MASHINIi

ROLLS ROYCE HLDGS LS 0.20.

RRU.XETRA | Manufacture of air and spacecraft and related machinery

Rolls-Royce Holdings plc is a British multinational engineering company incorporated in February 2011 that designs, manufactures and distributes power systems for aviation and other industries. It is primarily focused on civil and military aerospace, power generation, and marine propulsion. The comp...Show More

Ethical Profile

Mixed.

Rolls-Royce faced over £400 million in penalties for bribery and corruption in 2017, and a high bribery risk is reported. Defense contracts, including $1.8 billion in US military contracts in 2022, form over a quarter of its revenue. An EPA investigation oversees groundwater contamination, and Scope 1 emissions increased. Conversely, Rolls-Royce targets net-zero by 2050, uses millions of liters of SAF, and aims for 100% renewable electricity. While a gender pay gap exists, the company is Living Wage accredited, and a UAW agreement secured significant wage increases. Cybersecurity incidents have also led to data theft concerns.

Value Scores

Better Health for All-20
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect-20
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business-30
-100100
Kind to Animals0
-100100
No War, No Weapons-80
-100100
Planet-Friendly Business-60
-100100
Respect for Cultures & Communities0
-100100
Safe & Smart Tech10
-100100
Zero Waste & Sustainable Products-40
-100100

Better Health for All

-20

Rolls-Royce Corporation is undergoing an EPA investigation (February 2025) for vapor intrusion at its Indianapolis facility.

1
Industrial activities at the facility have led to groundwater contamination with trichloroethene (TCE) and tetrachloroethene (PCE), which has moved off the property and beneath nearby houses.
2
Rolls-Royce Motor Cars, a separate entity, selected Dementia Support at Sage House as its 2025 House Charity.
3
In 2024, Sage House supported over 3,000 people with dementia and delivered over 3,600 respite sessions for carers.
4
A University of Chichester study indicated that people with dementia accessing Sage House reported better quality of life, improved wellbeing, and greater life satisfaction.
5

Fair Money & Economic Opportunity

0

Rolls-Royce Holdings plc is an engineering company that designs, manufactures, and distributes power systems for aviation and other industries.

1
It is not a financial institution and does not offer lending, deposit, or other consumer financial services to external customers.
2
Therefore, all KPIs under the 'Fair Money & Economic Opportunity' value are not applicable, as they are designed to assess financial institutions based on their provision of fair financial services and wealth-building opportunities for underserved populations. The company's internal employee share plans, financial wellbeing events for employees, and diversity and inclusion initiatives do not align with the specific metrics of this rubric, which focuses on external customer-facing financial products and services.
3

Fair Pay & Worker Respect

-20

Rolls-Royce Holdings plc reported a CEO pay ratio of 219:1 to the median employee for its 2023 financial year.

1
For pay equity, the UK median gender pay gap for Rolls-Royce UK was 3.7% in April 2023, meaning women's pay was 96.3% of men's.
2
The company has over 800 workers covered by a UAW collective bargaining agreement, representing approximately 1.93% of its global workforce of 41,400 employees.
3
The company's overall employee rating on Glassdoor is 4.0 out of 5 stars, with 83% of employees recommending the company and 84% approving of the CEO.
4
Rolls-Royce was ranked 30th in the Top 50 Inclusive Companies Award 2023.
5
The voluntary employee turnover rate for Rolls-Royce UK was 18.5% in 2023. No significant labor law violations or fines were reported in the past two years.
6

Fair Trade & Ethical Sourcing

0

No evidence available to assess ROLLS ROYCE HLDGS LS 0.20 on Fair Trade & Ethical Sourcing.

Honest & Fair Business

-30

Rolls-Royce has not incurred ethics-related regulatory fines in the past three years, but a criminal investigation by the Serious Fraud Office (SFO) into bribery allegations was launched in December.

1
The company was released from monitorship and completed a leniency agreement in Brazil in April 2024.
2
Rolls-Royce operates a 24-hour 'speak up line' in 48 countries, allowing anonymous and confidential reporting in multiple languages for employees and non-employees.
3
However, a former employee's concerns were allegedly ignored for six years.
4
The company re-presented some voluntary Scope 2 market-based emissions data for 2019-2023 due to a miscalculation, which required minor updates to other figures.
5
Rolls-Royce's external audit coverage for 2024 included 92% of revenue and 79% of profit before tax.
6
The company has a moderate ESG controversy level and a Sustainalytics ESG Risk Rating of 27.1, considered medium risk.
7
Rolls-Royce states it does not tolerate bribery and corruption, has an associated policy, and routinely checks its program's effectiveness.
8
The company hired US law firm Debevoise & Plimpton to investigate bribery allegations and uses Bureau Veritas for external assurance over employee engagement scores and Scope 1 + 2 data.
9

Kind to Animals

0

The provided articles do not contain specific, quantifiable evidence directly applicable to Rolls-Royce Holdings plc (RRU.XETRA) for any of the 'Kind to Animals' KPIs. Information related to wildlife conservation, animal agriculture, and ethical sourcing is primarily associated with the Goodwood Estate and Rolls-Royce Motor Cars.

1
The evidence does not explicitly state company-wide scope for Rolls-Royce Holdings plc. Therefore, no KPIs can be scored based on the available evidence.

No War, No Weapons

-80

Rolls-Royce Holdings plc derived approximately 31.6% of its total revenues from arms in 2024, with Defence underlying revenue at £4,522 million in 2024.

1
The company produces engines for both military and civilian aircraft and ships, and other power systems, indicating a core business model involving dual-use technology.
2
Rolls-Royce supplies nuclear reactors for submarines, including nuclear-armed submarines, and was awarded a £9 billion submarines contract from the UK Ministry of Defence in 2023.
3
In 2004, the company lobbied to weaken anti-bribery procedures introduced by the Export Credits Guarantee Department (ECGD).
4
The company announced divestments of non-core activities, including the naval propulsors & handling business in its Defence division, but no percentage of defense-related assets successfully divested within a reporting period is provided.
5
The company's 2024 Annual Report mentions compliance with the Arms Trade Treaty, but internal verification is lacking rigor.
6

Planet-Friendly Business

-60

Rolls-Royce Holdings reported total Scope 1, 2, and 3 emissions of 385,210.98 tCO2e in 2024.

1
However, its total operational GHG emissions increased by 17.29% from 2023 to 2024,
2
and Scope 1 emissions increased by 31.74% in the same period.
3
The company has committed goals to the Science-Based Targets initiative, but these targets have not yet been validated.
4
Rolls-Royce has a net-zero target for its own operations by 2050.
5
The company sources 30.8% of its operational energy consumption from renewables.
6
It has achieved a waste recycling and recovery rate of 60%,
7
with a target to reach 68% by 2025.
8
The Rolls-Royce SMR Manchester Office has achieved BREEAM Excellent certification,
9
and a comprehensive Life Cycle Assessment for the SMR design is in progress.
10
Rolls-Royce SMR aims for 77% of its Scope 3 Category 1 suppliers to have science-based targets by 2029.
11
The company conducts TCFD-aligned energy transition and physical climate risk assessments, using climate scenarios including a 1.5°C, 2°C, and 3.5°C pathway.
12
Rolls-Royce has implemented biodiversity initiatives at its Goodwood site, including planting over 400,000 trees, shrubs, and plants,
13
and relocating 2 grass snakes, 11 common lizards, and 215 slow worms from a construction site.
14
Success on sustainability metrics is tied to managers' compensation,
15
but no specific percentage of EBIT reinvested in climate-positive initiatives is disclosed. The company has no commitment to Just Transition principles or plans.
16

Respect for Cultures & Communities

0

No specific quantitative data was found in the provided articles for any of the KPIs related to 'Respect for Cultures & Communities'. While Article 0 mentions £3.0m in cash donations for 2023, including £250,000 for Turkey/Syria earthquake relief, it does not specify what portion, if any, was directed towards cultural heritage organizations or local community development, which are required for scoring relevant KPIs.

1
Other articles discuss general diversity and inclusion initiatives or board diversity but lack concrete numbers, percentages, or specific details required by the rubric's thresholds for formal partnerships, cultural incidents, impact assessments, local employment, grievance mechanisms, FPIC participation, community governance, cultural preservation investment, local procurement, indigenous suppliers, cultural site protection, social license, community fund allocation, language inclusivity, cultural incident response, or cultural training completion.

Safe & Smart Tech

10

Rolls-Royce released the Aletheia Framework in 2020, an ethics and trustworthiness toolkit for AI, updated in 2021 to address data bias.

1
This framework considers 32 facets of social impact, governance, trust, and transparency, and includes a five-step continuous automated checking process for detecting bias or malfunction.
2
It forms part of a full governance system for fully autonomous, safety-critical AI applications, which is being discussed with regulators for approval.
3
The framework is freely available, peer-reviewed, and was shared with UNESCO for global consultation on AI ethics.
4
One article notes that no other organization had progressed as far in developing such a framework.
5
Rolls-Royce funds four to six cybersecurity research projects per year with Purdue University and Carnegie Mellon University to keep its products cyber-resilient.
6
The company requires employees and contractors to maintain awareness of risks to data assets and IT systems and mentions regular cybersecurity awareness training for employees and contractors, including the 'Immersive Labs Cyber Million' training.
7
Rolls-Royce mentions data encryption as a key area for security policies.
8
The Aletheia Framework provides a checklist for AI developers to audit themselves, including a 32-step process for applying and evidencing AI trustworthiness, and a five-step continuous automated checking process to detect bias in service or malfunction.
9
The framework focuses on the inputs and outputs of algorithms to address the 'black box problem' and encourages providing evidence related to its 32 facets for stakeholders or auditors.
10
Rolls-Royce's Data Privacy Policy outlines user rights to access, correct, and delete data.
11
The company confirms identities of new hires or contracts and mentions password management as a key area for security policies.
12
Rolls-Royce has a vulnerability reporting site.
13
The Aletheia Framework uses expectation-bounding, synthetic data exercising, independence, comprehensiveness, and data corruption assurance for security testing.
14
The company applies the least privileged principle for managing employee/contractor access to data.
15
Rolls-Royce requires employees/contractors to follow procedures governing regulations and legal requirements and comply with BPSS (Baseline Personnel Security Standard).
16
Suppliers must comply with the Rolls-Royce Supplier Minimum Cyber Security Standard v1.2, released in December 2023.
17
The Aletheia Framework includes a module for identifying, assessing, and mitigating bias risk in AI development, and a process for human intervention to control and correct AI bias or malfunction.
18
The framework was shared with UNESCO for global consultation on AI ethics.
19

Zero Waste & Sustainable Products

-40

The company's current recycling and recovery rate is 60%, with a target to increase it to 68% by 2025, while maintaining zero non-hazardous waste to landfill.

1
Rolls-Royce has halved plastic waste volume and increased plastic recycling by over 25% since 2018, implementing initiatives to replace single-use plastics with reusable/recyclable alternatives across various facilities.
2
Rolls-Royce SMR has adopted a waste-oriented design methodology to prioritize waste hierarchy principles, and the company has a Remanufacturing and Overhaul portfolio.
3
Waste reduction initiatives include segregation, decontamination, on-site size reduction, and programs across different business units.
4
Hazardous waste management involves treating radioactive effluents for re-use and segregating hazardous waste, but the EPA is overseeing cleanup at the Rolls-Royce Indianapolis facility for contaminated soil and groundwater.
5
Product lifespan has been extended, with the Trent 1000 TEN high-pressure turbine blade expected to more than double its time on wing, and the Trent XWB-84EP improving fuel consumption and extending engine lifespan.
6
Waste data is collected monthly from individual sites.
7
The company has a target to reduce total solid and liquid waste in operations and facilities by 25% by 2025, normalized by revenue.
8
Rolls-Royce requires suppliers to use a minimum of 30% recycled content for in-scope plastic packaging materials.
9

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.