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The most important thing we build is trust

Corporate Responsibility & Sustainability2009

Cobham’s products and services have been at the heart of sophisticated military and civil systems for 75 years, keeping people safe, improving communications, and enhancing the capability of land, marine, air and space platforms. The Group has four divisions employing some 12,000 people on five continents, with customers and partners in more than 100 countries.

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Data Verification Cobham is committed to providing reliable

information regarding its Corporate

Responsibility & Sustainability (CR&S)

performance. Verification of internal data

supplied by Cobham’s business units has taken

place since 2004. For the 2009 reporting year,

data from 16 business units, representing 59%

of the Group by turnover, was verified

internally.

The data verification process comprised

reviewing the selected business units’ data for

errors, omissions and significant changes in

comparison with 2008 data. Where errors,

omissions and anomalies are identified these

are checked with the business unit to obtain

corrected and justified data. Consolidated data

is reconciled to account for acquisitions and

disposals, and changes in exchange rates.

Reporting excludes joint ventures.

Contents

Messages 3

Chief Executive Officer 3

Director, Corporate Responsibility & Sustainability 3

Cobham at a glance 4

Vision, strategy and governance 6

Vision 6

Strategy 7

Growth 7

Technology 7

Talent 7

Transformation 7

Governance 8

Key focus areas 9

Stakeholder Engagement 10

Talent Management 13

Talent Development 13

Diversity and Equality 14

Business Ethics 15

Safety, Health and the Environment 17

Occupational Safety & Health 18

Flight Safety 19

Environment 20

Performance summary 23

Front cover image Image courtesy Troy Brajkovich, Project Kaisei

Cobham SATCOM provided Project Kaisei with a communications antenna to help support their research of the North Pacific Gyre. For more information see page 12.

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Cobham plc | 2009 Corporate Responsibility & Sustainability Report

Messages

Chief Executive Officer

Director, Corporate Responsibility & Sustainability

Corporate responsibility and sustainability

continues to represent a key consideration in

our day to day business. Combined with our

proven financial management and controls we

will continue to deliver added shareholder value.

We are currently focusing our efforts in four

areas. Firstly, engaging our key stakeholders to

identify current and emerging social and

environmental risks and opportunities.

Secondly, focusing on retaining, developing

and attracting talent through dedicated

programmes. Thirdly, implementing our Code

of Business Conduct across the Group and

finally, improving our management approach

to Safety, Health and Environment (S|H|E). This

report presents the improvements we have

made during 2009 and sets out what we plan

to achieve during 2010.

Notably, we have completed a Group-wide

employee survey on our business strategy,

successfully launched the Sir Alan Cobham

Award employee recognition programme,

appointed Ethics Officers in each of our

divisions and established a Group wide S|H|E

At Cobham we recognise that acting

responsibly towards our stakeholders adds

long-term value. During 2009 we continued

our journey by focussing on building the

foundations for integrating this approach into

our business. We have achieved much in a

short timeframe. Included among our

notable achievements in 2009 were:

Articulating our vision for integrating •

Corporate Responsibility & Sustainability

into the business

Adding talent management as a key •

focus area

Initiating the Sir Alan Cobham Award •

employee recognition programme

Launching a global ethics helpline•

Establishing a Group Safety, Health and •

Environment Committee

committee that has developed a standardized

reporting and management approach. The

information obtained through these activities

is helping us shape our strategy to ensure we

continue to remain a growing, dynamic

international business. As Chief Executive

Officer, I ensure that the Board is kept

appraised of our work and takes account of

these issues in its Annual Risk Assessment and

monitors its progress throughout the year.

We welcome your feedback and with your

support we will continue to make Cobham

even more successful as a responsible and

sustainable business that protects the lives

and livelihoods of people around the globe.

Andy StevensChief Executive Officer

Developing a standardised Safety, Health •

and Environment management approach

Achieving our 2010 energy efficiency target •

a year early

We are not complacent and recognise that

there is a lot more to do. We are committed to

continuously improving our approach and

engaging our stakeholders to help us better

align our development plans. In 2010 we will

continue to implement and embed our

standardised management approach, build

competency and find better ways to engage

our stakeholders.

James StreaterDirector, Corporate Responsibility

& Sustainability

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at a glance

www.cobham.com

Cobham at a glance

Cobham DefenceSystems Division

Cobham Avionics and Surveillance Division

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

Cobham provides surveillance solutions to law enforcement, military, national security and border patrol agencies in more than 80 countries

Cobham provides digital vehicle intercom systems to more than 18 armies worldwide.Image courtesy of the US Department of Defense

Revenue**

£487.3m2008: £432.8m

26%2008: 29%

Revenue**

£873.0m2008: £529.3m

46%2008: 36%

Trading profit

£84.6m2008: £71.7m

25%of trading profit 2008: 28%

Trading profit

£164.4m2008: £105.2m


Principal locationsUSA, UK, Canada, Denmark,

France, South Africa

Principal locationsUSA, UK, Mexico, Finland,

Sweden

Employees*

2,947 2008: 3,280

Employees*

5,325 2008: 5,285

26% 46%

25% 49%

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bham

at a glance


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•

Cobham MissionSystems Division

Cobham AviationServices Division

Successful ‘wet contact’ aerial refuelling trials took place with the F-35B, short-take-off-and-vertical landing (STOVL) variant. Image courtesy of Lockheed Martin

One of four Beechcraft King Air B350 for the Military Flying Training Services (MFTS) Royal Navy rear crew training contract

Revenue**

£317.0m2008: £302.0m

17%2008: 20%

Revenue**

£230.9m2008: £221.9m

12%2008: 15%

Trading profit

£56.8m2008: £52.2m


Trading profit

£31.3m2008: £24.8m


Principal locationsUSA, UK

Principal locationsUK, Australia, Germany

Employees*

1,5332008: 1,715

Employees*

1,7332008: 1,760

* At year end

** Includes inter divisional trading.

17% 12%

17% 9%


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Vision, strategy and governance Vision

1

Be a leading subsystems supplier with a comprehensive range of distinctive technologies

Growth Focus on the customer and performance management

Build on a significant and growing US presence

Develop capabilities in emerging growth markets

Grow export business in home markets

Be an acquirer of choice

Technology Invest in advanced, market driven technologies

Exploit core technologies in adjacent markets

Increase PV investment to 6% of Technology Divisions’ revenue

Create a vibrant technical community with strong external links

Develop products and services that consider the environment in their design

Talent Develop key leadership and technology capabilities

Actively manage careers with opportunities across markets and internationally

Be an employer of choice – attracting, recruiting, retaining and motivating the best talent

Transformation Create scalable Strategic Business Units able to incorporate acquisitions

Drive economies of scale across divisions

Share expertise and consistently apply core Cobham processes

Build and leverage the Cobham brand

2

Be in the top three in each of our chosen markets

3

Grow faster organically than the markets in which we operate

4

Materially enhance growth through strategic acquisitions

5

Develop a global market presence with a unified brand and identity

6

Have an efficient organisation with a high performance culture and motivated people

To be the most trusted global partner for leading edge aerospace and defence technologies

Trust Talent Technology

Vision

Values

Strategic objectives

Enablers

“Having an integrated, responsible and sustainable approach to our operations makes good business sense and is expected by our employees, customers and shareholders.”

Richard Tyson President, Cobham Avionics & Surveillance Division

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Strategy

Cobham’s vision for Corporate

Responsibility & Sustainability is:

To be fully • integrated into corporate

governance, strategy, performance

management, reporting and assurance

To act • responsibly with all

stakeholders

To • inspire and motivate employees

To work • smarter, not harder

Achieving this vision will add value to all

stakeholders.

We delivered double digit earnings growth in 2009 whilst reducing our Carbon, Waste and Water Footprint. This demonstrates the business case for environmental sustainability.

GrowthEngaging customers by understanding their

needs and level of satisfaction with our

products and services in turn enables

development of new products and services

and the improvement of existing offerings. The

value chain has an increasing focus on

corporate responsibility and sustainability and

is responding to the major global social and

environmental challenges of our time. These

challenges are greatest in the emerging

markets. An integrated approach to corporate

responsibility and sustainability will enable the

meeting of these challenges and support our

customers in meeting theirs.

TechnologyThe economic downturn continued to impact

traditional sources of military revenue in home

markets and key customers have responded by

applying their core expertise into emerging

growth opportunities such as renewable

energy and environmental defence. The

downturn has also impacted the global aviation

industry, and Cobham’s focus on the design of

leading-edge aerospace and defence

technologies with the environment in mind

enables us to support our customers in

pursuing new growth opportunities while

reducing the operating costs of their platforms.

TalentCompeting for high performance talent

remains a significant area of focus for Cobham.

For knowledge workers, the ability to make a

positive difference in the world is recognised as

being a key differentiator particularly within

the graduate community. Cobham

recognises this challenge and continues to

build talent management programmes to

attract and retain a high performance

workforce that is engaged, motivated and

challenged.

TransformationStandardisation of Cobham’s business

processes and the fostering of organisational

learning is a key component in the process of

transforming the Group. Planning and

implementation of standardised processes

for issues such as business ethics, compliance,

health & safety, environment and

philanthropy is underway and being aligned

with existing business processes. Building

Cobham’s core values into standardised

processes helps to create a shared sense of

identity that strengthens our brand.

“The success of our strategy hinges on our ability to attract, develop and retain outstanding talent. A well developed and integrated CR&S strategy is a key part of this; Cobham will not be a desirable place to work unless we take our responsibilities seriously, looking after our people, the communities in which they live and work, and the wider environment and creating a company in which we are proud to work.”

Pete Raby Executive Vice President of Operations

Total revenue£1,880.4m (2008: £1,466.5m)

28%Total Carbon Footprint465,476 tonnes CO

2e

(2008: 483,819 tonnes CO2e)

-3.8%Total Waste Footprint7,844 tonnes (2008: 12,604 tonnes)

-38%Total Water Footprint231,207 m3 (2008: 395,494 m3)

-42%

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Governance

Cobham’s governance reflects the increasing importance of corporate responsibility and sustainability as a core business management strategy. Corporate responsibility and sustainability is embedded within the Company’s governance policies and is being integrated within our business processes.

Cobham’s corporate responsibility and

sustainability direction is steered by the


Committee formed in 2008. The committee

is chaired by the Chief Executive Officer who

has overall accountability for such matters.

The Director, Corporate Responsibility &

Sustainability has responsibility for the

development and implementation of

the strategy.

Membership of the Corporate Responsibility &

Sustainability committee during 2009

comprised the Chief Executive Officer, Chief

Operating Officer, Group Communications

Director, Chief Legal Officer and Company

Secretary, Executive Vice President for Cobham

Corporate North America and Director,

Corporate Responsibility & Sustainability.

The role of the Corporate Responsibility &

Sustainability committee is to:

Review the effectiveness of internal •

processes and controls for identifying risks

and opportunities in relation to material

environmental, social and governance issues

Review and challenge Cobham’s •

performance on managing these issues

Monitor the integrity and effectiveness of •

the Group’s communications on its

performance

The Corporate Responsibility & Sustainability

committee is served by two sub-committees:

the Business Ethics & Compliance Committee

(see page 16) formed in 2008 and the Safety,

Health & Environment Committee formed in

2009. (See page 17)

Andy Stevens Chief Executive Officer (former Chief Operating Officer)

Allan Cook former Chief Executive Officer

Julian Hellebrand Chief of Staff (former Group Communications Director)

Eleanor Evans Chief Legal Officer and Company Secretary

Charlie Stuff Executive Vice President Cobham Corporate North America

James Streater Director, Corporate Responsibility & Sustainability

Cobham Sensor Systems in San Diego (formally REMEC Defense and Space) was named by the San Diego Business Journal as one of the 50 Best Places To Work In San Diego and the ninth best in the large Company Category (250+ employees).

External Recognition


Cobham Surveillance in Segensworth was honoured with its first Queen’s Award for Enterprise for International Trade, after trebling the size of its overseas exports from 2006 to 2009.

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Key focus areas

Cobham’s Corporate Responsibility & Sustainability focus areas are as follows:

Cobham’s strategy is to standardise and systemise management approaches in its focus areas and to fully integrate them into its core business processes such that its performance can be effectively and efficiently monitored, challenged and improved.

Cobham Antenna Systems in Marlow, was selected to supply the latest dual-TETRA radio system to the Air Ambulance Trusts in England. Cobham will supply 18 systems, together with a ten-year support package and should eventually lead to the majority of air ambulances in England being fitted with the Cobham system. TETRA systems provide the air ambulance crews with flexible, secure communications with; their ground controllers, ambulances, police, fire and other Airwave users. This is a quantum improvement over communications systems previously available to air ambulance users. The radios also have the capability to transmit data, for example patient vital signs and the GPS-based location of the aircraft through the Airwave network.

Product Diversification and New Technologies – Case Study Enhancing Air Ambulance Communications

Image courtesy of Yorkshire Air Ambulance

Stakeholder Engagement Engaging key stakeholders to understand their concerns as well as current and emerging issues in the operating environment

Talent Management Engaging, challenging and motivating people to attract, develop and retain a high-performance work force

Business Ethics Acting ethically and responsibly towards key stakeholders

Safety, Health & Environment Providing safe working conditions and practices, as well as reducing environmental impacts

Further information on Cobham’s policies,

strategies and performance for each focus

area are provided in the following report. A

summary of key performance indicators is

included at on page 23.

Cobham Surveillance in Segensworth has successfully trialled its COFDM (Coded Orthogonal Frequency Division Multiplexing) technology below ground in the Moab Khotsong mine in South Africa. The technology transmits real time audio and video to the surface control tower enabling rapid emergency response to any life threatening situations thereby improving mineworker’s safety.

Product Diversification and New Technologies – Case Study Improving Safety in South Africa’s Deep Mines

Martin Dewey, Cobham Surveillance, with John Brandt reseller in South Africa

“We are driving to implement standard operating procedures across the business. It is a fundamental design principle for our new operating framework that we embed rigorous standards for ethical behaviour, employee safety and environmental sustainability. Standard procedures help us to simplify the organisation and raise standards of performance to meet the ever increasing demands of the marketplace.”

David Johnston Executive Vice President of Strategy

0% 20% 40% 60% 80% 100% -20% -40% -60%

Attitudes to the Cobham Group

Negative Response Positive Response

Attitudes to the Business Unit

Attitudes to their Role

Attitudes to Safety

Attitudes to the Code of Conduct

-80% -100%

72%

75%

73%

85%

83%

-28%

-25%

-27%

-15%

-17%

Cobham plc Employees

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Stakeholder Engagement

During 2009, a register of stakeholder engagements with key stakeholders was developed which identified the need for an improved process to map stakeholders and engagement processes, define material issues more clearly and link the findings to risk management and strategic planning processes.

A Cobham-wide employee attitude survey was

undertaken during the last quarter of 2009

focussing on corporate strategy, business

ethics and safety. The survey achieved a 40

percent response rate and indicated

significantly more positive responses than

negative. Action plans are being developed to

prioritise and address the findings to

continuously improve performance.

Cobham responded to the Carbon Disclosure

Project in 2009, achieving a Carbon Disclosure

Leaders Index score similar to or better than

the majority of our sector peers. We are

reviewing our peers approach to identify any

other opportunities to improve our

management of this issue.

We received several inquiries from the

investment community regarding our

involvement with controversial weapons such

as cluster munitions or anti-personnel mines.

Cobham’s position on this issue is that it does

not make or sell cluster munitions or anti-

personnel mines and does not approve of their

use where there is any potential for civilians to

Customer Satisfaction


Team Work

Employee Engagement

Technical Innovation

Platinum

Gold

Silver

Bronze

1

3

8

27 11 40 8 1

5 7 10

2 4 3 3

111

Customer Satisfaction


Team Work

Employee Engagement

Technical Innovation

Platinum

Gold

Silver

Bronze

1

3

8

27 11 40 8 1

5 7 10

2 4 3 3

111

2009 Sir Alan Cobham Award Results

Employee Survey - Overall Results

2009 saw the launch of the first annual Group

wide employee recognition programme. The

Sir Alan Cobham Award, named after the

Group’s innovative founder, was created as a

peer nomination programme to allow

employees to nominate colleagues for going

above and beyond their everyday duties in the

areas of Technical Innovation, Employee

Engagement, Customer Satisfaction, Team

Work and Corporate Responsibility &

Sustainability. The nominations are assessed by

an internal panel, with the overall winners

selected by the Chief Executive Officer. A total

of 172 nominations were received during 2009

with the winners being selected during the first

half of 2010.

be hurt or killed. Cobham is a leading developer

of hand-held and vehicle-mounted technologies

that detect and neutralise such weapons.

Larissa Gillett and Captain Gary Wakefield at Cobham Aviation Services UK in Christchurch with children from Chernobyl

Cobham Mission Equipment in Wimborne apprentices and graduates ‘Care in the Community’ project”

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Cobham sponsored and supported the

following organisations in 2009:

Help for Heroes (UK)•

The Science Museum (London, UK)•

Intrepid Sea, Air and Space Museum •

(New York, USA)

Schools in Aerospace (UK)•

Young Engineers (UK)•

In addition, many business units support

charities that are locally important to them

as well as sponsor events and teams in their

local communities.


Examples include the following:

Cobham Aviation Services UK in

Christchurch welcomed 12 children from

Chernobyl, part of the Chernobyl Children’s

Lifetime Link Charity, to the South of England

for an action packed day learning about

Cobham’s work with the Royal Navy and Royal

Air Force and exploring an aircraft maintenance

hangar and Falcon aircraft.

Cobham Mission Equipment in Wimborne

donated a team of over 20 graduates and

apprentices to create a new jungle themed

outdoor learning and garden area for a local

primary school. In addition to bringing the pupils

ideas to reality, the team donated new benches

which were created by the apprentices.

Cobham Sensor Systems in Lansdale sent a

team of 12 volunteers to the local “One In

Commitment Multicultural Community

Center”, an organisation with a mission to help

immigrants acclimatise to living in the USA. The

team donated a day each of their time to assist

in the refurbishment of the centre.

Cobham Sensor Systems in Lansdale raised

more than US$5,000 for the National Multiple

Sclerosis Society through a sponsored six mile

walk by a team of Cobham employees.

Cobham Life Support in Davenport fielded

a 39-strong team for the 2009 Race for a Cure,

a five kilometre run to raise funds for breast

cancer raising a total of US$250,000.

Cobham plc’s India Liaison Office sponsored a children’s baseball team during

the 2009 season. The New Delhi Little League

involves over 400 children between the ages

of six and 15 over 20 countries and is based

at the US Embassy’s baseball field. The

“Cobham Mets” have a healthy sense of

competition however the emphasis is firmly

on fun for the children.

Cobham Antenna Systems in Marlow

stepped out for charity this summer taking part

in a fun run, a night walk and a cycle race.

Cobham plc in Wimborne’s Finance

department were involved in resurrecting the

garden area of Julia’s House, a hospice for

children with life limiting conditions. Duties

included painting the decking and fences,

cleaning all of the building’s gutters and

re-building the dilapidated water feature.

“As a company, Cobham is striving to better serve its stakeholders and the communities in which we operate by putting corporate responsibility and sustainability at the heart of its strategic and operational planning. While we still have much to do there has been good progress over the past year”

David Squires President, Cobham Mission Systems Division

Cobham communications antenna enables documentation of ocean cleanup expedition

Interactive Expeditions distance learning equipment in India, donated

by Cobham SATCOM in Orlando

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Cobham SATCOM in Orlando donated the

satellite equipment and associated support

necessary to University of Central Florida’s

“Interactive Expeditions” distance learning

sessions from India, focusing on the country’s

ethnobiology, biodiversity, and culture.

Cobham SATCOM in Concord teamed with

Project Kaisei to help support their research of

the North Pacific Gyre, an area of the Pacific

Ocean polluted by a vast mass of floating

plastic and other debris. Cobham provided the

project with a communications antenna that

allowed the project team to access voice and

internet connectivity through airtime provided

by Marlink.

Cobham Sensor Systems in San Diego

was the presenting sponsor at a “Welcome

Home” event for nearly 2,000 active duty

US Marines and sailors at Marine Corps Air

Station Miramar. The base Commanding

Officer Col. Christopher O’Connor and 3rd

Marine Aircraft Wing Commanding General

Terry Robling addressed the service members

who returned from overseas deployments.

Marine Corps Community Services organised a

relaxing afternoon to honour these heroes,

complete with food, celebrities and

entertainment.

The total amount donated during 2009 was

£85,423 (2008: £84,594). Of this sum, individual

donations in excess of £2,000 to UK charities

were made to the value of £10,000 to armed

services charities and £6,350 to business

enterprise charities.

It is Cobham’s policy that contributions to

political parties or candidates are strictly

prohibited, as such, no contributions were

made to political organisations during 2009.

Cobham recognises that its time, expertise and some of its products are far more valuable than its cash donations. As a result, Cobham will conduct a strategic review of all its philanthropic activity during 2010 to look into ways in which Cobham can best serve the communities in which it operates and the developing world.

“At Cobham we are increasingly focused on the task of ensuring that the way we do business reflects our responsibilities to the communities in which we operate, the safety, health & wellbeing of our employees & our belief in the highest standards of ethical behaviour & performance”

Martin Burgess Executive Vice President of Human Resources


Martyn Dickson, Apprentice at Cobham Mission Equipment in Wimborne

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Talent Management

Cobham’s success in the technology market is defined by one constant; the organisation with the best people will invariably secure the best results.

Talent DevelopmentTalent development is underpinned by

Cobham’s robust Performance Management

system which allows talented individuals to

flourish and drive the business forward. The

primary mechanism used to develop talent is

the electronic Personal Development Review

(e-PDR) which allows employees to discuss

their performance with their managers, set

their business and personal goals together and

track their progress throughout the year.

The e-PDR is used to identify individuals across

different levels of the organisation for a suite

of tailored talent management programmes.

These programmes include:

Apprenticeship Scheme – an entry level •

technical route for those not seeking to

immediately enter tertiary education. The

programme has been operating successfully

at Wimborne, UK for a number of years and

is now being implemented in several other

UK facilities

Graduate Development Programme – •

securing new talent from selected tertiary

education institutions in the UK. Thirty-three

UK graduates were on placement

throughout the Group during 2009 and an

intake of US graduates into our American

businesses will occur in 2010

Mission Critical Workforce – producing •

leaders and specialists in specific functional

areas such as engineering, life cycle

management, procurement, finance, supply

chain and human resources thereby providing

career advancement and progression in

chosen fields of expertise without the

requirement to switch professions

Divisional High Potential – identifying and •

developing individuals throughout the

Divisions with the capacity to step into

senior divisional positions. One hundred and

forty-four employees have participated in

this scheme to date and a further 64 have

been identified for inclusion

Senior Development Programme – •

developing adaptable, talented individuals

capable of taking on senior leadership roles

within the business. Eighty-four employees

have participated in this scheme to date and

a further sixteen have been identified for

inclusion

Executive Development Programme – •

continuous professional development for

the senior management team

These programmes ensure that Cobham’s

talent pipeline is well populated and supports

effective succession planning.

To harness the full potential of our talent

management strategy, Cobham has embraced

the principles of Strategic Workforce Planning

to identify the workforce implications of

business strategies and using our Talent

Management programmes to support and

enable success. The HR team supports the

business in determining their workforce

requirements in order to enable successful

application of their business strategies over the

next five years. Once these requirements have

been outlined the Talent Management

programmes can be deployed to create the

desired future workforce profile.

“I am personally committed to ensuring that we offer a compelling environment for our talent. Our future success is incumbent upon our continued commitment to the environment and programs that drive environmental sustainability.”

Jeremy Wensinger President, Cobham Defence Systems Division

The use of unmanned ground vehicles in theatre enables soldiers to perform certain tasks while maintaining a safe distance from the enemy. Cobham Surveillance in Nashua’s COFDM (Code Orthogonal Frequency Division Multiplexing) capability extends the range of the remote control of multiple unmanned ground robot platforms to disarm IED’s (Improvised Explosive Device’s) at greater distances improving safety.

Product Diversification and New Technologies – Case Study Enhancing the Disarming of IEDs

Gerry Bishop with his family collecting his MBE

Cobham was pleased to announce that UK employee Gerry Bishop, Cobham’s Employee Development Manager, has been awarded Member of the Most Excellent Order of The British Empire (MBE) in the New Years Honours list for services to the defence industry.

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Talent Management

Strategic Workforce Planning will also enable us

to procure the future skills that the Company

will require where they may not exist already.

This will be achieved through appropriate

learning and development – such as

international assignments – managed through

the individual’s Performance Management, or

by the transfer of a suitably skilled individual

from elsewhere – either internally or via

external recruitment.

In order to support this internal mobility and

the attraction of top external talent, plans for

2010 include development of a new careers

website and the launch of a dedicated

recruitment team.

Cobham is committed in developing the skills

and competencies of its employees. During

2009, over 203,741 hours (2008 = 164,668

hours) was spent on training employees across

areas of professional and Technical

Development, Safety, Health and Environment,

Business Ethics and Management. On average

this reflects 17 hours training per employee

during 2009, an increase from 13 hours per

employee in 2008.

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

Diversity and EqualityInformation on diversity and equality is

collected from each business unit on an annual

basis. During 2009, the total percentage of

females working within Cobham fell from 30%

in 2008 to 29% in 2009.

With respect to diversity within management

roles, the percentage of females in a

management or senior management role was

recorded as 18% compared to 2008 figures of

23% and ethnic minorities percentages fell

from 11% to 9%.

29.02%

2008

2009

2007

29.60%

28.64%

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

2007

2008

2009 6 18 40 26 10

6 19 40 26 9

7 22 40 24 7

18%

16%

17%

2008

2009

2007

While Cobham is an equal opportunity

employer, it recognises that it must strive to

make the workplace more accessible for all,

something which is essential to attracting high

performance talent and fostering innovation.

This is an area we intend to focus on more

closely in future.

UK employee Colin Chitty, Managing Director of Cobham’s flight inspection business, was appointed a Member of the Most Excellent Order of The British Empire (MBE) in the Queen’s Birthday Honours list published on 13 June 2009. The honour is for services to the aviation industry.

Australian employee Peter Nottage, CEO of Cobham Aviation Services Australia, was awarded on 29 October 2009 the Australian Bi-Centennial Award for his dynamic, far reaching and very influential work for Australian aviation.

“We are a people business; attracting, retaining and inspiring them are critical. We will not do this unless we have regard to community, environment and wellbeing”

Warren Tucker Chief Financial Officer

Employee Recognition

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Cobham has operated a Code of Business Conduct (“Code”) for several years because acting ethically and responsibly towards key stakeholders creates fundamental value. The Group pursues and values the highest standards of ethical behaviour in all aspects of its business, and expects the highest standards of ethical behaviour in everything it does. Our leaders are required to lead by example; ethics and integrity is a way of business at Cobham, reflected in the Group’s values and tag line – The most important thing we build is trust.

Cobham has signed up to, fully supports, and is

implementing two industry standards on

ethical conduct. The first is the Aerospace and

Defence Industries Association of Europe’s

(ASD) Common Industry Standards for

European Aerospace and Defence. The second

is ASD’s and The Aerospace Industries

Association of America’s (AIA) Global Principles

of Business Ethics for the Aerospace and

Defence Industry.

The Code sets out Cobham’s approach to

legal and ethical conduct and specifies

employees’ responsibilities. It covers matters

of personal integrity, employee relationships,

relationships with customers, suppliers, the

community and others, and possible breaches

of the Code. In 2009 the Code was translated

into Latin American Spanish, French, German,

Danish, Finnish and Swedish.

Business Ethics

As of year end 2009, a substantial proportion

of all employees had completed ethical

awareness training. Our ethical training

programme will continue to be developed such

that business ethics issues are communicated

and training provided at every level in Cobham.

On completion of the training, employees are

required to acknowledge and confirm that they

have read the Code, understand its provisions

and will follow it in their business activities.

Refresher certificates require an additional

acknowledgement that employees have a

responsibility to bring violations of the Code

to the attention of their supervisors or report

them via the helpline referred to below.

They also require a confirmation that the

employee has not violated the Code and that

they have no knowledge of any unreported

ethics violations.

Code of Business Conduct


Cobham’s Code of Business Conduct brochure is available to all employees

Additional compliance training on selective

topics is being provided. Training is provided

through a mixture of on-line training, written

briefings and face to face and video/DVD

presentations.

Cobham’s Business Ethics programme is

managed by a Business Ethics and Compliance

Committee (BE&CC) comprised of senior

Cobham executives. The Group’s approach

focuses on use of a global ethics helpline,

administered by EthicsPoint in support of

the Code.

The global helpline was launched in July 2009,

is available in local countries and is well

publicised across the Group. The helpline allows

anonymous calls and e-mail interaction with

ethics officers. The EthicsPoint system

0% 20% 40% 60% 80% 100% -20% -40% -60%

I believe Cobham plc is doing a good job in raising awareness about the Code of Business Conduct


I believe that Cobham plc lives up to the values expressed in the Code

I know how to report a concern

I believe that if I do report a concern I will be listened to and action will be taken

I believe that Cobham plc treats potential breaches of ethics issues seriously

-80% -100%

81%

83%

86%

83%

78%

89%

-19%

-17%

-14%

I think Cobham plc’s Code of Business Conduct is clear and easy to understand -17%

-22%

-11%

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facilitates a Group wide confidential case

tracking system thus enabling us to track 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 Group has also appointed Business Ethics

and Compliance Officers (“BECOs”) for each

Cobham business unit whose principal

responsibilities include implementation of the

ethics awareness training programme and the

provision of a sounding board for employees’

concerns. The BECOs are further supported by

Divisional Ethics Officers and the BE&CC.

The results from the first Group wide employee

opinion survey conducted in September 2009,

as they relate to ethical issues are set out

below. The results are overwhelming positive

and it is important to note that this survey

pre-dated the roll out of ethical awareness

training to non-US employees which occurred

in the last quarter of 2009.

Cobham employs various systems, plans

and tools to:

Track corrective actions to completion•

Actively manage and promote ethical •

behaviour in employee performance

management systems

Assess employee awareness of the Code •

and adherence to the values in the Code

Employee Survey – Code of Business Conduct

Martin Burgess Executive Vice President of Human Resources

Eleanor Evans Chief Legal Officer and Company Secretary

Richard Tyson President, Cobham Avionics and Surveillance Division

Kelly Coffield President, Cobham Life Support

Business Ethics

Business Ethics and Compliance Committee (BE&CC)

“At Cobham acting ethically and responsibly towards our key stakeholders is of paramount importance and creates fundamental value. Our Code of Business Conduct sets out our values and every employee is required to comply with it. Compliance is the individual responsibility of every employee and if any stakeholder believes there is a violation of our Code they are encouraged to speak out, without fear of retaliation. All potential violations are investigated, the process is overseen by senior management and appropriate actions are taken.”

In 2010 the Group plans to:

Place a copy of the Code on the Cobham •

internet site

Continue ethical awareness training•

Work closely with BECOs to ensure they are •

supported in their important roles

Further deploy the requirement for all •

Cobham’s employees to abide by the Code

and to act with integrity at all times

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Safety, Health and the Environment

Safety, health and environment have visibility at the highest level within Cobham and are considered essential to the way business is conducted across the Group. Cobham’s goal is to achieve zero occupational illnesses and injuries and to minimise its environmental impacts. This is captured through the Group’s ‘Zero Harm’ strategy.

Developing and implementing a standardised Safety, Health and Environment management approach • •

Building key Safety, Health and Environment performance indicators into our management scorecards • •

Completing a Group-wide employee safety climate survey •

Embedding Safety, Health and Environment within the Group’s standard operating framework •

Developing and implementing a Safety, Health and Environment competency framework •

Creating a reward programme for excellent Safety, Health and Environment behaviour •

Strategy Element 2009 2010

Achievement of ‘Zero Harm’ will not be easy and

represents a cultural shift from historical and

traditional S|H|E management practices but this

approach will add value to Cobham by positively

impacting our employees, our communities, our

customers and the world we live in.

The strategy comprises six core elements which

are being developed and implemented over an

agreed two year plan during 2009 and 2010:

Responsibility for development of the strategy

rests with the Group Safety, Health and

Environment Committee under the direction

of the Corporate Responsibility & Sustainability

Committee, while accountability and

responsibility for implementation rests with

operational line management. Membership of

the Safety, Health and Environment committee

comprises senior practitioners and operations

personnel within the businesses and is chaired

by the Director, Corporate Responsibility &

Sustainability with support from the Group Risk

& Insurance Manager.

Since its inception in early 2009, the Safety,

Health and Environment Committee has

developed the standardised Safety, Health and

Environment management approach that is

being implemented across all Cobham

locations in accordance with an agreed plan.

The standardised management approach

comprises several elements which are housed

in an internal web-based Safety, Health and

Environment portal and include:

A set of ten Safety, Health and Environment •

Management Standards and associated

guidance that provide direction on how

safety, health and environment is to be

managed across the Group in accordance

with three increasing performance levels

(Foundation, First Target and World Class)

A set of standardised tools to undertake gap •

analysis and self assessment against the ten

Safety, Health and Environment

Management Standards

A set of external resource links, tools, •

templates, case studies and best practice

information available for download

A Safety, Health and Environment •

community network and discussion forum

for addressing S|H|E management issues as

they arise

A news announcement service to raise •

awareness and inform the Safety, Health and

Environment community regarding items of

interest such as climate change, changes in

legislation (e.g. REACH and RoHS) and Safety,

Health and Environment alerts arising from

accidents and incidents

Leadership & Management Commitment

Continuous Improvement

Monitoring & Assurance

Communication & Engagement

Risk Management

Incident Management

Emergency Management

CompetencyPlanning & Resources

Regulatory & Corporate Compliance

The Group Safety, Health and Environment policy and Safety, Health and Environment Management Standards are available to download for the Corporate Responsibility section of the www.cobham.com website

A Group level Safety, Health and •

Environment policy signed by the Chief

Executive Officer which takes precedence

over all other Safety, Health and

Environment policies within the company

1

10

1112

13

14

9

8

7

6

5 4

3

2

%

Repetitive strain 21

12

11

8

7

Slips and trips on same level

Manual handling

Struck by moving object

Fall from height

1

2

3

4

5

6Contact with electricity6

5Contact with moving parts7

5Exposure to harmful substances8

4Contact with a fixed or stationary object9

4Struck by falling object10

4Explosion11

1Struck by moving vehicle12

1Other occupational health (e.g. stress)13

11Other (cuts, hearing loss, foreign object in eye etc)14

21%

12%

11%

8%7%

6%

5%

5%

4%

4%

4%1%

1%

11%

0% 20% 40% 60% 80% 100% -20% -40% -60%

Following an incident, lessons learned are communicated effectively


My suggestions on how to improve safety are valued

I get the training I need to do my job safely

Managers/supervisors acknowledge me when I work safely

I believe accidents at my workplace can be prevented

-80% -100%

78%

85%

87%

85%

65%

96%

-22%

-15%

-13%

I feel well informed about safety issues -15%

My manager regularly demonstrates that safety is important

I have easy access to the necessary tools and equipment to do my job safely

I can report unsafe practices without fear of negative consequences

82%

90%

91%

90%

-18 %

-10%

-9%

The supervision I receive enables me to do my work safely -10%

-35%

-4%

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In addition, the Safety, Health and Environment

Committee has developed a set of lagging

safety Key Performance Indicators (KPIs) to

allow better comparison with both UK and

USA sector peers and are reported quarterly

on a 12 month rolling average to smooth out

significant fluctuations for trend analysis.

These include:

Major Accident Incident Rate (MAIR) – •

Number of occupational illnesses or injuries

resulting in 3 or more days absence per

100,000 employees (for benchmarking

against UK sector peers)

Days Away Incident Rate (DAIR) – Number •

of occupational illnesses or injuries resulting

in 1 or more days absence per 100

employees (for benchmarking against USA

sector peers)

Recordable Incidence Rate (RIR) – Number •

of occupational injuries resulting in greater

than first aid treatment per 100 employees

(for benchmarking against USA sector peers)

Severity Index – Number of lost working •

days due to occupational illnesses and

injuries per 100 employees (for

benchmarking against USA sector peers)

A safety climate survey was completed in the

last quarter of 2009 as part of the Group wide

employee survey to baseline perceptions in

relation to safety. Approximately 40% of

employees responded and the overall result

indicated a positive perception in relation to

safety within Cobham.

The 2009 data collaboration process was

refined with the introduction of an online data

gathering tool, which has simplified the

collection process and reduced manual entry

errors by highlighting inconsistencies at source.

The tool collects data on the areas of

Environmental Management, Energy

Consumption, Water Consumption, Waste and

Recycling, HR and Health and Safety. In

addition to this, each business unit’s data is

signed off by the respective General Manager

in a Data Declaration to verify the quality of

the data input.

Occupational Safety & HealthOver 90% of our business units had written

current health and safety policies in place

during 2009. Nearly 90% of the business units

reported that their policies have been made

available to the majority of employees, visitors

and contractors at their facilities. Over two

thirds of our business units reported that they

had linked their policies to the Group policy

and that over 85% of our business units had

provided all employees with a health and

safety induction. We expect these numbers to

increase to 100% as we embed our S|H|E

Management Standards.

Two of our business units reported that they

had received a total of five statutory notices

from their respective health & safety regulators

during site inspections and that the issues

identified had been corrected. No fines and/or

prosecutions were received during 2009.

During 2009, the major accident incident rate

increased to pre-2007 levels with a

corresponding increase in the number of lost

working days. We believe that there are a

number of contributory factors to explain this

increase. Firstly, with embarkation of our Zero

Harm strategy, and the embedding of our S|H|E

Accident Breakdown by Type

Employee Survey – Safety Climate

Cobham Aviation Services UK employees

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Flight SafetyCobham has two Strategic Business Units

(SBUs) within its Aviation Services Division

which undertake significant flight operations.

These are based in the UK and Australia. While

each SBU manages flight safety independently

all flight operations are conducted in line with

global aviation standards and to ensure that

safety is the number one priority. The senior

management teams strive to encourage 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 SBU, the substantially larger

operation of the two, operates a

comprehensive Flight Surveillance Program

that encompasses all aircraft in its fleet and is

based on the University of Texas Line

Operational Safety Audit principles designed to

identify threats and errors on routine flights for

trend analysis to reduce their prevalence.

Flight safety performance during 2009 was

extremely good. The Division conducted a

significant number of internal, and received

several planned external, audits from both the

regulator and clients which generally only

received minor observations. Cobham remains

with a ‘chronic unease’ when it comes to flight

safety to guard against complacency. During

2010 our Australian SBU will complete a full

review of its SMS to ensure its compliance with

increased industry regulations that will be

implemented through the year.

Management Standards, we are working to

create a just and equitable reporting culture. It

is well documented that accident statistics

often increase when such reporting cultures

are initially developed as personnel feel more

able to report their injuries and illnesses.

Secondly, we have raised awareness across our

business of the need to provide accurate data

and improved our data reporting processes.

Lastly, accident rates can often increase in

times of economic downturn when employees

are known to become more individually rather

than team focussed. It is possible that any or all

of these contributory factors are present as

well as others that we are not aware of. We

believe that our proposed plans to improve our

S|H|E management processes, as set out above,

will generate the positive safety climate and

reduction in occupational illnesses and injuries

we desire. We will continue to monitor the

situation closely and intervene in problem

areas if necessary.

The majority of occupational injury and illness

requiring greater than first aid treatment

resulted from repetitive motion, slips & trips

and manual handling which accounted for 44%

of all injuries resulting in greater than first aid

with the remainder spread over a variety of

accident types. This is consistent with our

analysis of previous years’ data and it is our

intention to increase awareness and emphasis

relating to ergonomic and in particular,

repetitive motion, injuries going forward.


“Safety is paramount in our business. We are committed to developing a positive and proactive culture which will ensure that our responsibilities regarding Safety, Health and the Environment are in excess of legislative requirements. The assurance of the wellbeing of our employees and our environmental impact is Management led, with the involvement and co-operation of all employees.”

Steve Fitz-Gerald President, Cobham Aviation Services Division

Major Accident Incident Rate (MAIR) 1 548 260 670

Days Away Incident Rate (DAIR) 2 - - 0.94

Recordable Incident Rate (RIR) 3 - - 1.70

Severity Index 4 - - 29.01

Lost Working Days 1,317 1,638 3,336

KPIs 2007 2008 2009

1 MAIR – Number of occupational illnesses or injuries resulting in 3

or more days absence per 100,000 employees2 DAIR – Number of occupational illnesses or injuries resulting in 1 or

more days absence per 100 employees3 RIR – Number of occupational illnesses or injuries resulting more

than first aid treatment per 100 employees4 Severity Index – Number of lost working days per 100 employees

38%

30%

90%

78%

14%

3%

13%

11%

70%

43%

24%

18%

100%

100%

100%

2008

2009

2008

2009

2008

2009

2008

2009

2008

2009

2008

2009

Externally verified -ISO 14001/EMAS or similar

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

57%

Not captured

40%

Not captured

100%

100%

2008

2009

2008

2009

Target

Target

Target

Target

100%Target

Target

Initiatives to improveenvironmental compliance

Environmental criteria insupplier selection


Julian Hellebrand Chief of Staff

20

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Business Unit Environmental Management Key Performance Indicators

Energy Usage 1,049 MWh/£m 953 MWh/£m Exceeded

Water Usage 113 m3/£m 123 m3/£m On target

Waste Generation 3.7 tonnes/£m 4.17 tonnes/£m On target

Performance Performance Target Performance Target Status Area (end 2010) (end 2009) (end 2009)

Cobham Sensor Systems in San Diego has been selected as one of the 2009 Waste Reduction Awards Program (WRAP) winners by the California Department of Resources Recycling and Recovery (CalRecycle).

“A focused and integrated approach to CR&S is essential if we are to successfully deliver our strategy. Our stakeholders expect us to maintain the highest standards at all times, demonstrating that the most important thing we build is trust.”

Environment Cobham 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:

Zero breaches of environmental licences or •

permits (Target = Zero)

Three fines were received costing a total of •

GBP £7,855 (Target = Zero)

Environmental Performance Targets

Cobham Technical Services in Leatherhead, assessed the safety hazards associated with the maintenance, loading, transportation, despatch and recovery of a new Rigid Inflatable Boat system from a Hercules C-130J as used by the Royal Marines. Cobham Technical Services has an international reputation for producing thorough and effective safety cases for high integrity systems.

Product Diversification and New Technologies – Case Study Enabling Safe Airborne Deployment of Royal Marine Boats from Hercules C130J


The Group sets environmental performance

targets on energy efficiency, water use and

waste management. These were revised at the

end of the 2007 (due to early achievement of

the original targets) to set out what Cobham

plans to achieve by the end of 2010 as follows:

Environmental performance targets will

continue to be revisited to challenge the

Group to improve its performance. A

carbon emissions target will be added to

the Group’s environmental performance

targets during 2010.

1,599,193

2008

2009

2007

1,683,155

1,543,267

248

2008

2009

2007

330

413 6

0

500

1000

1500

2000

2008 2009 2007

Target 1049 MWh/£m

1255

1563

953

MWh/£m

2010

0

20,000

MWh

40,000

60,000

80,000

100,000

120,000

2008 20092007

65,726

7,315 10,667 13,263

89,440

117,630

Electricity from Non Renewable Resources

Electricity from Renewable Resources

5 Revised 2008 Data – originally 483,817 tonnes6 Revised 2008 Data – originally 334 tonnes CO

2/£m

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| Key fo

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Source of Purchased Electricity


Energy and Carbon EmissionsDuring 2009, the Group’s total energy

consumption of 1,792,531 MWh comprised

89.2% aviation fuel, 7.3% electricity and 3.3%

natural gas with the remaining 0.2% being due

to heating oil and other sources. While

consumption of aviation fuel remains the

Group’s largest source of carbon emissions, this

reduced by approximately 5% when compared

to the 2008 figure.

Cobham’s total carbon footprint decreased

from 483,819 5 tonnes in 2008 to 465,476

tonnes during 2009. Normalisation of the

carbon data in relation to turnover demonstrates

a year on year reduction in tonnes of CO2

equivalent per £ million turnover.

Group Carbon Footprint by Turnover (Scopes 1,2 and 3) (tonnes CO

2e/£m)

Aviation Fuel Consumption

Daily operations require the use of Nitrogen reflow ovens. The ovens require large volumes of Nitrogen gas due to being on during and in between shifts, which causes unnecessary wastage and costs. Software was created to run the ovens in “idle-mode” without the use of Nitrogen cover gas. This programme automatically idles the oven between shifts at night and on weekends, saving an estimated US$70,616 a year.

Initial Cost: 8.5 Man Hours

Benefits: 248,524 m3 Nitrogen gas saved

Annual Financial Savings: US$70,616 (estimated)

Product Diversification and New Technologies – Case Study Cobham Sensor Systems in San Diego

Energy Efficiency Performance

A simple change in the software code has improved Reflow Oven efficiency

Cobham Mission Equipment’s new site in Wimborne is due to be completed at the end of 2010. This site has been designed with sustainability in mind; renovating, recycling and extending the original building and incorporating the latest technology in energy, water and waste efficiency

0

2

tonnes/£m

4

6

8

10

2008 2009 2007

Target 3.7tonnes/£m

2010

8.59

5.10

4.17

0

50

m3/£m

100

150

200

250

300

2008 2009 2007

Target 113 m3/£m

270

162

123

2010

7 Revised 2008 Data – originally 390,242m3

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Waste Efficiency Performance

informed of changes in guidance and updates

to the various annexes e.g. Substances of Very

High Concern (SVHC) Candidate List. To date,

the legislation has had a low impact e.g.

business units are primarily downstream users

of substances that are used in accordance with

the manufacturer’s proprietary uses. Where

substances in use have been entered onto the

SVHC candidate list Cobham has been able to

substitute these substances for less hazardous

alternatives.

As with all industries, Cobham recognises 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 sector association links to

continually evaluate the impacts to both

Cobham and the wider industry.

Cobham Surveillance in Segensworth’s fire ground cameras enabled constant monitoring of critical water levels as torrential rain, gale force winds and snow caused flash floods across the South of England. Avon Fire and Rescue put the new Cobham technology into action to monitor the ever rising flood water. Live pictures were transmitted from various sites in Bath back to their command unit on scene at the incidents, and from there satellite technology was used to relay live images back to a Multi Agency Command Meeting. This enabled constant monitoring of the situation so the appropriate resources were able to be deployed at the right time. This saved time and resources and enabled accurate communication of events through the chain of command as they unfolded.

Product Diversification and New Technologies – Case Study Monitoring Flood Waters in the UK

Water Efficiency Performance Water UsageOver 2009 total water consumption was

reduced by 41.5% from 395,494 7 m3 in 2008 to

231,207m3. The majority of this reduction (43%)

was in the volume of mains water consumed

while there as a 12% reduction in abstracted

water consumed. Approximately 3.51% of

water was recycled during 2009.

Waste and RecyclingFrom 2008 to 2009 Cobham reduced the

amount of waste generated by 37.8%. This is

attributed to improved operational and

reporting practises across the business. The

destination of total waste produced shows a

4% reduction in waste reused/recycled from

43% in 2008 to 39% in 2009 and a 7% increase

in waste sent to landfill. This is set against the

total amount of waste sent to landfill being

reduced by 28% compared to 2008 figures.

Cobham approaches waste reduction through

the waste hierarchy model: Reduce, Reuse,

Recycle. Reducing the waste at source, will

have a downstream affect on the waste

available to reuse and recycle. Therefore, being

lean in the production of waste, means that

the total waste available for recycling will also

be reduced.

Product StewardshipSixty seven percent of Cobham’s business units

reported that they considered environmental

issues in the design of their products, services

and processes. The majority of these were in

relation to producer responsibility legislation

such as REACH, RoHS, WEEE and packaging.

Cobham Technical Services also reported that

it considered optimisation of the power

efficiency of their product designs. For many

applications, size and weight were also

important considerations, particularly in

aerospace.

While product stewardship is addressed at the

business unit level, corporate is engaged with

customers and peers through sector

association which is looking to establish

sector-wide environmental metrics and Life

Cycle Assessment processes.

Compliance with producer responsibility

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

the business unit level. Corporate provides a

coordinating role in keeping the business units

Replacement of bottled water with water filtration systems and refillable water bottles

Special Mission aircraft carry bottled water on all surveillance missions to ensure that the aircrew remain hydrated. On average, each crew member would consume a couple of litres of water during a six to seven hour mission. With over 3,000 missions per year, the company consumed over 40,000 bottles of water per annum. Bottled water consumption is so high that it is delivered by the pallet load. As the aircraft were already fitted with five litre water containers, a clean, reliable, chilled water source to fill the containers with was a simple, cost effective and “greener” alternative. Two high capacity water filtration systems have been installed and water bottles are issued to existing staff during implementation with new employees being issued with a bottle during their induction.

Initial Cost: A$5,000

Benefits: Removal of 40,000 bottles from waste stream

Annual Financial Savings: A$40,000

Business Unit Initiative – Case Study Cobham Aviation Services in Australia

23

Performance sum

mary


Performance summary

Sustainability Indicator 2007 2008 2009

Economic

Turnover £m 1,061.10 1,466.50 1,880.40

Trading Profit £m 198.9 251.6 337

Dividends (Pence) 4.5 4.96 5.45

Wages and salaries £m 275.2 371.5 491.9

Pensions £m 15.1 23.1 31.8

Social

Total number of Full time and Part time employees 9,040 12,697 11,919

Employees taking part in employee satisfaction surveys % 0 0 14

Age diversity Employees aged < 25 % 7.6 6.2 6.0

Employees aged 26 - 35 % 21.6 18.4 18.5

Employees aged 36 - 49 % 39.8 39.8 40.1

Employees aged 50 - 59 % 24.0 26.2 26.1

Employees aged 60 + % 7.0 9.4 9.4

Gender diversity Full time female employees % 28 29 28

Part time female employees % 59 55 60

Total female employees % 29 30 29

Female Senior Managers % 20 23 18

Female Non-senior Managers % 32 24 29

Ethnic minority diversity Senior Managers % 11 11 8

Non-senior Managers % 21 16 18

Rate of voluntary employee turnover % 10 8.5 5.8

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

Total training in sustainability % 13 10 10

Number of Health and Safety compliance fines/breaches 0 8 5

Total cost of fines/prosecutions for non-compliance with applicable Health and Safety legislation

£ 0 10,650 0

Community Giving £ 67,744 84,594 85,423

Environmental

Total Energy Consumption MWh 1,658,423 1,840,641 1,792,531

Electricity 1 MWh 73,041 100,107 130,893

Natural Gas MWh 38,121 52,476 58,624

Aviation Fuel 2 MWh 1,543,267 1,683,155 1,599,193

Electricity from Renewable Resources MWh 7,315 10,667 13,263

Total CO2e related to energy consumption tCO

2438,752 483,819 465,476

Scope 1 5 tCO2

407,074 136,105 139,640

Scope 2 5 tCO2

31,678 55,420 61,395

Scope 3 5 tCO2

(not captured) 292,293 4 271,879 3

Total Waste Generated tonnes 5,415 12,604 7,844

Total Hazardous Waste tonnes 615 1,327 684

Total Non-hazardous Waste tonnes 4,800 11,277 7,161

Total Waste reused/ recycled tonnes 2,238 5,372 3,074

Total Waste land filled tonnes 2,931 6,118 4,390

Total Water consumption m3 171,458 395,494 231,207

Number of Environmental compliance fines/breaches 1 0 3

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

£ 7,500 0 7,856

1 Renewable and Non renewable Sources2 Aviation Fuel Categories 1,2 & 33 Scope 3 includes: Aviation fuel for non–Cobham owned aircraft, Train, Air and mileage for non company car travel4 Scope 3 limited to Aviation fuel for non–Cobham owned aircraft only5 In line with World Resources Insistitue (WRI)

Designed and produced in England by Generator (Creative Energy) Ltd – Telephone: +44 (0)1425 651951 e-mail: [email protected]

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]

This paper contains 100% recycled fibres and is bleached in a totally chlorine free process.

www.cobham.com


corporate responsibility & sustainability · 2016. 6. 29. · director, corporate...

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