BAE SYSTEMS
BAE Systems has plans to do its bit . “ BAE has a target to be net zero by 2030 ,” responds Allen enthusiastically . “ For scopes one and two , those emissions are within our control , scope three is obviously more difficult to quantify . So we have set scope three by 2050 .”
Here ’ s a reminder of the Scopes :
• Scope 1 : onsite emissions
• Scope 2 : purchased energy
• Scope 3 : external emissions , usually from the supply chain
“ Also , some of our products have a 20 to 30 year lifespan ,” continues Allen . “ So things that are in play now , there ' s probably less that can be done , versus those ones that will be developed in the future . But scope one and two , we ' re targeting net zero by 2030 .
“ We ' ve got to have meaningful milestones for the next two , three , four years . As does every company , but it ' s got to be real . Otherwise everybody ' s going to get to about 2026 and say ‘ Ooh , let ’ s plant some trees ’ but this should be additional , not instead of . All companies must have realistic targets set .”
ESG at BAE and the focus on governance Many businesses shy away from the governance section of ESG , instead putting their energy into the more relatable social and environmental aspects .
“ It ' s very much looking at those things that are material to the defence sector ,” explains Allen . “ So I ' d certainly put a large amount of emphasis on the G . We make highly technical products that are going to be used in quite challenging surroundings and situations .
“ The product , where you sell it , its safety , its quality , all of those things are factored into our trading policies and form a key part of our governance . So there ' s a huge focus on governance , quite rightly .”
BAE Systems is also taking steps forward into social and enviromental ESG .
“ Over the last 18 months , we have really accelerated our commitment to the environment ,” continues Allen . “ The Social ... well , people matter . The people inside of the fence matter , but also the impact that we have on those outside . For example , we ’ re conscious about the impact of our large sites . We have different start times , so that local people trying to get their kids to school are not held up by traffic blockages .
112 February 2022