Reporting approach

Reporting approach

Our approach to reporting is driven by the issues that we consider to be most material to our business.

Issues driven approach

Our issue driven approach is aimed at our key stakeholders – those who are affected by our business and who affect us.

Our stakeholders include customers, employees, shareholder and analysts, governments and regulators, business partners, non-governmental organisations, industry bodies and the local communities in which we operate.

We publish our approach to sustainability and our progress each year in our Annual Report, alongside our Group performance. Additional information, case studies and detailed performance data is available on our website.

What we report

We develop our reporting around the issues that we believe have the highest level of importance for our stakeholders and the greatest potential impact on Rolls-Royce.

Understanding and prioritising the issues that matter most to us and to our stakeholders ensures that we effectively manage our business for the long term.

We identify issues in terms of the potential for impact on us and our key stakeholders, including our customers, investors and suppliers. We also consider our ability to influence the issue. These issues may be both an opportunity and a risk to our ability to deliver value.

Our materiality assessment informs our strategy, approach and reporting.

We take account of external developments and examine issues in their wider context. We believe the most material issues for us include:

  • Product safety
  • Product efficiency and environmental performance
  • Business ethics and compliance
  • Employee engagement
  • Employee safety

Our goal is to be recognised as a leading sustainable business. To achieve this we have established a dashboard of higher stretching targets, showing progress towards improved sustainability performance. This target dashboard is available online, supported by a range of case studies from across our business. Annual performance data is reported through our interactive data charting tool.

Reporting cycle

The reporting period for our sustainability performance metrics is the same as our financial reporting period, from 1 January to 31 December annually. The baseline for key performance indicators is the 2014 performance data. Specific details of this and any variances are outlined in our Basis of Reporting.

Data assurance

Sustainability performance data is reviewed by the Rolls-Royce Internal Audit function, an independent part of our organisation that reports directly to the Group's Audit Committee. This internal assurance provides a review of the systems, processes and competences used to compile performance reports.

Bureau Veritas undertake a limited assurance engagement annually using the assurance standards ISAE 3000 and ISAE 3410 over the STEM, Energy, GHG, Waste, TRI and Employee Engagement data in our Annual Report. A summary of the work they perform is included within their assurance statement .

Basis of reporting

We outline the process for data collection and verification for the sustainability performance data and targets progress data in our Sustainability Data Basis of Reporting and GHG Emissions Data Basis of Reporting

This includes:

  • Reporting boundaries and scope
  • Units and definitions
  • Calculations
  • Accounting for acquisitions or disposals

Where any variances to our published Basis of Reporting occur these are detailed in an annual Reporting Statement.

 

Benchmarking our performance

We regularly benchmark our performance against industry peers. This helps us to demonstrate that we are managing the issues that matter most to our stakeholders, including customers and investors.

Dow Jones Sustainability World and European Indexes (DJSI)

Member of Dow Jones Sustainability Indices: In collaboration with RobecoSAMWe continue to be listed in the DJSI World and DJSI Europe Indexes for the twentieth consecutive year. With an overall score of 74, we performed second place in the Aerospace and Defence Sector.

Sustainability Accounting Standards Board (SASB)

Sustainability Accounting Standards Board (SASB)We are committed to communicating and reporting with transparency and accuracy. Our disclosures in line with the expectations of the Sustainability Accounting Standards Board (SASB) requirements for the Aerospace and Defence sector can be found here.

Carbon Disclosure Project (CDP)

CDP: Driving Sustainability Economies We report in line with CDP. Our disclosures will be available later this year here.