,000 raised in

total, which was distributed to several charities

involved in supporting Haiti: Oxfam, Haiti for

Christ, Mercy Corps and Doctors Without

Borders.

Cobham SATCOM in Orlando teamed up

with IT Broadcasting and Haiti Satellite to

create a partnership response team, deploying

a humanitarian mission on 15 January 2010.

The mission arrived with satellite

communication systems and a

communications team, providing much

needed voice and data communications and

internet access to emergency responders,

doctors and relief agencies. The response team

later organised a chartered cargo flight,

delivering 6,000 lbs of equipment and 2,000 lbs

of medical supplies.

donation of skills or required items (i.e. food,

clothing, blood). In addition, business units also

support national events such as Children in

Need, Jeans for Genes or United Way Day of

Caring. Cobham’s focus for 2011 is to identify

mechanisms to enhance reporting of

charitable activities and to encourage stronger

community relationships.

The Red Cross, Central Hospital, Haiti Police

Station, Quisqueya Christian School and Yale

Medical Team are among those benefiting from

the 15 Cobham satellite systems deployed.

Cobham employee’s fundraising activities

Bein

g part of o

ur com

munities


A team of Cobham Aviation Services, UK

and RAF engineers completed a 220 mile bike

ride from RAF Waddington in Lincoln to

Cobham Aviation Services in Bournemouth and

raised £8,000 for the Macular Disease Society.

Cobham Aviation Services in Australia is

a proud supporter of Legacy Australia, an

organisation which is dedicated to caring for

the families of deceased veterans. Today

Legacy’s caring and compassionate service

assists 115,000 widows and 1,900 children and

dependants with a disability. In October 2010

Cobham teamed with Legacy to raise much

needed funds by organising a charity flight

from Adelaide to the Australian War Memorial

in Canberra.

Cobham Antenna Systems in Exeter

formed a team of employees to participate in

Bowl for Kids Sake, a fundraiser to help support

the Big Brothers Big Sisters programme in

Portsmouth, New Hampshire. The mission of

the Big Brothers Big Sisters organization is to

provide successful mentoring relationships for

local children in need, promoting a brighter

future, improving schools, and strengthening

the community. The team, along with other

local organisations raised almost $50,000

through sponsorship of the event.

Fred Cahill and Andrew Fookes with visitor MP Dominic Grieve in the kart

Cobham graduates entered into a local

‘Grand Prix’ for which teams had to design,

build and drive their own go-kart. A team of

graduates used reclaimed waste materials and

old bicycle parts provided by Cobham Antenna

Systems, Marlow to create a Concorde style

go-kart and subsequently won first prize for the

‘Best Turned-Out Kart and Team’. Its creators

also raised more than £1,500 in sponsorship for

the Thames Valley and Chiltern Air Ambulance.

Cobham Avionics in Mineral Wells

supported the American Cancer Society in a

recent event, “Relay for Life”, raising US$7,000.

The team, Cobham Crusaders, consisted of

approximately 45 employees and their

families. This event awarded Cobham as the

Top Fundraising Team First Place for Palo

Pinto County.

Being part of our communities

Bein

g part of o

ur com

munities


9 2007 Energy KPI electricity (renewable and non renewable),

natural gas, heating oil and categories 1,2 and 3 aviation fuel.10 Aviation fuels:

Category 1 – Cobham purchased for Cobham aircraft

Category 2 – Cobham purchased for third party aircraft

Category 3 – Customer purchased for third party aircraft

Sustainability Indicator 2008 2009 2010

Economic

Turnover £m 1,466.5 1,880.4 1,902.6

Trading profit £m 251.6 337.0 348.4

Dividends (Pence) 4.96 5.45 6.00

Wages and salaries £m 371.5 491.9 532.3

Pensions £m 23.1 31.8 35.6

Social

Total number of full time and part time employees (Year average) 12,697 11,919 10,879

Employees taking part in employee satisfaction surveys % 0 14 16

Age diversity Employees aged < 25 % 6 6 6

Employees aged 26 - 35 % 18 19 18

Employees aged 36 - 49 % 40 40 39

Employees aged 50 - 59 % 26 26 28

Employees aged 60 + % 10 9 9

Gender diversity Full time female employees % 29 28 27

Part time female employees % 55 60 62

Total female employees % 30 29 28

Female senior managers % 23 18 19

Female non-senior managers % 24 29 30

Ethnic minority diversity Senior managers % 11 8 8

Non-senior managers % 16 18 22

Rate of voluntary Voluntary leavers, excludes dismissals employee turnover and redundancies

% 8.5 5.8 8.0

Average hours of training per year per employee hours 13 17 22

Percentage of training in sustainability % 10 10 13

Number of health and safety compliance fines/breaches 8 5 43

Total cost of fines/prosecutions for non-compliance with applicable health and safety legislation

£ 10,650 0 21,341

Community giving £ 84,594 85,423 84,005

Environmental

Total energy consumption As per 2007 KPI definition 9 MWh 1,840,641 1,792,531 1,726,231

Electricity Renewable and non renewable MWh 100,107 130,893 127,998

Natural Gas MWh 52,476 58,624 44,890

Aviation Fuel Aviation fuel categories 1, 2 & 3 10 MWh 1,683,155 1,599,193 1,546,735

Electricity from renewable resources MWh 10,667 13,263 18,361

Total CO2e related to energy consumption tCO

2483,819 469,177 11 457,253

Scope 1 12 Gas, heating oil, fuel for Cobham owned vehicles (cars, aircraft, utility)

tCO2

136,105 132,531 13 92,525

Scope 2 Renewable and non-renewable electricity tCO2

55,420 69,479 14 63,393

Scope 3 Aviation fuel for non-Cobham owned aircraft, train, air and mileage for non company car travel

tCO2

292,293 15 274,138 16 309,908

Total waste generated Excluding trade effluent tonnes 12,604 7,842 17 7,313

Including trade effluent tonnes - - 16,759

Total hazardous waste Excluding trade effluent tonnes 1,327 684 967

Including trade effluent tonnes - - 10,413

Total non-hazardous waste tonnes 11,277 7,158 18 6,346

Total waste reused/ recycled tonnes 5,372 3,074 12,372

Total waste land filled tonnes 6,118 4,387 19 4,063

Total water consumption m3 395,494 231,255 20 231,628

Number of environmental compliance fines/breaches 0 3 0

Total cost of fines/prosecutions for non-compliance with applicable environmental legislation

£ 0 7,856 0

Performance summary

11 Was 465,476 tCO2

12 In line with World Resources Institute (WRI)13 Was 139,640 tCO

214 Was 61,395 tCO

215 Scope 3 limited to aviation fuel for

non-Cobham owned aircraft only

16 271,879 tCO2

17 Was 7,844 tonnes in the 2009 CR&S report – error identified during the 2010 internal assurance process18 Was 7,161 tonnes in the 2009 CR&S report – error identified during the 2010 internal assurance process19 Was 4,390 tonnes in the 2009 CR&S report – error identified during the 2010 internal assurance process20 Was 231,207 m3 in the 2009 CR&S report – error identified during the 2010 internal assurance process

Perform

ance sum

mary

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Whilst every effort is made to ensure the accuracy of the information contained in this brochure, no responsibility can be accepted for any errors or omissions.

All photography is copyright and is used with thanks to the respective owners.

When you have finished with this report, please pass it onto other interested parties or remove the cover and dispose of it in your recycled paper waste.

For further information:

Corporate Responsibility & Sustainability DepartmentCobham plcBrook RoadWimborneBH21 2BJ

E: [email protected]

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