Corporate report

NDA Annual Report and Accounts 2020 to 2021

Published 20 July 2021

Overview of performance 2020/21

This overview section provides an insight into our work during 2020/21 and highlights areas of progress for this year. We have described these using our 5 strategic themes.

Chair’s Statement

Since joining the Nuclear Decommissioning Authority (NDA) in September, I have had the privilege of seeing how we are successfully dealing with some of the world’s most complex nuclear decommissioning.

This work is of vital national importance and, in taking on this role, I wanted to use my experience to lead the Board in ensuring the NDA delivers against its ambitious operational and cultural goals.

My predecessor, Tom Smith, served as Chair for 3 years during which time he established a solid platform and gave valuable guidance in steering the NDA on its journey of leading the UK’s nuclear clean-up programme. I would like to thank Tom for his contribution and his support to me as I transitioned into this role. I am also pleased to welcome Professor Francis Livens to the Board. Francis brings a depth and breadth of nuclear expertise, which will assist us as we continue to steer our mission. I am keen to take the opportunity to thank Michelle Heath for her contribution to the Board and wish her well with her new venture.

When I joined the Board, it was clear the NDA and its group had been set on a new trajectory under David Peattie’s leadership as CEO, moving towards a collaborative way of working with shared goals, instead of one dominated by commercial contracts.

The NDA is an organisation with a clear vision and sound strategy, and this provides a strong base from which we can build.

Challenges of COVID-19

Reflecting on the events and activities of the last year, the COVID-19 pandemic has created unprecedented circumstances for organisations the world over. The NDA is no exception.

Our businesses, stakeholders, employees and their families have all been affected. Our focus has been to provide unwavering support for our employees’ wellbeing during such difficult times.

This has been a constant priority, recognising the effects on mental health and the issues faced by those working from home and in isolation. Equally, we have recognised the very different challenges that those who have continued to run our sites throughout the pandemic have experienced.

Throughout this crisis, individuals, groups and communities have found ways to adapt, perform essential duties and above all stay safe. For the NDA, this applies to our many employees and stakeholders, both at work and within the communities surrounding our sites. Our employees across the group adapted very quickly to the evolving reality of our need to pause non-essential work programmes at sites, working from home where possible and ensuring we had COVID-secure workplaces at sites and offices where essential work continued.

There was significant uncertainty and unpredictability during 2020/21. In many ways, this year provided a test of our operational competence and resilience. A test that we passed. Some projects and programmes were necessarily paused or slowed, with some impact on our mission delivery.

Delivering our mission together

Our mission, to clean-up the UK’s earliest nuclear sites safely, securely and cost-effectively with care for people and the environment, has remained the same, despite the challenges of COVID-19. Taking on a new direction as an all-encompassing group of nuclear decommissioning companies, we have fully embraced a ‘One NDA’ approach to maximise the benefits of working together in a more focused and integrated way. This approach will bring greater benefits in the pursuit of our mission and greater value to the taxpayer.

This year we have continued to make progress as we have adapted ways of working, and the lessons learned during the pandemic are being evaluated, shared and embedded in our new way of working.

The developments over the last few years leading to the new group operating model present an opportunity for the next stage of efficient delivery across the NDA estate. In the future, we will share skills, learning and best practice, to deliver more integrated approaches to the nuclear decommissioning challenge. Our Mission Delivery Progress communications, publicly available, are widely circulated and our revised Strategy, meeting the requirements of the Energy Act 2004, was extensively consulted upon and endorsed in the year before publication. Our commitment to openness and transparency sees us engage with our stakeholders regularly, with feedback encouraged and acted upon.

With safety and security being our overriding priority, it is encouraging to see that our leadership in cyber resilience, working with the National Cyber Security Centre, has further enhanced our security and cyber infrastructure, at a time when global threats are on the increase.

Creating great places to work

Our employees, supply chain and stakeholders have been exemplary in their response to the pandemic. While our business has mirrored the mental health challenges seen globally, the resilience and camaraderie throughout the group and in our communities has been a source of pride. Furthermore, we can now maximise the benefits of a re-imagined future and create truly modern ways of working. We have gained ground in better understanding our culture and enhancing support for our diversity and inclusion agenda. Our journey follows a long-term path, and as with any journey, we have experienced highlights and challenges - from which we continue to learn.

Trusted to do more in the UK and globally

We are delighted that this year has seen the Department for Business, Energy and Industrial Strategy (BEIS) develop a plan to address the impending need to decommission the country’s Advanced Gas-Cooled Reactor (AGR) fleet, operated by EDF Energy. Transporting and storing spent AGR fuel has been an integral part of our business for many years. The end of life of this important low-carbon energy source offers the opportunity to support the government, as its expert arm’s-length nuclear decommissioning body, to find the right way to handle this challenge in the future.

Governance and Board evolution

The NDA has been through a period of unrivalled scrutiny following the legal judgment on the Magnox contract issues back in 2016, from a contract tender which began in 2011. Publication of the Magnox Inquiry Report by Steven Holliday on 4 March 2021 provided further insight into how the NDA, including the Board, and government can make changes to improve our governance.

Significant steps have already been taken to address the Inquiry’s interim findings in 2017 and we will ensure we respond to additional learning from the Inquiry’s final Report. However, the NDA is today a very different organisation than it was in 2016 and is stronger and more capable. Of course, we can be better still, and that is our focus.

The Board is aware of its legal and fiduciary responsibilities. Our agenda and Board Committees continue to evolve, responding to internal drivers, the expectations of our stakeholders and to address external conditions. We work, where relevant, within the UK Corporate Governance Code, and have a greater focus on the environmental, social and governance agenda. In our drive to consider broader matters in our decision making, I am pleased to introduce the new Section 172 approach in this report which highlights how matters such as sustainability and the views of our stakeholders have been factored into our decisions and direction of travel. This socially responsible standard helps our considerations as stewards of the environment, our relationships with people and how we lead the organisation.

The Board’s desire to promote and reinforce good governance also encompasses the lessons learned from external reviews, for example, the Competition and Markets Authority and the Brydon and Kingman reviews relating to governance and audit.

The year ahead

Moving forward as a reinvigorated organisation will include acting on the recommendations from the recent publication of the BEIS Departmental Review of the NDA. Following on from the Magnox Inquiry Report, this Review and the learning from its findings will allow the NDA to leave behind the shortcomings of the past and move forward with confidence.

It is important to consider, as our mission progresses, the effect our decisions and operations have on the environment and the overall impact on climate change. We endeavour to support the Government’s carbon net zero targets and we are focused on plotting a course towards more sustainable operations. Our goal is to ensure a legacy where our environmental contribution and impacts on local communities helps them be thriving places to live and work as we move through our decommissioning mission.

Within the NDA group, I see tremendous expertise, a highly skilled workforce and a capable non-departmental public body that is focused on its critical mission of cleaning up the UK’s historic nuclear facilities. I extend my thanks to our dedicated employees for their hard work, our stakeholders for their challenge and our communities for their continued support.

Ros Rivaz
NDA Chair
15 July 2021

Group Chief Executive’s Statement

2020 has been one of the most unprecedented and difficult years in modern history. I have been heartened by the way our employees, supply chain and stakeholders have come together to support each other and our wider communities.

They have joined in with the national and local efforts from helping the NHS, to delivering vital supplies to supermarkets, and even the manufacture and donation of personal protective equipment to frontline health workers.

Despite the scale of the challenges brought by the global crisis, we celebrated the achievement of notable milestones last year, both in our clean-up and decommissioning work and against our programme to build and strengthen the NDA group.

The pandemic also acted as a catalyst for finding new ways to work and connect with each other. We have, as a result, been able to accelerate our move to more agile working and our digital improvement programme in the NDA and across the NDA group.

Clean-up and decommissioning progress

Keeping our workforce safe during the pandemic has had an impact on some of our operations and targets. Despite this, we have been able to progress important clean-up and decommissioning work.

At Dounreay, work on its newest radioactive waste store is progressing well with the walls nearly complete. The store is an important part of our waste storage strategy and will hold waste in safe long-term storage in line with Scottish policy.

Our new transport division, Nuclear Transport Solutions (NTS), began a programme to return high-level waste shipments to Germany in 2020/21.

The programme is a key component of our strategy to repatriate high-level waste from the UK, fulfil overseas contracts and deliver UK Government policy in this area.

At Sellafield, we saw significant progress in critical decommissioning work being achieved, with half of the waste being removed from the Pile Fuel Storage Pond. The site is working towards removing bulk radioactive material from the facility by 2024, which is one of the UK’s biggest nuclear hazards. Meanwhile, the skyline at the site continued to change with work progressing to carefully take down chimneys and stacks in some of the oldest and most challenging parts of the site.

The demolition of the second iconic Windscale Pile chimney is a very visible demonstration of the work being done to make Sellafield a safer place and is a significant step in the site’s clean-up mission.

The commitment to our nationally important work was reflected in the Government’s one-year spending round, with record funding levels secured. We are acutely aware, in this economic environment, how important it is to maximise the value from this taxpayer investment, and we’ll continue to make this a priority.

Importantly, we’ve published the fourth iteration of the NDA’s Strategy. This sets out our approach to dealing with the UK’s nuclear legacy and direction of travel for achieving our mission, informed by stakeholder views gleaned through intensive engagement.

These successes have been achieved during incredibly difficult times and I’m immensely proud of our people and the commitment they’ve shown in challenging circumstances.

Building the NDA group to support mission delivery

In last year’s report, I wrote about the important steps being taken to strengthen and simplify the way our group is organised, including moving to a subsidiary model.

All of our operating companies have now become NDA subsidiaries. Dounreay became a wholly owned subsidiary in March this year and Low Level Waste Repository (LLWR) followed earlier this month.

Earlier this year we saw our two transport companies, Direct Rail Services (DRS) and International Nuclear Services (INS), come together to create a leading nuclear transport and logistics organisation, NTS. We also announced our intention to create a single waste division and bring together our group-wide waste management expertise from the LLWR and Radioactive Waste Management businesses.

We’re already beginning to benefit from operating as a group, harnessing the opportunities that come from our scale and breadth to drive effective and efficient mission delivery. We’ll continue to strengthen, embed, and capitalise on the work that’s been done to build a strong NDA group to deliver decommissioning success and value for the UK taxpayer.

I was delighted with Government’s recently announced decision to transfer EDF Energy’s advanced gas-cooled reactor stations, post defueling, to the NDA for decommissioning. This is testament to the skills and experience within the NDA group and the progress being made on our mission.

To maximise the benefits of working together in a ‘One NDA’ approach, we’ve taken important steps to revise the NDA group’s leadership structure.

Pivotal to this, is the creation of a new NDA Group Leadership Team (GLT) to drive improved leadership, assurance, collaboration and transfer of learning and skills across the NDA group. The GLT has representatives from the NDA and our operating companies and by taking a cross-group view, the team will drive benefits for our mission, people, site communities and the taxpayer.

Our people

The change to the way we’ve been required to work, because of the pandemic, has given us an opportunity to build on our flexible and agile working arrangements. We’re committed to creating great places to work for everyone and integral to that is our commitment to diversity and inclusion at every level.

We’ve taken significant steps over recent years to improve our workplace culture and are starting to see this vitally important agenda gathering pace across our entire group. However, we are not complacent nor blind to feedback and know there is still more to do, and we will continue our relentless focus in this area.

At the same time, we’re turning our attention to giving the same heightened focus on improving the way we embed sustainability into our operations to support the UK’s net-zero greenhouse gas emissions target, set out by the Government in 2019. Fighting climate change is a national priority and we’ve made carbon net-zero a priority across the NDA group.

Our priorities and direction are always guided by our stakeholders, who play such an important role in our mission. Our stakeholders are vitally important to us and, with our sites spread across the UK, it’s crucial that we continually engage with them and the communities in which our sites are based. Building and maintaining the trust of our stakeholders remains an enduring priority.

We continue to regularly engage with our site stakeholder groups as part of our commitment to openness and transparency, and we encourage feedback and engagement from our stakeholders at every opportunity. The pandemic posed new challenges for us in meeting with our stakeholders, and we’ve embraced digital platforms and seen increased levels of engagement through these new ways of connecting. Making full use of digital technology has also helped to introduce us to new, harder to reach, audiences.

Scrutiny, learning and acting on recommendations

In September, The National Audit Office (NAO) published its report on the termination of the Magnox contract. It’s right and proper that public bodies such as ours are scrutinised to ensure that we’re providing value for money and successful outcomes for the taxpayer. I’m grateful for its important findings and pleased that the Report recognised some important progress on the Magnox sites, particularly since Magnox became a subsidiary in September 2019.

Following on from the NAO’s work, the Public Accounts Committee published a report in November on the Magnox contract after a hearing in early October. The Committee recognised the inherent uncertainties and the challenges we face in delivering our mission and acknowledged that progress is being made, including increased understanding of our sites and the nature of their waste inventory. The Committee also made important recommendations, including some around our estimates for future decommissioning costs.

In March this year we saw the publication of the Magnox Inquiry. I welcome its publication and thank Mr Steven Holliday for his recommendations, which we’ll carefully consider before publishing a formal response later this year. We’ve already acted upon the findings that came from the Interim Report in 2017. In addition, BEIS’s Departmental Review on the role of the NDA was published in June 2021, and we are examining the findings and will respond to these in due course.

The NDA is now a much stronger organisation, operating under a very different model than at the time of the issues, which we’ve learned from. We’ve made improvements to the way the NDA operates to provide greater focus, discipline, standardisation, and simplification.

With thanks I was delighted to welcome Dr Ros Rivaz in September as the new NDA Chair, after Tom Smith stepped down having been in post for 3 years. Ros brings with her experience in working with some of the world’s most respected companies to support us as we deal with some of the world’s most complex challenges.

Finally, I would like to recognise and thank our workforce who are so pivotal in the execution of our important mission. I am grateful for their dedication and commitment, particularly amidst the unprecedented challenges of the last year.

David Peattie
Accounting Officer and Group Chief Executive Officer
15 July 2021

Financial review

A year of effective portfolio management of income and resources across the group, balancing risks and opportunities, and maximising our business plan delivery where possible.

The COVID-19 outbreak and prolonged periods of lockdown has brought about challenges across all industries. Financially, our focus has been continuing to progress our nationally-critical decommissioning mission within the country’s challenging and ever-changing financial environment.

Making sure our businesses and their supply chains have had access to adequate flows of funds, and the ability to accelerate payments to ensure the safe progress of work and financial stability has been paramount.

The need to follow Government restrictions and keep our people safe meant that some of our complex construction and engineering projects needed to be slowed down or paused, particularly in the first few months of the pandemic. We were, therefore, able to return a significant amount of funding to HM Treasury, at a time when the public finances were under most pressure.

In total, our net expenditure for the year was £2,447 million compared to the original voted net expenditure of £2,606 million. Our capital investment was £1,801 million and our resource expenditure (including our own admin expenditure) was £1,258 million. We were able to maintain delivery of the commercial operations and contracts to our customers, generating £612 million of income during the year.

Our funding for the new financial year was secured in the recent 1-year Government spending review and preparations are under way for the longer-term Government spending review expected later this year.

We have continued to develop our new ways of working, developing the Integrated Financial Framework (IFF) during the year. The IFF is a programme of continuous improvements in our financial management, and this year we have added Risk and Assurance as a fourth workstream as it comes under the umbrella of the IFF, alongside the existing areas of People, Reporting & Performance and Value for Money & Internal Control.

As we look ahead to the new year, we are pleased to welcome Dounreay Site Restoration Ltd (DSRL) and Low Level Waste Repository Ltd (LLWR) into the NDA group.

These additions, alongside the integration of our transport businesses into Nuclear Transport Solutions Ltd and the formation of our new waste division, complete the main restructuring activities in the group and provide a platform for more efficient working, value for money, and transparency in reporting.

Mel Zuydam
Group Chief Financial Officer

Performance against financial targets

	Target	Actual
Expenditure	£3.468bn	£3.059bn
Income	£0.862bn	£0.612bn
Net funding	£2.606bn	£2.447bn

How £3.059bn was used on NDA mission:

Sellafield	£2.082bn
Magnox	£408m
Dounreay	£169m
LLWR	£72m
RWM	£59m
INS	£49m
Springfields and Capenhurst	£46m
Other	£174m

Other costs:

Industry costs	£100m
Fees to SLCs	£16m
Energy costs	£3m
NDA running costs	£55m
Total	£174m

Breakdown of NDA actual income:

Reprocessing/waste contracts	£275m
Spent fuel management	£213m
Energy sales	£4m
Nuclear materials and transport	£49m
Other	£71m
Total	£612m

A total of £3.1 billion spent in the year

A net total of £2.5 billion funded by the Government

£0.6 billion of income

NDA’s own running costs are 1.8% (£55 million) of overall estate budget

Note: the figures above are prepared on the basis of Government financial reporting, (HM Treasury Consolidated Budgeting Guidance), which differs in part from the basis used to prepare the financial statements.

The NDA and our mission

The NDA is charged, on behalf of Government, with the mission to clean up the UK’s earliest nuclear sites safely, securely and cost effectively. Doing this with care for our people, communities and the environment is at the heart of our work. We’re committed to overcoming the challenges of nuclear clean-up and decommissioning, leaving the 17 nuclear sites ready for their next use.

What we do

As owners of one of the largest nuclear decommissioning and remediation programmes in Europe, our main priority is to lead the work across the NDA group and develop the strategy for how it should be carried out. We also play an important role in supporting Government’s aspiration for the UK to be a global leader in the civil nuclear sector.

Our strategy is continually evolving and is updated every 5 years. Our fourth iteration was published in March 2021.

We strive to deliver best value for the UK taxpayer by focusing on reducing the highest hazards and risks, while ensuring safe, secure, and environmentally responsible operations at our sites. By generating revenue through our commercial activities, we seek ways to reduce levels of public funding from Government.

How we’re set up

We’re an executive non-departmental public body created by the Energy Act 2004 to lead the clean-up and decommissioning work at our 17 sites on behalf of Government. We’re sponsored and funded by the Department for Business, Energy and Industrial Strategy (BEIS). Our plans for cleaning up the sites are approved by BEIS and Scottish ministers, who provide a framework for us.

We have 6 offices across the UK, in Cumbria, Dounreay, Harwell, Warrington and London and employ 284 permanent staff.

Our sites

The UK’s nuclear landscape began to take shape in the post-war period. The focus during the Cold War arms race was on producing material for Britain’s nuclear deterrent. When the nation’s priorities shifted, facilities were turned into nuclear power stations, and, from 1956 onwards, the UK’s first nuclear power stations began generating electricity for homes and businesses. Fuel fabrication and reprocessing plants were built from the 1970s to 1990s.

Our 17 sites reflect this legacy and include the first fleet of nuclear power stations, research centres, fuel-related facilities, and Sellafield, which has the largest radioactive inventory and the most complex facilities to decommission.

Current plans indicate it will take more than 100 years to complete our core mission of nuclear clean-up and waste management. The goal is to achieve the end state at all sites by 2120.

The NDA group

We don’t deliver our mission alone. Accomplishing this important work requires the best efforts of the entire NDA group.

Cleaning up and decommissioning the UK’s nuclear legacy is a complex undertaking and relies on the full range of expertise and skills within the NDA group. Over the last few years, we’ve transformed the way in which our group is organised, transitioning our operating model from a parent body organisation (PBO) structure to a subsidiary model. The PBO model saw our sites managed by private sector consortiums and moving to a subsidiary model removes previous commercial barriers, enabling us to simplify our structures, pursue opportunities, overcome challenges together and share learning, skills, and technologies.

All of the operating companies within the NDA group have now transitioned to being NDA subsidiaries, enabling us to fully harness the opportunities that come from working effectively and efficiently.

This will bring benefits for our mission, the taxpayer, and our people.

Site licence companies

The 4 organisations in the group charged with running our sites are called site licence companies (SLCs). Sellafield, Magnox, DSRL (from 1 April 2021) and LLWR (from 12 July 2021) are all wholly owned NDA subsidiaries.

Enabling organisations

Other important subsidiaries within the group are responsible for delivering crucial support and enabling activities, including our transport organisations. In February 2021, we brought together the extensive transport and logistics expertise of our subsidiaries International Nuclear Services (INS), Direct Rail Services (DRS) and INS’s subsidiary Pacific Nuclear Transport Ltd (PNTL) into a single transport division – Nuclear Transport Solutions (NTS).

NTS specialises in the operational, commercial, engineering, legal, and regulatory expertise that underpin nuclear transport and logistics operations.

It operates DRS and PNTL, which continue to deliver rail and shipping services for customers, building on decades of experience of providing safe, secure and reliable transport solutions.

The Radioactive Waste Management (RWM) subsidiary leads the NDA’s work to deliver a Geological Disposal Facility (GDF) and provides radioactive waste management solutions. A GDF is recognsied internationally to be the safest permanent solution for managing higher activity radioactive waste, isolating it deep in solid rock, via a network of vaults and tunnels.

As we continue to bring together important expertise under our new operating model, we announced this year our intention to create a single waste division. This will bring together our group-wide waste management expertise in RWM and LLWR and help us to grow capability, simplify how we operate and deliver greater value for the taxpayer.

Our other subsidiaries are Rutherford Indemnity, NDA Archives, NDA Properties and Energus.

The NDA group organisational structure

Our strategic approach and themes

Our strategic themes

We use 5 strategic themes to describe all the activities needed to deliver the NDA’s mission.

The first 4 strategic themes, Spent Fuels, Nuclear Materials, Integrated Waste Management and Site Decommissioning and Remediation relate directly to our clean-up and decommissioning work and are known as driving themes.

The fifth theme describes the important activities needed to support the delivery of our mission and is known as Critical Enablers. The diagram below demonstrates how they interplay.

Currently, the most urgent task is dealing with our sites’ highest-hazard materials, spent fuel, nuclear materials and highly-radioactive wastes. Once the inventory has been made safe, the redundant nuclear facilities can be dismantled and demolished.

Our driving themes and strategic outcomes

Across our 4 driving themes, we break our mission down into 47 strategic outcomes. These outcomes represent the significant pieces of work that have to be achieved to deliver our mission.

In March 2021 we published our new Strategy. As a consequence, we have revised some detail for a number of outcomes to ensure they continue to align with our strategic approach.

Increasingly, we’re building a more accurate picture of the work that’s been completed across our 47 outcomes and that which is still left to do.

The percentage figures in the charts opposite show how much of the work has been achieved in each outcome so far.

Overall, good progress continues to be made across our mission as we safely manage our nuclear inventory and reduce the risks associated with it. Last year saw more spent fuel of all types placed in interim storage.

More strategic outcomes will be achieved with the closure of the reprocessing facilities and the building of new modern treatment and storage facilities to manage nuclear material and waste, ultimately working towards the final disposal of nuclear inventory and the release of land for other economic uses.

Spent Fuels

Strategic outcomes 1-15

Our strategy defines our approach to managing the diverse range of spent fuels for which we are responsible, which are divided into magnox, oxide and exotic. Once spent fuel is removed from a reactor, it is stored in a pond or dry store until it can be dispatched to Sellafield.

Reprocessing extracts materials (plutonium and uranium) that could potentially be re-used and also generates highly-radioactive wastes, or ‘fission products’.

The NDA’s strategy is to bring the reprocessing programme to an end. The Thermal Oxide Reprocessing Plant has already closed and the Magnox Reprocessing Plant will follow. All remaining spent fuel will be safely stored until a permanent solution for disposal is available.

Our spent fuel work is separated into 15 strategic outcomes that we must deliver, outlined below:

SPENT MAGNOX FUEL

Strategic outcome	2021 % complete	Operating companies involved
1. All Magnox sites defueled	100%	Sellafield Magnox NTS
2. All legacy Magnox fuel retrieved	25%	Sellafield
3. All Magnox fuel reprocessing completed	94%	Sellafield
4. All remaining Magnox fuel in interim storage	25%	Sellafield
5. All remaining Magnox fuel disposed	0%	Sellafield RWM

SPENT OXIDE FUEL

Strategic outcome	2021 % complete	Operating companies involved
6. All EDFE oxide fuel received	54%	Sellafield NTS
7. All legacy oxide fuel retrieved	100%	Sellafield
8. All oxide fuel reprocessing completed	100%	Sellafield
9. All remaining oxide fuel in interim storage	49%	Sellafield
10. All remaining oxide fuel disposed	0%	Sellafield RWM

SPENT EXOTIC FUEL

Strategic outcome	2021 % complete	Operating companies involved
11. All exotic fuel defueled	67%	Sellafield Dounreay
12. All exotic fuel consolidated	55%	Sellafield Dounreay NTS
13. All exotic fuel reprocessing completed	90%	Sellafield
14. All remaining exotic fuel in interim storage	83%	Sellafield
15. All remaining exotic fuel disposed	0%	Sellafield RWM

Nuclear Materials

Strategic outcomes 16-25

Our strategy defines our approach to dealing with the inventory of uranics and plutonium currently stored on some of our sites. These nuclear materials are by-products from different phases of the fuel cycle, either manufacturing or reprocessing.

All nuclear materials must be managed safely and securely, by either converting them into new fuel or immobilising and storing them until a permanent UK disposal facility is available

All of our plutonium is stored at Sellafield. Our uranium is located at a number of our sites and we are continuing to consolidate it at sites, which we consider are best suited to its management.

Our nuclear materials work is separated into 10 strategic outcomes that we must deliver, outlined below.

PLUTONIUM

Strategic outcome	2021 % complete	Operating companies involved
16. All plutonium produced	97%	Sellafield
17. All plutonium consolidated	100%	Sellafield Dounreay NTS
18. a) All plutonium repacked in long-term storage	0%	Sellafield
18. b) All cans not suitable for extended storage repackaged	0%
19. All plutonium in interim storage	0%	Sellafield
20. All plutonium reused or disposed	0%	Sellafield RWM

URANICS

Strategic outcome	2021 % complete	Operating companies involved
21. All uranium produced	93%	Sellafield
22. All uranium consolidated	80%	Sellafield Magnox Dounreay NTS Capenhurst Springfields
23. All uranium treated	4%	Capenhurst Springfields
24. All uranium in interim storage	56%	Sellafield Capenhurst
25. All uranium reused or disposed	1%	Sellafield RWM Capenhurst

CASE STUDY: German Vitrified Residues Returns

A programme to return high-level radioactive waste in the form of vitrified residues to Germany, started at the end of 2020.

The first of 3 shipments saw waste sent to federal storage facilities in Germany.

These returns involve Sellafield Ltd, working in partnership with Nuclear Transport Solutions, to return the waste to its German customers. It is then transported by sea on a specialist vessel to a German port, then onwards by rail to the final destination.

The waste results from the reprocessing and recycling of spent nuclear fuel at the Sellafield site, which had previously been used by utilities to produce electricity in Germany.

The Vitrified Residue Returns programme is a key component of the NDA’s strategy to repatriate high-level waste from the UK, fulfil overseas contracts and deliver UK Government policy.

Integrated Waste Management

Strategic outcomes 26-39

Our strategy considers how we manage all forms of waste arising from operating and decommissioning our sites, including waste retrieved from legacy facilities.

Managing the large quantities of radioactive waste from electricity generation, research, the early defence programme and decommissioning is one of the NDA’s biggest challenges.

Some of this radioactive waste is in a raw (untreated) form, some has been treated and is being interim stored and, in the case of low level waste, some has already been permanently disposed of.

Retrieving, treating and interim storing the radioactive waste from Sellafield’s 4 legacy ponds and silo facilities is the NDA’s highest priority.

Our Integrated Waste Management (IWM) work is separated into 14 strategic outcomes that we must deliver, outlined below.

LOW LEVEL WASTE

Strategic outcome	2021 % complete	Operating companies involved
26. All LLW produced	7%	Sellafield Magnox Dounreay LLWR Capendhurst Springfields
27. All LLW treated - to enable diversion or reuse	8%	Sellafield Magnox Dounreay LLWR NTS Capendhurst Springfields
28. All waste suitable for disposal in NDA facilities	14%	Sellafield Magnox Dounreay LLWR NTS Capendhurst Springfields
29. All waste suitable for permitted landfill disposed	4%	Sellafield Magnox Dounreay LLWR NTS Capendhurst Springfields

INTERMEDIATE LEVEL WASTE

Strategic outcome	2021 % complete	Operating companies involved
30. All ILW produced	33%	Sellafield Magnox Dounreay LLWR Capendhurst Springfields
31. All legacy waste retrieved	8%	Sellafield LLWR
32. All ILW treated	9%	Sellafield Magnox Dounreay Capendhurst Springfields
33. All ILW in interim storage	15%	Sellafield Magnox Dounreay Capendhurst Springfields
34. All ILW disposed	0%	Sellafield LLWR RWM NTS

HIGH LEVEL WASTE

Strategic outcome	2021 % complete	Operating companies involved
35. All HLW produced	68%	Sellafield
36. All HLW treated	73%	Sellafield NTS
37. All HLW waste in interim storage	83%	Sellafield NTS
38. All overseas HLW exported	11%	Sellafield NTS
39. All HLW disposed	0%

CASE STUDY: Geological Disposal Facility engagement and working group progress

An important start was made in identifying a willing community and a suitable site in England or Wales to host a Geological Disposal Facility (GDF with the formation of two separate local working groups. Both were from west Cumbria, with the first established in Copeland in November 2020, followed by Allerdale two months later.

The working groups have started local discussions and fact-finding about the opportunity of hosting a GDF in their area and will identify prospective search areas where future geological investigations could be carried out.

It is also anticipated that existing working groups will want to develop into longer-term community partnerships and take the process forward with their local communities. This will trigger access to community investment funding for initiatives that drive economic development, improve the local environment, or community wellbeing.

The search for a suitable site and willing community is a nationwide process in England and Wales. It will include detailed investigations to make sure a GDF can be constructed safely and securely.

Deep geological disposal is endorsed internationally as the best long-term solution for the safe and secure disposal of higher-activity radioactive waste. Building a GDF will be one of the biggest environmental protection projects in the UK and a major infrastructure project.

A GDF consists of highly-engineered vaults and tunnels located deep underground, designed to protect the environment and keep waste safe and secure while the radioactivity decays naturally.

Radioactive Waste Management Ltd is working in partnership with communities to explore how having a GDF in their area can provide long-term economic and employment benefits and play a major part in their development plans.

Integrated Waste Management

In 2020, we set out plans for an Integrated Waste Management (IWM) Programme, which has the potential to revolutionise the way the nuclear industry manages waste and save billions for the UK taxpayer.

Our radioactive waste strategy, published in 2019, committed to the creation of an IWM Programme that would aim to deliver more sustainable, efficient, and innovative ways of managing radioactive and non-radioactive waste.

The new approach moves towards a more ‘risk-informed’ approach based on the chemical and physical properties of the waste, rather than only the current radiological classification.

Re-considering the way waste is managed presents opportunities for greater flexibility and improved efficiency, from treatment, through to packaging and disposal.

In working more collaboratively at all points along the waste lifecycle, a greater understanding will be gained about the UK’s waste inventory.

New treatment and disposal options can be opened across the NDA group offering opportunities to significantly reduce the volume of waste that is packaged and placed in interim storage. Re-evaluating the types of waste sent for disposal is an area with huge potential for improved efficiency.

Innovation from within NDA group companies and the supply chain can have a massive impact on reducing processing, packaging and disposal costs.

Waste management accounts for around £25 billion of the whole nuclear provision. But moving to an integrated, full lifecycle approach, could reduce that bill by over £2 billion.

CASE STUDY: Low Level Waste Repository Gemini Container Programme

Three Gemini–type waste containers, used to transport drums of radioactive waste, have been refurbished and modernised in a collaborative project between NDA group operating companies, Low Level Waste Repository Ltd (LLWR), Magnox and Sellafield.

The containers will play an important part in a 5 year project to transfer around 700 concrete-lined drums of radioactive waste from Magnox sites for storage at Sellafield.

Having gone through rigorous testing at the end of 2020, following a 3 year refurbishment in France, the first of the containers is due to be fully operational by October 2021 with the others set to be in service by the end of the calendar year.

The container fleet supports the NDA group’s waste transport programme and its mission to ensure the safe and cost-effective transport of waste.

Virtual reality (VR) tools have been used to train personnel at Magnox and Sellafield in handling the containers.

Delivered by LLWR’s Waste Management Services team, VR headsets were used with virtual scenarios which mirrored conditions encountered at Sellafield and Magnox sites.

During training, Sellafield operators saw a replica of the container receipt facility on site, bearing the same dimensions and equipment. Similarly, Magnox operators saw an exact mock-up of a receipt facility at Harwell, as part of their training.

Site Decommissioning and Remediation

Strategic outcomes 40-47

Our strategy defines our approach to decommissioning redundant facilities and managing land quality in order that each site can be released for its next planned use.

After the buildings on our sites have been decommissioned, decontaminated, and dismantled, the land will be cleaned up to allow it to be released for other uses. At that point, its ownership would transfer to the new user of the land.

The NDA is currently assessing alternatives for the final stages of decommissioning that could lead to earlier release of land, continued employment and opportunities to re-use the land.

Our site decommissioning and remediation work is separated into 8 strategic outcomes that we must deliver, outlined below.

OPERATIONAL AND PLANNED

Strategic outcome	2021 % complete	Operating companies involved
40. All planned new buildings operational	TBD	Sellafield Magnox Dounreay LLWR RWM Capenhurst
41. All buildings primary function completed	35%	Sellafield Magnox Dounreay LLWR RWM Capenhurst

DECOMMISSIONING AND DEMOLITION

Strategic outcome	2021 % complete	Operating companies involved
42. All buildings decommissioned	18%	Sellafield Magnox Dounreay LLWR RWM Capenhurst
43. All buildings demolished or reused	16%	Sellafield Magnox Dounreay LLWR RWM Capenhurst

SITES

Strategic outcome	2021 % complete	Operating companies involved
44. All land delicensed or relicensed	9%	Magnox Dounreay LLWR
45. All land in End State - all planned physical work complete	41%	Sellafield Magnox Dounreay LLWR Capenhurst Springfields
46. All land demonstrated as suitable for reuse	9%	Sellafield Magnox Dounreay LLWR Capenhurst Springfields
47. All land dedesignated or reused	9%	Sellafield Magnox Dounreay LLWR Capenhurst

CASE STUDY: Sellafield skyline changes

In just the last few years, the Sellafield skyline has changed dramatically as a result of the ongoing work to demolish 2 iconic chimneys.

The First Generation Reprocessing Plant (FGRP) stack and the Windscale Pile One stack havebeen gradually reducing in height as the chimneys are steadily removed as part of Sellafield’s 100-year decommissioning programme.

The project to remove the chimneys was a priority for Sellafield. The aging structures were surrounded by critical nuclear facilities in a congested area of the site and taking them down will see 2 of the site’s intolerable safety risks removed.

The FGRP stack, which provided ventilation to various buildings and plants on the Sellafield site, had to be demolished by hand because of the risk to the buildings containing nuclear material that surround it. Working from a platform,

which clung to the chimney using friction alone, the team carefully cut away the concrete and steel stack using hand tool. Over a period of 30 months, 52 metres of the structure were removed.

The project to demolish the stack is now nearing an end with the stack reduced to a 30cm stub.

Other techniques were used in the work to remove the Windscale Pile One chimney, which stood at 125 meters.

Diamond wire saws were used to cut out 6-tonne blocks of concrete which were then removed by a giant crane.

The first piece to be removed was the square- shaped ‘diffuser’ at the top of the chimney.

Famously, this filtration system was a last-minute addition, placed unusually at its summit by designer Sir John Cockroft. It turned out to be a masterstroke - in 1957, fire broke out in the Windscale Pile One reactor. The sky-high filters captured an estimated 95% of the radioactive dust created.

The demolition of the 2 chimneys is a very visible demonstration of the work being done to make Sellafield a safer place and is a huge step in the clean-up mission of the site

Critical enablers

Our fifth strategic theme, critical enablers, covers the important activities needed to support the overall delivery of our mission.

Health, Safety, Environment and Wellbeing

Safety is, and always will be, our number one priority. Our focus is to reduce the highest hazards and risks, while ensuring safe, secure and environmentally responsible operations at our sites. It’s our duty to carry out this highly-complex mission safely and efficiently while ensuring people and the environment are safeguarded at all times.

We will apply the principles of sustainability to ensure that our mission outcomes and the journey to achieve them are the right balance of environmental, economic and social impacts.

We have a responsibility to ensure that the group has the appropriate levels of physical, personnel, cyber and ICT capability, and competencies to minimise risks and protect all group assets.

Public and stakeholder engagement

Engaging openly and transparently with all our stakeholders is crucial to building the support, confidence and trust we need to deliver our mission.

Transport and Logistics

The effective delivery of the NDA mission relies on our ability to transport radioactive materials (e.g. spent fuel, radioactive waste, contaminated items) and bulk materials (e.g. spoil, concrete, raw materials) to, from and between our sites.

Socio-economics

We have a responsibility to support the sustainability of our sites’ communities, up to and after their closure.

The NDA group’s socio-economic strategy is built upon supporting sustainable incomes, resilient economies and thriving communities. Our approach is to work locally. This means working in partnership with local authorities and organisations to better understand local needs.

People

Our mission needs a diverse range of individuals and organisations to provide the capability and capacity to deliver effectively, so having the right skills at the right time within the NDA group and our supply chain is a priority. Our strategy on skills is threefold: attracting the right calibre of people, developing future skills, and developing our existing talent.

Research, development and innovation

Delivering our mission needs many ‘never- done-before’ solutions, which require significant innovative and novel engineering approaches.

Our strategy is to solve the challenging technical problems safely, while aiming to be more effective, efficient, and wherever possible, for less cost to the taxpayer.

Research, development and innovation is essential to decommissioning our sites and is delivered in partnership with our supply chain.

Developing innovative ways to overcome our challenges will see us focus on areas such as remote and robotic technologies in the coming years and take advantage of innovation in other sectors such as space, oil and gas.

Supply chain

A diverse, ethical, innovative, and resilient supply chain is essential to delivering the NDA mission and provides value for money for the UK taxpayer.

Our strategies are aligned to business operations, informed by excellent market insight, and recognise that value comes in many forms, such as an improved environment, reduced hazard, social amenities, cost savings and employment opportunities.

To find out more about our other critical enablers please refer to our revised Strategy.

CASE STUDY: Equality, diversity and inclusion at the NDA

The NDA group’s important work on diversity and inclusion continued to be a key focus throughout 2020/21. As part of this ongoing work, we launched 4 networks across the NDA group to provide greater focus, visibility and support to underrepresented employee groups, and create and inspire a respectful and inclusive culture.

This included the creation of the gender balance network, race equality network, disability network and LGBT+ network.

Ensuring gender equality is fundamental to the NDA group. The gender balance network will play an important role in this agenda by providing mentoring opportunities, working with other networks across the group and helping to identify and address diversity issues.

Meanwhile our commitment to supporting the advancement of diversity and inclusion will benefit from the launch of the race equality network. The group provides an additional platform to advance equality, diversity and inclusivity of ethnic minorities and provides a safe support forum to share experiences and discuss relevant issues.

Supporting and highlighting the needs of the NDA group’s disabled community, the disability network acts as a collective voice for disabled colleagues, promotes positive attitudes and raises awareness of disability equality.

Our LGBT+ community has been a huge supporter of our diversity and inclusion agenda and we are delighted to now have a group-wide network. As well as their work to promote the safety, equality and wellbeing of LGBT+ colleagues, they will play an active role in growing a supportive community of allies.

CASE STUDY: NDA group’s response to the COVID-19 pandemic

The NDA group’s skilled workforce has risen quickly to the sudden and ongoing challenge of the COVID-19 pandemic.

From the manufacture and donation of vital personal protective equipment to frontline health workers across the UK, to scientists, engineers, safety teams and other personnel helping during the time of international crisis.

The NDA’s rail subsidiary, Direct Rail Services Ltd, played a key role during national lockdowns in delivering vital supplies to supermarkets around the UK.

NDA group employees have also helped during the effort with many assisting and supporting elderly and vulnerable members of the community, with the likes of delivering prescriptions and food supplies.

As well as donations of time, the workforce has also been organising and contributing to fundraising schemes for the NHS and provision of essential equipment.

Just over £450,000 has so far been given to the communities around our sites for COVID-19 relief support.

This has been granted to local councils and community groups which have used the funding to go towards emergency provisions, including food supplies, local business support and other essential social support services.

CASE STUDY: Transport division created and operational

Earlier this year, we brought our extensive transport and logistics capabilities together into a single transport division – Nuclear Transport Solutions (NTS).

Delivering our mission relies on being able to safely transport radioactive materials and other freight.

The UK has long been a global leader in this field particularly through the expertise that exists within our subsidiary organisations, International Nuclear Services Ltd (INS), Direct Rail Services Ltd (DRS), and the INS subsidiary Pacific Nuclear Transport Ltd (PNTL).

By bringing together that expertise into a single organisation, NTS has become a centre of excellence in the transport of radioactive and other critical materials.

It combines responsibility for transport and packaging, along with the operational, commercial, engineering, legal, and regulatory expertise that underpin nuclear transport and logistics.

NTS supports the NDA group’s important mission by transporting spent nuclear fuel from UK power stations to Sellafield, returning reprocessing products to customers overseas, and providing packaging and licensing solutions to the NDA group.

It also generates revenue through commercial opportunities in the UK and overseas – offsetting the cost of delivering decommissioning and clean- up work at the UK’s oldest nuclear sites.

NTS operates DRS and PNTL, which will continue to deliver rail and shipping services for customers, building on decades of experience of providing safe, secure and reliable transport solutions.

CASE STUDY: Stakeholder engagement for Strategy 4 consultation

The Energy Act 2004 requires us to review our Strategy every 5 years. The Strategy sets out our strategic direction and long-term objectives for the NDA group.

The drafting process for each iteration of the Strategy involves extensive stakeholder

engagement. The Strategy also must be publicly consulted upon providing an opportunity for people to feedback their views on the proposed Strategy.

In August 2020, we launched a public consultation for Strategy 4 which ran for 12 weeks. A bespoke digital campaign was created to deliver the consultation virtually, taking into consideration COVID-19 restrictions.

Online meetings and live streaming, which saw NDA experts present on key topics, were used to connect with our stakeholder audience. A virtual exhibition was also developed for stakeholders to access more information.

Using virtual platforms enabled us to host more regular meetings with stakeholders with many finding it easier to attend digital meetings.

Following the consultation process, we received 77 sets of feedback from a wide range of stakeholders, including individuals, public bodies and private organisations. The Strategy 4 consultation received more responses than any of our previous strategy consultations, and these responses were carefully considered in developing the final Strategy, which was subsequently published in March 2021. We’ll be taking the learning from the success of the virtual consultation onto other areas of work.

The final Strategy 4 document was published in March 2021.

Sustainability at the NDA

In our approach to sustainability, we believe our duty is to leave a positive lasting legacy.

A legacy where our environmental contribution and our impacts on the communities in which we operate, helps them be thriving places to live and work - providing future generations with an even firmer foundation from which to grow and develop.

As part of this ongoing work, we published our first Sustainability at the NDA report in March 2021.

The report showcases the work across the group to promote and support the positive social and environmental outcomes we realise as part of our operations.

There are many ways that we can maximise the positive impacts of our work, and the value our operations bring through employment, training, education and by supporting our communities to become healthy and prosperous places.

CASE STUDY: Carbon Net-Zero

The NDA’s sites were at the forefront of generating low-carbon electricity for many years. Now, our mission is to clean-up the UK’s earliest nuclear sites safely, securely, cost effectively and with care for our people, communities and the environment.

We’re committed to making the journey towards delivering our mission a sustainable one. In 2020, we committed to support the UK Government’s target to have net-zero greenhouse gas emissions by 2050, with the Scottish Government target being 2045.

We made it a key business priority to focus on our carbon footprint and take action to reduce our emissions as much as possible.

Identifying our top 3 carbon emission contributors as being the fuel we burn, the electricity we purchase, and the business travel and goods and services we procure, we’ve developed a net-zero roadmap. This identifies opportunities for us to reduce our energy use by changing our behaviours, using our plant and systems more efficiently and looking at the role renewables can play in our future.

A carbon management plan will be developed to support the delivery of lower carbon and sustainable initiatives within our operating companies.

Our carbon footprint will be routinely reviewed and more accurate tools will be devised for calculating the impact of the goods and services we procure, where a low-carbon culture will be embedded into our procurement process.

We will be addressing the ways we indirectly impact the environment through the goods and services we procure. For example, the electricity we buy may be produced from processes which generate greenhouse gases, the commodities, materials and equipment we use all take resources and energy to produce and transport.

There will still be some hard-to-decarbonise activities, but our goal is to offset these by removing greenhouse gases from the atmosphere by natural means such as planting trees or restoring peatland where possible.

CASE STUDY: Magnox - Hydro-electric energy

Maentwrog hydro-electric power station, in Gwynedd North Wales, is a unique asset in the NDA group’s portfolio.

Owned and operated by Magnox Ltd, the site generates electricity using rainwater collected from streams and rivers that feed into Trawsfynydd lake.

The water is carried by a pipeline to drive two turbines, which generate enough electricity to power around 12,000 local homes each year.

During 2020/21, Maentwrog generated 74.2 gigawatt hours of renewable energy - enough to make 2.9 billion cups of tea.

Socio-economics

CASE STUDY: St Ola Pier

St Ola Pier, at Scrabster Harbour in Thurso, Caithness, has been at the heart of a major development project to allow the port to accommodate larger and deeper vessels.

Enabling port infrastructure for growth in the energy industry and cruise tourism, the project has been supported by £5 million of NDA group funding.

In developing the existing pier, a more versatile port infrastructure has been created to increase capacity and functionality. Specifically, work on the pier and quay walls have created a 375-metre deep-water berthing area, including a new 250-metre outer berth.

A deck area and dedicated heavy lift pad also features in the redevelopment. The project is due to be completed in September 2021.

CASE STUDY: Môn communities forward

Môn Communities Forward (Môn CF) has assisted local people and businesses by offering a professional recruitment service and employment support package specifically tailored to meet the needs of Anglesey people and enterprises.

With the help of Magnox funding over a number of years, it has grown from offering vocational training and hands on work experience, to developing a training academy and becoming an accredited training centre with additional employability and support projects.

Its recent success is the Next Steps project which, with £300,000 of Magnox funding, included supporting the roles of delivery manager and training team co-ordinator at its training centre.

The funding also helped Môn CF to leverage further funds to purchase and renovate its training centre and main offices in the town centre of Holyhead.

Despite COVID-19 restrictions in the final year, during 2020/21, 600 individuals were supported, 60 work placement opportunities provided, and 450 qualifications gained. During the same period, 240 people were helped into work across the Anglesey area.

CASE STUDY: Envision

Envision is a South Gloucestershire community apprentice mentoring programme, which has been supported by £90,000 of Magnox funding.

The programme is a cross-school active citizenship competition, which has been supported by Magnox since 2018. Since then, it has helped over 300 students from 5 schools in the area. The scheme aims to encourage disadvantaged young people

to develop employability skills through the support and feedback of business mentors.

Working in teams, young people design, develop, and deliver a social action project to raise awareness and funds for a local charity of their choice. Employees from businesses involved in the scheme act as mentors throughout each of the 12- week programmes.

Over the last 3 years, 127 volunteers have mentored young people on the scheme, with 21 Magnox employees having directly helped students.

To date, 69% of young people have improved their self-efficacy and 82% of young people have improved their social confidence.

CASE STUDY: Unlocking East Quay

Work continued on the £7 million East Quay community project in Watchet, West Somerset, which is on track to open in summer 2021.

Supported by £250,000 of NDA group funding, it houses a gallery, restaurant, studios and accommodation. It aims to support the local economy while increasing community engagement with art and culture.

Based in an area which has the lowest social mobility in the country, the project intends to boost visitors to the area, create jobs and provide opportunities for young people. It will contain 14 studio workspaces, 2 gallery areas, a print room, an education space, a restaurant and 5 self- catering accommodation pods.

It will run a programme of events, exhibitions and indoor and outdoor activities for visitors, locals and school groups.

CASE STUDY: Western excellence in learning and leadership project

The Western excellence in learning and leadership project (WELL) is an education programme, which aims to raise standards in every classroom in west Cumbria.

Backed by £1.7 million of NDA group funding, its main focuses are improving the consistency and quality of teaching, raising pupil achievement to be in line with the UK average, improving attendance levels, and enhancing students’ health and wellbeing. The project has seen significant support from local schools since its launch in 2019, with 117 schools engaging with WELL.

By July 2020, at least 95% of headteachers, other teaching and support staff, and some governors in participating schools had accessed training, related to pupil premium for disadvantaged children and developed appropriate strategies for their schools.

During the year, 55 schools received training and funding for resources aimed at improving speech and language with reception-aged children.

A range of training and resources in 13 programmes designed to improve disadvantaged pupils were also secured for local schools and will be complete by July 2021.

The programme has helped 45 school staff from across the region receive Youth Mental Health First Aid training.

During the COVID-19 pandemic, the WELL project lessened the impact to disadvantaged students in the area by enabling up to 2,500 breakfast deliveries per week for vulnerable children and those of key workers.

The project also co-ordinated allocations of over 500 redundant Sellafield laptops to 73 schools to support remote learning.

Research, development and innovation

CASE STUDY: Sort and seg competition

Research, development and innovation are essential to the mission, accounting for over £90 million of annual investment across the NDA group.

As we move from operations to full-scale decommissioning, our research, development and innovation strategy drives forward the need to seek solutions that are safer, more efficient and more cost- effective, while accelerating timescales.

One programme which was launched in July 2020, invited proposals for using innovative technology for handling mixed radioactive wastes at the UK’s oldest nuclear sites.

The £3.9 million ‘Sort and Seg’ innovation competition challenged supply chain companies to come up with innovative approaches to remotely handle and sort radioactive waste.

The NDA, Magnox Ltd, Sellafield Ltd and innovation agency Innovate UK announced the winners of the competition in February this year.

Fourteen successful companies were awarded contracts, worth up to £60,000 each, as part of the first phase of the competition and were then required to produce feasibility studies for their proposals, including robotics, advanced sensors and artificial intelligence.

The feasibility studies were delivered in May this year with the winners competing for a number of contracts, each worth up to £900,000, for 15-month ‘demonstrator projects’.

Competitions like this are an important way of engaging the supply chain, encouraging diversity of thinking and finding innovative techniques and technologies from other sectors to help deliver the NDA’s decommissioning mission.

David Peattie
Accounting Officer and Group Chief Executive Officer
15 July 2021

Accountability Report

Directors’ report

The NDA is an Executive Non-Departmental Public Body, established by the Energy Act 2004 to oversee and monitor the decommissioning and clean-up of the UK’s civil nuclear legacy. Since then, the NDA’s remit has been extended to include the long-term management of all the UK’s radioactive waste by finding appropriate storage and disposal solutions.

Accounts direction

These accounts have been prepared in a form directed by the Secretary of State with the approval of HM Treasury and in accordance with section 26 of the Energy Act 2004.

The Board comprises of a Non-Executive Chair, Non-Executive Members, the NDA Group CEO and the NDA Group CFO whose details are set out in the Governance Statement.

Directors’ interests

Members of the NDA Board must declare any personal, private or commercial interests. A register of such interests is maintained by the NDA.

Rob Holden declared a commercial interest. He is a Non-Executive Director of NNB Generation Company (SZC) Ltd, a Non-Executive Director of Electricity North West Ltd and Director of North West Electricity Networks Ltd and will therefore, be excluded from any involvement with Moorside deliberations.

The other members have no personal, private or commercial interests which present material conflicts with their role as a Member of the NDA Board. A full [register of Members’ interests] (http://www.gov.uk/government/publications/nda-register-of-directors-interests).

Auditor of the NDA

The NDA is audited by the Comptroller and Auditor General (C&AG) in accordance with the Energy Act 2004. The services provided by the C&AG relate to statutory audit work for the NDA. No fees were paid to the C&AG for services other than statutory audit work.

Pensions

NDA employees are eligible to participate in the Civil Service Pension Arrangements. A small number of employees who transferred to the NDA from INS in 2019 continue to accrue benefits in the UKAEA Combined Pension Scheme.

Employees within the group participate in various defined benefit pension schemes detailed in note 26 to the accounts.

Group employees also participate in various schemes which are accounted for on a defined contribution basis, with details given in note 26 to the accounts.

Better payment practice

The NDA supports the Better Payment Practice Code in its treatment of suppliers with the aim of paying undisputed invoices as soon as possible. The key principles are to settle the terms of payment with suppliers when agreeing the transaction, to settle disputes on invoices without delay and to

ensure that suppliers are made aware of the terms of payment and to abide by those terms.

During the year, the NDA has achieved a 90.46% success rate for payment of suppliers in accordance with terms (2019/20 – 91.23%). The average number of payment days from invoice date was 31 days and for a valid invoice, (i.e. one with all details correct and entered on the accounting system), 14 days (2019/20 - 31 days and 12 days). The proportion that is the aggregate amount owed to trade creditors at the year end compared to the aggregate amount invoiced by suppliers expressed as a number of days is 8.41 days (2019/20 – 23.49 days).

As a result of the coronavirus, COVID-19 pandemic the NDA implemented Procurement Policy Notes (PPN) 01/20, 02/20 and 04/20 which relate to the provision of supplier relief. The PPNs set out information and guidance for public bodies on payment of their suppliers to ensure service continuity during and after the pandemic. The NDA acted promptly to ensure suppliers at risk were in a position to resume normal contract delivery once the lockdown restrictions were over.

For more information, see the Governance Statement.

Personal data

There were 3 personal data breaches in the NDA during 2020/21. All 3 incidents were classed as minor and have all been investigated fully with appropriate mitigating actions taken to reduce the chance of re-occurrence. None were classed as reportable to the Information Commissioner’s Office.

Other disclosures

Disclosures on equal opportunities, learning and development and how the NDA engages with all staff are in the [Remuneration and People Report]Remuneration Report.

Details of investment in socio-economic developments, research and development and funding, counterparty and foreign exchange risk are all included in the financial statements.

The NDA’s environmental performance is detailed in the Health, Safety, Security, Environment and Wellbeing report.

Events after the reporting period

NDA acquired the share capital of Dounreay Restoration Services Ltd effective from 1 April 2021.

On 23 June 2021 the NDA, HM Government and EDF Energy entered into new decommissioning arrangements for 7 Advanced Gas-cooled Reactor (AGR) stations in which HM Government has directed NDA to take on the future ownership of the stations for decommissioning. The work will be undertaken by the NDA subsidiary Magnox Ltd.

NDA acquired the share capital of Low Level Waste Repository Ltd effective from 12 July 2021.

Going concern

A full explanation of the adoption of a going concern basis appears in note 2.1 of the financial statements.

Section 172 statement

The NDA sets out the issues and factors it takes account of in its decision-making in its Value Framework, which has been revised as part of Strategy 4.

As well as the general consideration of value for money and affordability, the NDA’s Value Framework provides a structured mechanism to consider:

• Health and safety
• Security
• Environment
• Risk/hazard reduction
• Socio-economic impacts
• Finance
• Enabling the nuclear decommissioning mission

Strategic decisions coming to the NDA Board build in these considerations systematically and they are also reflected and assured in subsequent business case approvals.

To determine the relevance of stakeholders to our decision-making, the NDA segments its stakeholders into 4 broad categories:

• External governance and scrutiny: decision- makers with a direct or indirect impact on the NDA’s ability to make decisions and allocate resources
• Employees, workforce and their representatives
• Supply chain and commercial partners
• Other influencers and opinion formers: MPs, MSPs, Welsh assembly members, County Councils, Borough Councils, civil society, Non- Governmental Organisations, local communities (including site stakeholder groups), international organisations etc.

Stakeholder engagement is an enabler to mission delivery. It allows the NDA group to understand issues better by obtaining stakeholders’ points of view, enabling better informed decisions and creating confidence in the operation of the organisation. Given the nature of its work, the NDA group has a large number and range of stakeholders and therefore stakeholder engagement is an important element of the NDA Board and Executives’ responsibilities. The executives and the senior leadership groups represent the organisation and build an ever- increasing understanding of stakeholders’ interests.

These leaders are supported by members of the communications team which contains specialists in stakeholder engagement with a deep understanding of stakeholder organisations and individuals. These structured engagements are supplemented by roadshows and by an annual stakeholder summit.

For employee engagement, there are well- established formal bargaining and consultation mechanisms in place to engage with trade union representatives. Board members also carry out engagement individually to hear from people first- hand. Board members attend employee breakfast sessions and the Joint Consultation Group (which brings together management and employee representatives). There have also been virtual site visits which have included discussions with the Unions or other employees (e.g. Women’s Network at Dounreay).

Stakeholder engagement takes place through regular and structured contact, augmented by informal relationships. For example, formal decision-making in the NDA is supported by monthly and quarterly meetings with Government and regulators. There are a number of technical forums (Nuclear Decommissioning Policy and Strategy Group and Theme Overview Groups for example) which take input from subject matter experts, regulators, Government and other parties.

Local stakeholder engagement is built around our 17 sites and their site stakeholder groups, a large number of other standing forums and 11,000 people regularly engaged through our stakeholder database. Based on direct feedback from our annual survey, the communications team is looking at whether more can be done to engage hard

to reach and underrepresented groups such as younger people or people who have not worked in the nuclear industry.

Board decisions are informed by the views of relevant stakeholders through the mechanisms set out above. For example, the Board has been kept updated on stakeholder feedback through the various iterations of Strategy 4, the timing of Magnox decommissioning and plutonium

disposition. The NDA group Chief Communications and Stakeholder Relations Officer is invited to the Board and provides a strong link to stakeholders and a specialist view of stakeholder perspectives and concerns, where relevant, at Board meetings.

All Board members are involved in a wide-range of stakeholder events, such as staff meetings, engagement with Government, parliamentary meetings and site stakeholder meetings.

The NDA Board considers that it has acted in good faith in a way most likely to promote the

achievement of its decommissioning mission for the benefit of the country and having regard (amongst other matters) to factors (a) to (f) S172 Companies Act 2006, in the decisions taken during the year ending 31 March 2021. These decisions include:

Adoption of NDA Strategy 4

The NDA has published its revised strategynuclear-decommissioning-authority-strategy-effective-from-march-2021) on 18 March 2021 after consultation with stakeholders. It sets out the rationale for the approach the NDA takes to decommissioning and was consulted on to ensure good quality decision-making in the long-term interests of the country. During the consultation, there were more than 1,000 items of feedback which informed thinking on supply chain, transportation of nuclear materials, the management of nuclear wastes and decommissioning of our sites more generally.

COVID-19

The NDA put in place its business continuity measures to support its employees, supply chain, local communities and key government stakeholders as part of its pandemic response

across the group. Within a matter of days from the initial COVID-19 lockdown, the NDA implemented a plan to provide additional ICT capability and supporting home working guidance, facilitating the move from office and site operations to a safe home working environment. The NDA maintained a focus on the physical and mental wellbeing of our employees with display screen assessments at

home, with equipment provided for each individual need, and the provision of mental health support from internal and external staff, including Mind.

Active consultation and monitoring took place at the most senior levels in the NDA covering issues such as: remote working safety and security; working at sites; supply chain support programmes; volunteering policy; changing grant programmes to giving immediate financial and personal protective equipment support to communities. Finally, the NDA maintained effective and timely reporting

of our status to government and regulatory organisations, to ensure we provided an accurate COVID-19 view within the NDA.

Nuclear provision

The NDA maintains and publishes the long-term costs of decommissioning its estate of sites (the nuclear provision) to support long-term decision- making by society as a whole.

Magnox reactor decommissioning

The concept, continuous reactor decommissioning, was discussed with stakeholders for more than

two years, in a series of workshops, briefings and roadshows, where their comments, suggestions and responses were considered and built into our plans.

Statement of Accounting Officer’s responsibilities

Under Section 26 of the Energy Act 2004, the Secretary of State (with the approval of HM Treasury) has directed the NDA to prepare for each financial year a statement of accounts in the form and on the basis set out in the Accounts Direction.

The accounts are prepared on an accruals basis and must give a true and fair view of the state of affairs of the NDA and its income and expenditure, Statement of Financial Position and cash flows for the financial year.

In preparing the accounts, the Accounting Officer is required to comply with the requirements of the Government Financial Reporting Manual and in particular to:

• Observe the Accounts Direction issued by the Secretary of State with the approval of HM Treasury, including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis
• Make judgements and estimates on a reasonable basis
• State whether applicable accounting standards as set out in the Government Financial Reporting Manual have been followed, and disclose and explain any material departures in the accounts
• Prepare the accounts on a going concern basis
• Confirm that the Annual Report and Accounts as a whole, is fair, balanced and understandable and takes personal responsibility for the Annual Report and Accounts and the judgements required for determining that it is fair, balanced and understandable

The Accounting Officer for the Department for Business, Energy and Industrial Strategy has appointed the Chief Executive Officer as Accounting Officer of the NDA.

The responsibilities of an Accounting Officer, including responsibility for the propriety and regularity of the public finances for which the Accounting Officer is answerable, for keeping proper records and for safeguarding the NDA’s assets, are set out in Managing Public Money published by HM Treasury.

As the Accounting Officer, I have taken all the steps that I ought to have taken to make myself aware of any relevant audit information and to establish that the NDA’s auditors are aware of that information.

So far as I am aware, there is no relevant audit information of which the auditors are unaware.

David Peattie
Accounting Officer and Group Chief Executive Officer
15 July 2021

Governance statement

The NDA is sponsored by the Department for Business, Energy and Industrial Strategy (BEIS). UK Government Investments (UKGI) provides strategic oversight of the NDA’s corporate governance and corporate performance, working closely with and reporting directly to BEIS senior officials and providing advice to BEIS Ministers. The formal agreement between the NDA and BEIS is set out in a framework document, supported by a memorandum of understanding between BEIS and UKGI. The Scottish Government also has a governance role, working closely with BEIS to ensure its expectations are met.

The following Governance Statement provides an insight into the corporate governance framework for the NDA and its group entities during 2020/21.

The framework is used to measure the performance and effectiveness of the NDA in the delivery of its strategic and operational objectives.

The NDA’s Governance Framework

The NDA is a body corporate governed through the Energy Act 2004; the government’s NDA framework document; and Cabinet Office guidelines for Non- Departmental Public Bodies (NDPBs). The NDA also aims to draw on best practice as set out in the UK Corporate Governance Code where appropriate, reporting exceptions to UKGI. This is within the context that NDA’s value is not primarily financially metric driven and that its remuneration policy is in line with public sector guidance.

NDA’s governance, whilst effective for the previous operating model, is being enhanced and will be further strengthened as a result of the findings of recent external reviews, the revised framework document and the transition to the NDA group Operating Model. Work is underway in several areas as outlined within this report.

The Energy Act 2004 requires the NDA to prepare a strategy for carrying out its functions and to prepare in respect of each financial year an annual plan. The Strategy and Annual Plan must be approved by the Secretary of State and, to the extent appropriate, with the Scottish Ministers.

Certain scopes of work require approval from BEIS. Where work falls outside the NDA’s delegated authority, then it must seek approval before commencing the work and demonstrate that it is affordable, aligned to the NDA mission and provides value for money.

Board and board committees

The NDA Board sets the strategic framework and direction for operations and is responsible for ensuring high standards of corporate governance at all times; sets the risk appetite; agrees plans against which the NDA performance is measured; and maintains an appropriate control framework that provides assurances on risk assessment and the application of appropriate controls.

The Board delegates the day-to-day management of the NDA group to an Executive Team, comprising of 2 Board Members: the Group Chief Executive Officer and the Group Chief Financial Officer and other senior executives.

The Chair of the Board is accountable for delivering obligations under the Energy Act 2004 and providing effective leadership and direction of the Board.

The Group Chief Executive Officer is responsible for leadership and operational management of the NDA and is accountable to the Board and as Accounting Officer to Parliament for NDA activities, public funds employed and ensuring targets are met.

The following table sets out the purpose of the Board, Board committees and Executive committees.

Non-Executive Chair
Board and board committee	Purpose	Meeting Chair
NDA Board	The NDA Board sets the strategic framework and direction for operations and is responsible for ensuring high standards of corporate governance at all times, sets the risk appetite; agrees plans against which the NDA performance is measured, and maintains an appropriate control framework that provides assurances on risk assessment and the application of appropriate controls. The Secretary of State and, to the extent appropriate, the Scottish Ministers, are responsible for approving the NDA’s Strategy and annual Business Plan. The Board delegates oversight of certain risk topics and themes to sub-committees and the day-to-day management of the NDA group to the executive team, comprising the Group Chief Executive and other senior executives.	Chair
Audit and Risk Assurance Committee(A&RAC)	The committee provides advice and assurance to the Board on risk, control and governance. The committee oversees audit and financial reporting, advises and reports on the plans, activities and performance of internal and external audit, and provides an assessment of assurance reliability and integrity. The committee oversees the effectiveness and quality of the group risk management framework and monitors risk exposure against group risk appetite.	Non-Executive Board Member
Nominations Committee(NOMCO)	To consider the composition and skills of the Board, advise on the structure and size of the committees, and assess succession planning and talent management.	Chair
Remuneration Committee(REMCO)	To advise the Board on remuneration, and monitor performance of senior executives.	Non-Executive Board Member
Health, Safety, Security and Environment (HSSE) Committee	To support the Board in discharging its responsibilities in respect of issues of Health, Safety (including both nuclear and non-nuclear safety), Security and Environment in the NDA group. This was formerly known as the Safety and Security Committee (S&SC).	Non-Executive Board Member
Programmes and Projects Committee(P&PC)	To advise the Board on sanction, performance and assurance of programmes and projects.	Non-Executive Board Member

Group Chief Executive Officer & Accounting Officer
Executive Committees	Purpose	Meeting Chair
Executive Committee	Accountable for implementing strategy and plans approved by Board. Includes sanction and decision making.	Group Chief Executive Officer
Executive Audit, Risk and Assurance Committee	To oversee the effectiveness and quality of the group risk management framework, processes and practices and monitor risk exposure against group risk appetite. To monitor and manage risk and assurance mechanisms. To monitor findings from audit and assurance reviews. To advise the Board A&RAC.	Group Director of Risk and Assurance
Finance and Performance Committee	To review and approve annual reports and accounts and recommend to the Board for approval. To review sanction plan and approve sanction requests within delegation and endorse onward submission where required. To review overhead and headcount budget and review group performance in preparation for quarterly performance reviews.	Group Chief Financial Officer
Sanction Committee	To review and sanction work activities across the NDA estate, including programmes, projects, procurements, IT expenditure, contracts, asset disposal, and investment opportunities. Further approval by the NDA Board and Government may also be required.	Group Chief Financial Officer
Strategy Committee	To approve business and technical strategies. To review the portfolio of strategic decisions/initiatives under development and endorse for forward submission to the Sanction Committee.	Group Director of Nuclear Strategy and Technology

As at 31 March 2021, the NDA Board comprised of 8 Non-Executive Board Members, including the Non-Executive Chair and 2 executive members, the Group Chief Executive Officer and Group Chief Financial Officer. The table below sets out the names of the Board members during the period 1 April 2020 to 31 March 2021, their respective terms of office and membership of Board committees.

Non-Executive Members
Name	Role	Board Committee Chair	Term of Office Ends/Ended
Ros Rivaz (1)	Non-Executive Chair	NOMCO	31 August 2023
Janet Ashdown	Non-Executive Board Member & Senior Independent Member	HSSE	31 January 2022
Volker Beckers	Non-Executive Board Member	A&RAC	31 October 2021 (2)
Evelyn Dickey	Non-Executive Board Member	REMCO	31 January 2022
Rob Holden	Non-Executive Board Member	P&PC	31 January 2022 (3)
Alex Reeves	Non-Executive Board Member	Not applicable	31 January 2025
Nick Elliott (6)	Non-Executive Board Member	Not applicable	30 April 2021
Francis Livens (4)	Non-Executive Board Member	Not applicable	30 November 2023
Tom Smith	Non-Executive Chair	NOMCO (to August 2020)	31 August 2020
Michelle Heath (5)	Non-Executive Board Member	Not applicable	30 June 2020
Non-Executive Members
Name	Role	Board Committee Chair	Term of Office Ends/Ended
David Peattie	Group Chief Executive Officer	Not applicable	Not applicable
Mel Zuydam	Group Chief Financial Officer
Not applicable	Not applicable

Notes:

1. Ros Rivaz was appointed to the Board on 1 September 2020 following the end of Tom Smith’s term on 31 August 2020
2. The term of office for Volker Beckers was extended from 31 January 2021 to 31 October 2021
3. The term of office for Rob Holden was extended from 31 January 2021 to 31 January 2022
4. Francis Livens was appointed to the Board on 1 December 2020
5. Michelle Heath resigned from the Board on 30 June 2020
6. Nick Elliott was appointed to the Board on 15 March 2021 and resigned on 30 April 2021

All Non-Executive Board Members were independent on appointment.

The following table provides details of each Board Member’s attendance at Board and committee meetings during the period 1 April 2020 to 31 March 2021.

Total number of meetings	Board** 10 **	** A&RAC **7	REMCO** 6 **	** S&SC **4	P&PC** 9 **	** NOMCO **2
Non-Executive Board Members
Total number of meetings	Board	** A&RAC **	REMCO	** S&SC **	P&PC	** NOMCO **

Ros Rivaz	6 of 6 (and 2 of2)(1)	4 of 4 (1)	3 of 3 (1)	2 of 3 (1)	4 of 6 (1)	2
Janet Ashdown	10	7	-	4	9	2
Volker Beckers	10	7	5 of 6	-	-	2
Evelyn Dickey	10	-	6	4	-	2
Rob Holden	10	-	6	-	9	2
Alex Reeves	10	7	6	-		2
Francis Livens (part year)	3 of 3 (and 1 of1) (1)	-	-	1 of 1	3 of 3	1 of 2
Nick Elliott (part year)	1 of 1 (1)	-	-	-	-	-
Michelle Heath (part year)	2 of 2	-	-	1 of 1	2 of 2	-
Executive Board Members
Total number of meetings	Board	** A&RAC **	REMCO	** S&SC **	P&PC	** NOMCO **
David Peattie	10	7 (1)	5 of 6 (1)	4	9	2 of 2 (1)
Mel Zuydam	10	7 (1)	-	-	8 of 9 (1)	-
Board Observer
Jenny McGeough (part year)	4 of 4	-	-	-	-	-

Notes:

(1) In attendance only

Board Members

Dr Ros Rivaz - NDA Chair and Chair of the Nominations Committee (from 1 September 2020) (Chair Designate for 4 months prior to appointment)

Ros has been Chair of the Nuclear Decommissioning Authority since September 2020.

Ros has a wide range of experience in executive and non-executive roles in blue chip companies, predominantly in highly regulated and high hazard environments, both in the UK and internationally.

Ros started her career at ExxonMobil, working across all business areas, with an increasing focus in manufacturing, engineering and Environmental, Social and Corporate Governance (ESG). After some 19 years, Ros progressed to perform senior roles in international companies including Tate & Lyle, ICI, Diageo and Smith & Nephew. Ros’s executive career culminated as Smith & Nephew’s Global Chief Operating Officer, a position she held from 2011- 2014. There, Ros led work on the group’s global transformation for supply chain, manufacturing,

engineering and procurement. She was also responsible for regulatory matters including health, safety, environmental performance, IT and cyber-security; she retains a strong interest in all of these areas as reflected in her subsequent board roles.

Ros’s non-executive career has retained sector breadth whilst focusing principally on high hazard,

manufacturing and engineering businesses. Her current portfolio includes non-executive, senior independent director and committee chair roles variously for Defence Equipment and Support (DE&S) within the Ministry of Defence, Computacenter plc, the chemicals company Victrex plc and the specialised steel company Aperam SA. She has also held a range of other board roles with private and listed companies including ConvaTec plc, Boparan Holdings, RPC Group plc, Ceva Logistics and Rexam plc.

Ros also plays important roles in the charity sector and academia. She was Non-Executive Director of the ‘Your Life’ initiative, which was a Government led, industry- sponsored campaign to increase take up of maths and physics amongst 14-16 year-olds; Deputy Chair of Southampton University, and was the first chair of the University’s HSE & Risk Audit and Assurance; and is on the board of the community interest company Eton Community CIC. Ros was awarded an honorary doctorate in 2015 for services to industry and to the voluntary sector. Her interests include travelling, skiing, walking, music and theatre. Ros is married with 4 children.

Tom Smith - NDA Chair and Chair of the Nominations Committee (until 31 August 2020)

Tom began his career in the diplomatic service, working in London, Hong Kong and Beijing between 1979 and 1990, when he was part of the team that negotiated the 1984 treaty with China on Hong Kong.

In 1990 he joined Trafalgar House plc and held several senior positions before becoming Managing Director of Midland Expressway Ltd in 1997, where he led the development and construction of the M6 Toll, the UK’s first privately financed toll motorway. He subsequently joined the Go-Ahead Group plc as Managing Director Rail Development and in over 10 years was instrumental in turning Go-Ahead into one of the country’s largest passenger rail operators. He was Chairman of the Association of Train Operating Companies from 2009 to 2013. He was a Non-Executive Board Member of Highways England from 2014 to 2016.

David Peattie - Group Chief Executive Officer & Accounting Officer

David began his career at BP in 1979 as a petroleum engineer and, during 33 years at the company, held a number of technical, commercial and senior management positions.

His roles included Head of BP Group Investor Relations, Commercial Director of BP Chemicals, Deputy Head of Global Exploration and Production, Head of BP Group Planning, and finally as Head of BP Russia where he was responsible for BP’s interests in the TNK-BP joint venture as well as its businesses in the Russian Arctic and Sakhalin. In addition, he was BP’s lead Director on the board of TNK-BP and Chairman of its Health, Safety and Environment Committee.

David joined the NDA as Chief Executive Officer & Accounting Officer in March 2017 and in January 2020 David was invited to be Patron of Women in Nuclear, a position he was honoured to accept.

Mel Zuydam - Group Chief Financial Officer

Mel is an experienced CFO with a strong track record in financial change, business growth, mergers & acquisitions (M&A) and Treasury, and effective performance management in the UK and international infrastructure and engineering sectors.

He’s worked across the private and public sector, with organisations including Balfour Beatty, CH2M, and The Highways Agency, and as a CFO in both the listed environment and with private infrastructure investors such as GIC and JP Morgan.

Mel joined the NDA as Group Chief Financial Officer in January 2020.

Janet Ashdown - Senior Non-Executive Board Member and Chair of the Safety & Security Committee

Janet worked for BP plc for over 30 years, holding a number of local and global positions in fuel supply, manufacturing, oil trading and retail marketing. She was a senior leader in BP, running their UK retail and commercial fuel business in her last role.

Janet was, until the end of 2012, Chief Executive Officer of Harvest Energy Ltd.

Volker Beckers - Non-Executive Board Member and Chair of the Audit & Risk Assurance Committee

Volker was Group Chief Executive Officer of RWE Npower plc until the end of 2012 and prior to this, its Group Chief Financial Officer from 2003 to 2009.

He has worked as senior leader in RWE’s regulated and non-regulated divisions internationally, grid (transmission and distribution level), retail, generation (including nuclear, conventional and renewable energy) and midstream businesses.

Since 2013 Volker has held non- executive roles in the public and private sector as well as academia and charities.

Evelyn Dickey - Non-Executive Board Member and Chair of the Remuneration Committee

Evelyn has extensive human resources experience, leading design and delivery of major change programmes, business restructuring, employee relations, resourcing, executive remuneration, organisational capability and performance management initiatives.

Evelyn has worked in HR consultancy and as HR Director (HR Operations) for Boots the Chemist, before joining Severn Trent’s HR function in November 2006, retiring as Director of HR in 2017.

Rob Holden CBE - Non-Executive Board Member and Chair of the Programmes and Projects Committee

Rob led the London and Continental Railways team in a series of transactions that secured the future of the Channel Tunnel Rail Link later renamed High Speed 1. In 2009 he was awarded a CBE for services to the rail industry.

Rob is a chartered accountant with a career background of managing long term projects including the Trafalgar and Vanguard classes of nuclear powered submarines and Crossrail. He now combines his non-executive role with advisory assignments on transport and defence projects both in the UK and overseas.

Alex Reeves - Non-Executive Board Member and UKGI Representative

Alex is a Director in UKGI, having joined its predecessor organisation, the Shareholder Executive, in 2010. Alex has led a variety of corporate finance and corporate governance projects for Government, in sectors including aerospace, technology, steel, real estate and asset management.

He currently leads on inward M&A and other corporate finance projects and runs UKGI’s Non- Executive Director Forum.

Michelle Heath - Non-Executive Board Member (until 30 June 2020)

Michelle is an experienced business manager with a career spanning 20 years in the nuclear industry, holding senior positions within BNFL, Springfields Fuels Ltd and Toshiba Westinghouse. She has a range of operational, radiological, commercial and strategic experience and has focused her career on nuclear waste and residue processing.

Michelle is well versed in the challenges of managing this material, and as Global Product Manager for Residues’ Treatment for Westinghouse, has had many successes in developing processing options for a variety of waste types for a diverse range of international stakeholders.

Since April 2018, Michelle has been self-employed.

Michelle resigned from the Board on 30 June 2020.

Professor Francis Livens - Non-Executive Board Member (from 1 December 2020)

Francis is a member of the Nuclear Innovation & Research Advisory Board advising Government, as well as the Office for Nuclear Regulation Independent Advisory Panel. He has also performed numerous other important advisory roles in the UK and internationally, as a recognised expert in radiochemistry in particular plutonium and nuclear materials.

As Director of the Dalton Nuclear Institute, he is responsible for co- ordination of nuclear research and education across The University of Manchester. He is particularly focused on the linkages between science and engineering and humanities, addressing the societal, cultural and organisational aspects of implementing nuclear technologies in modern societies.

He is also Nuclear Theme Champion at the Henry Royce Institute.

Francis is a Fellow of the Royal Society for Chemistry and Member of the Institute of Strategic Studies.

A full register of Board members interests.

Board performance

Corporate governance compliance

The NDA supports high standards of governance and where appropriate, given the size, status and complexity of the organisation, the NDA has continued to develop its governance taking account of the principles set out in the Government Code of Corporate Governance and Government guidance for an arm’s length body and Body Corporate. The NDA also aims to draw on best practice as set out in the UK Corporate Governance Code where appropriate, reporting exceptions to UKGI acting as shareholder.

Work on the Codes will take place in parallel with further developments under the One NDA framework and the BEIS Departmental Review of its governance.

Key focus areas for the Board regarding governance this year have included:

• The appointment of a new Chair
• Transitioning to a group ownership model
• Reviewing risk areas and mitigations in line with the agreed risk appetite
• The introduction of the Group Leadership Team
• Taking an active role in stakeholder relations and seeking greater engagement with the workforce

See Section 172 statement. Key engagements have included employee breakfast sessions, attendance at the Joint Consultation Group and site visits.

Improvements to the internal governance framework have included:

• A revised Framework Document to be issued
• Having greater regard to the UK Corporate Governance Code
• An external effectiveness review
• An improved induction process for new members
• Strengthening the HSSE Committee remit Further considering the roles and responsibilities of key individuals

The NDA is committed to having a diverse Board in terms of gender, experience, skill, knowledge and background. The biographical details of the Board members together with details of the senior independent member can be found under Board members.

All Board and Board Committee meetings held during the year have been quorate. All decisions made by the Board and its committees have been recorded appropriately. The Board reviews the effectiveness and the terms of reference of each of its committees in line with best practice.

The Non-Executive Board Members bring a wealth of experience and complement the executive representation on the Board in the provision of challenge, scrutiny and support on operational and strategic matters.

The Board has a collective responsibility for setting the strategic direction and the effective management of the NDA’s affairs and ensures that it complies with the requirements of the Energy Act 2004, the Framework Document, Cabinet Office Guidelines for non-departmental public bodies and other statutory and contractual obligations.

The Board provides effective and proactive leadership within a robust governance framework of clearly defined internal controls and risk management processes. The Board sets the NDA’s vision, values and standards of conduct and behaviour.

The unitary nature of the Board means that Non- Executive Members and Executive Members share the same responsibility to challenge Board decisions and development of the NDA’s Strategy and operations. The Board delegates operational management and execution of the strategy to the Group Chief Executive Officer and the Executive Team and has established a governance committee structure to provide it with assurance that it is discharging its responsibilities.

All Board members have full and timely access to relevant information to enable them to discharge their responsibilities. The Board places particular emphasis on the quality and integrity of the data submitted for its use. Critical processes and outputs fall within the control of the NDA Assurance Framework and are subject to peer review and/ or independent review by the NDA internal audit function which reports to the Audit and Risk Assurance Committee.

The Board met 10 times during the year. Due to COVID-19, these meetings (and Committee meetings) have been held using secure, online systems and technology.

At each of its meetings, the Board reviews key performance information, including reports on the NDA’s group performance, operational activity, financial position, forecasts and sensitivities and delivery of its strategic direction.

Key discussions for the Board this year have included:

• Response to COVID-19
• One NDA and group development
• Advanced Gas-cooled Reactor (AGR) transaction
• Cyber risks

The proceedings at all Board and committee meetings are fully recorded through a process that allows any Members’ concerns to be recorded in the minutes and assurances provided. The redacted Board meeting minutes are published on the NDA’s public website. The Board ensures that a balanced assessment of performance is reported to BEIS and regularly reviews the main group strategic risks facing the NDA group.

Board performance and effectiveness review

In March 2021, the Board received the final report from the Magnox Inquiry. Work is underway to carefully review and implement the recommendations from this report.

Significant change has been introduced since the interim report in 2017 and the NDA will build on this in light of the findings and recommendations of the final report. More recently, the NDA has received the BEIS Departmental Review report and the findings and recommendations are now being analysed by the management team and relevant subject matter experts. The NDA’s responses to both of these reports will be published later in the year. Recognising the importance of these external insights, the Board is fully engaged with this work.

The publication of these reports will also permit the NDA to respond to the remaining recommendations from the 2018 Public Accounts Committee reports regarding Sellafield and Magnox. These recommendations require the NDA to have received and understood the content of the reports and the development of the responses can now be undertaken. NDA is working with BEIS and others to respond to these recommendations and will submit our response within the 6 month timeline.

In addition, the NDA continues to progress the recommendations from the 2020 National Audit Office and Public Accounts Committee reports on the management and termination of the Magnox contract.

The Board undertakes an annual evaluation of its effectiveness.

Throughout 2020/21, progress was maintained on the findings from previous reviews including actions to address:

• Changes to the composition of the Board to
• strengthen and further improve effectiveness
• Improvements to the business case and sanctions process and
• A revised board induction programme

Collective assessments by the Board during 2020/21 agreed that findings are being acted upon and good progress is being made in all key areas.

An interim internal effectiveness review was undertaken in July 2020 prior to the arrival of the new Chair. The following actions were identified and continue to be progressed:

• Proactive engagement with stakeholders
• Delivery of One NDA overarching governance framework
• Completion of the revised Framework Document; and
• Delivery of improved processes around reporting and transparency of group performance and financial reporting

An external effectiveness review by Boardroom Review Ltd was conducted during Q4 of 2020/21.

The review included one-to-one interviews on identified priorities with individual Board Members and consideration of key governance documents. A workshop was held during the March 2021 Board meeting. The key actions and priorities were identified as:

• Clarity of roles and accountabilities
• Board composition priorities and planning
• Subsidiary governance (clear line of sight) and assurance

The Board will continue to review the output and action plans over the course of 2021 by recognising the strengths and addressing any weaknesses and will undertake a further effectiveness review during 2021/22.

The Chair undertook the annual performance appraisals of the Non-Executive Board Members during March 2021.

The senior independent member led the annual appraisal of the Chair’s performance during March 2021.

The Board were unable to undertake the usual number of site visits, but individuals and groups have benefited from ‘virtual’ site visits to Sellafield, Dounreay, Oldbury and Berkeley.

The Chair has visited (in person) Sellafield, LLWR, Harwell and the PNTL terminal at Barrow-in- Furness and (virtually) the Magnox sites at Wylfa and Trawsfynnyd.

Board Committees

The Board has 5 committees: Audit and Risk Assurance Committee (A&RAC); Nominations Committee (NOMCO); Remuneration Committee (REMCO); Health, Safety, Security and Environment Committee (HSSE); and Programmes and Projects Committee (P&PC).

Each committee membership is made up of Independent Non-Executive Board Members. If Executive directors are also members of a Board Committee then the majority members on the committee are Non-Executive Board Members maintaining the majority of votes.

Each committee is chaired by a Non-Executive Board member. The Group General Counsel and Company Secretary attends all meetings. Each Committee reports directly to the Board by way of a committee Chair’s report and access to minutes. Urgent matters are escalated by the committee Chair to the Board as appropriate.

Substantial additional governance has been undertaken on the AGR transaction. This has been at Board level, supported by a Steering Committee and Executive Decision Group. #### Audit and Risk Assurance Committee (A&RAC)

Number of meetings in the year: 7

The A&RAC consists of 3 Independent Non-Executive Board Members:

• Volker Beckers (Chair)
• Janet Ashdown
• Alex Reeves (from March 2020)

The following persons may also attend the committee meetings:

• Standing Advisor (Bruce Martin was appointed in August 2020)
• NDA Chair
• Group Chief Executive / Accounting Officer
• Group Chief Financial Officer
• Group Director of Risk and Assurance
• Group Chief of Staff and Security Officer
• Group Head of Internal Audit
• Group Chief Compliance Officer
• Head of Financial Operations
• External Audit Representation (NAO)
• Representative from Government Internal Audit Agency (GIAA)
• Chair of BEIS A&RAC
• Chairs of the SLC A&RACs

The A&RAC is made up solely of Non-Executive Board Members with relevant sector experience and ensures continuous monitoring of the effectiveness of the financial and risk assurance control frameworks established by the NDA.

The A&RAC is accountable for and advises the NDA Board on:

• The effectiveness and quality of group risk management framework and monitors risk exposure against group risk appetite
• The strategic processes for risk management, information risk management, control and governance within the core NDA, and across the wider NDA group
• Assurances relating to the management of risk and corporate governance requirements for the NDA as an organisation; anti-fraud policies, Speak up processes and arrangements for special investigations
• Proposals for tendering for either internal or external audit services or for purchase of non- audit services from contractors who provide audit services; the accounting policies, the Annual Report and Accounts, matters arising from the external audit, and management’s Letter of Representation to the external auditors
• The plans, activities and performance of internal and external audit
• The adequacy of management response to issues identified by audit activity, including the External Auditor’s Management Letter

During the year, the Audit and Risk Assurance Committee has:

• Established a virtual forum to facilitate the sharing of challenges and good practices throughout the pandemic, allowing a proactive and collaborative approach to emerging risks. Topics included business continuity and resilience, the emerging and heightened risks in areas such as fraud and cyber and the impact on people
• Focused on information management and security in particular cyber risk and the General Data Protection Regulation, and improvements to commercial contract management systems
• Provided oversight on the further development of the NDA’s Risk and Assurance Frameworks
• Supported the ongoing development of the Group Internal Audit Target Operating Model
• Had oversight of the assurance of the supplier payment scheme including a group-wide Internal arrangements and substantive testing of the support payments made to suppliers;
• Supported the development of the compliance function and Speak-Up Policy
• Received regular updates on Speak Up (whistleblowing) issues, reviewed key matters raised via speak up reports and ensured the procedures allow proportionate and independent investigation of such matters, as well as appropriate follow up action
• Approved an updated Speak-Up Policy and introduced a Compliance & Ethics Committee to support the triaging and handling of concerns. A Group Chief Compliance & Ethics Officer was also appointed, to strengthen the group wide approach
• Ensured that the NDA accounting practices are in line with BEIS and HM Treasury guidance; and
• Ensured the NDA met all financial reporting obligations

Nominations Committee (NOMCO)

Number of meetings in the year: 2

The NOMCO consists of 7 Independent Non-Executive Board Members including the NDA Chair.

The following persons may also attend committee meetings at the invitation of the Chair:

• Group Chief Executive/Accounting Officer
• Group Chief People Officer

The NOMCO considers the composition and skills of the Board and senior executives, advises on the structure and size of the committees, and assesses succession planning and talent management.

During the year, the NOMCO has:

• Been informed about and welcomed the introduction of a Leadership Academy and Standard
• Reviewed the timings of Non-Executive Board Member terms of office and the appointment of further Non-Executive Directors
• Reviewed succession plans in the NDA Corporate Centre and NDA group
• Reflected on the diversity of the Board and the NDA Corporate Centre.

Remuneration Committee (REMCO)

Number of meetings in the year: 5

The REMCO consists of 4 Independent Non-Executive Board members:

• Evelyn Dickey (Chair)
• Rob Holden
• Volker Beckers
• Alex Reeves

The following persons may also attend the committee meetings:

• Group Chief Executive / Accounting Officer except for discussion in relation to their own remuneration.
• Group Chief People Officer except for discussion in relation to their own remuneration.
• NDA Chair
• NDA Non-Executive Board Members
• NDA Head of Reward

Further details on the work of the REMCO is contained in the Remuneration Report.

Health, Safety, Security and Environment (HSSE) Committee

Number of meetings in the year: 4

The HSSE Committee consists of 5 members (3 of which are Independent Non-Executive Board Members):

• Janet Ashdown (Chair)
• Evelyn Dickey
• Michelle Heath (until June 2020)
• Francis Livens (from January 2021)
• David Peattie (Group Chief Executive & Accounting Officer)
• Alan Cumming (Group Chief Operations and Performance Improvements Officer)

The following persons may also attend the committee meetings:

• Per Lindell – Standing Advisor
• NDA Chair
• Group Director of Risk and Assurance
• Director of Health, Safety and Wellbeing
• Director of Environment
• Group Chief of Staff and Security Officer
• Head of Security and Resilience
• Regulators (attend once per year)
• Group Chief Financial Officer
• Site Licence Company representatives (specific items)
• Chairs of the SLC S&SCs

The HSSE Committee supports the NDA Board in discharging its responsibilities in respect of issues of health, safety including both nuclear and non-nuclear safety, security and environment in the NDA group.

The responsibility for these issues within the NDA group lies with the Site Licence Companies (SLC). In particular, the SLCs have unambiguous responsibility for health, safety, security and environment on their sites. However, the NDA Board has a duty of care over the performance of its whole group in line with its governance framework and, in particular, must be assured that the SLC’s are discharging their responsibilities properly.

Security and resilience includes business associated functions such as information governance, Cyber Security and ICT.

The HSSE Committee advises the NDA Board on:

• HSSE performance in the NDA group (current and projected), including sustainability, health and wellbeing and future plans
• Detailed summaries of safety, security and other information supplied to the NDA Board
• Regular reviews of the HSSE information provided on the NDA group, including key performance indicators and periodic reviews of supplier HSSE arrangements
• Assuring the NDA Board that the HSSE culture is supportive of NDA’s stated ambition
• Assurance, or reviews and reports if applicable, in relation to the findings of investigations into significant incidents and audit findings within the NDA group, including presentations and updates from SLC representatives on issues, action plans to prevent recurrence and lessons learned
• An external perspective on relevant good practices and industry trends, including recommendations as to when and where the Board should seek advice

During the year the HSSE Committee has:

• Had oversight of the group response to and lessons learned from COVID-19 and a particular focus on mental health issues
• Undertaken ‘virtual’ visits to NDA sites at Sellafield, Dounreay, Oldbury and Berkeley to review performance and discuss safety with site staff
• Engaged with the Office for Nuclear Regulation (ONR), inviting senior representatives to provide an assessment of NDA’s current security status and point to areas of interest for the future
• Encouraged the NDA’s development of performance indicators and a sustainability policy including a focus on the carbon net zero target
• Had oversight of improvements to Health, Safety and Wellbeing Policy Policy reviews and the recommendations from the Cross Estate Significant Event Review

The Committee’s routine business this year has been to scrutinise the management of health, safety, security, environment and wellbeing risks and performance across the NDA group. Performance is benchmarked against relevant industry sectors.

From time to time, and as considered necessary, the Committee will receive reports from group businesses on events and accidents. This year, the Committee

received detailed reports from Sellafield Ltd regarding the electrical incident, including a presentation on the Board of Inquiry Report.

The Committee also receives and commissions independent reports from NDA’s in-house HSSE and security and resilience teams, including trend analysis and reports of work undertaken by the NDA to promote high standards and encourage collaboration.

Programmes and Projects Committee (P&PC)

Number of meetings in the year: 9

The P&PC consists of 5 members, 3 of which are Independent Non-Executive Board Members:

• Rob Holden (Chair)
• Janet Ashdown
• Francis Livens (from January 2021)
• Michelle Heath (until June 2020)
• David Peattie (Group Chief Executive & Accounting Officer)
• Alan Cumming (Group Chief Operations and Performance Improvement Officer)

The following persons may also attend committee meetings:

• Group Chief Financial Officer
• Group Director of Risk and Assurance
• Head of Sanction

The Programmes and Projects Committee provides additional oversight and scrutiny of major programmes and projects within the NDA group. The Committee supplements Board oversight; it is not intended to supplant it.

The P&PC advises the NDA Board on:

• Progress of major programme and projects against approved business cases and funding
• Assurance that emerging issues concerning major programmes and projects are understood and that mitigations are being appropriately pursued
• Outcomes of assurance reviews (internal or external) and progress against actions plans to address any issues raised in these reviews
• The forward plan of programmes and projects/ business cases coming to the Board for approval

During the year, the P&PC has:

• Provided oversight to and advised the Board on several major business cases including those related to the transition to One NDA
• Reviewed the impact of COVID-19 on productivity and costs across the group
• Provided oversight of sanction and assurance improvements
• Provided oversight of completed assurance in support of impending board decisions and forward assurance in support of later board decisions

Executive Leadership Team

David Peattie: Group Chief Executive Officer & Accounting Officer Board and Executive Team member

Mel Zuydam: Group Chief Financial Officer Board and Executive Team member

Alan Cumming: Group Chief Operations and Performance Improvements Officer Executive Team member

Alan joined the NDA as Group Director of Nuclear Operations in April 2018. He has responsibility for all operations, including health and safety.

A Chartered Civil Engineer and a Chartered Structural Engineer, Alan completed his nuclear training at Massachusetts Institute of Technology in Boston and has an MBA from Strathclyde Business School in Glasgow.

Before joining the NDA, Alan was Capital Projects and Engineering Director for Viridor, part of Pennon, Deputy Project Director for EDF Energy’s New Build Nuclear Pro- gramme and Director of Projects for British Energy.

Kate Ellis: Group Chief Commercial and Business Development Officer Executive Team member

Kate joined the NDA in November 2017 from the Ministry of Justice, where she was Commercial Director for Her Majesty’s Prison and Probation Service. Kate brings a wealth of valuable commercial knowledge and experience to NDA.

Previously, Kate was with BP for 22 years. She held several senior roles with the organisation, including Commercial Director of BP Shipping.

Neil Harnby: Group General Counsel and Company Secretary Executive Team member

Neil is a senior executive lawyer, general counsel and company secretary with more than 25 years of international experience.

Neil joined the NDA in October 2019 and brings a wealth of experience, from advising and working with organisations including Royal Mail and General Electric.

Jeremy Harrison: Group Director of Risk and Assurance Executive Team member

Jeremy joined the NDA in October 2018, following 4 years at HS2 Ltd.

Jeremy worked in the rail industry for 22 years. He pioneered early thinking on safety risk and then went on to lead on project and corporate risk. This included setting the standards and policies for risk management and value management, across the infrastructure projects on the national rail network.

Jeremy chaired the UK Risk Management Committee for BSI and supported Government initiatives

to improve risk management across major projects.

Frank Rainford: Group Chief of Staff and Security Officer Executive Team member

Frank joined the NDA in February 2017. He has responsibility for Security, Cyber, Digital, ICT and other corporate services, as well as co- ordinating group development and One NDA.

Prior to joining the NDA, Frank spent 3 years as the executive responsible for the GE Aviation Aerostructures business in the UK and previously spent 21 years with BAE Systems and predecessor companies in the UK and Saudi Arabia, holding several senior roles including Transformation and Project Management Director.

Frank studied at Lancaster University gaining an MBA and MSc in Project Management.

Dr Adrian Simper: Group Director of Nuclear Strategy and Technology Executive Team member

Adrian joined the nuclear industry in research and development at Sellafield. His subsequent career has included strategic roles in research and development, technology, project delivery, commercial and finance both in the UK and the US.

Adrian joined the NDA in October 2005, he is also the NDA Group Mental Health Champion.

He was appointed to the Order of the British Empire (OBE) in the 2017 New Year Honours’ list, recognising his services to the UK nuclear industry in Japan.

Duncan Thompson: Director of Group Development Executive Team member

Duncan has a mechanical and environmental engineering background with management experience gained over 27 years in the UK and overseas. He has worked for The London Stock Exchange, Ford, British Overseas Aid and Unicef and as a management consultant he worked with companies including National Grid Transco, Railtrack and BP.

From 2014 he led the work to bring Sellafield in as a subsidiary of the NDA and then, as Sellafield Programme Director, embedded and ran those subsidiary arrangements.

In April 2019 Duncan took on the new role of Director of Group Development, responsible for development and implementation of a group structure that best delivers our mission.

Paul Vallance: Group Chief Communications and Stakeholder Relations Officer Executive Team member

Paul began his career at BNFL, becoming Group Communications Director. He joined the NDA in June 2016 from Rolls-Royce, where he held a number of senior positions.

Paul was part of the executive team that established Rolls- Royce’s nuclear sector, which included both the Civil Nuclear and Submarines businesses. Paul was also the customer lead for a number of Rolls-Royce’s key commercial relationships.

David Vineall: Group Chief People Officer Executive Team member

David has a wealth of experience within the industrial sector having held a series of senior HR leadership roles in TATA Steel in Europe, BAE Systems and GEC Alsthom. Roles have included HR Director for the TATA Steelmaking Operations in South Wales and HR Director for Shipbuilding and Support business across Glasgow and Portsmouth within BAE systems.

David joined the NDA in April 2014 and plays a leading role in skills as a Board member for the ECITB (Engineering Construction Industry Training Board), deputy chair for the Nuclear National Skills Strategy Group and vice chair for the National College for Nuclear.

Executive committees

The Group Chief Executive and Accounting Officer is responsible for leadership and operational management of the NDA and is accountable to the

Board and Parliament for implementing the strategy and plans approved by the Board and BEIS.

The Group Chief Executive and Accounting Officer is supported by an Executive team (the ‘Executive’) comprising of:

• Group Chief Financial Officer
• Group Strategy and Technology Director
• Group Chief Operations and Performance Improvements Officer
• Group Chief People Officer
• Group Development Director
• Group Risk and Assurance Director
• Group Commercial and Business Development Officer
• Group Chief Communications and Stakeholder Relations Officer
• Group Chief of Staff and Security Officer
• Group General Counsel and Company Secretary.

The Executive has in place a meeting governance structure that aligns with that of the Board. The Executive Committees meet monthly over a two-day period.

Financial control

The NDA has strong financial controls to ensure it remains within its budgetary spend for 2020/21 of £3.5 billion. It has well-defined delegated authority and a clear budgetary framework. The system remains effective with no significant issues identified by internal or external audit during the year.

We have a policy and procedures designed to ensure compliance with the UK Bribery Act, which we continue to review and enhance to ensure that the risks we face are appropriately addressed and mitigated. Copies of these policies and procedures are available on our website.

Programmes and projects across the group are controlled through Operating Companies (OpCo’s) own governance and assurance processes, overseen by their Boards. Where a programme or project is above the delegation given to the OpCo Managing Director by the NDA Accounting Officer, the NDA

Sanction Committee will scrutinise proposals and advise the NDA Accounting Officer, and where appropriate the NDA Board and BEIS Projects Investment Committee if above the NDA Accounting Officer’s delegation from the BEIS Principal Accounting Officer.

Risk management

Effective management of risk enables us to achieve our mission of decommissioning the UK’s nuclear legacy safely, securely and cost-effectively.

Risk management is a key decision-making tool for the NDA group. This allows us to proactively identify the opportunities and threats that are relevant to our business. To achieve our business objectives, requires minimising and managing the impact of risks and ensuring that the risks are considered proportionately when taking business decisions.

Embedding risk management at the heart of our decision making will be achieved by establishing a positive risk culture, where open and transparent discussion of risk forms part of everyday business. We will lead this by:

• Providing a supportive environment where people can have open collaborative conversations about our risks and feel comfortable escalating risks and concerns
• Regularly discussing our risk appetite by understanding the effort required to manage the risk, so that our people are empowered to seek business opportunities and be innovative and creative
• Ensuring that our people have the skills and knowledge to manage risks effectively; and
• Ensuring that key risks are visible, owned, actively managed and prioritises support where it’s most needed

The effective management of risk (threats and opportunities) is critical to the successful delivery of the NDA mission and to support this, NDA aligns its own principles to that of the BEIS Risk Management Principles.

The Board is ultimately accountable for NDA risks. All staff across the NDA group businesses have a duty to make sure risks in their areas of responsibility are identified, managed and reported. The responsibilities of our site licence companies are defined clearly through the regulatory framework.

The NDA requires all parts of the group to align risk processes, appetite, procedures and documents to enable a consistent picture of the group’s risk landscape and profile.

The identification and management of strategic and delivery risks, demonstrates that the NDA has robust planning, forecasting and control of risks. The effectiveness of control and response to these risks is supported by our assurance function and internal audit function. These risks are used in prioritisation for our internal assurance plan (IAP) and the group internal audit activities.

Risk hierarchy

The NDA has been developing and enhancing the Group Strategic Risks (GSRs), these risks are the principal risks to the NDA group. The criteria for consideration are as follows:

• Short, medium & long term risk
• Risks to the existence of NDA group
• Risks to fundamental mission delivery
• Cumulative / aggregated / portfolio effects
• Proximity of risk occurrence – (considering last actionable date)

Risks which impact more than one area of the group may require ownership or coordination from the group. These could include:

• OpCos risks which also have a direct impact on other OpCos within the NDA group or the NDA Corporate Centre (e.g. DRS disruption impacting transport of nuclear waste)
• Similar OpCos risks held in multiple OpCos where a central collective risk can be more effectively managed (e.g. Brexit).
• Risks which have a cumulative impact across the group – multiple correlated impacts (e.g. delays to Geological Disposal Facility (GDF)
• The GSRs and associated controls are recorded in the table below

NDA businesses present their top risks and explain their management of them through the Quarterly Performance Review process. In addition, the NDA Corporate Centre risk team is engaging in additional challenge and assurance in relation to risks across the businesses.

These may be subject to Board Committee deep dive, an example being a particular safety risk from our Sellafield business.

Horizon scanning and emerging risk.

Our overarching risk management framework provides for the recognition and escalation of emerging risks. Our collaborative work across the NDA group businesses, with the Heads of Risk, has developed significantly this year as well as corporate centre focus with Risk Champions. This has included collective identification of joint risks and sharing on emerging / evolving risks. Workshops have been held with the executive team using OpCo input, industry literature, and various other pertinent sources of data to further embed horizon scanning into the business, ensure we are resilient to future impacts of threats, and in a good position to embrace opportunities. This will continue as the group-wide risk management framework matures.

Risk Deep Dives

We undertake a rolling schedule of deep dive reviews of GSRs, that examine all aspects of the risk. Over the past year our Board subcommittees have reviewed six GSRs. During this year we have utilised expertise from across the group including NEDs from subsidiaries.

The involvement of Non-Executive Directors (NEDs) and other independent experts brings external industry and technical best practice to the in-depth reviews of these risks. Recommendations are made as to how to enhance the understanding of the risk including controls and responses.

Group Strategic Risks

Ref	Why they matter to us	How we are responding
1	NDA business performance It is important to stakeholder confidence that the NDA group delivers on its commitments and achieves successful performance. These commitments are about delivering the agreed strategies, to target and as planned, projects within timescales and budgets, procurements successfully and to regulatory requirements. A significant shortfall in achieving these expectations and commitments may undermine this confidence and damage reputation.	The NDA is currently transitioning to a simpler operating model. The NDA group is made up of a Corporate Centre with subsidiary companies (OpCos) Each subsidiary is accountable for operating and managing the Sites and or businesses through their Boards. The One NDA approach seeks to simplify and standardise arrangements to provide opportunity for enhanced business performance.The strategic outcomes are defined and publicly reported. The NDA mission is now more visible and measurable to stakeholders. The clear communication of these commitments, with a good explanation of what the mission is about and its complexity, helps stakeholders understand what the NDA group is delivering and how successfully.
2	Integrated Waste Management NDA may be unable to satisfactorily deliver its mission to decommission the UK’s nuclear legacy safely, securely and cost-effectively, due to the management and disposal requirements for the radiological waste. Disposal of such waste is highly sensitive and subject to UK Government policy direction and funding.	The implementation of our Integrated Waste Management Programme is an enabler to the creation of new routes of effective and efficient disposal of waste. We continue to drive technology development and are leading industry groups to coordinate waste treatment opportunities for thermal treatment technologies, encapsulation techniques and the effective management of problematic radioactive wastes. To enable further efficient delivery, we are establishing a new Waste Division, bring together RWM and LLWR.
3	Resource capability & capacity The NDA mission is long term and requires the strategic enabler of having the right people with the skills at the right time and place. The NDA needs to attract, retain and develop a high performing, highly skilled, talented and motivated workforce and create a culture in which people can thrive.	Our dedicated centre of excellent ‘One NDA Leadership Academy’ has been initiated to future proof our leadership capability to deliver the mission. To grow our pipeline of internal talent we focus on school engagement strategies and continue our commitment to apprentices and graduates to excite the next generation and those who influence their career opportunities. A clear purpose, strong development culture and excellent learning opportunities, support the retention, engagement and career development, of the high-quality teams required.
4	Supply Chain capability & capacity The NDA relies significantly on its supply chain to deliver projects and programmes. The supply chain needs to have the capacity and capability to support the NDA’s targets, programmes and ultimately the mission. A shortfall may mean being unable to deliver HMG policy/targets, increased government interest and reduced value for money for the UK taxpayer. The resilience of government agencies to supplier problems has recently been tested e.g. the failure of Carillion and COVID-19.	We continue to build a robust commercial capability which maintains a resilient, sustainable, diverse, ethical and innovative supply chain, that optimises value for money for the UK taxpayer when sourcing goods and services. Our group collaboration has enabled us to identify cross-Group synergies, sustainable procurement, while supporting the move to net zero greenhouse gas emissions.COVID-19 and Brexit have been the key threat to supplier vulnerability over the past year. Dynamic risk management has allowed targeted and swift actions. A residual risk still remains, and close monitoring of suppliers’ financial vulnerability continues.
5	Funding prioritisation The importance of the NDA mission in dealing with the UK’s nuclear legacy, is reflected in continued investment and support for safe and secure nuclear operations and decommissioning activities across the group. NDA’s annual spending is set by UK Parliament, combining government grant with income from our commercial activities. This year has seen government priories change due to the external context of COVID-19 and Brexit.	We have maintained focus on improving mission delivery as we seek to reduce decommissioning costs in line with the ambition for the Nuclear Sector Deal. This value for money demonstration helped to maintain stakeholder support in prioritising NDA expenditure and is reflected in NDA Spending Review 2021.The NDA continues to explore all available options to optimise revenue from existing assets. This includes working with BEIS to explore opportunities that could emerge from changes in policy. Working as a group, One NDA, has enabled the NDA to operate portfolio management to maintain budget flexibilities.
6	One NDA, Structure, Interfaces and Behaviours The NDA historical model for delivery of its mission, has been through a variety of contractual arrangements. Managing the NDA mission, with the scale, complexity and uncertainty, through these various arrangements is resource intensive and difficult to ensure value for money. It has also had the potential to limit the options for accelerating mission progress and may lead to stakeholder loss of confidence in NDA mission delivery.	Our transition from the Parent Body Organisation Model to the Operating Companies being wholly owned subsidiaries of the NDA will be complete by July 2021. The Group Operating Model, Group Leadership Team and One NDA, has been launched and is a new way of working across the NDA group. It seeks to simplify and standardise arrangements to provide opportunity for greater effectiveness, efficiency and progress.
7	Major incident at an NDA site leading to large scale release of nuclear or chemical material to the environment The aim of our mission is to complete the clean-up of our legacy sites and release them for beneficial reuse. Due to its nature and scale, the delivery of our mission remains subject to significant uncertainties and complexities. The risks and hazards the NDA manages are amongst the most challenging anywhere in the world. Internationally there are few programmes of the same scale and complexity. There is relentless focus is on avoiding a major incident which causes a large- scale release to the environment either due to a failure in an asset, a fire, explosion, or other initiating cause.	Our comprehensive controls across the Group align with legal requirements and international recommendations. REPPIR 2001 and COMAH regulations establish a framework for the protection of the public through emergency preparedness for radiation emergency premises and specified transport operations. We are continuously improving our understanding of the environmental impact of the mission, with plans in place to protect and enhance, reducing our impact as far as is reasonably practicable.
8	Safety/security system failure -insider and external threat The Energy Act 2004 requires the NDA to put in place measures for the safety of people, secure the adoption of what we consider to be good practice and give encouragement and support to activities that benefit the social or economic life of communities living near our sites. Security is a fundamental element of all civil nuclear operations. The NDA is committed to protecting nuclear facilities, information, materials in use, storage, and transit, to meet all legal and treaty requirements. Examples requirements are, Nuclear Industries Security Regulations 2003 and the International Atomic Energy Agency Convention on the Physical Protection of Nuclear Material.	The NDA maintain a health, safety and wellbeing integrated improvement programme. This aligns with UK Regulations whilst continuously improving performance through development of NDA integrated management system processes and activities. A significant focus, particularly during COVID-19, is our championing of mental health and wellbeing. We continue to deliver our mental health and wellbeing improvement programmes. The 5-year Security and Resilience (SAR) plan seeks to establish and deliver innovative SAR solutions providing enhanced pragmatic and flexible approaches to maintaining and supporting secure sites and working environment.
9	External Environment Impacts on Nuclear Reputation The NDA’s mission to decommission the UK’s nuclear legacy safely, securely and cost-effectively relies significantly on the continued support of stakeholders, particularly the UK government and public. An external nuclear event, over which the NDA has no control, may challenge stakeholder support and force the NDA to respond. If this is perceived as being in an inappropriate manner, it may amplify any impact from the external event. This may also delay or change our mission with significant cost increases.	NDA Group response depends on the proximity and impact of the event on the NDA estate. Group controls align with legal requirements and international recommendations. Post the response phase, emergency preparedness moves to the recovery phase, and strategies are adjusted to account for the consequences of any external nuclear event. The NDA has improved their response plans following a review of the NDA’s response toCOVID-19.
10	NDA Response to Cyber Threats The government assesses cyber-attacks on the UK as a major threat to national security. Nation states and organised cyber criminals continue to target UK citizens and industry. The UK government’s National Cyber Security Centre has publicly highlighted the unique threat to the UK energy sector, with more specific advisories concerning civil nuclear. Cyber security and resilience are a UK, BEIS and ONR security priority and fundamental to the NDA’s mission and objectives. NDA’s operating companies are legally accountable to their regulators to manage this risk. Inability to respond and recover effectively from a cyber-attack may lead to a wide range of impacts depending on the nature and severity of the compromise.	The Civil Nuclear Cyber Security Strategy, published by BEIS in 2017, set out a path over 5 years to keep the sector ahead of the rapidly evolving threats. To ensure alignment, the NDA’s group-wide Cyber Security Resilience Programme’s strategy is to ensure a more secure and resilient estate with a collective defence through the sharing of knowledge, skills and costs. Continued growth of NDA Group’s capabilities, to positively shape the defence of critical national infrastructure across the UK nuclear industry and the wider energy sector. This is being achieved through providing a modern, cost-effective, and secure technical infrastructure.
11	COVID-19 Maintaining nuclear safety has been the fundamental priority during the global pandemic. This has been ensured by maintaining minimum manning levels, whilst managing the impact to the wider group and business continuity.	The NDA group response to the pandemic has been dynamic aligned to government guidance. Lessons have been learned, captured, communicated and embedded throughout the group. Weekly stakeholder and regulator communication, business continuity, resilience forums and key risk indicators were established early in the pandemic. These are continuously monitored to enable risk-based decision making. Numerous staff and supply chain personnel were identified as ‘key worker’ status. Focus was to maintain minimal manning levels. Remote working has enabled continued mission delivery, with a focus on personnel wellbeing through a series of ongoing mental health awareness campaigns. Improve ways of working have been identified out of the response to the pandemic. These have included simplifying processes and driving a digital agenda, to deliver our strategic objectives.
12	Brexit Managing the impact to the NDA group of the change in UK to EU relationships	The NDA group coordinated its response to BREXIT. This included maintaining parallel risk response plans for ‘deal’ and ‘no deal’ exit scenarios. Assurance and internal audit activities were undertaken to test the robust arrangements and the planning in place for Brexit Readiness. Stakeholder and regulator communications were established with the key parties involved in focus forums, risk planning and reporting.

Information Governance

The NDA Group Chief of Staff and Security Officer has responsibility for information governance, information and communications technology, security & resilience and cyber. This covers all aspects of:

• Cyber security
• Physical and personnel security and resilience
• Knowledge and information management
• Digital and data management
• Information security and assurance
• Information risk management
• Information and communications technology

The Security and Corporate Services team have continued to provide effective leadership and management of information risks and issues arising across the nuclear estate. This includes governance, assurance and oversight of a number of group- wide risk reduction programmes, all of which have delivered key benefits.

During the last year, we have:

• Provided effective coordination across the NDA group in response to the COVID-19 pandemic.
• Delivered a continued increase in cyber maturity across our protect, detection, response and recovery capabilities
• Delivered an NDA Warning, Advisory and Reporting Point that has been established to share timely cyber threat intelligence across the NDA group
• Provided NDA group supply chain security audit and assurance services
• Delivered the first phase of our ICT modernisation programme, transitioning NDA Corporate Centre, INS and RWM to Microsoft Office 365
• Continued delivery of the Cyber Security & Resilience Programme including transition to remote delivery of services (training, exercising and technical testing)
• Continued to evolve the group-wide digital collaboration platform (The Hub) within our secure infrastructure service (Ecosystem) promoting the effective sharing of sensitive data, knowledge and expertise, and enabling the provision of cross-group secure services
• Initiated a ‘Group Unified Communications’ initiative, with the aspiration to seamlessly connect the NDA group and central Government bodies by end of 2021
• Continued to develop the group’s Cyber Apprentice and Graduate scheme that supports the whole civil nuclear sector
• Supported more than 100 Cumbrian school children in completing the National Cyber Security Centre’s (NCSC’s) Cyber First scheme, provided by the NDA and Energus
• Led industry working groups in unmanned aerial vehicles, supply chain and personnel security
• Worked to agree cloud principles with a view to better collaboration & efficiency through developing standardised architecture in the cloud
• Completed a sector-wide cyber exercise ‘Purple Lumi 2021’, delivered virtually and including a chain-of-command element for the first time
• Supported DEFRA, PHE, EA and BEIS in the development of nuclear and radiological response and recovery
• Continued to make good progress across the group with respect to compliance with the General Data Protection Regulations

The NDA group Senior Information Risk Owner (SIRO) forum, comprising senior NDA staff and Directors from all of our businesses, who are responsible for managing information risk, meet regularly to provide governance of assurance programmes, and audit performance reviews in the areas covered above. These assessments and reviews, in turn, provide assurance to key stakeholders including the regulatory community, the NDA Board, BEIS and other Government departments and agencies.

Modern Slavery Act 2015

The Modern Slavery Act 2015 (s54) requires organisations with a global turnover in excess of £36 million to publish an annual slavery and human trafficking statement. In the NDA this is supplemented by a Modern Slavery and Human Trafficking Policy which details the steps taken and future developments to support our supply chains in eradicating these practices.

We are assessing the risk of modern slavery within our supply chains, by targeting high risk categories of spend, and segmenting using the guidance provided by Government in its Modern Slavery Assessment Tool. As an organisation, we set ourselves high standards and expect the same approach from our supply chain. Our Supply Chain Charter sets out the NDA’s position and its expectations. We have embedded processes on the management of any suspected or reported breach of the Modern Slavery Act, these have support of the victims as the focus.

Our commercial policies and processes are built to ensure that modern slavery checks are built in and considered as business as usual good practice. Adoption of standard Government approaches, including the standard selection questionnaire, contractual clauses etc. ensure that we support the Government aims for commercial as set out in the Government Commercial Function Modern Slavery Statement.

Effectiveness of the control environment

As Accounting Officer, I have responsibility for ensuring the System of Internal Control and its effectiveness are both sound. I am also personally accountable for safeguarding the public funds allocated to the NDA, as well as departmental assets, in line with the HM Treasury publication ‘Managing Public Money’. Support for these activities is provided by the NDA internal audit function, the external auditors (the National Audit Office) and other assurance functions, both within the NDA and across the group.

In accordance with HM Treasury guidance, the NDA System of Internal Control has been in place for the period commencing 1 April 2020 up to the approval date for the Annual Report and Accounts. The system is designed to manage risk to a reasonable level while complying with relevant rules and regulations.

It is impossible to eliminate all risk of failure in implementing policies, aims and objectives; therefore, the system provides assurance of effectiveness to a level that is reasonable rather than absolute.

My Executive team members are responsible for developing and maintaining the Internal Control Framework in their own functional areas. Oversight and challenge to the system is provided by the Board and also by the Audit and Risk Assurance Committee, who ensure plans are in place to address any weaknesses.

Significant reliance is placed on those controls operated by businesses across the group, including in the management of various compliance risks, including tax risks. Significant focus and cross- group support has been given in-year to the extended requirements of the off-payroll worker rules (IR35). The NDA is compliant with the IR35 requirements.

In line with Government requirements, the NDA Modelling and Analysis Team tests the robustness of the end-to-end process used in developing all the group’s business-critical models and spreadsheets that influence the NDA’s key business decisions. The NDA is compliant with the implementation of the MacPherson Review of Quality Assurance (QA) of Government Analytical Models and has AQuA Book compliant processes in place.

Our focus on aligning and improving audit and advisory services across the group in support of strengthened Audit and Risk Assurance (A&RAC) oversight has continued. This year, the further embedding of our ‘virtual’ group internal audit function and target operating model has improved the quality and consistency of group- wide arrangements and has supported our overall visibility, understanding and ongoing improvement of matters of corporate governance, risk management and internal control. Compliance arrangements continue to develop; during the year we approved a new Compliance Strategy and reviewed the arrangements by which we support the raising of concerns and the business in making compliant and ethical decisions.

Our A&RAC has continued to strengthen relationships and arrangements with the group’s supporting Audit and Oversight Committees at the subsidiaries and site licence companies. From April 2020 we held regular group-wide sessions for NDA and business A&RAC Chairs and members; to provide an opportunity to share challenges and good practices arising as a result of the pandemic, and to focus in on emerging risks with facilitation from external subject matter experts. The group- wide representation and input at our NDA Group A&RACs and Internal Audit Conference this year was the best yet and the outcomes from the event, including agreed audit and improvement areas for 2021/22, evidence the benefits we are now realising from our One NDA approach to internal audit.

Our group internal audit function developed and delivered a group internal audit plan for 2020/21; including group audit themes, aligning our approach to the review of significant group-wide risks and controls. A significant focus of the group- wide work this year was to provide assurance over the development and implementation of supplier relief schemes in response to COVID-19; an efficient and effective response to a significant emerging risk. In addition, planned group-wide audit work on our asset management strategy, controls and asset performance which underpin mission delivery was completed. The internal audit work for 2020/21 was further designed to provide assurance over key business processes, along with specific corporate and business risks.

The findings from the internal audit reports across the group receive close attention from both the Executive team and the Board via the A&RAC.

In line with the standard ratings of the Government Internal Audit Agency, The NDA’s Group Head of Internal Audit has provided an overall rating of ‘moderate’ to the level of assurance that there is generally a sound framework of governance, risk management and control, both within the NDA and the wider group. This view is based on the work of internal audit, including oversight of the various assurance activities undertaken by the NDA, its subsidiaries and site licence companies and through engagement with the Internal Audit functions of the businesses.

In the NDA Corporate Centre the assigned ratings were as follows: ‘no assurance’ 5%, ‘moderate assurance’ 11%, ‘high level of assurance’ 47% and ‘substantial assurance’ 5%, with 32% advisory.

Our audit into senior pay controls received the ‘no assurance’ rating. This audit was undertaken at my request in response to concern over the design and operation of processes and controls applied to senior pay across the group. Findings from this audit were quickly communicated to all stakeholders in order that improvement actions could be implemented and lessons learnt shared.

2020/21 internal audit reviews completed across the group by the year end were assigned ratings as follows: ‘no assurance’ 4%, ‘limited assurance’ 1%, ‘moderate assurance’ 29%, ‘high level of assurance’ 35% and ‘substantial assurance’ 7%, with 22% advisory and 2% not rated. The overall ‘moderate’ assessment is reflective of the group position.

Group-wide themes identified by internal audit reviews as requiring further strengthening included our response to evolving risks around information, communications and technology; particularly in response to information governance and the General Data Protection Regulation. Reviews also highlighted the need for further improvement in our contract, risk and change management arrangements. Addressing these topics with a group-wide approach to risk and control is not only strengthening oversight but also enabling a collaborative and consistent approach to the development and implementation of improvement activities.

Business operating processes, including financial, internal procurement and broad HR controls were generally found to be robust.

I have also been mindful of the work by several important bodies examining the Magnox procurement and the Magnox transition; namely the NAO, the Parliamentary Public Accounts Committee and the Magnox Inquiry. We are currently reviewing the recommendations from these reviews, and the recently published BEIS Departmental Review, and will formally respond later in the year. This will ensure a timely and effective update to the system of internal control.

Looking forward, and in light of the COVID-19 crisis, internal audit has had and will continue to have an important role to play as an advisor and assurer to the business and to guide decision-making at the highest level. We have been responsive with our assurance activity and switched focus to be supportive and advisory where required. Many of these techniques will be carried forwards into next year as we introduce a more agile and business partnering approach.

On balance, as Accounting Officer, I am therefore confident that the system of internal control operating throughout the past year is effective, and appropriate to meet the NDA’s objectives. In reaching this conclusion, I have taken advice from the Group Head of Internal Audit and the Group Chief Compliance Officer.

David Peattie
Accounting Officer and Group Chief Executive Officer
15 July 2021

Remuneration report

The primary role of the Remuneration Committee is to ensure that an effective remuneration policy is in place to enable the NDA to attract, reward and incentivise executives with the right skills and expertise to successfully deliver our important goals.

I am pleased to present the 2020/21 Remuneration Report for the NDA Corporate Centre, outlining the areas of activity for the Committee during this financial year.

Our response to COVID-19 was a major focus throughout the year and the impact on incentive arrangements was considered carefully.

Shortly into the year, as the virus started to disrupt our lives and business, the Committee reviewed the performance against the 2019/20 incentive plan. Eleven months of the performance period were unaffected by COVID-19 and performance against targets was strong. The Committee decided to declare a corporate out-turn in line with the formulaic target achievement at 87.5% of the maximum. Mindful of the wider impact unfolding in society, the payments were deferred until September and the CEO and CFO voluntarily took a 20% reduction in their own payments.

Similarly, the performance of the 2017-2020 long-term incentive plan was carefully considered and a payment of 150% of the award value declared in line with the target achievement. Payments for these was also deferred until September.

Early in the financial year, the Committee finalised the targets for the 2020/21 incentive plan and confirmed that the original targets, drafted pre-COVID-19, should not be adjusted. Whilst not appropriate to amend the targets, the Committee signalled to the executives that it would use discretion in arriving at any final payment decision to take the impact and our response to the virus into account.

In early 2021, the Committee commenced the process of setting incentive targets for the annual 2021/22 plan and the long-term 2021-2024 plan. In doing this the Committee has taken account of our Strategy 4 document and the opportunities of One NDA and is mindful that targets should not be inappropriately influenced by COVID-impacted performance in 2020/21.

The targets will be finalised in early 2021/22 and the Committee will ensure that targets are fully relevant and suitably stretching for the period ahead.

Shortly after the year end the committee met to consider the outcome of the 2015-2018 Long-term Incentive Plan (LTIP). The LTIP had 7 participants, some of whom are no longer employed by NDA.

The assessment, and any payment related to this LTIP, had been previously deferred pending the outcome of the Magnox Inquiry led by Steve Holliday. The output of this inquiry was the Magnox Inquiry Report which was published in March 2021 and highlighted a number of corporate failings within the NDA during the relevant 2015-18 period which resulted in substantial costs for the taxpayer. After careful consideration of the Magnox Inquiry Report and relevant issues the Committee decided to exercise its full discretion and recommended to the Board that no payment should be made to any participant in relation to this deferred LTIP. This was agreed by the Board.

During the year, the Committee continued to support the Group CEO by looking at reward not just for the two Executive Directors but for all Executive Team members. This focus beyond Executive Directors is intended to be formalised in 2021/22 with an updated Reward and Governance Policy and Committee Terms of Reference. The Committee also takes an oversight of reward in the NDA Corporate Centre in general and does this by attending meetings of the organisation’s Joint Consultation Group and by a variety of other means as reported elsewhere in this report in line with our commitment to section 172 of the Companies Act.

Evelyn Dickey
Chair of the Remuneration Committee

Remuneration Committee (REMCO)

The Remuneration Committee formally determines the remuneration and terms of service of the Chief Executive and executive directors including individual salaries, setting and assessing performance targets, the outturn of performance related pay and arrangements for joiners and leavers. For avoidance of doubt, the remit of the NDA Remuneration Committee does not include the NDA subsidiaries. Remuneration Committee Membership:

• Evelyn Dickey (Independent Chair)
• Rob Holden (Non-Executive Board Member)
• Volker Beckers (Non-Executive Board Member)
• Alex Reeves (UKGI Representative Board Member) The following persons may also attend the committee meetings from time to time:
• NDA Chair
• Chief Executive / Accounting Officer except for discussion in relation to their own remuneration
• Group Chief People Officer and Group Chief Financial Officer except for discussion in relation to their own remuneration
• Other NDA Non-Executive Board Members
• Group Head of Reward

During the year April 2020 to March 2021, the Remuneration Committee:

• Reviewed performance at the NDA and individual executive level to determine the Short-term Incentive Plan (STIP) awards for the year April 2019 to March 2020
• Finalised the performance targets for the 2020/21 STIP, confirming that targets would remain at pre-COVID levels
• Agreed the outcome and payments for the LTIP plan April 2017 to March 2020 vesting in 2020.
• Agreed the targets of the LTIP plan for years April 2020 to March 2023, payable when vesting in 2023
• Commenced work to set the targets for the short-term incentive plan 2021/22 and the LTIP 2021-2024 which will be finalised early in financial year 2021/22
• Decided the outcome of the 2015-2018 LTIP plan as described in the opening section
• To guide the committee’s thinking, market insight information from Korn Ferry Hay and from Price Waterhouse Coopers (PWC) was received and discussed in depth, particularly on the topic of the market’s response to COVID-19
• Supported the executive to develop the Reward section of the new Framework Agreement between BEIS and the NDA, particularly providing advice on appropriate governance
• Reviewed the salaries of the NDA Executive team and made changes effective 1 April 2020 in line with the wider workforce
• Appointed PwC as independent Remuneration Committee advisers

Remuneration Policy

Attracting and retaining the right calibre of executives is critical if we are to deliver the NDA’s mission safely, securely, quickly and to provide value for the taxpayer. It is therefore essential that we offer reward packages that are competitive with the markets in which we compete for talent, whilst still being mindful of taxpayer value for money.

The remuneration of the Executive Directors consists of a base salary, performance related short and long-term incentive plans, a market benefit allowance and pension entitlements. The following table sets out the NDAs Executive Remuneration Policy and gives highlights of how this is being operated.

Basic Salary

Policy & Purpose: Salaries are set at a level required to attract and retain the right calibre of executives, reflecting the skills and experience of the individuals, market reward data, scope/size of role and responsibility and mindful of taxpayer value. Operation of policy: Salaries are reviewed each year, effective 1 April, taking the above matters into account and the salary awards being made in the wider organisation. Outcome 2020/21: Salaries for Executive Directors increased by 2% effective April 2020, in line with the levels agreed with BEIS for the rest of the NDA Corporate Centre. However, this did not apply to the Group CFO who had joined 3 months before the salary review date. Application for 2021/22: The NDA Corporate Centre is subject to the public sector pay pause and the Committee intends that this will apply to the Executive Directors.

Short-term Incentive Plan

Policy & Purpose: The aim of the short-term incentive plan (STIP) is to encourage improved operational and organisational performance and motivate and engage employees by having part of their reward package as variable pay, linked to achievement of the business operating plan and their personal objectives. Operation of policy: The NDA CEO has an STIP up to a maximum of 50% of salary and the Group CFO 40%, based on achievement of corporate and personal objectives linked to the group operating plan. Outcome 2019/20: During the year, the Committee approved the corporate elements of the STIP payment at 87.5% of maximum and personal elements for the CEO, CFO and other executives. The outcome for the 2020/21 STIP was decided early in 2021/22 and a narrative on this will be proved in the next annual report. Application for 2021/22: No change to the STIP is planned for year 2021/22. In setting incentive targets for this plan the Committee is mindful that that targets are fully relevant and suitably stretching for the period ahead and not inappropriately influenced by the COVID-19 impacted performance of 2020/21.

Long-term Incentive Plan

Policy & Purpose: The aim of long-term incentive plan (LTIP) is to encourage strong and sustained improvement in line with the strategy and mission, aligning executives on longer-term strategic goals and providing a motivating stake in the delivery of long-term, sustainable business success. Operation of policy: Eligibility for LTIP is a year on year decision by the Remuneration Committee. An LTIP Award may be made at the start of each 3-year performance period and a multiplier may increase or decrease the outcome between 0% and 200%. The multiplier is based on performance against long-term targets and improvements to the Operating Plan as determined by the Remuneration committee who also regularly monitor the performance. The CEO typically has an award of 25% of salary and the Group CFO20%. Outcome of LTIPs commencing 2017and 2018: During the year, the Committee approved the outcome of the LTIP 2017-2020 at 150% of award value. The LTIP 2018-2021 was assessed early in 2021/22 and a narrative on this will be provided in the next annual report. Application for LTIP 2021-24: No change to the LTIP is planned for year 2021-2024.The Committee will set targets for this plan in late Spring 2021 and will ensure these are relevant and suitably stretching for the period ahead.

Benefits

Policy & Purpose: Benefits are offered to be competitive with the markets in which we compete for talent. Operation of policy: Executive Directors receive a car allowance of £12,000. Note that private medical insurance is not provided, in line with our public sector status. There are no changes planned to this policy for 2021/22.

Pensions

Policy & Purpose: A pension is provided to build up a retirement income, in line with other major employers. Operation of policy: Executive Directors are eligible for membership of the Civil Service Pension arrangements in the same way as other employees, either on a ‘career average’ or a defined contribution basis. More details of our pension arrangements can be found in the Pensions section. The Group CFO is a member of these arrangements and the CEO is provided with a cash payment in lieu of membership. There are no changes planned to this policy for 2021/22. The Committee routinely seeks independent advice on remuneration matters to support the setting of reward levels at an appropriately competitive level. In 2020, PwC were selected as the Advisers to the committee and they will also provide support where required to other parts of the NDA group to obtain synergies and support consistency.

Director’s Contracts

Executive Board Members, presently the CEO and CFO, are appointed by the Non-Executive Board Members and, in the case of the CEO, with the approval of the Secretary of State for BEIS in conjunction with Scottish Ministers and in line with the Commission of Public Appointments Codes of Practice. Their service contracts have a 6 months notice period. Remuneration for the Executive Directors is the responsibility of the NDA Board and operationally managed by the Remuneration Committee.

Non-Executive Board Members are appointed by the Secretary of State for BEIS in consultation with Scottish Ministers, the NDA Chair and in line with the Commission of Public Appointments Codes of Practice. The remuneration of the Chairman and Non-Executive Board Members is also determined by BEIS. Fees for the Chair and other Non-Executive Board Members are determined by BEIS and the non-executives are not involved in decisions relating to their own remuneration and for year 2020/21 were entitled to fees of £25,000 per annum.

Those who chaired board committees also received a fee supplement of £5,000. Details of members who chaired committees are shown in the table below however the NDA Chair does not receive a supplement for chairing the Nominations Committee.

From 15 March 2021, in recognition of the increased time, scope and workload of the Board following the transition to a subsidiary model, the fee structure has been increased to £40,000 per annum with no additional fee for chairing board committees. Some Members have decided to remain on the previous fee structure for this financial year.

Non-Executive Board Members and the Chair do not receive performance-related bonuses or pension entitlements but are reimbursed for reasonable expenses incurred in the performance of their duties.

Details of directors’ remuneration and pension are shown in the single figure table below. More details on pensions and cash equivalent transfer values are shown in the Pensions section. See gender pay gap for more detail.

Executive Directors Remuneration

This information is subject to audit.

Director	Year	Fixed Pay Salary (£)	Fixed Pay Benefits (£)	Fixed Pay Pension*** (£)	Variable Pay Short Term Incentive (£)	Variable Pay Long Term Incentive (£)	Total Remuneration (£)
David Peattie*	19/20	330,000	61,118	-	114,510	125,938	631,566
David Peattie*	20/21	336,600	61,118	-	126,225	115,634	639,577
Mel Zuydam**	19/20	61,505	2,839	23,587	15,884	-	103,815
Mel Zuydam**	20/21	260,000	16,981	99,710	63,960	-	440,651

*Additional benefits received was a market benefit of £12,000, and a cash payment of £49,118 (2019/20: £49,118) in lieu of membership of the Civil Service Pension Plan.

**Joined as an Executive Board Director from 06/01/20 and remuneration and benefits for 2019/20 reflects this 3-month period. Additional benefits received were a market benefit of £12,000, and holiday pay allowance of £4,981 (2019/20: £0).

***Details on Pension arrangements can be found in under Pensions.

Non-Executive Board Members Remuneration

This information has been audited.

Non-Executive Board Members	Additional role (Effective date of becoming a Member)	Year	Total fees (£)
Tom Smith (Chair until 31.08.2020)	Chair of the Nomination Committee (01.03.17 – 31.08.2020)	19/20	150,000
Tom Smith (Chair until 31.08.2020)	Chair of the Nomination Committee (01.03.17 – 31.08.2020)	20/21	62,500
Dr Ros Rivaz (Chair from 01.09.2020)	Chair of the Nomination Committee (01.09.20 - date)	19/20	-
Dr Ros Rivaz (Chair from 01.09.2020)	Chair of the Nomination Committee (01.09.20 - date)	20/21	109,375
Volker Beckers	Chair of the Audit & Risk Assurance Committee (01.03.15 - date)	19/20	30,000
Volker Beckers	Chair of the Audit & Risk Assurance Committee (01.03.15 - date)	20/21	30,457
Evelyn Dickey (1)	Chair of the Remuneration Committee (01.03.15 – date)	19/20	30,000
Evelyn Dickey (1)	Chair of the Remuneration Committee (01.03.15 – date)	20/21	30,000
Janet Ashdown (1)	Chair of the Safety and Security Committee (01.06.15 - date)	19/20	30,000
Janet Ashdown (1)	Chair of the Safety and Security Committee (01.06.15 - date)	20/21	30,000
Rob Holden	Chair of the Programmes and Projects Committee (01.06.15 - date)	19/20	30,000
Rob Holden	Chair of the Programmes and Projects Committee (01.06.15 - date)	20/21	30,457
Nick Elliott	Non-Executive Board Member (15.03.21 – 30.04.21)	19/20	-
Nick Elliott	Non-Executive Board Member (15.03.21 – 30.04.21)	20/21	-
Francis Livens	Non-Executive Board Member (01.12.20 – date)	19/20	-
Francis Livens	Non-Executive Board Member (01.12.20 – date)	20/21	9,019
Alex Reeves (2)	UKGI Representative Board Member (01.02.20 – date)	19/20	-
Alex Reeves (2)	UKGI Representative Board Member (01.02.20 – date)	20/21	-
Michelle Heath	Non-Executive Board Member (01.10.19 – 30.06.20)	19/20	12,500
Michelle Heath	Non-Executive Board Member (01.10.19 – 30.06.20)	20/21	6,250

(1) Members who decided to remain on the previous fee structure for this financial year. (2) Did not receive any remuneration for services to the Board.

Wider Workforce Considerations

In setting the remuneration for the Executive Directors and the wider executive team, the Remuneration Committee is mindful of wider workforce considerations and appropriate alignment is sought. This oversight is assisted by attending employee meetings such as the Joint Consultative Group as an observer. Examples of this alignment are:

• Incentive targets alignment, ensuring those used for Executives are the same as those used for the corporate element of the NDA employees’ incentives.
• The executive pay review in April 2020 was fully aligned with the wider workforce
• Executives and all employees are eligible for the Civil Service Pension arrangements

Ratio between median earnings of organisation’s workforce and highest paid Director (‘Hutton’ Disclosure)

Reporting bodies are required to disclose the relationship between the remuneration of the highest- paid director in their organisation and the median remuneration of the organisation’s workforce.

The banded remuneration of the highest-paid director in the NDA Corporate Centre, in the financial year 2020/21 was £635,000 - £640,000, (2019/20, £630,000 – 635,000).

This was 8.4 times (8.5 times 2019-20) the median remuneration of the workforce, which was £75,515 (2019/20, £74,544).

In 2020/21, zero (2019/20, zero) employees received remuneration in excess of the highest-paid director.

Remuneration ranged from the lowest band of £20,000 - £25,000 to the highest band of £635,000 - £640,000. (2019/20 band £25,000 - £30,000 to £630,000- £635,000.

Total remuneration includes salary, non-consolidated performance-related pay and benefits-in-kind. It does not include severance payments, employer pension contributions and the cash equivalent transfer value of pensions. This information is subject to audit.

	2020/21 Total (£)	2019/20 Total (£)
Band of highest paid Director’s total remuneration	635,000 - 640,000	630,000 - 635,000
Median total remuneration	75,515	74,544
Ratio	8.4:1	8.5:1
Band of lowest paid employee’s total remuneration	20,000 - 25,000	25,000 - 30,000

This information is subject to audit.

	2020/21 Total (£)	2019/20 Total (£)
Band of highest paid Director’s total remuneration	635,000 - 640,000	630,000 - 635,000
Median total remuneration	75,515	74,544
Ratio	8.4:1	8.5:1
Band of lowest paid employee’s total remuneration	20,000 - 25,000	25,000 - 30,000

The small increase in the median remuneration level of 1.3% is due to the annual salary increase, circa 2%, offset by a small change in the mix of the workforce due to relatively more recruitment at lower grade levels. The highest paid director received a salary increase in2020/21

People report

Our people are the greatest asset to our mission. Our objective is to enable and drive the delivery of our mission through our highly skilled people by attracting, retaining and developing a high performing, talented and motivated workforce.

We want to create a culture in which our people can thrive and provide a great place to work where our people feel respected, included and able to perform at their best. The following section provides an update on the important progress we’ve made on our ‘people’ critical enabler in 2020/21.

This year our Strategy 4 document was published which contains significant updates to our People Strategy. This outlines and underpins the objectives for the NDA group. It is built around 3 key themes:

1. Ensure we have the right people, in the right roles at the right time to deliver the mission
2. Create a culture in which our people can thrive
3. Work in partnership with our recognised trade unions and the broader stakeholder community

The strategy was developed in collaboration with a number of stakeholders, both internal and external to the NDA group. This One NDA approach has enabled us to collaborate meaningfully and effectively on developing a strategy to create a thriving workforce for the future.

We are also continuing our commitment to the targets and objectives of the UK government’s policy position, including the Nuclear Sector Deal. We take a leading role in skills strategy and policy for the UK nuclear sector by chairing the Nuclear Skills Strategy (Group) and continuing to support government initiatives on a national, regional and local level.

Ensure we have the right people, in the right roles at the right time

This year we co-created the NDA Group Leadership Standard, which describes how we expect our leaders to behave and lead. The Standard has been adopted by all the operating companies within the NDA group, creating a single language of leadership. We have established an NDA group Leadership Academy, which welcomed its first cohort on the programme in March 2021. The Academy will enable us to future proof our leadership capability, strengthen our executive succession and drive collaboration across the group at all levels. For more information please see the case study.

We are committed to developing our people through our approach to skills development and talent. We are looking at functional succession and talent, understanding the capabilities we need not only now but in the future and ensuring that our functional career pathways enable us to provide meaningful long-term opportunities.

It’s important that we continue to attract diverse, talented and committed people to be part of our mission. Despite COVID-19, we have continued to increase the number of apprentices and graduates to address key skills gaps and our future pipeline.

Working collaboratively across the NDA group has enabled us to establish a set of principles to underpin the Agile Working Policy, with a sensible and flexible approach to the working environment, while ensuring business needs remain a priority.

The One NDA way of working has also enabled the group to maximise the benefits of collaboration. An example of this is the launch of the group wide mobility policy working in partnership with our Trade Unions. This has provided us with the opportunity to enable and capitalise on the wealth of experience and talent within the NDA businesses, by providing more freedom to work in other parts of the group, which has increased development and career opportunities.

Creating a culture in which our people can thrive

A One NDA approach is enabling us to work together as a group to build great places to work, which are diverse and inclusive. Organisations that put diversity and inclusion at their core, attract and retain the best people who perform better and are more successful.

Creating an environment where differences of thought and perspective are encouraged isn’t just the right thing to do - it’s also good for our business.

The Equality, Diversity and Inclusion (ED&I) Group Strategy, launched in May 2018, set out the NDA group approach to creating a culture of respect, inclusion and diversity. We have ensured high visibility of our leadership commitment to the ED&I agenda during an unprecedented year.

Since 2018 we have established a dedicated Head of ED&I to lead a working group within the NDA Corporate Centre representing all levels across the organisationfocusing on the delivery of D&I and the provision of access to various Networks. The focus group is responsible for the commitment and delivery of the ED&I Plan within the NDA Corporate Centre and is key to the participation across the organisation within the various focus areas including; International Women’s Day, International Day Against Homophobia, Biphobia, Interphobia and Transphobia (IDAHoBiT), Black History Month and International Day of People with Disabilities Day -leveraging the power and reach of our group-wide networks throughout the year.

Recent D&I survey results from 2020 show an increase in the following areas of the NDA D&I Strategy:

• Manager support on altering working arrangements
• Openness and discussions around mental health issues
• Leaders actively championing diversity and inclusion
• Employees understanding of raising complaints around discrimination, harassment or bullying and where to go for help

Areas for improvement were within the transparency of our recruitment and promotion process and how we challenge the status quo.

To support our employees through the COVID-19 pandemic, we ramped up our engagement on mental health and wellbeing. See employee health and wellbeing for more information. For more information on respect and inclusion see the Equality, Diversity and Inclusion case study.

Over the last year we’ve focused on delivery of group key targets as a diverse and inclusive employer with the objectives of:

• Bringing to life our fairness and meritocracy (resourcing) principles to drive accountability and transparency in how we attract, select and develop talent
• Creating flexible working principles (‘We Trust’) to support employees home working where operational needs allow
• Embedding ED&I into our Leadership Academy, Leadership Standard and developed an online leadership module
• We also maintained a focus on respect at work including online Respect workshops to support training for employees and leaders across the organisation and reviewed a number of our policies. These additional activities have been welcomed by the organisation and have further demonstrated our continued commitment to driving respect at work.

In line with our policies, and the establishment of our groupwide Disability network, we work hard to support all individuals who are disabled. This includes those seeking employment with the NDA,as well as those employees who have become recently disabled in doing this:

• We are a ‘disability confident’ employer, with a view to move to level 2 status within 2021/22
• We give full and fair consideration to applications for employment, where all screening and assessment is carried out in line with our recruitment standards and with reference to the candidate’s aptitudes and abilities
• We make reasonable adjustments through a workplace adjustment passport and arrange appropriate training for employees who are disabled, or have become recently disabled, in order to support their continuing employment, training, career development and promotion.

The recent OHI Survey had a response rate of 83% and provided us with further clarification on how our employees are feeling within the workplace with an increase from the last survey as follows:

Significantly Stronger: * Direction * Coordination * Innovation and Learning * Motivation * External Orientation * Comparable * Accountability * Capability

Work done since 2018 includes: * Strengthening and increasing capability and capacity within the NDA Corporate Centre, including new appointments within our Executive Team, the appointment of a Corporate Centre Director and the formation of a Senior Leadership Team * The publication of the One NDA Handbook * Establishing important programmes to support our vision of creating great places to work for everyone: equality, diversity and inclusion; mental health and wellbeing * Responding to the COVID-19 situation, progressing our agile working agenda overnight * Creating a Code of Conduct, setting out expected behaviours and standards * Progressing work to establish a NDA group Leadership Academy and Standard * Our survey results have shown our employees feel motivated with clear communication around the NDA’s Vision and a positive working environment to collaborate and develop.

CASE STUDY: Leadership Academy

(Beacon Project 2020/21)

Attracting, retaining, and growing exemplary leaders is instrumental to the delivery of our mission. Great leadership is key to creating the right environment to engage and empower our people. Our leadership goal is to help our people perform at their best to delivering our mission safely and efficiently on behalf of the taxpayer.

Our new NDA group operating model enables us to collaborate more meaningfully across the entire people landscape. Last year, leaders from across the NDA group came together for our first NDA Talent Forum discussing the importance of talent and succession. Focused on the importance of growing the next generation of our most senior leaders, a decision was taken to develop a NDA group Leadership Academy. Launched in March this year, our first cohort of 16 senior leaders have now started their Leadership Academy journey. At the heart of our Academy, is our recently developed Leadership Standard. Acting as our ‘North Star for leadership’, the group-wide framework sets out what we expect of our leaders wherever they may sit within our group. As well as being pivotal in shaping the Academy work, it will also guide wider leadership development and people processes across the NDA group. During 2020, we have shown that the NDA Corporate Centre and group can adapt many of its roles to work flexibly.

During the pandemic we reviewed our flexible working policies to support home working, caring responsibilities, and home schooling. We recognise the benefits of allowing employees to have influence over their work location, which can result in a better work life balance. This also provides an opportunity to attract more diverse talent.

Employee Voice

During 2020/21, employee networks played a vital role in the effort to keep our employees connected and included. We strengthened employee voice in the creation of 4 group-wide networks (Gender Balance, Disability, LGBT+ and Race Equality).

In conjunction with their executive sponsors, these employee-led networks are focused on making our workplaces more diverse, encouraging employees to get involved in activities and events to grow and develop and support the organisation on its ED&I journey.

We continue to amplify our respect and inclusion messaging through a number of awareness and celebration events including but not limited to, International Women’s Day, International Day Against Homophobia, Biphobia, Interphobia and Transphobia (IDAHoBiT), Black History Month and International Day of People with Disabilities -leveraging the power and reach of our group-wide networks.

As with other public sector organisations, in 2020/21 we published our annual gender pay gap data. Within the NDA group, the figures published as at March 2021 showed the overall average gender pay gap (when weighted by employee numbers), when comparing mean pay, to be 13.1 % and the average median pay gap 12.4%.

As a part of the NDA’s Equality, Diversity and Inclusion Strategy, we have seen a decreasing trend in our gender pay gaps in the NDA Corporate Centre and across the wider NDA group.

This is a long-term programme and our focus remains on driving improvements in our gender pay gaps.

We have undertaken diverse recruitment campaigns and promotions across the NDA group and have made a number of key female senior appointments and promotions which have had a positive impact.

Looking to the future of our industry, we continue to work towards breaking down barriers in science, technology, engineering and mathematics (STEM), and we have seen increased female graduatesa nd apprenticeship intakes – in 2019, 46% of the Nuclear Graduates intake were female and 40% of apprentices were female.

Looking forward into 2021/22 we are developing a 5-year group ED&I strategy with the aim of achieving a diverse workforce in many demographic groups including the Nuclear Sector Deal commitment of 40% women by 2030.

Work in partnership with our recognised trade union and broader stakeholder community

The NDA Corporate Centre remains committed to a partnership working approach with our recognised Trade Union, Prospect. Regular and constructive Joint Consultation Group (JCG) meetings have taken place throughout the year. During the first national lockdown period the meetings were set up weekly to ensure all employees’ needs under the unique circumstances were understood and managed as well as maintaining a focus on business deliverables. Our partnership approach has ensured positive relations have endured during some challenging times, constructive challenge and joint working has continued throughout. Every 6 months, a Non-Executive Board Member has attended the JCG on behalf of the Board.

The One NDA group Trade Union event has continued this last year. Through this we continue to further build upon already strong relationships. This is a key enabler for supporting and engaging with our people.

Employee health and wellbeing

The NDA recognises that health and wellbeing at work is vital, none more so than this last year. We closely monitor both short-term and long-term sickness absence and have policies and support mechanisms in place. These policies have been enhanced to support the additional pressures the Pandemic and lockdown has introduced.

We have updated our Employee Assistance Provider (EAP) to support and reflect the commitment NDA have to providing a fast and efficient service that meets the needs of our employees. This service provides more options for our employees including immediate counselling support if required.

We have engaged and worked closely with MIND, who now form an integral part of our additional support provision for our employees requiring help as an alternative option to the EAP. This is further supported by our Mental Health First Aiders across the NDA group who are supported individually by a dedicated counsellor from MIND.

Furthermore, MIND has supported numerous Mental Health & Wellbeing sessions delivered via Line Managers briefings, departmental tea & talk sessions and Wellbeing Intranet updates. These group discussions covered the various anxieties around the needs and impact on workplace, home working/ schooling requirements. These also covered the social/domestic impacts of the pandemic on individuals & their families at the NDA, additionally Individual wellbeing coaching sessions were also provided on request.

During the year, the NDA, through the CEO and Executive team, have proactively discussed the importance of mental health and wellbeing during staff briefings, with support from MIND. The CEO has promoted a clear message of support for ‘family first’ throughout the pandemic.

The NDA has further demonstrated its commitment to mental health and wellbeing by appointment of a New Head of Mental Health & Wellbeing.

This year we plan to carry out a full review of the management of absence and in particular the service provision from our occupational health provider and how we can ensure the best use of this service to our employees. A full roll out of the new process and requirements will be provided to all staff.

For 2020/21 an average of 4.6 days per employee was lost to sickness absence. This equates to an absence rate of 1.84 and is more than the national average of 3.6 days. An analysis of 2020/21 total absence identifies that mental health contributed to the majority of long-term absences. The national average loss of days due to mental health conditions is at 13.4 days according to the Office for National Statistic, therefore we will continue to work with managers on the importance of dealing with sickness absence and in particular ,mental health issues, by providing educational sessions on managing sickness absence to all our managers and employees and continuing to provide advice and tools on Mental Heath issues and how we manage these within the workplace.

Employee Turnover

The last organisational redesign covered the entire NDA Corporate Centre and resulted in a change to around 20% of roles with an increase in recruitment of approximately 90 roles within the NDA Corporate Centre to enhance the provision of capability completed during 2019/20.

The average length of service is 5.2 years and for the year 2020/21 turnover of permanent people was 9.2% This compares to an average external turnover rate of 15% (as per latest CIPD survey).

During 2020/21, 43 employees were part of the voluntary exit package as a result of the organisational design with 11 of those leaving in this reporting period.

This information is subject to audit.

2020/21 Exit package cost band	Number of compulsory redundancies	Number of other agreed departures	Total no. of exit packages by cost band
£0-£25,000	-	-	-
£25,001-£50,000	-	7	7
£50,001 - £100,000	-	4	4
£100,001+	-	-	-
Total no of exit packages	-	11	11

Headcount and Employee Costs

NDA Group staff costs

This information is subject to audit.

NDA Group 2021	NDA Authority (a) Permanently employed staff (£m)	NDA Authority (a) Others (£m)	NDA Programme Permanently employed staff	NDA Programme Others	Subsidiaries (b) Permanently employed staff (£m)	Subsidiaries (b) Others (£m)	Total (£m)
Wages and salaries	28	3	2	1	795	61	890
Social security costs	3	-	-	-	88	-	91
Pension costs	6	-	1	-	145	-	152
Total staff costs	37	3	3	1	1,028	61	1,133

NDA Group 202	NDA Authority (a) Permanently employed staff (£m)	NDA Authority (a) Others (£m)	Subsidiaries (b) Permanently employed staff (£m)	Subsidiaries (b) Others (£m)	Total (£m)
Wages and salaries	24	7	736	51	818
Social security costs	3	-	84	-	87
Pension costs	5	-	131	-	136
Total staff costs	32	7	951	51	1,041

(a) NDA Authority people costs are included within administration expenditure (see note 5 to the accounts) The increase in total spend compared to the previous year was due to further improvements driven by One NDA with the action of increasing our capability and capacity in critical skills areas. (b) Subsidiary people costs are reported through the ‘contractor and subsidiary costs’ line in the Financial Statements (see note 6 to the accounts)

The Group participates in various pension schemes, both defined contribution and defined benefit. Further details can be found in note 26 to the Accounts.

The average number of full-time equivalent persons employed during the year as follows:

NDA Group	Permanently employed people no.	Others no.	Total 2020/21 no.	Total 2019/20 no.
Directly employed - authority (Admin)	284	39	323	315
Directly employed - authority (Estate)	30	7	37	-
Directly employed - subsidiaries	13,663	920	14,583	14,660
Total	13,977	966	14,943	14,975

Of the total NDA permanent and fixed term employees at the end of March 2021, the breakdown by gender is as follows: | | NDA Authority (male) | NDA Authority (female) | NDA Programme (male)| NDA Programme (male)| Total | |-|-|-|-|-|-| | Chief Executive | 1 | - | - | - | 1 | | Exec Directors excl. CEO | 1 | - | - | - | 1 | | Other Directors (non-Board) | 6 | 2 | - | - | 8 | | Other employees | 164 | 130 | 17 | 15 | 326 | | Total | 172 | 132 | 17 | 15 | 336 |

Notes to the Remuneration and People Report

Tax arrangements of public sector appointees.

As a public body, the NDA adheres to the IR35 regulations in deeming if any temporary roles will be captured within the legislation or deemed out of scope of the legislation. In determining this information, we use the IR35 checker provided by HMRC on www.gov.uk.We are required to provide information about off-payroll appointments of consultants, contractors or people employed for longer than 6 months for the NDA Corporate Centre. We only use these arrangements where we can’t avoid them, for example to bring in unique skills, capability and experience that we do not have in-house.

We look to minimise the use of these arrangements and include contractual clauses in appointment documentation to enable us to receive assurance that the individual or their employer is managing their tax affairs appropriately. Our right to request assurance over tax obligations is made explicit to all off-payroll workers.

Our off-payroll appointments at 31 March 2021 for those individuals on more than £220 per day and lasting more than 6 months (up until the expected end date – not 31 March 2021) are detailed below. There were 17 new off-payroll workers in the year whose assignments lasted more than 6 months (between start (after 1 April 2020) up to 31 March 2021 (not end of contract). No senior management were paid through off payroll arrangement during this reporting period.

Length of appointment at 31 March 2021	No. of off payroll contractors
Less than 1 year	17
1-2 years	3
2-3 years	0
3-4 years	4
More than 4 years	1

Consultancy spend in the year was £65,000 (2019/20: £0)

Civil Service Pensions

Pension benefits are provided through the Civil Service Pension Arrangements and executives are also eligible for these arrangements.

Since 2015, ‘The Public/ Civil Servants and Others Pension Scheme’ or alpha, provides benefits on a career average basis with a normal pension age equal to the member’s State Pension Age or 65 if higher. From that date all newly appointed public/ civil servants and the majority of those already in service, joined alpha. Prior to that date, public/ civil servants participated in the Principal Civil Service Pension Scheme (PCSPS). The PCSPS has 4 sections: 3 providing benefits on a final salary basis (classic, premium or classic plus) with a normal pension age of 60; and one providing benefits on a whole career basis (nuvos) with a normal pension age of 65.

These statutory arrangements are unfunded with the cost of benefits met by monies voted by Parliament each year. Pensions payable under existing schemes - Classic, Premium, Classic Plus and Nuvos are currently increased annually in line with the Pensions Increase Legislation.

Employees are automatically enrolled into alpha on appointment to employment at the NDA. This is in line with the auto enrolment rules of the Pensions Act 2008. They do, however, have the ability to opt out of the scheme at any time or elect to join the defined contribution, ‘Partnership Pension’ offered under the Civil Service Pension Arrangements.

Employers no longer have a duty to automatically enrol a new employee where they have reason to believe the employee has registered for fixed protection in relation to lifetime allowance which requires them not to participate in future pension provision. In these cases, such as the NDA CEO, a pension allowance in lieu may be considered.

A small number of employees who transferred to the NDA from INS in 2019 continue to accrue benefits in the UKAEA Combined Pension Scheme (CPS). The UKAEA CPS provides benefits on a final salary basis with a normal retirement age of 60. This is an unfunded statutory arrangement with the cost of benefits met by monies voted by Parliament each year. Pensions payable are currently increased annually in line with the Pensions Increase Legislation.

Pension Detail

Employee and employer contributions are set at the rates shown in the tables below:

Note that there are no mandatory contributions required for the ‘Partnership’ defined contribution scheme. The Employer contributions are listed below the tables.

Annual Pensionable Earnings( full-time equivalent basis)	alpha & all PCSPS Schemes 2020/21 employee contribution rates
Up to £26,000	4.60%
£26,001-£54,900	5.45%
£54,901-£150,000	7.35%
Over £150,000	8.05%

Employee membership of the schemes in the NDA is noted in the table below:

Scheme	% of employees
alpha	82.9
Nuvos/Premium/Classic	8.2
Partnership	1.7
UKAEA (INS TUPE)	5.8
Opt Out	1.4

Annual Pensionable Earnings (full-time equivalent basis)	alpha & all PCSPS Schemes 2020/21 employer contribution rates
Up to £23,000	26.6%
£23,001-£45,500	27.1%
£45,501-£77,000	27.9%
Over 77,001	30.3%

Existing members of the PCSPS who were within 10 years of their normal pension age on 1 April 2012 remained in the PCSPS after 1 April 2015. Those who were between 10 years and 13 years and 5 months from their normal pension age on 1 April 2012 will switch into alpha sometime between 1 June 2015 and 1 February 2022. All members who switch to alpha have their PCSPS benefits ‘banked’, with those with earlier benefits in one of the final salary sections of the PCSPS having those benefits based on their final salary when they leave alpha. (The pension figures quoted for officials show pension earned in PCSPS or alpha – as appropriate. Where the official has benefits in both the PCSPS and alpha the figure quoted is the combined value of their benefits in the 2 schemes.) Members joining from October 2002 may opt for either the appropriate defined benefit arrangement or a ‘money purchase’ stakeholder pension with an employer contribution (partnership pension account).

Pension benefits are as follows:

• Benefits in Classic accrue at the rate of 1/80th of final pensionable earnings for each year of service. In addition, a lump sum equivalent to 3 years initial pension is payable on retirement.
• Benefits in premium accrue at the rate of 1/60th of final pensionable earnings for each year of service. There is no automatic lump sum.
• classic plus is essentially a hybrid with benefits for service before 1 October 2002 calculated broadly as per classic and benefits for service from October 2002 worked out as in premium.
• In nuvos a member builds up a pension based on his pensionable earnings during their period of scheme membership. At the end of the scheme year (31 March) the member’s earned pension account is credited with 2.3% of their pensionable earnings in that scheme year and the accrued pension is uprated in line with Pensions Increase legislation.
• Benefits in alpha build up in a similar way to nuvos, except that the accrual rate is 2.32%. In all cases members may opt to give up (commute) pension for a lump sum up to the limits set by the Finance Act 2004.

The partnership pension account is a stakeholder pension arrangement. The employer makes a basic contribution of between 8% and 14.75% (depending on the age of the member) into a stakeholder pension product chosen by the employee from a panel of providers. The employee does not have to contribute, but where they do make contributions, the employer will match these up to a limit of 3% of pensionable salary (in addition to the employer’s basic contribution). Employers also contribute a further 0.5% of pensionable salary to cover the cost of centrally-provided risk benefit cover (death in service and ill health retirement).

The accrued pension quoted is the pension the member is entitled to receive when they reach pension age, or immediately on ceasing to be an active member of the scheme if they are already at or over pension age. Pension age is 60 for members of classic, premium and classic plus, 65 for members of nuvos and State Pension Age for members of alpha.

Executive Director pensions

This information is subject to audit.

	Real increase in pension during the year 2020/21 £000’s	Accrued pension at 31 March 2021 £000’s	CETV at 31 March 2020 £000’s	CETV at 31 March 2021 £000’s	Real increase in CETV funded by employer £000’s
Mel Zuydam	5-7.5	5-10	39	128	67
David Peattie*	0	0	0	0	0

Notes:* Does not participate in the Civil Service Pension arrangements – see note Directors’ Remuneration

Cash Equivalent Transfer Values

A cash equivalent transfer value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme.

The pension figures shown relate to the benefits accrued by the individual as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies. The figures include the value of any pension benefits in another scheme or arrangement which the individual has transferred to the Civil Service Pension Arrangements and for which the Civil Superannuation Vote (CS Vote) has received a transfer payment commensurate with the additional pension liabilities being assumed.

They also include any additional pension benefit accrued to the member as a result of their purchasing additional years of pension service in the scheme at their own cost. CETVs are calculated within the guidelines and framework prescribed by the Institute and Faculty of Actuaries.

Real Increase in CETV

This reflects the increase in CETV effectively funded

by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangements) and uses common market valuation factors for the start and end of the period.

Disclosures required under the Trade Union (Facility Time Publication Requirements) Regulations 2017.

Relevant union officials

Relevant union officials	Full-time equivalent employee number
5	314

Percentage of time spent on facility time

Percentage of the working hours spent by relevant union officials, employed during the relevant period, on facility time.

Percentage of time	Number of employees
0%	-
1-50%	5
51-99%	-
100%	-

Percentage of pay bill spent on facility time

Total cost of facility time	£66,247
Total pay bill	£32,847,401
Percentage of the total pay bill spent on facility time, calculated as: (total cost of facility time ÷ total pay bill) x 100	0.2%

Paid trade union activities

| Time spent on paid trade union activities as a percentage of total paid facility time hours calculated as (total hours spent on paid trade union activities by relevant union officials during the relevant period ÷ total paid facility time hours) x 100 | 0.2% | | — | — |

Health, Safety, Security, Environment & Wellbeing Report

Like most industries, the impact of COVID-19 has been felt across all parts of the NDA group. Responding to government guidance and the need to protect our people caused us to pause some non-essential operations and restrict others.

In March 2020, emergency plans were stood up across the entire NDA group, with the priority being the safety of our people and sites, and ensuring critical operating plants remained staffed and safely operated. Testing our already rigorous emergency plans, responding to the unparalleled challenges of COVID-19 has brought about valuable learning across the NDA group, with the lessons being reflected in updated practices and processes.

Increased monitoring of activities across sites and reduced site-based operations have in part contributed to the NDA group’s lowest ever total recordable injury rate (TRIR) of 0.22. This compares to a rate of 0.28 in 2019/20.

Following government’s advice, the NDA enacted home working from March 2020. By accelerating our IT improvement plans, almost all of our employees have been able to work effectively from home throughout the entire period. A similar picture can be seen across the group for non-site based roles. As we move out of restrictions we will, like organisations all over the world, take the opportunity to adopt a more flexible hybrid approach of home and office-based working, prioritising productivity alongside the health, safety and wellbeing of our people.

Over the last year, the wellbeing of our employees has been paramount. We have endeavoured to put them at the forefront of our major incident planning and our focus has been on ensuring the right support has been in place, and made available and accessible to everyone. This has seen us accelerating our agile working approach and providing appropriate equipment to make sure people can work safely from home. In such difficult times, the mental health of our employees has been a particular priority and we have put into place bespoke line manager training, all-staff sessions with our mental health partner MIND, and widely promoted the services of our professional employee support adviceline.

During the year, the NDA developed and launched its new Health, Safety, Environment and Wellbeing Policy to reflect the transition to a group operating model and the introduction of a risk-based approach to safety topics.

In the same period, the NDA group has been looking at important safety areas, such as significant incident escalation and investigation policy. This has resulted in the establishment of a new Code, setting out expectations and process to follow in the event of a significant event.

In addition, an NDA group framework for Health Safety and Wellbeing based on key performance indicators (KPIs) is now being established, looking initially at 4 priority topics for the group: demolition, asbestos, control of contractors, and construction design and management.

This year has also seen significant investment and improvements in the NDA group’s security capabilities, these improvements extend to our supply chain where a new audit capability has been implemented to greatly improve security assurance activities.

In line with the publication of Strategy 4 we are collaborating with other Government leads in national nuclear and radiological emergency response providing subject matter expertise to enhance national capabilities.

Regular reviews of our protective security arrangements continue with the NDA leading sector working groups that address emerging threats in areas such as drones, cyber security, personnel and supply chain security.

Strategy

In March 2021 the NDA published its updated strategy, Strategy 4. The NDA environment function has taken this as its lead to develop its strategy, focusing effort on specific areas in environmental protection and improvement over a 5-year period. The Environment Strategy will seek to ensure that the NDA mission outcomes and the journey to deliver them are sustainable, and that we improve and protect the environment.

Carbon Net-Zero

The UK Government has set a commitment for the UK to have ‘net-zero’ greenhouse gas emissions by 2050, with the Scottish Government’s target being 2045. In support of these important commitments, last year we mapped the NDA group’s carbon footprint for 2019/20, modelled how this may change as our mission progresses to 2050 and developed a roadmap of opportunities to reduce greenhouse gas emissions. Translating this important data into action is now an important priority for the NDA and the other parts of the NDA group.

The NDA group’s carbon footprint for 2019/20 is around 1 million tonnes of CO2 equivalent, which is broadly comparable with other industries. This includes the direct emissions from the fuel we burn for power and heat and the electricity we purchase, as well as indirect emissions, such as those from the goods and services we procure, particularly in construction. As can be expected, the NDA makes up only a small component of the footprint, with the greatest contribution being from Sellafield, our largest and most complex site. Detail on the NDA’s carbon footprint for 2020/21 can be found in the NDA’s Sustainability Report, which was published in March 2021. NDA Sustainability Report: Financial Year April 2020 to March 2021 - GOV.UK (www.gov.uk).

Greening Government Commitments (GGC)

As part of its Greening Government initiative, the Government set environment and waste targets for 2019/20 based on a 2009/10 baseline. The roll- out of updated targets has been postponed by Government due to the COVID-19 pandemic and in the interim, we have continued to report against existing targets. The GGC targets apply to the NDA and RWM only. This is because in the baseline year, RWM was part of the NDA.

Our performance against those environmental targets is set out in the table below.

GGC Target	2019/20 performance	2020/21 performance
Reduce greenhouse gas emissions by 66%	61% reduction	82% reduction
Reduce domestic flights by 30%	58% reduction	99% reduction
Reduce waste generation by 25%	63% reduction	86% reduction
Reduce landfill disposal to less than 10%	Reduced to 0%	Reduced to 0% (1)
Reduce paper use by 50%	72% reduction	98% reduction
Reduce water use by 10%	27% reduction	71% reduction

The data has been positively influenced by most of our employees being based at home in 2020/21. While the picture represents reduced travel and minimal people in our offices, it does not consider the use of energy or other resources by employees working from home.

1. all non-recyclable waste from the NDA Corporate Centre is used in an Energy from Waste plant rather than sending to landfill.

Operating companies: safety performance

Sellafield Ltd

Up until the latter part of 2020/21, Sellafield’s accident rate was on track to achieve an all-time low. Unfortunately, some late occurring incidents, predominantly related to slips, trips and falls, saw the organisation’s year-end performance being comparable to previous years. The TRIR at the end of 2020/21 was 0.22, compared to 0.3 in 2019/20 and was below the corporate target of \<0.29. The RIDDOR rate equalled the year-end target at 0.04. Sellafield improved on its target rates for both nuclear and radiological site incident reports and personal contamination cases.

Due to a safety incident in 2020, Sellafield was fined £320,000 following the Office for Nuclear Regulation’s (ONR) prosecution for safety breaches. Failings identified because of this incident, plus several lower consequence electrical safety events, also led the ONR to serve Sellafield with an Improvement Notice.

Following the close out of investigations, Sellafield launched an Electrical Safety Integration Programme, bringing together the learning from all electrical safety events to ensure an enterprise- wide approach to its improvement activities.

Progress against Sellafield’s overarching Electrical Safety Integration Plan has continued through the year, with performance improvements being seen.

Sellafield recorded 1 international nuclear and radiological event scale (INES) event in 2020/21, compared to the 5 recorded in 2019/20. The event, confirmed as an INES level 1 event, occurred in September 2020 when a quantity of uranyl nitrate liquor breached pipework through a small perforation in the line. The leak occurred within a controlled area of the site and was stopped within 20 minutes of being discovered. Sellafield has since replaced around 18 metres of pipework and renewed the lagging and trace heating along approximately 120 metres of the pipeline.

Responding to the changing COVID-19 situation throughout the year has required extended efforts and oversight by the Sellafield leadership team and supporting personnel. Their proactive and positive approach to managing the pandemic response while maintaining effective nuclear safety control has been noted and is commended by ONR.

Magnox Ltd

Managing the COVID-19 pandemic saw Magnox enact a successful pause to site operations and subsequent restart. By the second half of the financial year, successful hazard reduction at the Magnox sites was being achieved leading to reduction in the nuclear risk profile. Attention remains focussed on conventional, environmental and security risks for the business. Environment, Health, Safety, Security and Quality (EHSS&Q) performance remains broadly comparable with other companies in the sector.

Magnox continued to deliver significant nuclear and radiological hazard reduction across many fronts including nuclear materials transfer from Harwell and intermediate level waste retrievals across a number of sites. This will remain a key focus for the next 3 to 5 years.

Magnox has not experienced any significant nuclear safety incidents. The dose to workers from radiation remains at a low level and the nuclear safety metrics have shown good performance throughout the year. ONR’s regulation of Magnox sites has identified good safety management and continued compliance. This is demonstrated through consistently adequate (green) ratings from site specific licence condition inspections.

The TRIR at the end of 2020/21 was 0.18, compared to 0.26 in 2019/20 and was below the corporate target of \<0.39. Oversight of this rolling 12-month metric showed a steady decline during the site pause and initial restart. The organisation has maintained its Continuous Safety Improvement Plan to deliver its aim of continual improvement of safety performance. 2020/21 focus areas included decommissioning mindset and a Target Zero campaign which covers a ‘watch list’ of good practices and behaviours which foster the safest culture for a decommissioning environment. Safety specific improvements in electrical safety, asbestos and lifting were also progressed. Reducing our asbestos hazard at sites continued to be a priority for in 2020/21 and will continue to be so for 2021/22.

The level of sickness absence showed a downward trend during 2020/21. Implementation of wellbeing initiatives to enhance staff resilience and wellbeing was a focus for the Executive and delivered through the Continuous Safety Improvement Plan.

Radioactive Waste Management (RWM) Ltd

Overall, the RWM safety performance for 2020/21 was good, safely maintaining essential operations and successfully managing the implications of the COVID-19 pandemic. Unfortunately, there was one Reporting of Injuries, Diseases and DangerousOccurrences Regulations (RIDDOR) reportable injury during the year involving a tier 2 contractor who sustained a finger fracture.

Low Level Waste Repository (LLWR) Ltd

Overall, the LLWR Safety performance was excellent for the year, safely maintaining all essential operations and keeping the site open throughout the COVID-19 lockdowns. Construction and demolition work have progressed across the site, with the completion of demolition of the Plutonium Contaminated Material recovery facilities and large- scale mobilisation of the Repository Development Programme preliminary works for the construction of the cap with no recordable injuries.

The TRIR at the end of 2020/21 was 0.29, compared to 0.00 in 2019/20 and was above the corporate target of \<0.25. The change in TRIR reflects one relatively minor injury to an individual.

Dounreay Site Restoration Ltd (DSRL)

Like other organisations, COVID-19 was the dominant issue for DSRL in 2020/21 and the site was safety demobilised to a quiescent state.

Decommissioning work recommenced in a controlled manner in line with COVID-19 regulations and guidance, with a significant proportion of the workforce working from home. The need to balance the COVID-19 risk with other hazards has been an ongoing focus. Through this period, safety performance was good but significant effort went into supervision and the proper application of controls to ensure standards were maintained through the normalisation of COVID-19 arrangements and transition to NDA ownership. The TRIR at the end of 2020/21 was 0.04, compared to 0.2 in 2019/20 and was below the corporate target of \<0.1.

Nuclear Transport Solutions (NTS)

The newly formed transport operational company, NTS, comprising Direct Rail Services Ltd. (DRS) and International Nuclear Services Ltd. (INS), maintained a good safety performance throughout the year. DRS achieved a 30% improvement in the All Accident Frequency Rate, meaning fewer accidents occurred. Both DRS and INS achieved full accreditation to the health and safety management ISO standard 45001. DRS significantly improved their action close out rate achieving a score of 98%, compared with less than 60% achieved in the previous year. INS successfully rolled out DriveTec from the AA, recognised as a world leader in managing fleet risk from driving at work. DRS undertook a full operational review against Rail Industry Risk Maturity Model with a positive outcome and INS’ Risk Assessment Governance Review was ahead of the programme plan.

Operational Companies: Environmental Performance

Sellafield Ltd

Against the significant challenges of COVID-19 there has been positive progress across environmental management at Sellafield. The launch of a new Manifesto and Enterprise Strategy clearly defines the purpose being to create a clean and safe environment for future generations and the profile of Environment has never been higher. This is further underpinned by the establishment of a Sustainability Steering Group and introduction of a set of Sustainability Principles and Carbon Reduction Principles.

Work has continued to build around carbon management, taking the baseline carbon footprint and 12% reductions achieved in the previous year as a basis to identify potential reduction opportunities over the coming decades. Alongside the priority delivery of high hazard risk reduction, Sellafield is seeking to deliver improved environmental outcomes for the site.

Following the successful major review of the site radioactive substances activities permit, the introduction of the varied permit was delayed due to the impacts of COVID-19 and came into effect in October 2020. The management of permit arrangements and compliance throughout the year has been a significant challenge. From the very earliest notification of COVID-19 restrictions, Sellafield worked with the Environment Agency (EA) to ensure that risks and priorities continued to be appropriately managed, including use of provisions under two newly introduced Regulatory Position Statements. The actions taken together with temporary working arrangements introduced by Sellafield (including Examination, Maintenance, Inspection and Testing (EMIT) of environmental equipment) have been reviewed by the EA, with positive assessment findings.

The site continued to have environmental events. These are subject to investigation by Sellafield and the EA and have been assessed as having minor or no environmental effect. An area that has been under closer scrutiny by the EA is the site sewage treatment works. The EA are now satisfied that the existing programme of improvement work comprising engineering developments at the facility and opportunities to improve the drainage network, together with improvements to resources, training and operating techniques remains appropriate to return the facility to a reliably compliant position.

There is an ongoing leak at one of the facilities on site which has been reported as a level 2 Incident on the International Nuclear Event Scale (INES) and is the focus of intense effort to retrieve radioactive waste from the facility and to address the leak.

Both the ONR and the EA are closely involved in the regulation of this event with the EA issuing a variation to the site permit to include some improvement conditions relating to the leak.

The work reported in 2019 by Sellafield’s Nuclear Intelligence and Independent Oversight (NIIO) on environmental leadership has been revisited, with positive indicators pointing towards a much stronger environmental culture developing across the business.

Dounreay Site Restoration Ltd (DSRL)

At DSRL, improvements attained in previous years were largely sustained with low number of events. Substantial work was carried out, validated, and submitted to the Scottish Environment Protection Agency (SEPA) in response to regulatory notices received in previous years. There was an event, for which SEPA issued a warning letter, over very low levels of radioactivity in surface water discharges. DSRL is now working to a plan with SEPA to include appropriate, low, limits for radioactivity in these discharges to regularise this situation.

For much of the period DSRL was working under a Contingency Plan in support of SEPA’s Temporary Regulatory Position relating to COVID-19.

COVID-19 precautions impacted upon the ability to comply in full with the conditions of the permits held by DSRL. This has been proactively managed and as the various phases of COVID-19 occurred,compliance was maximised in line with COVID-19 secure controls. The remaining issues relate primarily to throughput of laboratory analysis. This has been the subject of regular discussion with SEPA.

Magnox Ltd

The COVID-19 pandemic had a substantial impact on Magnox culminating in an operational pause from late March to June 2020. During this period environmental compliance was successfully managed, utilising the appropriate Regulatory Position Statements where available. Despite the disruption of COVID-19, good progress continued to be made on hazard reduction. For example, the Liquid Effluent Treatment Plant land remediation project at Harwell was able to resume operations in August 2020 returning to pre-pandemic capacity in October. During January 2021 the project shipped the thousandth consignment of Very Low Level Waste, a result of remediation works.

Magnox completed an Environmental Culture Survey in response to apparent trends identified from event learning. The survey identified the 3 key areas for improvement as the effective integration of environmental considerations into key company processes, the integration of environmental professionals with delivery teams and opportunities to improve training provision in specific areas. An improvement plan has been developed to address these issues. The company also launched their sustainability strategy, which is based around the 5 key goals of, Governance, Supply Chain, Employees, Community and Environment.

Low Level Waste Repository (LLWR) Ltd

LLWR Ltd made progress in 2020/21 with its Repository Development Programme which will see an important milestone for environment protection in the future involving capping Vault 8. Environmental Performance continues to be good at LLWR.

Other companies and subsidiaries

Elsewhere, there has been good environmental performance in our businesses NDA Properties Ltd, INS/PNTL, RWM and DRS.

Financial summary 2020-21

The NDA spend on tackling the legacy

The bulk of the NDA’s budget is directed towards tackling the nuclear legacy, by funding the decommissioning carried out by Site Licence Companies. The remainder funds commercial operations, industry-wide costs, fees to Site Licence Companies and the NDA’s own running costs.

Spend/Cost	2020/21	2019/20
Spend on tackling the legacy	£2,440m	£2,603m
Commercial and energy costs	£335m	£339m
NDA Central costs	£55m	£53m
Fees paid to businesses	£16m	£40m
Other	£213m	£134m

The NDA spend by business

Spend in 2020/21 was £3.059 billion. More than 68% of this was spent at Sellafield, reflecting the priority given to the site. Expenditure at Sellafield has increased during the NDA’s existence and now stands at £2.1 billion per year.

Business / Activity	2020/21	2019/20
Sellafield	£2,082m	£2,084m
Magnox	£408m	£477m
LLWR, Springfields, Capenhurst	£118m	£124m
Dounreay	£169m	£188m
NDA (including Energy, RWM)	£233m	£246m
Nuclear materials and transport	£49m	£50m

The NDA Corporate Centre net spend

The NDA’s own running costs increased to £55 million per year, or approximately 1.8% of overall expenditure, reflecting the NDA’s investment in enhanced capability and capacity.

Year	Staff costs	Other	Total
2020/21	£40m	£15m	£55m
2019/20	£39m	£14m	£53m

The NDA’s income

The NDA recognised income of over £0.6 billion in the year, with almost £0.5 billion arising from reprocessing and management of spent fuels and waste.

Income	2020/21	2019/20
Reprocessing/waste contracts	£275m	£290m
Future fuel contract	£213m	£217m
Energy sales	£4m	£23m
Nuclear materials and transport	£49m	£221m
Other	£71m	£38m

Note the figures in the above, and following, graphs are prepared on the basis of government financial reporting, which differs in part from the basis used to prepare the financial statements

The NDA spend on tackling the legacy

The proportion of the NDA expenditure tackling the nuclear legacy has increased since 2005, with a corresponding reduction in commercial costs as commercial operations wind down.

The NDA spend by business

Sellafield has always been the NDA’s largest area of spend and has been increasingly prioritised in recent years as funding has been directed towards the estate’s highest hazards.

The NDA Corporate Centre net spend

After the early years in establishing the NDA’s structure and programme, annual running costs stabilized at below £40 million per year. In 2019/20 the NDA invested in enhanced capability and capacity in order to ensure the successful delivery of its mission.

The NDA’s income

In recent years electricity generation income has reduced, leaving reprocessing and management of spent fuels and waste as the dominant source of income.

Nuclear Provision

The Nuclear Provision is a single point number in the Statement of Financial Position which represents the discounted estimated cost of the decommissioning mission.

The NDA management’s best estimate of the future costs of the estate is based on an assumed inventory of materials, using strategies for retrieval and disposal over several decades. Each of these elements (quantity, method and time to treat) is uncertain in their own right, as is the cost of developing the necessary technology and plans to deal with these activities. The quality of the forecast becomes less certain further into the future, and acceptable standards of clean-up and end states may change.

It is important to understand the basis of this estimate and the inherent uncertainty around it, and therefore that it is simply a single point in a credible range of potential outcomes.

Changes in 2020/21 estimate Authority

The discounted nuclear provision at the end of 2019/20 was £134.9 billion. Since then the movements have been:

• The value provided for 2020/21 released from the provision -£2.9 billion
• Increases from inflation +£1.4 billion
• Unwinding of the existing discount applied to the provision every year negligible in 2021
• The impact of the changes in discount rates £0.7 billion
• Cost estimate changes which increase the liability estimate by £1.7 billion.

These movements bring the 2020/21 Authority estimate toe £135.8 billion discounted.

The nuclear provision is the best estimate of how much our mission will cost over approximately 120 years

The graph (below) shows the undiscounted expenditure profile for future years (excluding NDA administrative and other non-programme costs, and some commercial costs) from lifetime cost projections from each of the site licence companies.

The expenditure profile illustrates a downward trend in expenditure over the next 50 years, following a short-term peak over the next 10 years, as sites enter into Care and Maintenance with subsequent increases in expenditure in the period from 2070 when final site clearance work on Magnox sites is undertaken.

Total expenditure profile (£m, undiscounted)

		Movements	Movements	Movements	Movements	Movements	Movements
	2019/20 undiscounted (£m)	2019/20discounted (£m)	Unwind of dis-count (£m)	Discount rate change (£m)	Released in year (£m)	Inflation	Other cost change (£m)	Movement discounted (£m)	2020/21un discounted (£m)	2020/21discounted (£m)
Sellafield	(96,515)	(98,529)	28	(492)	2,074	(865)	(1,490)	(745)	(96,605)	(99,274)
Magnox	(19,718)	(20,142)	(10)	(111)	475	(279)	(180)	(105)	(19,698)	(20,247)
Dounreay	(2,564)	(2,705)	-	(41)	182	(39)	(14)	88	(2,432)	(2,617)
LLW Repository	(606)	(632)	3	(5)	26	(9)	(16)	(1)	(604)	(633)
INS Contracts	(46)	(47)	-	-	1	(1)	-	-	(45)	(47)
Capenhurst	(1,479)	(1,521)	4	(10)	89	(22)	(67)	(6)	(1,477)	(1,527)
Springfields	(628)	(634)	1	(1)	25	(9)	-	16	(613)	(618)
GDF	(10,499)	(10,657)	(11)	(37)	64	(159)	-	(143)	(10,592)	(10,800)
Authority	(132,055)	(134,867)	15	(697)	2,936	(1,383)	(1,767)	(896)	(132,066)	(135,763)
NDA group companies	(20)	(21)	-	(1)	-	-	(4)	(5)	(23)	(26)
Group Provision Adjustment	142	142	-	-	-	-	427	427	569	569
NDA Group	(131,933)	(134,746)	15	(698)	2,936	(1,383)	(1,344)	(474)	(131,520)	(135,220)

Parliamentary accountability disclosures

The notes and disclosures in this section are subject to audit.

Losses and special payments

The disclosures in this note are in accordance with ‘Managing Public Money’, and the purpose of this note is to report on losses and special payments of particular interest to Parliament. Total losses during the year were £2,575,559 (2020: £4,623,843).

Type of loss	2021 Total (£)	2021 Number of cases	2020 Total (£)	2020 Number of cases
Cash losses	-	-	-	-
Store losses	2,111,024	40	4,429,784	100+
Losses of pay, allowances and super annuation	-	-	-	-
Fruitless payments	83,883	127	70,057	333
Constructive losses	-	-	-	-
Claims waived or abandoned	-	-	-	-
Book-keeping losses	-	-	11,984	1
Failure to make adequate charges-	-	-	-	-
Exchange rate fluctuation losses	48,573	1	112,018	1
Special payments	332,079	1	-	-
Total	2,575,559		4,623,843

Store losses relate to the write-off of stores item on licence sites. In 2020 the store lossesincluded the write-off of chemicals purchased for use in the Thorp reprocessing plant at Sellafield, and no longer required following the conclusion of reprocessing activity at the plant in 2019(value £916,418).

Book-keeping losses in 2020 relate to the writing off of a historic debt associated with a Magnox site.

Special payments relate to a fine (£320,000) and associated costs (£12,079) paid by Sellafield Ltd following a prosecution at Carlisle Magistrates Court in December 2020 in relation to an incident on 24 April 2020, in which an employee was injured while working on electrical equipment. The prosecution was brought by the Office for Nuclear Regulation (ONR) under Section 2 (1) of the Health and Safety at Work Act.

A contract loss provision in respect of potentially onerous commercial contracts to manage spent fuel and waste is included within other provisions (note 25 to accounts) and is not included in the losses disclosed above.

Remote contingent liabilities

Remote contingent liabilities not required to be disclosed under IAS 37 but included for parliamentary reporting and accountability purposes:

(a) The NDA has non-quantifiable contingent liabilities arising from indemnities given as part of the contracts for the management of the site licence companies. These indemnities are in respect of the uninsurable residual risk that courts in a country which is not party to the Paris and Brussels Conventions on third party liabilities in the field of nuclear energy may accept jurisdiction to determine liability in the event of a nuclear incident.

Indemnities are provided to the previous PBOs of Sellafield, Magnox, Dounreay and LLWR covering the periods in their ownership. These are not treated as contingent liabilities within the meaning of IAS 37 since the possibility of a transfer of economic benefit in settlement is considered too remote.

(b) In November 2019 a novel strain of coronavirus was detected and spread rapidly, leading the World Health Organisation to declare a pandemic on 11 March 2020. The ongoing disruption caused by the pandemic has created significant economic uncertainty, and this uncertainty isexpected to continue throughout 2021. As a result, an unquantifiable contingent liability is disclosed, relating to potential additional costs resulting from the suspension of projects and operations at the Authority’s sites. In accordance with accounting standards, no contingent assets can be recognised.

(c) The UK left the EU in accordance with Article 50 on 31 January 2020 and the Withdrawal Agreement between the UK and the EU became legally binding at the same time.

Subsequent changes in legislation, regulation and funding arrangements are subject to the outcome of the negotiations. As a result, an unquantifiable contingent liability is disclosed. In accordance with accounting standards, no contingent assets can be recognised.

David Peattie
Accounting Officer and Group Chief Executive Officer
15 July 2021

The report of the Comptroller and Auditor General to the Houses of Parliament

Opinion on financial statements

I have audited the financial statements of the Nuclear Decommissioning Authority for the year ended 31 March 2021 under the Energy Act 2004. The financial statements comprise: the Group and Authority Statements of Comprehensive Net Expenditure, Financial Position, Cash Flows, Changes in Taxpayers’ Equity; and the related notes, including the significant accounting policies. These financial statements have been prepared under the accounting policies set out within them. I have also audited the information in the Accountability Report that is described in that report as having been audited. The financial reporting framework that has been applied in their preparation is applicable law and International Accounting Standards as interpreted by HM Treasury’s Government Financial Reporting Manual.

I have also audited the information in the Accountability Report that is described in that report as having been audited.

In my opinion, the financial statements:

• the financial statements give a true and fair view of the state of the group’s and of the Nuclear Decommissioning Authority’s affairs as at 31 March 2021 and of the group’s and the Authority’s net expenditure after taxation for the year then ended; and;
• the financial statements have been properly prepared in accordance with the Energy Act 2004 and Secretary of State directions issued thereunder.

Emphasis of matter – nuclear provisions

Without qualifying my opinion, I draw attention to the disclosures made in notes 3 and 24 to the financial statements concerning the uncertainties inherent in the nuclear decommissioning provisions. As set out in these notes, given the very long timescales involved and the complexity of the plants and materials being handled, a considerable degree of uncertainty remains over the value of the liability for decommissioning nuclear sites designated by the Secretary of State. Significant changes to the liability could occur as a result of subsequent information and events which are different from the current assumptions adopted by the Authority.

Opinion on regularity

In my opinion, in all material respects, the income and expenditure recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them.

Basis for opinions

I conducted my audit in accordance with International Standards on Auditing (ISAs) (UK), applicable law and Practice Note 10 ‘Audit of Financial Statements of Public Sector Entities in the United Kingdom’. My responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of my report

Those standards require me and my staff to comply with the Financial Reporting Council’s Revised Ethical Standard 2019. I have also elected to apply the ethical standards relevant to listed entities. I am independent of the Nuclear Decommissioning Authority in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK. My staff and I have fulfilled our other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Conclusions relating to going concern

The Nuclear Decommissioning Authority’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Nuclear Decommissioning Authority’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

My responsibilities and the responsibilities of the Authority and the Accounting Officer with respect to going concern are described in the relevant sections of this report.

The going concern basis of accounting for Nuclear Decommissioning Authority is adopted in consideration of the requirements set out in International Accounting Standards as interpreted by HM Treasury’s Government Financial Reporting Manual, which require entities to adopt the going concern basis of accounting in the preparation of the financial statements where it anticipated that the services which they provide will continue into the future.

Other Information

The other information comprises information included in the annual report, but does not include the parts of the Accountability Report described in that report as having been audited, the financial statements and my auditor’s report thereon. The Authority and the Accounting Officer is responsible for the other information. My opinion on the financial statements does not cover the other information and except to the extent otherwise explicitly stated in my report, I do not express any form of assurance conclusion thereon. In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard.

Opinion on other matters

In my opinion, based on the work undertaken in the course of the audit:

• the parts of the Accountability Report to be auditedhave been properly prepared in accordance with Secretary of State directions made under the Energy Act 2004; and
• the information given in the Performance and Accountability Reports for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which I report by exception

In the light of the knowledge and understanding of the Nuclear Decommissioning Authority and its environment obtained in the course of the audit, I have not identified material misstatements in the Performance and Accountability report / the Directors’ report. I have nothing to report in respect of the following matters which I report to you if, in my opinion:

• adequate accounting records have not been kept or returns adequate for my audit have not been received from branches not visited by my staff; or
• the financial statements and the parts of the Accountability Report to be audited are not in agreement with the accounting records and returns; or
• certain disclosures of remuneration specified by HM Treasury’s Government Financial Reporting Manual are not made; or
• I have not received all of the information and explanations I require for my audit; or
• the Governance Statement does not reflect compliance with HM Treasury’s guidance.

Responsibilities of the Authority and Accounting Officer for the financial statements

As explained more fully in the Statement of Accounting Officer’s Responsibilities, the Authority and the Accounting Officer, is responsible for:

• the preparation of the financial statements in accordance with the applicable financial reporting framework and for being satisfied that they give a true and fair view;
• internal controls as the Authority and the Accounting Officer determines is necessary to enable the preparation of financial statement to be free from material misstatement, whether due to fraud or error.
• assessing the Nuclear Decommissioning Authority’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Authority and the Accounting Officer anticipates that the services provided by the Nuclear Decommissioning Authority will not continue to be provided in the future.

Auditor’s responsibilities for the audit of the financial statements

My responsibility is to audit and report on the financial statements in accordance with the Energy Act 2004.

My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a report that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of non-compliance with laws and regulation, including fraud.

(ISA 700 uses the word “irregularities” to describe non-compliance with laws and regulations. We do not use the word irregularities to describe non-compliance within our certificates and reports as it has another meaning in the context of PN10.)

My procedures included the following:

• Inquiring of management, the Nuclear Decommissioning Authority’s head of internal audit and those charged with governance, including obtaining and reviewing supporting documentation relating to the Nuclear Decommissioning Authority’s policies and procedures relating to:
  • identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
  • detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
  • the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations including the Group’s controls relating to the Energy Act 2004, and Managing Public Money
• discussing among the engagement team including significant component audit teams regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, I identified potential for fraud in the following areas: revenue recognition and posting of unusual journals; and
• obtaining an understanding of the Nuclear Decommissioning Authority and Group’s framework of authority as well as other legal and regulatory frameworks that the Nuclear Decommissioning Authority and Group operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the Nuclear Decommissioning Authority and Group. The key laws and regulations I considered in this context included the Energy Act 2004, Managing Public Money, Employment Law, and Tax Legislation;

In addition to the above, my procedures to respond to identified risks included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above;
• enquiring of management, the Audit Committee and in-house legal counsel concerning actual and potential litigation and claims;
• reading minutes of meetings of those charged with governance and the Board;
• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and
• reviewing internal audit reports

I also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists and significant component audit teams and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of my responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website. This description forms part of my report.

In addition, I am required to obtain evidence sufficient to give reasonable assurance that the income and expenditure reported in the financial statements have been applied to the purposes intended by Parliament and the financial transactions conform to the authorities which govern them.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

I have no observations to make on these financial statements.

Gareth Davies
Comptroller and Auditor General
National Audit Office
157-197 Buckingham Palace Road
Victoria
London
SW1W 9SP
16 July 2021

Annual Accounts

See NDA Annual Accounts excel workbook

Performance analysis

The following section provides a summary as to how each of the organisations in the NDA group has performed in 2020/21. The performance of Urenco Nuclear Stewardship Ltd and Springfield Fuels Ltd is also included due to their role in decommissioning our sites at Capenhurst and Springfields.

The following section provides a summary as to how each organisation has performed against the key activities and milestones set out in our 2020-23 Business Plan. The ‘golden thread’ from the NDA’s 47 Strategic Outcomes to each of these key activities and milestones is also shown.

As in previous years, a summary of the performance of the NDA group’s major projects (defined as being those very large and complex new construction projects that have received business case approval by Government) is included in Appendix B of this report.

NDA Corporate Centre

The NDA is a non-departmental public body created by the Energy Act 2004 to lead the clean-up and decommissioning work at the NDA’s 17 sites on behalf of government. NDA is sponsored and funded by the Department for Business, Energy and Industrial Strategy (BEIS).

Nuclear Materials

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Work with government to develop a long-term management solution for separated plutonium in the UK	20	2020-2023		On Target

Integrated Waste Management

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Work with group businesses to explore alternative disposal options for Higher Activity Waste	39	2020-2023		On Target
Develop a group-wide integrated waste programme to secure significant change to radioactive waste management programmes across the NDA group	39	2020-2023		On Target

Spent Fuels

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Manage special nuclear materials consolidation in agreed locations	12	2020-2023		On Target

Critical Enablers

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Publish a revised NDA Strategy		2020-2021	Achieved
Progress spending review through to settlement		2020-2021	Achieved
Implement accepted recommendations from the Magnox Inquiry and Tailored Review
2020-2021	Deferred		Deferred as the Magnox Inquiry Report was not published until March 21 and the Departmental Review (formerly the Tailored Review) is yet to be published. NDA will respond in a timely manner when both reports are published and in line with our structured approach to overseeing and coordinating the responses to all such inquiries, reviews etc.
Work with group businesses to map the carbon footprint and develop a road map for how we will support government’s commitment to net-zero greenhouse gas emissions for the UK by 2050		2020-2021		Achieved
Provide support to government on nuclear new build decommissioning plans		2020-2023		On Target
Lead the strategic agenda across the NDA group on equality, diversity and inclusion (ED&I), ensuring effective governance and provide oversight on the creation of implementation plans to achieve ED&I targets		2020-2023		On Target
Embed the key tenets of the Industrial Strategy, including active participation in the Nuclear Sector Deal to help achieve HMG deliverables		2020-2023		On Target
Support implementation of forthcoming new nuclear emergency preparedness standards across the NDA group, as part of the UK’s implementation of the Basic Safety Standards Directive 2013		2020-2023		On Target
International support, sharing knowledge and expertise in decommissioning and clean-up activities		2020-2023		On Target
Implement the group Socio-Economic Strategy outlining opportunities for the wider economy		2020-2023		On Target
Develop strategic opportunities that optimise delivery of the mission		2020-2023		On Target
Enable the group to proactively deter, detect, defend against, recover from and be resilient to both current and evolving cyber threats		2020-2023		On Target
Support small and medium enterprise organisations by increasing overall spend with them in line with the government growth agenda		2020-2023		On Target
Implement our strategic people delivery plan to enable resource planning, skills development and flexibility and mobility across the group		2020-2023		On Target
Lead in the area of Mental Health and Wellbeing across the NDA group and further enhance the wellbeing community across the group		2020-2023		On Target
Implement new ICT infrastructure, software and working practices to allow smarter, flexible working across the NDA		2020-2023		On Target
Implement government led reforms of public sector pensions and exit caps across the NDA group		2020-2023		On Target
Continue collaboration with the NDA group and BEIS to further develop targeted opportunities for the delivery and effective re-use of our land and infrastructure in support of the NDA mission and wider UK Industrial Strategy		2020-2023		On Target

Regulatory control

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Contribute to sustainability performance and meet government objectives and targets		2020-2023		On Target	Status subject to new target setting from HMG under the Greening Government Commitments initiative.
Continue working with regulators and government to determine institutional controls appropriate to restoration of nuclear sites		2020-2023		On Target

Sellafield Ltd

Sellafield Ltd is an NDA subsidiary, responsible for operating and decommissioning Europe’s largest and most complex nuclear site. This includes cleaning up nuclear facilities and safeguarding nuclear fuel, materials and waste.

Spent Fuel

All spent fuels discharged from the operating Advanced Gas-Cooled Reactor (AGR) power stations and defueling of all Magnox power stations reactors are sent to Sellafield for management. The receipt of AGR fuels will continue until the end of the AGR electricity programme, whilst all the Magnox fuel has now been received at Sellafield. The management of AGR fuel under contracts with EDF Energy provides a significant income stream to NDA.

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Spent Magnox Fuel: Complete Magnox reprocessing and continued interim storage in FHP for any remnant fuel	3,4	2020-2021	Missed		Magnox reprocessing delayed due to COVID-19. Plan now approved to extend Magnox reprocessing from Dec-20 to Dec-21.
Spent Oxide Fuel: Enhance capacity to receive/manage and interim store AGR spent fuel from EDF Energy, to support bulk defueling	6,9	2020-2023		On Target
Spent Exotic Fuel: Continue to receive Dounreay spent exotic fuel to be reprocessed or stored, and develop alternative capability for receipt and management of remaining spent exotic fuels from Dounreay	12,14	2020-2023		Behind Target	DFR shipments continue in line with ongoing Magnox Reprocessing. For remaining spent exotic fuels, work continues on developing dry storage arrangements and associated transport and infrastructure support.

Integrated Waste Management

The various activities across the site produce wastes in many forms. These require varying degrees of treatment and onward processing. The site continues to focus on safe, efficient management of these wastes, including: the conversion of Highly Active Liquor (HAL) into passively safe vitrified waste; the return of vitrified material overseas; and the management of on-site intermediate and low level wastes. The areas of principal focus are the redundant Legacy Ponds and Silos facilities, made up of the Pile Fuel Storage Pond, Pile Fuel Cladding Silo, First Generation Magnox Storage Pond and Magnox Swarf Storage Silo. These facilities supported the development of the nuclear programme in the UK from the early 1950s. Subsequently, they supported electricity generation from the fleet of Magnox power stations. The programmes include the removal of nuclear fuel, sludge and solid material which require the provision of equipment to retrieve the various wastes and then treat and store them in passive condition. This process needs to take into account the role of integrated waste management in achieving hazard reduction and long-term safety, security and environmental protection requirements.

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Low Level Waste: Continue to generate savings and preserve capacity at the Low Level Waste Repository by enhancing capability to divert waste to LLWR and the supply chain	27	2020-2023		On Target
Intermediate Level Waste: Support the NDA’s strategy by continuing the programmes to receive and treat waste materials from Harwell and AWE Aldermaston	32	2020-2023		On Target
Intermediate Level Waste: Support future waste treatment through implementing the capability to actively demonstrate characterisation, size reduction and decommissioning	32	2020-2023		On Target
Intermediate Level Waste: Support risk reduction by developing additional capability for treatment of intermediate level liquid wastes and storage of by-products	32	2020-2023		On Target
Intermediate Level Waste: Support future decommissioning through optimisation of future storage and treatment arrangements	32, 33	2020-2021	Achieved
Pile Fuel Storage Pond (PFSP): Progress waste retrieval by having waste skips either exported or ready to export	31	2020-2023		On Target
Pile Fuel Storage Pond (PFSP): Demonstrate pond dewatering capability through completion of the bay dewatering trials	31	2020-2022		On Target
First Generation Magnox Storage Pond (FGMSP): Support risk reduction from FGMSP through continued removal of fuel and waste from the facility	31	2020-2023		On Target
Magnox Swarf Storage Silo (MSSS): Progress the capability required for bulk retrievals	31	2020-2023		On Target
High level waste: Continue the programme to repatriate overseas-owned vitrified waste to its country of origin	38	2020-2023		Behind Target	Delays to Japanese customers’ returns are being mitigated by accelerating other overseas returns e.g. Australia customer returns.
High level waste: Support reprocessing plant decommissioning by establishing the capability and commencing processing of High Active Post Operational Clean Out of solids through the vitrification plant	36	2020-2023		Behind Target	High level wastes plants continue to support revised Magnox reprocessing and POCO dates with proposed revised baseline change to ensure alignment with POCO timescales.
Nuclear Materials: Sellafield is the custodian of the majority of the UK’s inventory of separated plutonium which is held in safe and secure storage.
Plutonium: Continue the safe and secure storage of plutonium by developing the capability to repack/retreat plutonium in line with UK policy	18,19	2020-2023		Behind Target	SRP Full Business Case will be submitted for ministerial approval mid-2021. Active commissioning nowf forecast for Sept-28. Prior to SRP coming online current projects such as Finishing Line 4 and Can Surveillance activities remain on schedule to deal with most acute plutonium can inventory.
Uranics: Support future decommissioning by implementing plans for consolidated storage of Sellafield uranics	22,24	2020-2023		On Target

Site Decommissioning and Remediation

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Decommissioning and demolition: Complete decommissioning and demolition of the upper diffuser section of the Windscale Pile Chimney Number 1	42,43	2020-2022		On Target
Decommissioning and demolition: Establish decommissioning capability by implementing the alpha and beta gamma decommissioning programmes	43	2020-2021	Achieved
Decommissioning and demolition: Commence post operational clean-out (POCO) of Magnox Reprocessing Plant	42	2020-2021	Missed		Due to the Covid-19 impact on Magnox Reprocessing and the agreement to extend Magnox operations until Dec-21, commencement of POCO is assumed for Jun-22.

Critical Enablers

A number of key enabling activities require specific focus, ranging from infrastructure refurbishment or replacement projects, through to key change programmes which aim to improve operational delivery and efficiency on site.

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Continue the Sellafield transformation to support future business requirements including the development and embedding of a value-led culture		2020-2023		On Target
Develop and embed the long-term partnership with the supply chain		2020-2023		On Target
Progress the transformation of project delivery on site and continue to embed the Programme and Project Partnership		2020-2023		On Target
Support small and medium enterprise organisations by targeting overall spend with them in line with the government growth agenda		2020-2023		Behind Target	The impact of Covid-19 during 20/21 has impacted upon both the level and nature of supply chain spend. With a focus on core operations in Q1 of the year, SME expenditure dropped to 29%. A SME action plan is in place to recover.
Continue the Sellafield security enhancement programme		2020-2023		Behind Target	Overall programme will not achieve its strategic objective of realising Initial Operating Capability for 31 July 2021 or the Office for Nuclear Regulation Security Improvement Schedule milestone of 30 Sept 2021. Revised dates now proposed to regulator. Covid-19 has impacted the programme. Work to determine the extent of the impact and reflect this in the schedule is ongoing.
Continue with improvements to the site utilities infrastructure and new Steam Generating Plant				On Target
Continue the programme to ensure the analytical services capability is available to support the mission		2020-2023		Behind Target	Impacts of Covid-19 have delayed the design development of the Replacement Analytical Project (RAP). The RAP team is currently considering options for recovery.
Embed the key tenets of the Industrial Strategy, including the Nuclear Sector Deal		2020-2023		On Target
Working to embed the capability to proactively protect, detect, respond and recover against current and evolving cyber threats		2020-2023		On Target
Maintain an asset management regime that takes into account the impact of asset condition on meeting regulation		2020-2023		On Target

Regulatory control

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Ensure discharges are in line with UK discharge strategy		2020-2023		On Target
Reduce environmental risk (including retrieval and treatment of legacy wastes, reduction of HAL stocks)		2020-2023		On Target

Magnox Ltd

Magnox is an NDA subsidiary, responsible for 12 nuclear sites across the UK: Berkeley, Bradwell, Chapelcross, Dungeness A, Harwell, Hinkley Point A, Hunterson A, Oldbury, Sizewell A, Trawsfynydd, Winfrith and Wylfa. Magnox also generates electricity at the Maentwrog hydroelectric plant.

Integrated Waste Management

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Low Level Waste: Delivery of the Magnox elements of the estate-wide low level waste management plan, including diversion to alternative treatment	26, 27, 28, 29	2020-2023
On Target
Intermediate Level Waste: Progress activities to retrieve, treat and store ILW	31, 32, 33	2020-2023		On Target
Intermediate Level Waste: Continue to pursue opportunities to consolidate ILW to interim stores	33	2020-2023		On Target

Nuclear Materials

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Uranics: Continue the programme for the transfer of nuclear materials	22	2020-2023		On Target
Uranics: Regulatoy permissioning in support of the transfer of nuclear materials between sites	22	2020-2023		On Target

Site Decommissioning and Remediation

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Decommissioning and demolition: Continue estate decommissioning and demolition activities working towards interim states	42, 43	2020-2023		On Target	Magnox strategy is moving away from interim states. This target will need to be revisited once new Lifetime Plan is developed.
Decommissioning and demolition: Continue focus on the major risk of asbestos including production of an optimised, underpinned strategy for asbestos, without detriment to Care and Maintenance	42	2020-2023		On Target
Decommissioning and demolition: Develop continuous reactor decommissioning strategy	42	2020-2023		On Target
Decommissioning and demolition: Development of mature decommissioning capability to support One NDA	42	2020-2023		On Target
De-designate or Reuse: Continue working with regulators to ensure appropriately scaled management arrangements and permissioning for interim states and interim end states are determined and agreed	44	2020-2023		On Target
De-designate or Reuse: Develop Interim State approaches, utilising revised management arrangements	44	2020-2023		On Target
De-designate or Reuse: Monitor management and maintenance arrangements for sites in Care and Maintenance	44	2020-2023		On Target
De-designate or Reuse: Progress land de-designation and release to support re-use	47	2020-2023		On Target
De-designate or Reuse: Provide support to nuclear new build	47	2020-2023		On Target

Critical Enablers

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Support the government in activities to deliver the new build agenda and preparations for decommissioning the AGR fleet		2020-2023		On Target
Continue information governance activities and supporting processes		2020-2023		On Target
Continue delivery of the sift & lift programme to rationalise all Magnox records and transfer as appropriate to NDA Archive in Wick		2020-2023		Behind Target	Impacted by Covid-19. NDA programme has been delayed and Magnox’s programme reflects this.
Support small and medium enterprise organisations by targeting overall spend with them in line with government growth agenda		2020-2023		On Target
Support NDA in property activities to reduce NDA decommissioning liability and achieve best value on asset disposal		2020-2023		On Target
Continue the enhancement of cyber capability		2020-2023		On Target
Continue delivery of the asset care programme		2020-2023		On Target

Berkeley

Integrated Waste Management

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Intermediate Level Waste: Complete Design and Build of ILW retrieval plant	31	2020-2023		On Target
Intermediate Level Waste: Progress activities to retrieve, treat and store ILW	31, 32, 33	2020-2023		On Target
Intermediate Level Waste: Continue retrieval and packaging activities in the active waste vaults	32	2020-2023		On Target
Intermediate Level Waste: Retrieve waste from shielded area (caves)	32, 33	2020-2022		On Target
Intermediate Level Waste: Complete Design and Build of ILW encapsulation facility	32	2020-2021	Missed		Impacted by COVID-19. Will be completed in 2021/22.

Site Decommissioning and Remediation

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Decommissioning and demolition: Decommissioning (including asbestos removal) and demolition activities ongoing in preparation for entry into Care and Maintenance	42, 43	2020-2023		On Target

Bradwell in Care and Maintenance

Site Decommissioning and Remediation

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
De-designate and Reuse: Ongoing management of site during Care and Maintenance period	44	2020-2023		On Target

Chapelcross

Integrated Waste Management

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Intermediate Level Waste: Progress activities to retrieve, treat and store ILW	31, 32, 33	2020-2023		On Target
Intermediate Level Waste: Complete design and build of ILW Encapsulation facility	32	2020-2023		On Target
Intermediate Level Waste: Complete active commissioning of the Modular Active Effluent Treatment Plant	32	2020-2021	Missed		Impacted by COVID-19. Will be completed in 2021/22.
Intermediate Level Waste: Operate ILW store	33	2020-2022		On Target

Site Decommissioning and Remediation

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Decommissioning and demolition: Prepare for pond draining and stabilisation	42	2020-2023		On Target
Decommissioning and demolition: Decommissioning (including asbestos removal) and demolition activities in preparation for entry into Care and Maintenance	42, 43	2020-2023		On Target

Dungeness A

Integrated Waste Management

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Low Level Waste: Complete active commissioning of the Modular Active Effluent Treatment Plant	32	2020-2021	Missed		Impacted by COVID-19. Will be completed in 2021-22.
Intermediate Level Waste: Progress activities to retrieve, treat and store ILW	31, 32, 33	2020-2023		On Target

Site Decommissioning and Remediation

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Decommissioning and demolition: Decommissioning (including asbestos removal) and demolition activities in preparation for entry into Care and Maintenance	42, 43	2020-2023		On Target
Decommissioning and demolition: Preparatory works for Safe Store Project	43	2020-2023		On Target
Decommissioning and demolition: Complete the current asbestos removal programme within the reactor buildings	42	2020-2021	Achieved

Harwell

Nuclear Materials

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Uranics: Continue the programme for the transfer of nuclear materials	22	2020-2023		On Target

Integrated Waste Management

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Intermediate Level Waste: Progress activities to retrieve, treat and store ILW	31, 32, 33	2020-2023		Behind Target	Equipment failures have impacted progress through the financial year.

Site Decommissioning and Remediation

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Decommissioning and demolition: Decommissioning (including asbestos removal) and demolition activities	42, 43	2020-2023		On Target
Decommissioning and demolition: Continue preparations for decommissioning of radium chemistry facilities	42	2020-2023		On Target
Decommissioning and demolition: Continue decommissioning, demolition and land remediation of the Liquid Effluent Treatment Plant (LETP)	42, 43, 46	2020-2023		On Target
De-designate or Reuse: Continue incremental release of land to the Harwell campus through targeted demolitions, remediation and clearance of land tracts	47	2020-2023		On Target

Hinkley Point A

Integrated Waste Management

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Low Level Waste: Complete active commissioning of the Modular Active Effluent Treatment Plant	28	2020-2021	Missed		Impacted by COVID-19
Intermediate Level Waste: Progress activities to retrieve, treat and store ILW	31, 32, 33	2020-2023		On Target
Intermediate Level Waste: Complete commissioning of ILW store	32	2020-2023		On Target

Site Decommissioning and Remediation

Decommissioning and demolition: Decommissioning (including asbestos removal) and demolition activities in preparation for entry into Care and Maintenance

42, 43

2020-2023

On Target

Hunterston A

Integrated Waste Management

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Intermediate Level Waste: Progress activities to retrieve, treat and store ILW	31, 32, 33	2020-2023		On Target
Intermediate Level Waste: Continue complete solid active waste bunker retrieval operations excluding post operational clean out	31	2020-2023		On Target
Construct and commission the solid ILW encapsulation plant	32	2020-2023		On Target

Site Decommissioning and Remediation

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Decommissioning and demolition: Decommissioning (including asbestos removal) and demolition activities in preparation for entry into Care and Maintenance	42, 43	2020-2023		On Target
Decommissioning and demolition: Continue preparations for demolition of the cooling pond overbuilding	43	2020-2023		On Target

Oldbury

Integrated Waste Management

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Intermediate Level Waste: Continue ILW retrieval enabling works	31	2020-2023		On Target
Intermediate Level Waste: Progress activities supporting consolidated ILW storage	33	2020-2023		On Target
Intermediate Level Waste: Progress activities to retrieve, treat and store ILW	31, 32, 33	2020-2023		On Target

Site Decommissioning and Remediation

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Decommissioning and demolition: Decommissioning (including asbestos removal) and demolition activities in preparation for entry into Care and Maintenance	42, 43	2020-2023		On Target

Sizewell A

Integrated Waste Management

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Intermediate Level Waste: Continue preparation for ILW retrievals	31	2020-2023		On Target
Intermediate Level Waste: Progress activities to support consolidation of ILW storage	33	2020-2023		On Target
Intermediate Level Waste: Manage receipt of waste packages at Bradwell Site	33	2020-2023		On Target
Intermediate Level Waste: Continue ILW retrieval enabling works	31	2020-2023		On Target

Site Decommissioning and Remediation

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Decommissioning and demolition: Decommissioning (including asbestos removal) and demolition activities in preparation for entry into Care and Maintenance	42, 43	2020-2023		On Target
Decommissioning and demolition: Complete ponds stabilisation	42	2020-2021	Missed		Impacted by COVID-19; now likely to completed in 2021-22.

Trawsfynydd

Integrated Waste Management

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Intermediate Level Waste: Continue and complete ILW retrievals and encapsulation	31, 33	2020-2023		On Target
Intermediate Level Waste: Progress activities to retrieve, treat and store ILW	31, 32, 33	2020-2023		On Target

Site Decommissioning and Remediation

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Decommissioning and demolition: Continue development of strategy for ponds end state conditions	42	2020-2023		On Target
Decommissioning and demolition: Decommissioning (including asbestos removal) and demolition activities in preparation for entry into Care and Maintenance	42, 43	2020-2023		On Target
Decommissioning and demolition: Continue height reduction preparations	43	2020-2023		On Target

Winfrith

Integrated Waste Management

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Low Level Waste: Continue and complete shipments of LLW drums to LLWR	28	2020-2022		On Target

Site Decommissioning and Remediation

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Decommissioning and demolition: DRAGON – continue reactor decommissioning	42	2020-2023		On Target
Decommissioning and demolition: Steam Generating Heavy Water Reactor (SGHWR) – continue decommissioning of the primary and secondary containment areas	42	2020-2023		On Target
Decommissioning and demolition: Decommissioning (including asbestos removal) and demolition activities	42, 43	2020-2023		On Target

Wylfa

Integrated Waste Management

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Intermediate Level Waste: Prepare for ILW retrievals and packaging	31	2020-2023		On Target
Intermediate Level Waste: Progress activities to retrieve, treat and store ILW	31, 32, 33	2020-2023		On Target

Site Decommissioning and Remediation

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Decommissioning and demolition: Prepare for decommissioning (including asbestos removal) and demolition for entry into Care and Maintenance	42, 43	2020-2023		On Target
Decommissioning and demolition: Continue asbestos removal from turbine hall	42	2020-2023		On Target

Dounreay Site Restoration Ltd

Dounreay Site Restoration Ltd (DSRL) is responsible for cleaning up and decommissioning the Dounreay site in the north of Scotland. It also operates a Low Level Waste (LLW) disposal facility to deal with waste from the site. DSRL was owned by Parent Body Organisation, Cavendish Dounreay Partnership Ltd, up to 31 March 2021 and became a wholly owned subsidiary of the NDA from 1 April 2021.

Spent Fuel

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Spent Exotic Fuel: Continue removal of Breeder Fuel elements from DFR	11	2020-2021	Missed		Removal of breeder fuel delayed early in QTR due to COVID-19 impacts, which impacted both DSRL and Sellafield operations.

Integrated Waste Management

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Low Level Waste: Continue transfer of LLW to LLW vault	27	2020-2023		On Target

Nuclear Materials

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Continue consolidation of remaining unirradiated exotics material (remnants)	-	2020-2023		On Target

Site Decommissioning and Remediation

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Decommissioning and demolition: PFR – Complete removal of Alkali Metal Lab	42	2020-2021	Missed		Impacted by COVID-19 and waste route availability. Access for demolition prevented by iso containers holding stored sodium.
De-designate or Reuse: NDA and Regulatory permissioning in support of the Interim End State definition and arrangements for Dounreay	44	2020-2023		On Target
Critical Enablers: Support small and medium enterprise (SME) organisations by measuring and reporting overall spend with them in-line with government growth agenda		2020-2023		On Target

LLWR Limited

Low Level Waste Repository (LLWR) Ltd manages and operates the UK’s low level waste repository in west Cumbria, providing safe, permanent disposal for a range of radioactive wastes. It’s also responsible for delivering the UK’s national low level waste programme and associated waste management services.

LLWR was owned by Parent Body Organisation, Nuclear Waste Management Ltd, up to 11 July 2021 and became a wholly owned subsidiary of the NDA from 12 July 2021.

Integrated Waste Management

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Low Level Waste: Deliver the national LLW Programme to optimise LLW Strategy implementation. Work with consigning SLCs to improve waste forecast and inventory and continue segregated waste, treatment and disposal services	26, 27, 28, 29	2020-2023		On Target
Intermediate Level Waste: Work with NDA to support innovation in approaches to waste management of IWM	32, 33, 34	2020-2023		On Target
Intermediate Level Waste: Type B Packaging capability to support NDA and MOD customers	33	2020-2023		On Target

Site Decommissioning and Remediation

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
New Build and Operations: Enabling works for phased construction of the final cap for trenches 1 to 7 and Vault 8	41	2020-2023		Behind Target	Following the identification of increased voidage in the disposed waste containers in Vault 8, the options for closing Vault 8 have been revisited through the Best Available Technique (BAT) process. Options have been identified to resolve the issues and allow capping to move forward. The project team is investigating opportunities to recover the schedule. The Environment Agency observed that process and remain content with the progress being made towards final capping

Critical Enablers

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Support hazard reduction across the NDA group		2020-2023		On Target
Manage and operate LLWR safely to provide an effective UK disposal service		2020-2023		On Target
Consider options to further optimise operations at the LLWR		2020-2023		On Target
Continue to pursue overall cost savings in delivery of the Lifetime Plan		2020-2023		On Target
Support small and medium enterprise organisations by targeting overall spend with them in line with the government growth agenda		2020-2023		On Target
Active participation in the Nuclear Sector Deal and the North West Nuclear Arc to help achieve HMG key deliverables		2020-2023		On Target
Manage the existing LLWR Management and Operations contract through to completion and transition to new ownership arrangements		2020-2023		On Target
Deliver the LLWR Transformation Programme and actively support the development of One NDA		2020-2023		On Target

Regulatory Control

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Contribute to sustainability performance under the Greening Government Commitments (GGC)		2020-2023		On Target

Radioactive Waste Management Limited

Radioactive Waste Management Limited (RWM) is an NDA subsidiary, responsible for providing a range of waste management services including delivering a geological disposal facility in England and Wales. This includes finding a suitable site with a willing community to host this permanent and safe solution for managing radioactive waste.

Integrated Waste Management - Intermediate and High Level Waste

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Implement government policy on geological disposal of higher activity waste	34, 39	2020-2023		On Target
Work proactively with waste producers, planning for and delivering waste management solutions	34, 39	2020-2023		On Target
Deliver a robust technical programme, support the GDF programme and waste management	*34, 39	2020-2023		On Target

Critical Enablers

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Develop RWM into a high performing delivery organisation		2020-2023		On Target
Continue to work with each community to provide information and help develop a detailed community vision		2020-2023		On Target
Work in partnership with communities to evaluate potential sites for a GDF		2020-2023		On Target
Design studies for specific sites, initial safety analyses, and environmental and economic assessments to help establish whether sites could be suitable		2020-2023		On Target

International Nuclear Services Limited

International Nuclear Services (INS) is an NDA subsidiary, with locations in the UK, France and Japan. It provides specialist nuclear transport, design and licensing services to the NDA group, as well as to a range of domestic and international customers. It also operates the nuclear shipping company, Pacific Nuclear Transport Ltd, the world’s most experienced marine transporter of specialist nuclear materials.

In February 2021, we brought together the extensive transport and logistics expertise of International Nuclear Services (INS), Direct Rail Services (DRS) and INS’s subsidiary Pacific Nuclear Transport Ltd (PNTL) into a single transport division – Nuclear Transport Solutions (NTS).

Nuclear Materials - Plutonium and Uranics

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Support the NDA’s decommissioning programme by providing transport and technical solutions for movements of nuclear material in the UK.	17, 22	2020-2023		On Target

Integrated Waste Management - High Level Waste

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Continue to deliver important international transports of vitrified High Level Waste (HLW) and conditioned Intermediate Level Waste (ILW).	36, 37	2020-2023		On Target

Critical Enablers

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Continue to deliver important international transports of spent mixed oxide (MOX) fuel		2020-2023		On Target
Seek opportunities for new UK and international business within nuclear shipping, packaging and design and establish a consultancy that provides transport enabling solutions to UK and international markets.		2020-2023		On Target
Maintain a leading fleet of specialist nuclear transport vessels and crews that, by undertaking regular shipments, meets the highest standards of quality, safety and security.		2020-2023		On Target
Continue to develop a strategic partnership with Direct Rail Services including the creation of a joint consultancy offering that combines the nuclear transport capabilities of both organisations.		2020-2023		On Target
Implement a series of transformation activities that make INS more competitive, innovative and efficient whilst ensuring it has the right skills, capability and diversity of talent to deliver in a safe, secure and reliable manner.		2020-2023		On Target

Direct Rail Services Limited

Direct Rail Services (DRS) is an NDA subsidiary, providing expert and specialist nuclear transport services to support the NDA mission. A world leader in safe, secure and reliable nuclear logistics, DRS also has contracts with domestic customers, providing other tailored rail logistics solutions.

In February 2021, we brought together the extensive transport and logistics expertise of International Nuclear Services (INS), Direct Rail Services (DRS) and INS’s subsidiary Pacific Nuclear Transport Ltd (PNTL) into a single transport division – Nuclear Transport Solutions (NTS).

Spent Fuel

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Support AGR fuel movements by rail for EDF from stations to Sellafield, including preparations for the AGR defueling programme.	6	2020-2023		On Target

Nuclear Materials - Plutonium and Uranics

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Support national nuclear material rail movements for Harwell, Winfrith and DSRL	17, 22	2020-2023		On Target
Delivery of the rail transport element in support of the Exotics programme	12, 17	2020-2023		On Target

Critical Enablers

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Provide assistance in the development of the NDA transport and logistics strategy		2020-2023		On Target
Support the discharge of NDA obligations with respect to MOD nuclear rail transportation		2020-2023		On Target
Provide value for money to the taxpayer through the execution of identified non-nuclear work that complements the skills and capabilities required to support the core nuclear mission		2020-2023		Behind Target	Non-nuclear revenue growth for the year was £1.7m, just below the £2m- £2.5m target, due primarily to Covid-19. Efforts will continue to deliver non-nuclear revenue as opportunities arise.
Provide rail authority and other associated expertise to the NDA in considering areas of synergy between DRS and INS in support of the NDA’s strategic transport capability		2020-2023		On Target
Operate and maintain technology leading fleet of locomotives to support NDA operations		2020-2023		On Target
Attract and retain the necessary skills, capability and diversity of talent to deliver our rail logistics business in a safe, secure and reliable manner		2020-2023		On Target

NDA Archives Limited

NDA Archives is an NDA subsidiary, responsible for the Nucleus (the Nuclear and Caithness Archives). The facility is operated by a commercial partner and provides long-term records management and archiving services for the NDA group.

Critical Enablers

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Mature and implement the NDA Group Heritage Strategy		2020-2021	Achieved		Heritage now captured in NDA Strategy 4. NDA Heritage guidelines submitted to SLC’s for enactment via NDA Archives Ltd.
Develop NDA Group Digital Preservation and Digitisation strategies and policies		2020-2021	Missed		Vision and strategies produced in draft. Digital Preservation Coalition are advising on standards. This needs to align with NDA Group Digital Vision and Strategy which will be developed in 2021/22.
Development of the Hub and Spokes delivery model – centralised inventory and management with dispersed, off-site storage		2020-2021	Achieved		Development complete with spoke locations identified. Film collection accessioned and under Nucleus control. Future addition of other spokes and development of management system planned.
Accession the outputs from the Sellafield and Magnox sift and lift projects		2020-2023		Behind Target	Magnox Sift & Lift in flight and on target.Sellafield Sift & Lift underway and plans indicate completion 2025.Sellafield Appleton store will be empty by Mar-23.
Capacity management planning		2020-2023		On Target

Rutherford Indemnity Limited

Rutherford Indemnity Ltd provides insurance cover for the NDA group. It has a particular focus on nuclear liability cover and the provision of support for changes to insurance requirements. The company is a wholly-owned NDA subsidiary, managed for the NDA by Marsh Captive Management Services, and has no direct employees.

Critical Enablers

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Develop and implement comprehensive major incident claims management solution		2020-2021	Deferred		Solution is dependent upon a Third-Party Administrator being appointed (See below).
Procure Third Party Administrator to implement NDA-controlled nuclear liability claims handling administration		2020-2021	Deferred		No bids were received for the Third-Party Administrator tender. Feedback from suppliers is being collated to inform the re-scope for retender in 2021/22.Work is ongoing to determine a more bespoke solution than was anticipated at the outset.
Provide optimal insurance coverage to the NDA to support its NDA group-wide insurance programme and exploit opportunities to reduce overall cost of insurance risk		2020-2023		On Target
Explore all avenues to develop potential innovative solutions to the increased financial security or insurance requirement resulting from the Nuclear Installations (Liability For Damage) Order 2016 and to respond to demands for new or additional policy or cover		2020-2023		On Target
Continue to deliver the target return on the investment portfolio, protecting Rutherford’s ability to offer insurance on a cost effective basis, maintaining liquidity in order to be able to respond promptly to a major loss		2020-2023		On Target
Continue to use a prudent proportion of Rutherford’s assets to support infrastructure investment within the NDA group		2020-2023		On Target
Assist with the NDA group insurance broker tender to ensure all outsourced activities improve efficiency and are aligned to support NDA group Insurance Strategy		2020-2023		On Target

NDA Properties Limited

NDA Properties Ltd is an NDA subsidiary, holding and managing the majority of the non-nuclear property assets within the NDA group.

Critical Enablers

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Effective management of Landlord’s Essential works Programme, including property portfolio projects for repair work and improved environmental stewardship		2020-2021	Deferred		Deferred due to impact of Covid-19. Refurbishments and demolitions underway in 2021/22.
Effective management of Hinton House including collaborative partnership working with Sellafield Ltd to align with the award on the next generation Facilities Management contract		2020-2021	Deferred		On hold until future office strategy (post Covid-19) is known
Proactively dispose/release surplus assets no longer required by the NDA Group or wider parts of government, including those that have high socio-economic value		2020-2022		On Target
Effective and efficient management and assurance of retained landholding consisting of 1203 hectares and in excess of 100 properties		2020-2023		On Target
Transfer land and property back to NDA where it is established the land is required for operational purposes		2020-2023		Deferred	Deferred pending NDA Properties Ltd strategy review

Energus

Energus is an NDA subsidiary offering a range of training, education and business support services geared towards providing and enhancing skills within both the local and national nuclear workforce.

Critical Enablers

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Continue to work closely with the NDA and stakeholders across the nuclear sector to upskill and develop the workforce of today and tomorrow		2020-2023		On Target
Continue to manage and facilitate a number of training opportunities for the NDA group and wider nuclear sector; including nucleargraduates, cyber security graduates and apprentices and other bespoke programmes to support the NDA People Strategy		2020-2023		On Target
Continue to work in partnership with the National Cyber Security Centre (NCSC) and NDA Cyber Security Resilience (CSRP) to deliver a pipeline of cyber security young talent into the sector. Deliver CyberFirst and be the venue of choice for Cyber Security training in the North West		2020-2023		On Target
Continue to be a Cumbrian venue of choice for the NDA group’s events, conferences and delivery of training and education.		2020-2023		On Target

Springfields

Owned by Westinghouse Electric UK Holdings Limited

Springfields is a nuclear fuel manufacturing site and is located near Preston in Lancashire. The site is operated by Springfields Fuels Limited (SFL) and is used to manufacture a range of fuel products for UK and international customers, the processing of historic uranic residues and decommissioning of redundant facilities.

From April 2010, the NDA permanently transferred ownership of the company to Westinghouse Electric including the freedom to invest for the future under the terms of a new 150-year lease. SFL is contracted to provide decommissioning and clean-up services to the NDA to address historic liabilities.

Site Decommissioning and Remediation - Decommissioning and Demolition

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Complete post operational clean out of the Residues Recovery Plant	42	2020-2022		Behind Target	A delay to the Service Island project at Springfields during 2020 means that this target is forecast to complete during 2022/23.
Continue decommissioning of the Magnox Island	42	2020-2022		Behind Target	A delay to the Service Island project at Springfields during 2020 means that this target is forecast to complete during 2022/23.

Capenhurst

Owned by URENCO

The NDA Capenhurst site is located near Ellesmere Port in Cheshire.

In 2012, the site was transferred to URENCO, owners of the adjacent licensed site, and was amalgamated into a single nuclear licensed site. As part of this transfer, URENCO established Urenco Nuclear Stewardship (UNS), formerly known as Capenhurst Nuclear Services, to provide responsible management of uranic materials and carry out remediation work on behalf of the NDA.

UNS manages a large proportion of the NDA’s uranic inventory and also provides broader decommissioning and demolition works for redundant facilities, in order to reduce liability and optimise space utilisation on site.

Site Decommissioning and Remediation - Decommissioning and Demolition

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Continue decommissioning and demolition of key facilities	42, 43	2020-2023		On Target

Nuclear Materials – Uranics

Key Activities	Strategic outcome	Timescale	2020/21 Target	2021/23 Target	Comments
Continue receipt and safe storage of uranic materials	24	2020-2023		On Target
Continue the safe storage and management of uranic materials, including uranium hexafluoride tails prior to processing through the Tails Management Facility	24	2020-2023		On Target

David Peattie
15 July 2021
Accounting Officer and Group Chief Executive Officer

Glossary and abbreviations

| End State | Condition of a nuclear site (including the land, structures and infrastructure) following completion of decommissioning and clean-up activities, and any controls to be applied during its subsequent use. | | NDA Estate | The businesses that support the NDA mission – Sellafield, Magnox, DSRL, LLWR, DRS, INS, RWM, NDA Archives, NDA Properties, Rutherford Indemnity, Energus, Springfield’s Fuels Ltd and URENCO Nuclear Stewardship Ltd. Care and Maintenance | When a Magnox reactor site is kept in a state of Care and Maintenance, it is made safe for a planned period of quiescence, after which decommissioning activities will commence. | | NDA Group | This is the group of businesses included in the statutory accounts. These are NDA, Sellafield, Magnox, INS (including subsidiaries PNTL, INS Japan, INS France SAS), DRS, RWM, NDA Archives, NDA Properties and Rutherford Indemnity. DSRL and LLWR will also be consolidated into the statutory accounts in 2021/22. | | One NDA | A way of working more effectively and efficiently to maximise the opportunities within the group of businesses. | | Interim End State | An interim end state is a specific type of interim state. It marks the end of all physical works. No more active remediation will take place to achieve the site end state, i.e. further remediation will be passive for example as a consequence of radioactive decay or natural attenuation of contamination. |

Useful links and documentation

Useful links

• Nuclear Decommissioning Authority
• Department for Business, Energy and Industrial Strategy
• [Sellafield Ltd(www.gov.uk/government/organisations/sellafield-ltd)
• Magnox Ltd
• LLWR Ltd
• Dounreay Ltd
• Capenhurst Nuclear Services Ltd
• Springfields Fuels Ltd
• Radioactive Waste Management Ltd
• Nuclear Transport Solutions

Useful documentation

• NDA Strategy - March 2021
• NDA Business Plan 2020 to 2023 and NDA Business Plan 2021 to 2024
• NDA Mid-Year Performance Report 2020 to 2021
• NDA Research and Development 5 year plan: 2019 to 2024
• NDA Direct Research Portfolio (DRP) Projects: Quarterly Update – Oct 2019
• Nuclear Decommissioning: attracting and retaining skills (brochure) Nov 2016
• NDA Corporate Centre: gender pay gap report, 2020
• Register of Director’s Interests and associated procedure
• NDA sustainability report April 2020 to March 2021

Contact details

NDA Headquarters Herdus House
Westlakes Science & Technology Park Moor Row Cumbria
CA24 3HU
Contact: +44 (0)1925 802001

London Office
10 Victoria Street Westminster
London
SW1H 0NN

Harwell Office Nuclear Decommissioning Authority Building 329 West Thomson Avenue Harwell Campus OX11 0GD

Warrington Office Hinton House Birchwood Park Avenue Risley Warrington WA3 6GR

Dounreay Office D2003 – Zone 8 Dounreay Thurso Caithness KW14 7TZ

Department of Business, Energy and Industrial Strategy 1 Victoria Street London SW1H 0ET

Principal Bankers Government Banking Service Wellesey Grove Croydon CR9 1WW

Auditor The Comptroller and Auditor General National Audit Office 157-197 Buckingham Palace Road Victoria London SW1W 9SP $A

Appendix A – NDA group – summary of events confirmed as INES1 or higher during 2020/21

INES2 events

Site	Event description	Final rating and duty holders’ comments on the event
Sellafield Ltd	Leak from Magnox Swarf Storage Silo at the Sellafield site. NB This event began in 2019 and was reported in that year, however the leak is continuing, and it is considered appropriate to report as an ongoing, not new, INES level 2 in this year.	Liquor level monitoring indicated a leak from the Magnox Swarf Storage Silo which culminated in contamination within the facility and the land and associated groundwater underneath the facility. This incident was rated as an INES Level 2.

INES 1 events

Site	Event description	Final rating and duty holders’ comments on the event
Sellafield Ltd	Leak from a pipe in the Magnox reprocessing facility at the Sellafield site.	A uranyl nitrate leak from a corrosion crack in a pipe led to a small loss of radioactive liquid from an overhead pipe onto ground which was subsequently remediated. No persons were affected and there was no immediate safety consequence. The incident was rated as INES Level 1

Process notes:

• It is the site licence company’s duty to report and investigate events on the site, to take action to control risks, and prevent recurrence. However, the NDA takes the safety of people working with radiation seriously and we have, working with the site licence companies concerned, reviewed all of the above. We were content that site licence companies had carried out a proper investigation and learned from what happened.
• The International Nuclear and Radiological Event Scale (INES) is a tool for communicating the safety significance of nuclear and radiological events to the public. Events are rated at seven levels. A level 1 INES event is rated as an anomaly.
• Events are given a provisional INES rating by the site licence company
• The provisionally rated event is referred to the National Officer (an ONR Inspector), who decides the final rating reported to IAEA
• The latest information on INES events can be found at https://www-news.iaea.org/

Appendix B – major projects cost and schedule

Major projects are defined as those projects with a lifetime cost of £100m or more with a business case approved by Government. The historic cost estimates in the table below are expressed in money values of the year in which the estimate was prepared (i.e. have not subsequently been adjusted for inflation).

Project/Programme	Year initiated	Estimated cost at initiation (£m)	Current business case cost (£m)	Estimated cost Mar 2021 (£m)	2020/21 estimated cost variance (£m)	Estimated end date at initiation	Current business case end date	Estimated end date Mar 2020	2020/21 estimated Schedule Variance
First Generation Magnox Storage Pond (FGMSP)-Bulk Sludge and Fuel Retrievals	2004	229.0	400.0	340	0.6	Dec 2012	Mar 2020	April 2021	+11 months

Key reasons for changes to cost and/or end date from year initiated to March 2021

Increases in cost and schedule compared to initiation were associated with the complexity of installing new equipment into an existing radioactively contaminated and sensitive nuclear facility as well as project performance issues.There has been a £0.6m cost variance in year due to delays associated with plant failure with respect to the D Bay component of the scope and subsequent repair. This has also extended the project completion forecast. As of end of March 21 all project scope has been delivered and project is being closed out.

Project/Programme	Year initiated	Estimated cost at initiation (£m)	Current business case cost (£m)	Estimated cost Mar 2021 (£m)	2020/21 estimated cost variance (£m)	Estimated end date at initiation	Current business case end date	Estimated end date Mar 2020	2020/21 estimated Schedule Variance
Magnox Swarf Storage Silo (MSSS) - SEPSolid Waste Storage Retrievals	-	-	846	911.5	33.1	-	Sept 2023	Jan 2026	+13 months

Key reasons for changes to cost and/or end date from year initiated to March 2021

In year cost and schedule increases have resulted from delivery issues and delays primarily with SEP 2 commissioning. Currently the start of retrieval operations are expected to commence Q4 FY 21/22 but there are risks to this associated with completing remaining scope and regulatory permissions. Cost increases and schedule movements are also as a result of the COVID-19 pandemic and the complex working arrangements around the facility which will only become more complex once retrievals operations commence. The understanding of this and the learning from SEP 2 commissioning has been factored into the forward plan for SEP 1 and SEP 3. Start of retrievals using SEP 3 is also contingent on BEP availability, the delivery of which has slipped to May 2026 and is driving out the end date for this project.

Project/Programme	Year initiated	Estimated cost at initiation (£m)	Current business case cost (£m)	Estimated cost Mar 2021 (£m)	2020/21 estimated cost variance (£m)	Estimated end date at initiation	Current business case end date	Estimated end date Mar 2020	2020/21 estimated Schedule Variance
Magnox Swarf Storage Silo (MSSS) – Box Encapsulation Plant	2014	615.0	887.0	1327.0	339.9	Jan 2021	June 2023	May 2026	+42 months

Key reasons for changes to cost and/or end date from year initiated to March 2021

Variances in the early stages of the project concerned changes in scope and design along with different commercial arrangements than had been originally envisaged. The current scope also reflects changes associated with the Alternative Intermediate Level Waste Strategy. The BEP project has experienced significant delivery issues subsequently, with cost and schedule now forecast to exceed business case approvals. The output of the Tiger Team work has been incorporated into the forward delivery plan for BEP and the creation of a single integrated delivery team. Increases in cost and schedule reflect the outcome of the work to revise the delivery strategy and the impact of the COVID-19 pandemic. Executive Steering Group overseeing the recovery of this project chaired by the Sellafield CEO.

Project/Programme	Year initiated	Estimated cost at initiation (£m)	Current business case cost (£m)	Estimated cost Mar 2021 (£m)	2020/21 estimated cost variance (£m)	Estimated end date at initiation	Current business case end date	Estimated end date Mar 2020	2020/21 estimated Schedule Variance
Pile Fuel Cladding Silo (PFCS) - Early retrievals project	2005	495	601	474.1	0.3	Oct 2019	Apr 2021	March 2021	+7months

Key reasons for changes to cost and/or end date from year initiated to March 2021

Variances to the forecast at initiation followed a review of the proposed solution in 2013. This resulted in a revised approach which required the redesign of the waste retrievals and handling equipment, increasing the cost and schedule. The revised business case, approved by Government in September 2016, provided an updated cost and schedule reflecting the new approach. The business case highlighted three key opportunities to improve the project cost and schedule, around simplification of the retrievals, waste handling and control equipment. Work has continued to realise these opportunities, reflected in the cost and schedule estimates being well within business case approvals. In-year cost and schedule increases have been the result of delays in completing the last remaining scope element of the project associated with the internal transfer flasks following the manufacturer going into receivership. This scope is now complete, and the project is being closed down.

Project/Programme	Year initiated	Estimated cost at initiation (£m)	Current business case cost (£m)	Estimated cost Mar 2021 (£m)	2020/21 estimated cost variance (£m)	Estimated end date at initiation	Current business case end date	Estimated end date Mar 2020	2020/21 estimated Schedule Variance
Pile Fuel Cladding Silo (PFCS) Box Encapsulation Plant Product Store – Direct Import Facility	2006	119.0	445	454.5	54.5	Jan 2019	July 2022	May 2023	+23 months

Key reasons for changes to cost and/or end date from year initiated to March 2021

A revised Business Case reflecting cost and schedule increases was approved by HMG during the 2018/19 financial year. Delays to the completion of detailed design scope led to increased design and supervision costs, delaying procurements and creating inefficiency in construction activities on site. Sellafield Ltd took full control of the project in Q1 financial year 2019/20 and following further performance issues with the pipework subcontractor the contract with them was terminated and the remaining mechanical and electrical installation activities were consolidated under a single contractor to address performance issues. However, as a result of this and the impact of the COVID-19 pandemic the project had to be re-sanctioned in September 21. Given that the true impact of the pandemic was not understood at this time only the impact of the pipework delays were included in the sanction. The variance between the approved business case and current stated outturns is due to COVID-19 impacts and the project is delivering in line with its COVID-19 impacted cost and schedule.

Project/Programme	Year initiated	Estimated cost at initiation (£m)	Current business case cost (£m)	Estimated cost Mar 2021 (£m)	2020/21 estimated cost variance (£m)	Estimated end date at initiation	Current business case end date	Estimated end date Mar 2020	2020/21 estimated Schedule Variance
SIXEPContinuity Plant	2014	394	730	602.3	28.1	Nov 2026	Oct 2030	Jan 2029	+5 months

Key reasons for changes to cost and/or end date from year initiated to March 2021

At initiation in April 2014 the project estimate was based on a volumetric estimate. As the project has matured through concept (Apr 2015) and preliminary design (July 2016) stages the increased scope definition enabled a more accurate and definitive estimate to be developed based on measured quantities. Since March 2020 the project has progressed to schedule on site construction activities, however these activities have been offset by COVID-19 delays on valve prototype development which is on critical path. This delay has resulted in a 5 month schedule variance and associated cost of £28.1m. The project is currently preparing its Full Business Case for HMG approval in Q1 2022. This project has been added to the GMPP in Q3 and associated reporting is in place.

Project/Programme	Year initiated	Estimated cost at initiation (£m)	Current business case cost (£m)	Estimated cost Mar 2021 (£m)	2020/21 estimated cost variance (£m)	Estimated end date at initiation	Current business case end date	Estimated end date Mar 2020	2020/21 estimated Schedule Variance
Sellafield Product and Residue Store Retreatment Plant	2019	885	885	1142.3	364.6	Mar 2028	Mar 2028	Feb 2029	+21 months

Key reasons for changes to cost and/or end date from year initiated to March 2021

The project has been preparing its Full Business Case during 2020/2021. The development of the case has been informed by more robust market informed data and assurance of the forward schedule by the Programme and Project Partners (PPP). Development of the FBC has resulted in a significant cost and schedule variance form the March 2020 position. This cost and schedule increase has been heavily assured and benchmarked, and is captured within the FBC, which is seeking ministerial approval in July 2021. The estimate is in line with current Reference Class forecasts. On site construction activities have progressed, delivering in line with its COVID-19 impacted cost and schedule. Design delays, due to COVID-19 restricted working arrangements have also impacted on the forward schedule. This project has been added to the GMPP in Q3 and associated reporting is in place.

Project/Programme	Year initiated	Estimated cost at initiation (£m)	Current business case cost (£m)	Estimated cost Mar 2021 (£m)	2020/21 estimated cost variance (£m)	Estimated end date at initiation	Current business case end date	Estimated end date Mar 2020	2020/21 estimated Schedule Variance
Electrical Supply New Construction	2018	238	238	325.3	93.1	Mar 2023	Mar 2023	Nov 2026	+16 months

Key reasons for changes to cost and/or end date from year initiated to March 2021

Cost and schedule variance is due to immature scope and design in the original business case leading to an understatement of cost and schedule. The current project forecast has been aligned to the estimates & schedule assured via the Sellafield Limited SPER in Dec 2020, this takes into account the impacts of COVID-19 as well as the improved scope and design definition. Project to submit FBC in October 21.

Project/Programme	Year initiated	Estimated cost at initiation (£m)	Current business case cost (£m)	Estimated cost Mar 2021 (£m)	2020/21 estimated cost variance (£m)	Estimated end date at initiation	Current business case end date	Estimated end date Mar 2020	2020/21 estimated Schedule Variance
Replacement Analytical Project	2018	800	800	659.3	33.3	Feb 2029	Feb 2029	April 2028	+3 months

Key reasons for changes to cost and/or end date from year initiated to March 2021

Cost & schedule increases associated with COVID-19 impact (£23m) and annual indexation. Project delivery continues in line with COVID-19 forecasts, however, there have been some notable delays - preliminary design completions target of March 21 is further delayed due to ongoing working inefficiencies and critical design resource issues. Detailed Design completions for Analytical Equipment Development Modifier are at risk affecting Contract Awards. Delays to the critical path are being analysed with plans for recovery also in development. Following a “Cold Eyes Review” of the project, plans have been developed to address some of the project shortcomings with additional resources being provided by the PPP partnership including a new Head of Projects. This project has been added to the GMPP in Q3 and associated reporting is in place.