Innovating today for a safer tomorrow - Sustainability Report 2020 - Ultra.group
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Innovating today
for a safer tomorrow
Sustainability Report 2020
Ultra Sustainability
Report 2020 1
We protect the societies
in which we live and make
the world a safer place
At Ultra we partner with our customers, applying technology and
innovation, to allow them to solve mission critical problems that protect
the societies in which we live and make the world a safer place. This is
why we exist – to innovate today for a safer tomorrow.
Contents
02 A message from our CEO 05 Our Sustainability focus areas: Forward-looking statement
This Sustainability Report contains certain forward-looking
03 Protecting what matters 11 Supporting our People statements with respect to the operations, strategy,
05 Ultra – A positive force 12 Diversity and inclusion performance, and growth opportunities of the Group. By their
nature, these statements involve uncertainty and are based
06 Sustainability governance 14 Developing our people on assumptions and involve risks, uncertainties and other
factors that could cause actual results and developments to
06 Our governance 15 Health and Wellbeing differ materially from those anticipated. The forward-looking
07 Business Integrity 16 Information security statements reflect knowledge and information available at the
date of preparation of this Sustainability Report and, other
08 Reporting and assurance than in accordance with its legal and regulatory obligations,
17 Protecting our Planet the Company undertakes no obligation to update these
09 Stakeholder engagement forward-looking statements. Nothing in this Sustainability
17 Climate Change, Energy and Emissions Report should be construed as a profit forecast.
18 Pollution, Waste, Biodiversity and Habitat
20 Our technology & products
21 Giving back
21 Donations and funding
24 Giving back framework
Ultra Electronics Holdings plc
Ultra Sustainability
Report 2020 2
A message from our CEO
At Ultra we partner with our customers, applying Delivering for all our stakeholders is embedded in environment. Internally, we are currently focused on
technology and innovation, to allow them to solve the way we do business, Our strategies to deliver our limiting GHG emissions through reducing waste and
mission critical problems that protect the societies in stakeholder objectives are developed and updated limiting production-adjusted energy and water use. In
which we live and make the world a safer place. This is as part of our strategic planning process. The specific 2021 we have set a target for a further 10% reduction
why we exist – to innovate today for a safer tomorrow. actions to deliver against the objectives are developed in GHG emissions versus the 2019 base. Considering
in, and are a key element of, our annual planning cycle. the increasing focus on carbon neutrality, in 2021 we
We formalised our purpose, to ‘Innovate today for a Our financial performance results from these actions – are also revisiting the relevance of our environmental
safer tomorrow’, at the beginning of 2020 as part of the it does not drive them. Our performance management impact measures and improvement objectives.
next stage of Ultra’s development. To make us more and oversight processes monitor progress against
effective in delivering against this purpose, we created these actions to ensure delivery against all our annual Giving Back
a common vision, mission and set of clear ASPIRE and longer-term stakeholder objectives. In support of the communities in which we live and
values. These are the values that anybody who interacts
work, Ultra acted quickly in 2020 to confront Covid-19,
with the Ultra team can expect to see demonstrated, in We believe that sustainability is key for all our
enabling remote working and safety controls on our
both words and actions. We believe that our ability to stakeholders and is therefore core to what we are
sites. We also supported relief efforts that provided
act with AGILITY and embrace change, to SHARE and trying to deliver. However, to highlight and better
over $220,000 to organisations which are supporting
win as a team, to PERFORM through consistent delivery, communicate the importance in our decision making
those most impacted by Covid-19 within our local
to INNOVATE and challenge the way we think, to of the impact on our workplace and the environment,
communities.
REWARD by celebrating success, and to EMPOWER and we developed our ‘A Positive Force’ sustainability plan.
trust each other, will enable extraordinary performance This focuses on three critical areas: As well as our Environmental and Social initiatives, we
for all our stakeholders. have also made significant progress on Governance,
Supporting our People launching a new Code of Conduct in July 2020 which
In consultation with our stakeholder groups, we
As an organisation that is built on the actions of its sets the standards we expect all our employees and
defined what extraordinary performance looks like and
very capable people, we need them to be engaged everyone who represents Ultra to adhere to. We have
created key performance indicators with specific targets
and understand what we are attempting to achieve relaunched our whistle-blowing channel for
that we use to monitor delivery. These are set out in the
and how we how we are trying to achieve it. We do this employees to ask questions or raise concerns,
Stakeholder Engagement section of this report.
through an ongoing programme of communication, reviewed and revised our Anti-Bribery and Corruption
training, and positive reinforcement. In 2020 we policies and processes and are now in the second year
increased our engagement score to almost 76%, an of full company training. Our ASPIRE culture also
increase of 6% over 2019 and well ahead of our target reinforces our goals to maintain the highest standards
for improvement. We also delivered against all our in corporate governance and to go beyond the law in
diversity and inclusion objectives, for example doing the right thing for all stakeholder groups.
launching our first Women’s Leadership Programme,
conducting unconscious bias training for all senior We are proud of the work we do that helps
management and enhancing our leadership keep our society safe. I am very pleased with the
development courses. Diversity remains a key focus sustainability progress Ultra has made over the
area for Ultra and in the broader industries in which course of 2020, through aligning our passionate
we work. We have much to do to create a more and dedicated employees, and focusing them
inclusive environment here, but we are beginning to on corporate responsibility at every level of our
make progress and I am really pleased to report that organisation. There is more to be done in 2021
over the last year one in three people that we hired and beyond but we are confident that, through our
into leadership positions were women, and women transformation to ONE Ultra and our continuous
now make up over 25% of Ultra’s senior leadership. improvement culture, we will continue to deliver for
our stakeholders while having an ever more positive
Protecting our Planet impact on the world around us.
We aspire to deliver solutions to our customers’ Simon Pryce
most challenging problems in a way that meets their Chief Executive
needs while minimising the impact it has on the
Ultra Sustainability
Report 2020 3
Protecting what matters
We live in an ever-changing, unpredictable,
interconnected, and risky world. To protect WHAT ULTRA DOES NOT DO:
our society in a sustainable way, our
customers are seeking solutions to a
constantly-increasing range of problems + We do NOT export or provide defence
equipment or services to any country that is
that the rapidly expanding and evolving subject to United Nations Security Council
threat environment is creating. These (UNSC) sanctions regimes, nor prevented by
defence technologies help governments: the ‘five-eyes’ governments.
+protect their societies from violent + We do NOT manufacture, distribute, sell,
maintain, or acquire controversial weapons
invasion and loss of freedom; (including cluster munitions, anti-personnel
+preserve democracy, tolerance land mines, or chemical and biological
and peace; weapons).
+create, sustain and protect critical + We do NOT manufacture nuclear weapons.
infrastructures;
+create and protect systems which
support societies and protect culture;
+secure space and protect national
borders for people and places to
evolve; and WHERE ULTRA SELLS TO:
+protect society by finding
and prosecuting perpetrators Ultra’s core markets are the ‘five-eyes’ nations; the
of gun crime. USA, Canada, UK, Australia and New Zealand:
% of 2020 Group sales:
At Ultra, we believe that this is the very
definition of sustainability and what we North America 64%
partner with customers to deliver. Together, UK 18%
with strong ethics, values and high levels Mainland Europe 8%
of oversight and regulation, defence is Australia and NZ 4%
therefore a key element in enabling
Rest of the World 6%
the free world.
Ultra Sustainability
Report 2020 4
WE ARE
Protecting
society
Finding and prosecuting perpetrators of gun crime
Police link crimes, guns and suspects across “What originally appeared as isolated crimes
national borders became a correlation between 50 crimes,
A violent transnational gang, operating between including homicide, attempted homicide and
Spain and Portugal, has been stopped thanks attempted murder against police officers,”
to diligent police work, rigorous cross border explains Fernando Dias, the LPC firearm examiner.
protocols, and an innovative Ultra technology-based In all, nine firearms were responsible for the 50
program called the INTERPOL Ballistic Information crimes that had occurred across northern Portugal.
Network (IBIN). IBIN proved its value on the streets
of Portugal and Spain, where police using Ultra’s “The transnational, organized gang that terrorized
IBIS® (Integrated Ballistics Identification System) regions of northern Portugal no longer exists and
technology were able to share and leverage their more than half of the members are in prison. “The
ballistic data to develop two suspects in Spain who link with Spain was the final piece in the puzzle
were responsible for a series of violent car jackings that allowed us to put an end to this gang,”
and a murder in Portugal. Fernando Dias boasts.
IBIS is able to compare thousands upon thousands
of digital signatures from gun cartridge cases at
speeds well beyond human capacity, and is able
to link evidence to firearms, crimes to crimes, and
cases to suspects. Using Ultra’s IBIS technology,
what previously took firearm examiners months
is now accomplished in minutes.
Ultra Sustainability
Report 2020 5
Ultra – A Positive Force
We believe that the only way we can deliver
sustainably for all our stakeholders is through
consistent alignment and focus on conducting our
business ethically, responsibly and sustainably.
Sustainability is integrated throughout our business
in strategic planning, risk management, innovation,
and many other areas. We actively engage with our
stakeholders to understand, anticipate, and address
their short- and long-term needs.
In 2020 we launched ‘A Positive Force’, our A
commitment to a sustainable future, which Positive
focuses on three core areas:–
1. Supporting our People
Force
2. Protecting our Planet
3. Giving Back
Ultra’s commitment to
‘A Positive Force’:
+ Communicate our commitment
internally and externally;
+ Make a positive contribution to all
our stakeholders; WHAT DOES ‘A POSITIVE FORCE’ MEAN TO OUR STAKEHOLDERS?
+ Measure and minimise our impact
on the environment;
+ Effective reporting of our ESG
(Environmental, Social and Governance)
activities and progress against our goals Employees Customers Communities Suppliers Investors
and targets. A Positive Force inspires A Positive Force A Positive Force engages A Positive Force represents A Positive Force
and supports our helps demonstrate to our with our communities, what it means to work with communicates Ultra’s
employees so they feel customers that we aim to striving to operate in a us, our expectations commitment to being
they are working for a deliver products and sustainable manner, regarding social a sustainable business
business that is socially services in an ethical, safe minimising our responsibility, and to deliver value
responsible, and supports and sustainable way. environmental impact, and that we want to source to shareholders
sustainability. It also allows shows that we are an from a responsible long-term.
them to engage with our active positive contributor and sustainable
CSR initiatives. to our communities. supply chain.
Ultra Sustainability
Report 2020 6
Sustainability Governance
Our Governance CSR Committee The CSR Committee made great progress in 2020
Our CSR (Corporate Social Responsibility) Committee and established a group Sustainability framework
We are committed to maintaining the highest
was established in December 2019, and reports into across the group named ‘A Positive Force’.
standards of corporate governance. It is essential
the Executive team. The Committee formally presents
to our growth strategy to maintain the trust and Local CSR Sub-Committees have also recently been
to the Executive team at least twice per annum and
business integrity of our stakeholders and deliver established at operating business level to improve
presents to the Board annually. The Committee
value for them over the long-term. ESG is embedded alignment, communication and engagement with
comprises a diverse group of representatives from
throughout our governance structure and oversight greater employee involvement, supporting positive
across the business, demonstrating our commitment
processes, which are set out in full in our 2020 Annual change and enabling us to meet our sustainability
to improve collaboration, share ideas and best practice
Report and Accounts. This separate report highlights goals and targets.
and embed sustainability throughout the Group.
how the sustainability elements of our strategy and
governance ensures environmental and social
considerations are key in every decision we make.
Overall responsibility for sustainability within Ultra sits MAIN RESPONSIBILITIES
with the Board of Directors. The Board believes a solid
governance reporting framework is essential to the
long-term sustainability of the business. Our CSR The primary role of the CSR Committee is to
Committee develops strategy recommendations on assist the Executive team and Board in: BOARD
sustainability for the Executive team to review and
incorporate into Group strategy. The Executive team + understanding the views of stakeholders of
recommends the Group strategy to the Board for the Company in relation to Environmental and
review and approval and develops actions to deliver it. Social (E&S) matters;
CHIEF EXECUTIVE
The Board reviews, challenges and approves the + understanding the Company’s impact on
strategy and underlying actions to deliver it. The communities and the environment and seek
Board then delegates day-to-day accountability and to reduce impact where possible;
responsibility for those actions, including sustainability + ensuring the processes and mechanisms used
actions, to the Executive team which delivers them in EXECUTIVE TEAM
by the Company to engage with key
conjunction with, and sometimes through, the CSR stakeholders in relation to E&S matters are fit
Committee. Clear and effective governance structures for purpose and assist in contributing to a
are in place to support the Board in overseeing the wider society;
effective execution of these actions. Progress against + ensuring a Group-wide approach to CSR ETHICS COMMITTEE CSR COMMITTEE
these actions is monitored by the Executive team strategy implementation, promoting and
through monthly performance and management sharing CSR best practice and lessons learnt
oversight processes, a summary of which is reviewed across our businesses;
by the Board. + driving Group-wide initiatives regarding
The Board sets and reviews our environmental and environmental impact reduction and
social risk appetite annually as part of our integrated sustainability measures and targets;
risk management framework. Our Executive team + overseeing activities regarding charitable
is responsible for assessing our environmental and donations and Group-wide community
social risks and opportunities, including those relating initiatives;
to climate change, prior to sending it to the Board + reporting to the Executive team and the
for review and monitoring progress through our Board on the Company’s performance against
risk management process, overseen by our Chief sustainability goals and targets ADDITIONAL LINKS
Risk Officer.
2020 Annual Report and Accounts
Ultra Sustainability
Report 2020 7
Sustainability Governance
continued
Business Integrity As part of internal controls enhancements during the Ethics Committee
year, the previous anti-bribery corruption policy, gifts Our Ethics Committee is an entirely independent
At Ultra, we cultivate a culture of ethical conduct and
and hospitality policy and selection and management committee currently made up of two individuals, Major
workplace integrity that strengthens our relationships
of intermediaries policy were consolidated into a General (Retired) Tim Cross CBE and Simon Lowe, who
with employees, customers, and suppliers. This
single ABC Manual, which was approved by the Board have vast combined experience within the fields of
includes our willingness to maintain the highest
and re-launched in Q3 2020. The Company has ethics, culture and governance.
standards in corporate governance, to go beyond the
implemented an annual review cycle in respect of
law in doing the right thing, to be always transparent The Ethics Committee aims to visit Ultra sites on a
the ABC Manual.
and forthright in the conduct of our business. rotating schedule at least four times a year and has
The Company’s Board members, officers and other a formal remit to:
In July 2020, we launched our new Code of Conduct,
workers were required to complete interactive, + Get an independent view of how ethically we are
which sets the standards we expect all our employees
tailored, online ABC training provided by NAVEX behaving across our businesses;
and everyone who represents Ultra to adhere to. It
Global. Core training was mandated for all, with more
also sets the standards everyone dealing with Ultra + Monitor alignment with best practice in our business
advanced modules for those within the Company
can expect us to demonstrate. It is a guide to doing ethics and compliance procedures;
operating in a higher-risk environment. All our
the right thing, helping us to operate our business
Directors completed the advanced ABC training + Assess how our culture and values are embedded
responsibly, make ethical decisions and maintain
modules. Third-party Risks training was mandated for throughout Ultra; and
our reputation.
workers responsible for managing intermediaries and + Review Speak Up reports and challenge the integrity
Alongside the Code of Conduct, Ultra provided associated persons. In addition to this enhanced and independence of our Speak up platform.
mandatory training and certification for employees training, bespoke in-person and virtual ABC training
through our Learning Management System. The was delivered by the Company’s lawyers to Executive The Ethics Committee meets with a diverse group
training was split into two modules and launched to all team members. of employees at each site visit, without management
employees in local languages. We also relaunched our present, and meets with management separately.
The Internal Audit function conducted a review of the Following the visits, an independent, unbiased and
Speak Up platform, which is our global whistleblower
Company’s ABC policies and procedures in 2020 and unedited report on the perceived ethics and culture
channel for employees to ask questions or report
ABC controls have formed part of the controls within the business is provided to management. The
concerns they think may be a violation of our ASPIRE
environment reviewed by Internal Audit in Business Ethics Committee challenges management where
values or Code of Conduct. Speak Up is an entirely
Unit reviews. ABC compliance with the manual will necessary and, where applicable, provides impartial
independent, anonymous and confidential reporting
be a specific controls focus area from 2021. advice on how ethical and cultural matters could
channel that is available 24 hours a day, seven days a
week. We will be reviewing the Code of Conduct be improved.
annually to reflect the needs of our business, The Ethics Committee Chair then provides honest,
regulations and best practice. objective, feedback to the full Executive Team twice
Anti-bribery and corruption a year, and annually to the Board.
The Company has a zero-tolerance approach to
bribery and corruption anywhere in the world. This
message is emphasised in the Company’s new Code
of Conduct, which also includes practical examples of
corrupt behaviour that is not tolerated, and points
employees to specific policies containing more
information on all aspects of anti-bribery and
corruption (ABC).
Ultra Sustainability
Report 2020 8
Sustainability Governance
continued
Reporting and assurance Frameworks and Standards
The three pillars of our sustainability plan, ‘Supporting
Reporting channels and Resources OUR PROGRESS TOWARDS THE TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)
our People’, ‘Protecting our Planet’ and ‘Giving Back’
In 2020 we enhanced our internal reporting through
align well with recommendations made by the World
the establishment of a global intranet – the ‘Ultranet’
Economic Forum in conjunction with Deloitte, EY,
– with weekly newsletters from the Ultranet News and Governance Our Executive Team, and ultimately our Board, are responsible for assessing and
KPMG and PwC in September 2020, “Measuring
monthly Townhall meetings. managing relevant climate related risks and opportunities.
Stakeholder Capitalism: Towards Common Metrics
In parallel, this is our first Sustainability Report which and Consistent Reporting of Sustainable Value Strategy We have set a target for reduction of 10% of GHG emissions relative to revenue
we intend to publish annually alongside our annual Creation”. We also support the United Nations (tCO2e/£m) for 2021 (against the 2019 GHG emission baseline).
report and accounts to highlight our commitment to Sustainable Development Goals (SDGs) and will
sustainability. ensure these are considered when reviewing our Risk Climate related risks are integrated into our risk assessment process and are assessed
sustainability measures and focus management using our risk framework.
We have also expanded the sustainability section areas in 2021 and beyond.
of our website to provide our stakeholders with Climate related risks are reviewed by the board and monitored regularly through our risk
year-round information regarding our sustainability Task Force on Climate-Related management process.
progress. Financial Disclosures (TCFD)
The table on the right should be read in conjunction We have thorough processes in place for assessing and managing climate related risks,
Ultra publishes a range of resources that provide with the following sections of our full 2020 Annual which are integrated into our overall risk management framework.
further information which can be accessed on the Report and Accounts:
links on this page. Metrics and Climate-related targets have been set for 2021.
+ Principal Risks and uncertainties pages 54-57 targets
+ Audit Committee Report pages 85-87 We monitor our scope 1, scope 2 and required elements of scope 3 GHG emissions,
and the related risks. We are expanding our metrics to include further scope 3
emissions elements progressively from 2021.
We have integrated carbon emissions into our KPIs to help us manage climate-related
risks and opportunities and performance against targets.
ADDITIONAL LINKS
ultra.group Code of Conduct
Policy Summaries Linkedin
ONE Ultra Forces Charter Twitter
2020 Annual Report
Ultra Sustainability
Report 2020 9
Stakeholder engagement
ONE Ultra is all about us delivering extraordinary and
sustainable outcomes for all our stakeholders. As part
2024 STAKEHOLDER GOAL PROGRESS IN 2020 COMMENTARY 2021 GOALS
of developing our vision and strategy for ONE Ultra,
and after consulting with them, we defined for each
of our stakeholder groups what extraordinary + 75.5% engagement score, Our engagement score rose to 75.5%, well ahead of our 2020 + Increase employee
performance would look like at the end of 2024 and above our internal target goal and we’ve delivered against our diversity and inclusion, engagement score
developed key performance indicators with specific + More than 50% of critical training and leadership objectives. + Reduce voluntary turnover
targets that monitor delivery for them. Employees: management roles filled by
+ We’ve been agile in adapting to the new working environment + Two Ultra Way sprints
Each year Ultra develops specific actions and Create a dynamic, internal candidates per month
with a launch of our global home-working policy.
sets annual delivery targets to ensure we can meet inclusive and inspiring + More than 26% of management
work environment that + We have improved the strength of our leadership group.
our 2024 goals for each of our stakeholders. roles are held by women
attracts, develops and We have more work to do to achieve our aspiration, especially
Our progress in 2020 and our 2021 goals are + Succession plans in place around the diversity of this talent and building a stronger bench
detailed here. retains the best diverse for all key management roles
talent pool below the Operating Business Unit (OBU) Leadership Team level.
+ Less than 10% Group employee This year, in conjunction with Duke University, we created a
voluntary turnover Leading Star, Next Generation Star and Emerging Star training
course for current and future leaders.
+ Delivered share gains in Strategic + For the first time, we have a cross-Group technology roadmap + Improve Solution
Business Units 10% more than that will inform our future investment decisions. We have some Vitality Index
the market great innovation happening in areas such as sonobuoys, + Improve customer
Customers: + Appointed new Chief advanced C2I/Comms networking, adaptive detection and feedback score
To partner with Technology Officer visualisation and specialist surface radar + Improve labour
customers, delivering + On-time delivery of production contracts increased in the year productivity
innovative solutions that from 76.2% to 82.8%. This reflects the improvements made to + Reduce cost of poor quality
create ‘win-win’ outcomes Project Management excellence and operational oversight as
+ Improve on time delivery
for all parties part of our FIX workstreams, however we recognise there is still
a way to go to bring this up to our targeted level.
+ Appointed new Head of + Covid-19 and Brexit brought the procurement teams across the + Reduce total cost
Group Procurement Group together and allowed us to solve problems with suppliers of procurement
+ Developed a new centre-led, at a Group level. + Reduce late supplier
Suppliers: category-based operating model + This collaboration was impressive and we were able to avoid any deliveries
Develop group-wide that optimises procurement and significant disruptions. Our trusted suppliers were key to helping
partners with like-minded ensures the organisation works us to look ahead and adjust our orders and inventory.
values that provide together effectively to deliver + Explaining our vision of procurement to suppliers allowed them
best-value solutions, the most value possible on to support us and help identify opportunities in key categories.
technical innovation and our external spend
support mutual success,
fairness and respect
Continued overleaf >Ultra Sustainability
Report 2020 10
Stakeholder engagement
continued
2024 STAKEHOLDER GOAL PROGRESS IN 2020 COMMENTARY 2021 GOALS
+ Corporate Social Responsibility + We launched our CSR Steering Committee, who launched + Reduce carbon emissions
(CSR) Group strategy ‘A Positive Force’ our commitment to a sustainable future in by 10% vs 2019
+ Environmental reduction Q4 2020. + Near miss reportable
Communities: targets set + In addition, we set 2021 emission reduction targets and accidents to increase
To conduct business in + Footprint reduction targets set commenced a number of other Group initiatives to support our + Refine sustainability
an ethical, safe and + Group approach to health sustainability goals, including setting targets to improve revenue measures and set targets
sustainable way, acting and safety created per square foot and reduction of physical locations, and reduce for 2022 and beyond
as a positive force and our consumption of single-use plastics.
+ Launched charitable matching
making an active + 2020 also saw the launch of our Covid-19 fund, and $220,000
scheme
contribution to our was donated during the pandemic. Our giving back framework
communities + Code of conduct launched
of communities days and matched funding was also launched
to all employees
in Q1 2021.
+ Our Health & Safety goal is to align to the international standard
ISO45001 H&S Management Standard. Alignment to this
standard will start across our businesses in 2021.
+ Delivered market share gains After delaying payment of the 2019 full year dividend in March + Improve net operating
+ Grew order and revenue book 2020 by withdrawing the proposed recommendation from the profit margin before
+ Operating margin grew 2020 AGM, the Ultra Board confirmed in July 2020 that our liquidity transformation costs
Investors: position had remained strong during the pandemic. An additional + Improve order book
+ Improved Average Working
Deliver outstanding interim dividend equivalent to the 2019 final dividend, and a and sales above our
Capital Turn
through-cycle value for ‘normal’ 2020 interim dividend, were paid in full in September 2020. core markets
+ Improved ROIC
shareholders, through + Improve working
+ We met all our financial and market share targets in 2020,
effective execution of capital turns
with particularly strong operating margin, cash flow and
Ultra’s strategy
ROIC performance.Ultra Sustainability
Report 2020 11
Our Sustainability focus areas
Supporting our People
This Sustainability Report, our first consolidated Ultra’s six HR pillars: In 2020, we concentrated our efforts on:
disclosure of this nature, focuses on the key ESG + Starting the alignment of all our businesses with
areas relevant to our business and stakeholders. global ISO 45001 Health and Safety management
Understanding and prioritising the ESG topics on Supporting standard moving towards a global strategy
which our business has the biggest impact allows us
to focus and report on the key issues our stakeholders
our people + Launching our new Code of Conduct
+ Supporting the health and wellbeing of our
are facing. These pillars were created through our CSR (Stakeholders)
Committee and endorsed by the Executive team and employees during Covid-19 through locally led
Board. They are the foundation of our ‘A Positive Force’ initiatives and our group Reward Hub
commitment to a sustainable future. + Creating our ONE Ultra Forces Charter for Military
and other Forces’ Veterans, Reservists and their
families across all territories, highlighting Ultra as a
Our people and culture Forces friendly employer
Our employee goal at Ultra is to create an inclusive, + Supporting and encouraging academic and
inspiring and dynamic work environment that attracts, STEM (Science, Technology, Engineering and Maths)
develops and retains the best diverse talent. engagement in our communities
Understanding what motivates our employees and + Creation of Uniquely Ultra – supporting increased
how we can support their wellbeing helps us to Diversity, Equity and Inclusion across all
provide a supportive workplace with opportunities our businesses
that enrich skills and experience. + Improving internal recruitment and
In Q1 of 2019 we set out an ambitious People strategy developing our talent
with several initiatives, focused around six HR pillars,
and we have made significant progress in delivering
against these. See our 2020 Annual Report and IN OUR ‘SUPPORTING OUR PEOPLE’ PILLAR WE
Accounts for more detail on what we have been doing HAVE FOCUSED ON FOUR CORE AREAS:
across each of these six pillars.
1. Diversity and inclusion
2. Developing our people
3. Health and wellbeing
4. Information securityUltra Sustainability
Report 2020 12
Supporting our People
continued
Diversity and inclusion + 2020 also saw the creation of the Uniquely Ultra We are making great progress with our HR strategy
employee group. These ~100 volunteers have been and have a strong plan in place with the resources to
Improving diversity, equity and inclusion is a priority GENDER DIVERSITY AND ULTRA’S BOARD
pivotal in the development of our strategy, what we support its delivery over the coming years. With the
for us. During the year, we refreshed our strategy want to achieve and the plan of activities for 2021. implementation of our Global myHR people solution,
and looked to accelerate its implementation. We As representatives of all our employees, the Uniquely we will be able to draw more data insights from the
Within Ultra’s plc Board, we have 25% women
appointed a full-time senior leader accountable for Ultra team will be central in the expansion of our information that we have, to drive the right
and one of BAME origin. We will work towards
the implementation of this strategy, reporting to the diversity, equity and inclusion pursuits throughout interventions that have a positive impact across Ultra.
meeting the Hampton-Alexander gender target
Global HR Director. Our approach focuses on three 2021 and beyond. We will use this to refresh our People plan during 2021.
of 33% as we continue to refresh our board
key areas: inclusive workplace; diverse people; and + We have a range of policies in place to help composition. The Parker report recommendation
social responsibility. employees achieve balance between their work to have at least one Director from a non-white
We strive to build and nurture an inclusive workplace commitments and personal priorities. In 2020, we ethnic minority is met. As our Board is refreshed,
in which all our employees give their best for our revised our Equality and Diversity, Bullying and whilst we appoint on merit, we are conscious
customers and are recognised and rewarded for Harassment, and Family policies to align to our of the need to ensure we have diverse
their contribution. Some of our key progress in strategy and values and behaviours. We are representation, and this will continue to be a key
2020 is detailed below: committed to treating everyone with fairness, area of focus for the Nomination Committee.
dignity and respect.
+ Unconscious bias in the workplace impacts our
+ Building awareness and engagement in science,
recruitment decisions and employee development,
technology, engineering and maths (STEM) with
impairing diversity and retention rates, as well as
young people from an early age is a key focus of
promoting a disconnected culture. In 2020,
Ultra. Many of our local businesses engage in STEM
partnering with external experts, we delivered
outreach programmes with activities such as
unconscious bias workshops for all our 170 leaders.
internships, engaging in academic boards, guest
These sessions provided pragmatic understanding
lectures, joint R&D activities, plant tours and
of the neuroscience behind unconscious bias and
supporting technical projects. 2021 will see us
clear, research-based and practical actions to tackle
coordinate and amplify these activities further. We
bias and increase inclusion across Ultra. In January
continue to focus on early-career recruitment as an
2021, we will be inviting all line managers (600+
opportunity to bring more diverse talent into the
colleagues) to attend the workshop, enabling us to
organisation.
engage all employees on this topic through
e-learning and team discussions. We also made great progress in 2020 on gender
+ In 2020, we launched ‘Strategies for Success’, a diversity, with one in three people that we hired
programme developed for our current and future into leadership positions identifying as women, and
female leaders. This initiative helps build a stronger now over 25% of Ultra’s senior leadership are women.
pipeline of diverse talent with an objective to unlock For more details on gender equality and our gender
the potential of women in Ultra. We are already pay gap please see our 2020 Gender pay gap report,
achieving positive results: 13% of the participants published on our website.
have been promoted; 18% have moved roles; 64%
We still want to go further on all aspects of diversity. In
have taken on stretch assignments; and 90% have
2021, working with external experts, we will work with
formal mentors. Phase two will be developed in early
expert organisations for neurodiversity and LGBTQ+,
2021, giving more female leaders the opportunity
to further us along our journey where everyone can
to take part in the programme, while continuing
thrive and bring their whole self to work.
the development of the 2020 cohort members
through an ongoing series of learning
interventions and network events.Ultra Sustainability
Report 2020 13
Supporting our People
continued
WE VALUE
WE ARE
all human
Inclusive
differences
Strategies for Success (S4S) Women’s Uniquely Ultra diversity
leadership group networking group
Supporting the development of women in The S4S programme enables the women to: Testimonies: Uniquely Ultra is the Group’s Diversity and
leadership roles in Ultra is a top priority in achieving “ I feel it has given me a real boost in my Inclusion employee steering group. In 2020,
our employee goal of ‘creating a dynamic and + Explore ways to further take control of their we asked for employee volunteers to help us
career through building greater belief in morale and I’m very positive about the steps
inspiring work environment that attracts, develops Ultra are taking to promote women within the shape our diversity, equity and inclusion
and retains the best diverse talent’. At present, only themselves and others agenda. We were delighted when ~100
organisation. There is a very positive shift in
23% of our total workforce are women, with a much + Explore personal work and leadership style and employees stepped forward.
the new Ultra mindset. I am very proud to
smaller percentage of these occupying senior reflect on the impact this has on their career
be a part of this transformation.” Through workshops and focused working
leadership positions. This doesn’t represent the success and future progression
business that we want to be, and we are committed + Build a clear development plan that maximises “ The mentoring programme, along with all the groups we have made huge strides developing
to driving progress to improve in this area. career potential activities related to the S4S programme, has our mission statement, strategic plan, and
allowed me to actively focus on what I want to actions for 2021 and beyond. This has enabled
To deliver the programme, we created an S4S
To help build a stronger pipeline of diverse talent, achieve with my career and professional growth. us to begin to describe how our employees
community for our 80 women leaders which
and to unlock the potential of women in Ultra, we It serves as a constant reminder to push myself can build on fostering even more diverse
promotes dialogue and is a learning space to share
have partnered with an external organisation to to learn, gives me motivation to grow, and workforces and inclusive workplaces in 2021.
experiences and challenges. It is also a place to hear
create a programme called ‘Strategies for Success’ reminds me of the successes I’ve achieved.
about seminars and webinars relating to women-
(S4S). Our core focus is to shift the diversity in our All of these impact my day-to-day activities
specific topics.
senior leadership and meet our 2024 stakeholder and aid in becoming a better employee.”
goal of having ‘40% of all leadership roles filled with Feedback from our female leaders:
a diverse candidate’. At the end of 2020, we surveyed our four cohorts
of 20 women leaders to fully understand the
effectiveness of our S4S programme. We are
pleased to have helped our employees improve
their confidence by over 1.5 points.Ultra Sustainability
Report 2020 14
Supporting our People
continued
Developing our people + In partnership with Duke Corporate Education we
have designed an 18-month leadership development
STEM EDUCATION
Strengthening our programme for four different cohorts: Leading Stars,
Leadership capability Next Generation Stars, Rising Stars, and Emerging
Stars with 120 participants in total. Module 1 was
Strong leadership will be a critical differentiator in
delivered in November/December with an overall
Ultra’s long-term success. It will enable us to deliver STEM activities in schools, colleges and universities
rating of 4.3 out of 5.0.
business results, strategy and transformation. Even are supported across all our businesses, and within
more importantly, it helps us to create the right culture + Creating a Manager Fundamentals programme, to our supply chain.
to attract and retain diverse talent so that employees include a community on our Group intranet, where
we invited 600+ managers to the platform. This Our STEM outreach forms the basis of many of our
feel engaged, empowered and excited to work at
community is regularly updated with content local activities. We have many STEM ambassadors
Ultra. Within Ultra, we have superb leaders who are
focused on improving the way we manage and across the Group – a network we are keen to expand
technically and operationally excellent. However, we
develop talent. Topics have included: Transforming further to help inspire the next generation of
also understand the challenging environment that all
Ultra, Diversity & Inclusion, Interviewing Skills, scientists and engineers. Here are some examples
global companies are now operating in. Couple this
Manager Role Expectations, Communication Skills, of our achievements in 2020:
with the transformation agenda that we have over
the next few years, and the ask of our leaders going Change Management, and Conflict Resolution.
+ Our North American teams participated in over
forward will be much greater. For this reason, we + Creating a mentor programme with a 17 in-person and virtual STEM fairs + In Australia, we awarded a student our inaugural
have spent the past year focusing on developing our comprehensive toolkit. This is currently being scholarship in partnership with the Playford
+ We partnered with Texas Tech University, Texas
leaders across the organisation, as well as seeking out trialled with our Strategies for Success development Memorial Trust Scholarship. In addition, we also
A&M University and the University of Texas to
talented colleagues who we believe are our future. programme. It will be launched to the wider Group hosted two interns in Australia through the
provide internships to hire new talent. We are
in 2021. Defence Industry Internship Program, one
In 2020, we have invested in and further developed also working with the Texas A&M Engineering
+ Launching LinkedIn Learning across the Experiment Station to start a mentorship of whom will be commencing permanent
several key initiatives to enable us to succeed in organisation, enabling us to deliver more programme and pipeline into Ultra of their employment at Ultra in 2021.
developing our diverse leadership team, these e-learning content to our employees, leaders
include: AI talent, utilising their Innovation Centre for
and development groups. testing activities and teaming with them to
+ Improving our operating model, which has been We are excited by the progress we have made in chase opportunities
effective from January 2021. Specifically, within the past year with our new leadership development + We continued our partnership with Budmouth
the Maritime and Intelligence & Communications journey and believe this is the first step towards College’s CEIL Programme (Centre of Excellence for
Strategic Business Units (SBUs), we created four enabling our leaders to achieve, not just their own Industrial Liaison) providing work placements and
Operating Business Units (OBUs) in each SBU. 40% personal goals, but Ultra’s vision of ‘innovating today interviews/soft skills for students, as well helping
of leadership roles within these new SBUs were filled for a safer tomorrow’. their ‘BudSat’ cube satellite team with regular
with individuals who were new. This has
engineering support and mentoring
strengthened our leadership and created more
bench strength for Ultra. + We have built a strong relationship with Lancaster
University including lecturing on courses, providing
+ Launching our Ultra ‘STAR’ leadership model, which
summer placements, year in industry, BSc/MSc
focuses on four key areas: Self, Thought, Achieving
projects and product development
through others and Delivering Results, which are
underpinned by leadership competencies. This + We sponsored two women scholars through
framework has been used in designing a leadership Arkwright Engineering Scholarships
development programme but has also been used in:
1. Assessing our current leaders;
2. Competency-based interviews for all leadership roles;
3. Internal promotion and hiring into leadership roles;
4. A
s a basis of our 360-feedback process which has
been designed and will be launched in Q2 of 2021.Ultra Sustainability
Report 2020 15
Supporting our People
continued
Health & Wellbeing throughout 2020 as a critical defence and energy
industries supplier. Beyond the basic principles of
FIGURE 1
Mental Health & Wellbeing following the advice and regulatory requirements in EXTERNALLY REPORTABLE INCIDENTS
Across many of our sites, we have mental health local jurisdictions of our sites, we have modified shop
first aiders or Health, Security and Wellness floor workplaces, shared areas, catering arrangements
and shift patterns to implement effective social 35 0.8
committees which are there to encourage people to 0.7
talk more freely about mental health. We also offer distancing at sites and have optimised remote 30
0.6
employee assistance programmes to employees, home-working for our people wherever appropriate. 25
0.5
which enable them to access advice and counselling Experience from managing Covid-19 in health and 20
0.4
24/7. Mental health and wellbeing are important to us. safety terms will be taken forward to underpin the 15
0.3
We aim to promote early intervention which enables health and well-being of people through the tail end 10 0.2
quicker recovery, reduces stigma and creates a of the pandemic, and also in terms of health and 5 0.1
positive culture. safety support for a more flexible approach to balance 0 0.0
between home and site working, where that has 2016 2017 2018 2019 2020
Human rights benefits for our business and people. Reportable incidents Reportable incident rate/
100 employees
We recognise our responsibility to respect the human All operating businesses are required to adhere
rights of every individual who works for us – either as to a written health and safety policy, fully compliant
an employee, through our supply chain or within one for the jurisdictions in which we operate, with local
of our communities close to our operations – as set management owning the day-to-day health and safety
out in the International Bill of Human Rights, and the risk management for the people in their charge. The
eight fundamental conventions on which the United businesses manage a range of safety risks, from office
Nations Guiding Principles on Business and Human and light manufacturing environments, to providing
Rights are based. If any of our employees have services at customer sites or units, including military
concerns about human rights issues within the bases and platforms. Businesses report safety-related
business and they feel they are unable to raise incidents and KPIs covering lost time accidents and
concerns through normal reporting lines, they can externally reportable incidents, including rates per
raise concerns through the Speak Up platform, which 1,000 employees as an embedded part of the monthly
is our independent whistleblowing hotline and portal. Business Performance Report which is reviewed by
Our modern slavery statement can also be found at the Executive Team. Safety performance and strategy
www.ultra.group. are reviewed by the Board as a specific concern
annually, and safety is the first item on the agenda of
Health & Safety every Board and Executive Team meeting. Externally
The well-being and safety of Ultra’s employees reportable incidents and rates per 100 employees
remains a vital priority for the Board, Executive Team are show in Figure 1.
and all business leadership, not just as an ethical pillar
of social responsibility, but because a healthy, valued The safety of the products and services provided
team working in a safe environment is a foundation- to users and customers is also a key priority for Ultra.
stone of high performance. We are committed to Each business ensures the appropriate legal and
creating a culture that allows our colleagues to reach ethical levels of safety are met across a product’s
their potential, within an inclusive and supportive lifecycle, with particular emphasis on the
environment. In the particularly challenging manufacturing, in-service and disposal phases.
environment of Covid-19, our focus on providing a
Covid-19-safe work environment for our people has
been a vital pre-requisite to continuing operations ADDITIONAL LINKS
2020 Annual Report & AccountsUltra Sustainability
Report 2020 16
Supporting our People
continued
One Ultra One Safety, Think Safe, Information security
Act Safe, Be Safe
Data Protection, Privacy and Security
In line with the wider transformation to become
ONE Ultra, the strategy in health and safety is to move Ultra is committed to safeguarding the privacy of all
to a ONE Ultra One Safety culture, built on common personal data.
WE ARE principles and policies while retaining the flexibility to We respect the privacy of personal data and apply
Flexible ensure we meet local as well as Group-wide
compliance needs. In 2020 we established a central
appropriate technical, organisational and security
measures to protect it. All personal data is processed
Health, Safety & Environment (HS&E) working group, and secured in accordance with applicable data
to set the agenda and goals for alignment which we protection and privacy law and Ultra security
will be rolling out from 2021. These include alignment frameworks. Ultra uses an internally developed
globally to a single management system as a baseline solution named Corvid to deliver proactive and
Supporting our workforce during for achieving ISO 45001 accreditation as our intelligence-driven cyber security, designed to both
Covid-19 – Flexible working benchmark standard for all operating sites starting detect and defend Ultra against cyber-attacks. Regular
from 2022. In addition, we are unifying our approach security audits and assessments take place across
to training and communicating for HS&E as the basis Ultra’s whole network.
for development of a single safety culture.
In March 2020, our IT team enabled 2,400 Our businesses provide tools, well-being Ultra produces clear and transparent Privacy Notices
employees to become remote workers within two programmes and support that enable colleagues describing how personal data is collected and
weeks of Covid-19 global lockdowns. Eight months to balance their work‑life with their commitments, processed. These commitments ensure that our
later, we launched our Global Home-Working supporting career development opportunities at stakeholders can be confident that their personal data
Policy (for roles where this can be done). It includes each life stage. remains protected, and their rights are respected.
a common way to conduct risk assessments to
ensure that we set our employees up effectively We offer a range of health and well-being benefits, Ultra has appointed a Group Data Protection Officer
2021 AREAS OF FOCUS FOR OUR
and safely to work from home and a common way including Employee Assistance Programmes, a ‘SUPPORTING OUR PEOPLE’ PILLAR: to oversee data protection and privacy activity across
to apply for a change to current working practices. comprehensive wellness programme as part of the Ultra business and a network of Privacy
our US benefits provision, and virtual team drinks + STEM Engagement – supporting our HR Champions in each Strategic Business Unit &
To underpin this new policy, we will also be working and events. The content available depends on initiative in conjunction with Uniquely Ultra, Operating Business Unit to provide daily support.
on how we can support employees from a mental where our employees are based. For example, increasing and developing our academic and Joiners attend training during the onboarding process
and physical well-being perspective if they can Ultra employees can get discounted rates at gyms STEM engagement and all employees attend training every two years, or
work from home, as well as training for employees and health clubs, health screening, private health + ONE Ultra Forces Charter – supporting Military more frequently depending on their role.
and managers on how to make virtual/remote insurance and private dental in a number of and other forces veterans, reservists and their
working individually and in teams work effectively. locations globally. Ultra holds ISO 27001 accreditation for identified
families – forces friendly employer information security management systems operated
+ ONE Ultra alignment to ISO 45001 – Health & within our business units, demonstrating compliance
Safety Management, for accreditation from with scope requirements.
2022
+ Health & Well-being – Well-being of our Ultra’s full Data Protection policy can be found on
personnel and communities through focused www.ultra.group
local initiatives
+ ONE Ultra alignment to ISO 26000 Social
Responsibility guidance ADDITIONAL LINKS
Data Protection Policy
Corvid Cyber SecurityUltra Sustainability
Report 2020 17
Protecting our Planet
Developing Our Environmental climate change plays a crucial role in our long-term In 2020, Ultra started the process of developing an
Approach – our Environmental Policy approach to sustainability, and this year we have energy management system which will provide the
identified climate change as a potential root cause to baseline for future accreditation to ISO 50001 Energy
Ultra’s established environmental policy addresses
Protecting compliance with environmental legislation, conformity
emerging risks to our operating and global market Management standard, an international standard
environments within our 10-yea r strategic planning recognising organisations that enhance their
our planet with standards for waste disposal and noise, the timeframe. Our business-wide risk review exercise in energy performance by implementing an energy
economical use of materials and the establishment
(Environment) 2021, which is integrated into the strategic planning management system based on a model of continual
of appropriate environmental performance standards. process, will include specific climate change scenarios improvement. This activity will further support the
Progress is monitored through annual reporting. Each of temperature increases up to 2 degrees Celsius (in reduction of Ultra’s energy use and associated cost.
site plans and manages compliance with environmental line with the Science based targets initiative) and
requirements and the processes for the storage, testing of potential impacts including related natural Energy Efficiency Measures
handling and disposal of hazardous or pollutant catastrophe predictions, impacts on markets and Undertaken 2020
Climate change is one of the biggest threats to materials are reviewed on a continuous basis. Ultra
our modern world. Defence will play a key part in changing regulation. The Group has been actively engaged in measures
is moving towards a global ISO 14001 accreditation
responding to emerging geo-political and conflict to reduce its energy and emissions throughout the
unifying our environmental management system 2020 emissions reporting period as follows:
-related threats exacerbated by climate change but across our businesses.
Defence also needs to embrace the green energy 2020 proved a challenging year with changes to
+ Replacing old halogen, T8 and inefficient lamps
transition to ensure that as an industry we are best In 2020, Ultra has also started the process of aligning our operational model and ways of working in the face
with low-energy LED’s.
placed to protect our citizens. Environmental our businesses worldwide to the ISO 50001 Energy of the Covid-19 pandemic. Our factories remained fully
+ Replaced ageing office equipment with energy-
sustainability is therefore a growing and vital part of Management standard, an international standard operational throughout the pandemic, with up to 60%
efficient products.
Ultra’s sustainability strategy. recognising organisations that enhance their energy of our staff moving to work from home; we are taking
positive lessons from the change in ways of working + Expanded video conferencing and online meetings
performance by implementing an energy
Our Environmental Strategy and are integrating them into our developing ESG (as opposed to face-to-face meetings).
management system (EnMS) based on a model of
continuous improvement. This activity will further strategies, for the benefit of all our stakeholders to + Older, inefficient boilers have been replaced,
In our first year of our ONE Ultra approach we
support the reduction of Ultra’s energy use, ability to make our organisation more efficient and improve along with older electricity water heaters.
have focused on limiting the adverse impact of our
business on the environment by: identify new ways to reduce emissions through our our environmental performance. + Revising our remote-working policies to enable
whole supply chain, and associated cost. employees to have a more flexible approach to their
+ Introducing common measures across Ultra Streamlined Energy and Carbon working day, while meeting our business needs
to start to align all our businesses to global Reporting (SECR) framework and + Investing in improvements to our employee
Environmental and Energy Management Standards
IN OUR ‘PROTECTING OUR PLANET PILLAR’ WE UK Energy Savings Opportunity connectivity and video conferencing facilities which
+ Updating and implementing our Environmental HAVE FOCUSED ON THREE CORE AREAS:
Scheme (ESOS) has demonstrably improved our teams’ effectiveness
Policies which aim to reduce our impact on the + A new Company car policy to encourage lowering
environment – starting with a ONE Ultra Single The Group’s increasing focus on sustainability and its
1. Climate Change, Energy and Emissions emissions and making electric cars more accessible,
Use Plastics Policy carbon footprint are reflected in us establishing an
2. Pollution, Waste, Biodiversity and Habitat Ultra CSR Committee. We were registered under the including the installation of charging points at some
+ Reducing our waste and Carbon emissions through of our premises
sharing and implementing ongoing Environmental 3. Our technology & products UK Carbon Reduction Commitment (CRC) run by the
UK Environment Agency. This scheme came to + Revised travel policies to refocus our team on
initiatives across our businesses essential travel only
an end last year and has been replaced by the SECR
framework. We have made our first submission We have set a target for reduction of 10% of GHG
Climate Change, under this new scheme in 2020. In addition, Ultra
implemented the viable recommendations from the
emissions relative to revenue (tCO2e/£m) for 2021
(against the 2019 GHG emission baseline). Ultra
Energy and Emissions 2019 independent UK ESOS energy review which was supports and is committed to the Science Based
Climate-related factors are specifically considered as conducted in compliance with phase 2 of the scheme. Targets Initiative framework and has summarised
part of our embedded risk review processes, which ESOS operates on four-yearly compliance phases with our progress towards the Taskforce on Climate
take account of near and longer-term risks. For risk the next review for compliance under ESOS phase 3 related Financial Disclosures, as shown in the
management, addressing the potential impacts of due by the end of 2023. Sustainability governance section on page 7 of
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