Assurance statement

Independent assurance statement by Deloitte LLP to Rolls-Royce plc on selected content in the 2010 Sustainability website and in the Rolls-Royce plc 2010 Annual Report (“the Reports”)

Scope of our work

Rolls-Royce plc engaged us to perform limited assurance procedures for the year ended 31 December 2010 on the following subject matters:

• Selected Health, Safety and Environment (HS&E) performance indicators marked with *
• Reported progress against targets: 2009 HS&E targets marked with *

Available on the Operations section of the Rolls-Royce Sustainability website at: http://www.rolls-royce.com/sustainability/operations/  and in the Annual Report at http://www.rolls-royce.com/reports/2010/businessreview/sustainability.shtml

Assurance process and standard

We carried out limited assurance in accordance with the International Standard on Assurance Engagements 3000 (ISAE 3000).
Considering the risk of material error, our multi-disciplinary team of HS&E assurance specialists planned our work to obtain all the information and explanations we considered necessary to provide sufficient evidence to support our assurance conclusion. Our work was planned to mirror Rolls-Royce’s own corporate level compilation processes, tracing how data for each indicator within our assurance scope was collected, collated and validated by corporate head office and included in the Reports.

Limited assurance 

A limited assurance engagement is designed to give similar level of assurance to that obtained in a review of interim financial information. To achieve limited assurance ISAE 3000 requires that we review the processes, systems and competencies used to compile the areas of the Reports on which we have been asked to give assurance.

Key procedures we carried out included:

• Interviews with a selection of senior managers at corporate and site level with operational responsibility for issues covered in the Reports to understand HS&E management and reporting.
• Visits or teleconferences with a sample of sites globally to review the systems and procedures to capture, collate, aggregate, validate and process source data for the assured performance indicators included in the Reports. Sample of sites represented greater than 50 per cent of total FTE (Full Time Equivalent) employees.
• Analysis and testing, on a sample basis, the key structures, systems, processes, procedures and controls relating to:
  • Management commitment and the governance structures used for managing HS&E;
  • Implementation  of HS&E related policies, standards and guidelines;
  • Collation, aggregation, validation and reporting of HS&E performance data; and
  • Reporting progress made against 2009 HS&E targets.

The evaluation criteria used for our assurance are the Rolls-Royce definitions and basis of reporting as described at: http://www.rolls-royce.com/sustainability/reporting/how.jsp

Our conclusion

Based on the assurance work we performed, nothing has come to our attention that causes us to believe that the specific HS&E performance indicators or the reported progress against the 2009 HS&E targets defined above are materially misstated.

Deloitte LLP
London, United Kingdom
3 August 2011

Responsibilities of Directors and independent assurance provider

Responsibilities of directors

The Rolls-Royce Directors are responsible for the preparation of the Reports, including the choice of targets and the implementation and execution of systems to collect required data for HS&E data.

Deloitte’s responsibilities

Our responsibility is to independently express conclusions on the performance data for the year 2010 and the progress made on the 2009 targets. Our team performed the engagement in accordance with Deloitte’s independence policies, which cover all of the requirements of the International Federation of Accountants (IFAC) Code of Ethics and in some cases are more restrictive. We confirm to Rolls-Royce plc that we have maintained our independence and objectivity throughout the year, including the fact that there were no events or prohibited services provided which could impair that independence and objectivity in the provision of this engagement.

This report is made solely to Rolls-Royce plc in accordance with our engagement letter. Our work has been undertaken so that we might state to the company those matters we are required to state to them in an assurance report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Rolls-Royce plc for our work, for these reports, or for the conclusions we have formed.