Corporate report

NDA Annual Report and Accounts 2021 to 2022

Published 14 July 2022

Overview of performance 2021/22

This overview section provides an insight into our work during 2021/22 and highlights areas of progress for this year. We have described these using our five strategic themes.

Chair's Statement

After taking up my role as NDA Chair at the height of the pandemic, the last 12 months have provided many more opportunities to visit sites, meet teams delivering work and gain a deeper understanding of the complexities associated with our mission.

I continue to be impressed by the challenging and nationally important work being delivered by people all across the NDA group.

Health, safety and wellbeing is our highest priority and performance has remained strong and favourable in comparison to other industries, although incident rates have risen slightly from last year's all time low. This is in part connected to the challenge of recommencing some work activities as COVID-19 restrictions have eased.

We reach the end of the year confident that our mission and strategy remain clear and are pleased to highlight several successes. However, we are increasingly mindful of a particularly difficult operating environment. Rising costs of materials and energy, Government's fiscal pressures and the conflict in Ukraine are all factors which have an impact on our work, alongside operating in a competitive market for the skills we need to deliver our programmes.

Looking forward, it is clear there will be ongoing and increased pressure on public funding. Within that context, I'm pleased that the NDA has been trusted by Government with a funding settlement for the next three years that recognises the important work that we do and allows further progress to be made against our clean-up mission. The Board and I fully recognise that with that trust comes huge responsibility.

The Board

I continue to meet with representatives of the UK Government and devolved administrations at ministerial and official level, to ensure an ongoing dialogue on the context in which we carry out our mission.

I recently completed a Chair's review of the NDA. This was at the request of the Secretary of State's office when I took up the post and augments the outcomes of previous reports and reviews enabling us to move forward with a clear set of actions, particularly regarding projects and programmes.

An external Board effectiveness review which commenced in February 2021 has been finalised during the year. Externally facilitated reviews are undertaken every three years, with an internal review annually, in line with best practice. The 2021 review provided insights that are being used to enhance the way that we work, such as better reflecting the NDA's unique governance arrangements and making sure that the distinction between our role as a fiduciary board and obligations as a non-departmental public body, as set out in our Framework document with the Department for Business, Energy and Industrial Strategy and Scottish Government, is clearly articulated, understood and fulfilled.

We have also approved a schedule of reserved matters for the first time as a Board. This clarifies decision making authority by clearly setting out those areas specifically reserved for the Board's decision.

Chris Train OBE joined the Board as anon-executive Board member in January. Chris has significant experience in energy, utilities, regulation and infrastructure sectors with organisations such as Cadent, National Grid, Transco and Lattice. He is already proving to be an asset to us and is chairing the Programmes and Projects Committee of the Board, leading the scrutiny of the spend of a significant part of our £3 billionbudget.

I would like to take this opportunity to thank Rob Holden for his service and support as he concluded his term as a non-executive member of the NDA Board, having been in post since 2015.

Challenges of COVID-19

In 2020/21 the impact of COVID-19 was unprecedented on the NDA and organisations the world over. That impact has continued to be felt, and has required adaption to different restrictions in regions and nations of the UK at various pointsof the year. I am pleased that 2022 is so far bringing with it an opportunity for a sense of normality to resume.

As we begin moving on from the pandemic, the legacy that it has created continues to emerge with changes in the working environment, including flexible and virtual working. I also remain incredibly impressed and proud of the support that was offered to local organisations and small businesses, during that period. We have statutory obligations under the Energy Act to support socio-economic activities around our sites, and it is clear that this proactive and tailored help meant a great deal to both the recipients and employees of the NDA and our operating companies.

These contributions helped to build local resilience and I would like to think those communities are in a stronger position as a result. Very many of our employees also gave personal support and, on behalf of the Board, I would like to place on record a thank you to all those involved.

Reducing hazards and managing waste

High hazard reduction remains our primary objective and this report contains many examples of the diverse range of complex nuclear material, waste management, construction and demolition projects that are being progressed.

Stakeholders regularly raise with me theimportance of delivering our commitments, particularly in relation to waste management. The creation of Nuclear Waste Services will place an increased focus on waste management across the group, including the important work to find asuitable site and willing community to host a Geological Disposal Facility.

We continue to benefit from the input of our local and national stakeholders in this work and in delivering our wider mission. I want to thank them for engaging with us, challenging us, holding us to account and recognising the work being delivered by our teams.

Placing sustainability and people at the heart of our work

Sustainability has been high on the agenda in the UK this year, with Glasgow hosting the COP 26 United Nations Climate Change Conference andthe UK Government publishing its Net ZeroStrategy.

We recognise the important role that the NDA group performs in this area, with a legal and ethical responsibility to deliver our mission sustainably.

The NDA Board has established a Sustainability and Governance Committee, under the leadership of non-executive Board member Janet Ashdown, to ensure appropriate focus on this topic and others such as values and culture.

I welcome publication of a group-wide Diversity and Inclusion Strategy this year, setting out areas of focus between now and 2025. The Board is playing its part, with the gender balance of its membership and commitment to respect the wider diversity expectations of the Corporate Governance Code being key topics for the Nominations Committee.

Achieving the benefits of the NDA group

David Peattie and the wider Group Leadership Team have continued to take important steps towards realising the benefits of working more closely together as one NDA group. The vision for achieving this was set out in last year's report and I am grateful to David and the team for their clear leadership in driving forward this agenda.

The launch of Nuclear Transport Solutions and Nuclear Waste Services are good examples and significant steps towards simplifying the way that the group is structured.

The year ahead will see more progress, as Magnox and Dounreay join together, subject to regulatory agreement. I am confident that these changes, and the approach of working more closely as one NDA group, will bring many benefits in the future and help us to deliver increased value for taxpayers.

Being trusted to do more

I welcome Government's announcement that it has reached an agreement with EDF Energy which will see AGR sites transfer to the NDA, specifically into our Magnox organisation, for decommissioning in the future.

As we reached the end of the year, a joint project team has also been formed and a Memorandum of Understanding signed to consider the potential of transferring the Ministry of Defence's Vulcan site to the NDA group for decommissioning. Vulcan sits

adjacent to the Dounreay site and we expect to know more about the potential options in the next year.

While exploring and progressing these opportunities, our core mission remains unchanged and our primary focus remains on successfully delivering these commitments.

Looking ahead

It remains our priority to further build and retain the confidence of Government, our stakeholders and our workforce as we are trusted to deliver our mission and do more.

Steps have been taken towards a new trajectory, working more collaboratively across the group and developing an inclusive culture. A great deal has been achieved under David's leadership so far and I am confident he and his team will continue to make further progress towards simplifying governance and reporting arrangements in order to deliver our mission safely, effectively and efficiently.

Our work and, importantly, the way we carry it out has never been more important. The environment in which we are operating means that it is crucial we retain a firm focus on delivering value for money.

Meanwhile the increasing national and international priority placed on sustainability and achieving carbon net zero means it is equally important that the mission is delivered in the right way.

I would like to offer my thanks to members of the Board for their attention in response to various reviews this year and for their effective support and scrutiny of the activities of the NDA. My ongoing thanks also go to David and his leadership team for achieving significant steps towards delivery of the mission, while also establishing different ways of working and setting strong foundations to help us make further progress in the coming years.

Dr Ros Rivaz NDA Chair 7 July 2022

Group Chief Executive's statement

I'm delighted that decommissioning activity across the NDA group has significantly increased again this year, following the unprecedented impact of the pandemic in the previous 12 months.

The safety of our people and sites continues to be our highest priority. Despite another challenging year responding to changing restrictions, we put the right measures and protections in place that have enabled our operational teams to remain focused on hazard reduction.

Progressing our mission

The nationally important work that we do continues to be reflected in the level of funding committed by Government to progress our mission. I welcome our latest funding settlement and am acutely aware of the economic challenges facing the country, so our commitment has never been stronger to spend money wisely.

As Government publishes its Energy Security Strategy, with an ambition to support a new generation of nuclear power stations, our role to safely and securely reduce hazards at the UK's oldest nuclear facilities is in sharper focus, as is the need to provide waste management routes that support both our programme and any future requirements.

Skyline changes help to demonstrate the progress we're making and they don't come much higher than the removal of a giant diffuser, which had sat on top of the 125-metre Windscale Pile Chimney on the Sellafield site for 70 years. The chimney is the most prominent structure on the site and removing the diffuser was a painstaking job that took three years to complete.

There are similar examples of complex decommissioning challenges being met throughout the group. Magnox's Chapelcross site placed its first package of intermediate level waste (ILW), with material from its decommissioned cooling pond, in a new interim storage facility during 2021. Meanwhile large roof beams travelled to Caithness by sea, before being transferred to Dounreay, where they are being used for construction of the site's latest shielded radioactive waste store.

Our mission goes beyond existing sites. We're also responsible for identifying a suitable site and a willing host community for a Geological Disposal Facility (GDF). Four communities are now engaged in the process and a significant amount of technical work and stakeholder engagement is underway.

It will take years of detailed assessments before a final siting decision is taken, with the latest planning assumption that the GDF will be available for ILW from around 2050-2060 and high level waste and spent fuel from 2075.

Meanwhile we're progressing commitments in our strategy to investigate alternative treatment and disposal options that could further enhance the way we deliver our mission.

The NDA's work also crosses international borders and in November Nuclear Transport Solutions successfully delivered 16 MOX fuel assemblies to the Takahama Nuclear Power Station in Japan. It builds on a 45-year history of transporting nuclear materials between Europe and Japan with a flawless nuclear safety and security record.

Protecting our environment

We have an increasingly important role to support the UK Government's goals for green energy and achieving carbon net zero by 2050.

This year we published our Sustainability Strategy which sets out our ambitions and we are already seeing successes. This year the Nuclear Transport Solutions vessel Oceanic Pintail was decommissioned and, in a UK first, 100% was recycled. It's a fitting end to a vessel that served the UK with distinction for more than 30 years.

Meanwhile, an innovative approach is being taken to resurfacing work at the LLW Repository site. An additive, made of non-recyclable plastic, is being used in the tarmac, putting the material to use and avoiding it being sent to landfill.

Developing our people

People are central to the NDA's ability to deliver its mission. Our aim is to provide great places to work and I was pleased to launch our new group Diversity and Inclusion Strategy this year. It sets some challenging, but important targets between now and 2025 to take us further on this journey.

Inclusive culture and leadership is one of five focus areas within the strategy and our leadership standard, developed with input from all levels of the group, was recognised at the Learning Awards 2022. The standard is helping us build a collaborative culture and is creating consistency of what people can expect from our leaders.

In addition, our Leadership Academy, which is designed to help our people grow, is doing incredibly well and is now progressing its third cohort of participants.

Shaping our group

Our Group Leadership Team (GLT) has now been operating for a year and we are seeing real benefits from this collaborative approach. It brings together the NDA's Executive Leadership Team (ELT) with the Chief Executive Officers of our operating companies in one forum to shape the future of the group.

With all of our Site Licence Companies now subsidiaries, we're moving to a group structure that consists of the NDA and four operating companies. I've already reported the launch of Nuclear Transport Solutions and, in January this year, we created Nuclear Waste Services. This brings together LLW Repository Ltd and Radioactive Waste Management Ltd as one waste-focused organisation.

We've also announced that, subject to regulatory approval, Dounreay will join with Magnox in 2023. With Sellafield remaining a subsidiary company as it is today, the combined Magnox and Dounreay organisation will become the fourth of our operating 'pillars'.

Magnox will also be the home of the AGR reactors when they transfer from EDF Energy to the NDA for decommissioning. I am proud that the Government has trusted us to do more and discussions have started to prepare for the transition of the first AGR site when its defueling is complete.

Scrutiny and learning

In July we published the NDA's responses to the Magnox Inquiry, published in March 2021, as well as the Department for Business, Energy and Industrial Strategy's Departmental Review, which was published in July 2021.

Importantly, we've already taken significant steps to strengthen the NDA and improve the structure of the group and this is reflected in our response. While good progress has been made, our work continues and the reviews provide additional value as we develop and embed our new operating model.

Supporting our communities

We mustn't lose sight of our wider responsibilities in the communities where we operate and we continue to make investments that help those areas prepare for life beyond our decommissioning mission.

This year saw the completion of redevelopment work at Scrabster Harbour, close to Dounreay. A £5 million contribution from the NDA has helped increase capacity at St Ola Pier, allowing access to larger vessels and opening up opportunities such as offshore energy construction and maintenance, as well as cruise ships docking.

Meanwhile our support for the creation of business hubs is helping to create new jobs at different ends of the country. Whitehaven Bus Station in Cumbria opened in 2021, with the previously derelict facility providing modern business accommodation and winning awards for 'excellence in planning for heritage and culture' and 'excellence in planning for a successful economy' from the Royal Town Planning Institute.

The Romney Marsh Employment Hub, near our Dungeness A site in Kent, offers similar support to local businesses and was created with a £500,000 contribution from the NDA and Magnox. The scheme is expected to create up to 500 new jobs, which will play a significant role in mitigating the impact of future reductions at Dungeness A and B sites as decommissioning progresses.

Thank you

We are now seeing many of our in-person events return and staffing levels in our offices are on the increase. I see this interaction as vital to the delivery of our mission and I hope it signifies a move to improved working beyond the pandemic.

I would again like to thank all those working around the group for their dedicated service in what has been an unprecedented set of challenging circumstances. I'd also like to extend my ongoing thanks to our Board, the Governments of the UK and the devolved administrations and all our stakeholders.

It's clear we have some big challenges ahead but, as we continue our journey of reshaping the NDA group, I remain very confident that we are well placed to continue to make real progress in our nationally important mission.

David Peattie Accounting Officer and Group Chief Executive Officer 7 July 2022

Financial Review

This year has seen revenues grow and investment made across our portfolio, with new transport and waste divisions formed, and preparations underway for the transfer of AGRs to the NDA group in the future.

While COVID-19 continued to impact operations and mission delivery during the year, our sites and businesses were able to manage the disruption it created and return to pre-COVID levels of productivity and mission progress by the end of the year. The latter part of the year did however see new financial risks emerging, particularly increases in energy prices. Combined with general inflation impacts, this will lead to a more challenging financial position for the group in the coming years. At the same time, we will maintain our focus on generating commercial income.

We have continued to portfolio manage our financial risks and opportunities, ensuring that we remained within the overall funding settlement agreed with Government through the Supplementary Estimate process. With a whole year of operation of our new Group Leadership Team and working closely with Government, we were able to take risk-based prioritised investment decisions and maximise our commercial revenues.

Our commercial revenues increased by 17% to £714 million, with increased fuel deliveries from the UK's operational nuclear power stations. Our net expenditure for the year was £2,758 million, compared to the original voted net expenditure limit of £2,791 million. Our capital investment was £2,024 million and our resource expenditure was £1,448 million.

Our funding for the medium-term was secured in Government's recent spending review, providing a platform for continued mission progress in the next few years. After a number of short-term settlements in recent years, this is a welcome development in our ability to create financial plans over a longer period.

This year saw the finalisation of the last two parent body organisation contracts, with Dounreay Site Restoration Limited (DSRL) and LLW Repository Limited becoming

NDA subsidiaries. It also saw the creation of Nuclear Waste Services, bringing together LLW Repository Limited and Radioactive Waste Management Limited (RWM). It was also a successful year of operations for our transport division, Nuclear Transport Solutions, which undertook substantial ship and rail transport deliveries, with revenues of £160 million.

Following an announcement by the UK Government and subsequent directions to the NDA issued by UK and Scottish Ministers, we can also look forward to the transition of AGR sites into the group in the future as they enter their decommissioning phase. This will increase the scope of our mission and create opportunities for synergies.

Our group-wide Integrated Financial Framework (IFF) delivered some important milestones, through a series of continuous improvement workstreams focused on people, reporting, controls and risk. A new enterprise resource planning system has been implemented, which is the first step in the modernisation of our suite of management information systems.

Improved performance reporting has also been delivered for use by the Group Leadership Team, NDA Board and Government, alongside improved investment review processes and delegations. We are now into our second year of intake to our Finance, Audit and Risk graduate scheme, and we have launched our first Finance apprentice scheme. This will help to ensure we have the right skills and resources in place to support the group as we look forward.

Since the year end, we have continued to see an increase in rates of inflation. We are reviewing the evolving impact on our spend forecasts and how this may impact on future assessments of our nuclear provision.

Performance against financial targets

	Limit/expected	Actual
Expenditure	£3.391bn	£3.472bn
Income	£0.600bn	£0.714bn
Funding	£2.791bn	£2.758bn

How £3.472bn funding was used to deliver the NDA mission:

Subsidiary:	Amount:
Sellafield	£2.353bn
Magnox	£466m
Dounreay	£204m
LLWR	£89m
RWM	£80m
INS	£71m
Springfields and Capenhurst	£49m
Other	£160m

Other costs:

Costs:	Amount:
Industry costs	£119m
Energy costs	£5m
NDA running costs	£36m
Total	£160m

Breakdown of £714m NDA actual income:

Income source:	Amount:
Reprocessing/waste contracts	£289m
Spent fuel management	£254m
Energy sales	£11m
Nuclear materials and transport	£70m
Other	£90m

A total of £3.5 billion spent in the year

A net total of £2.8 billion funded by Government**

£0.7 billion of income

NDA's own running costs are 1.1% of overall group budget at £36 million

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. We're committed to overcoming the challenges of nuclear clean-up and decommissioning, leaving the 17 nuclear sites ready for their next use. We do this work with care for our people, communities and the environment, with safety, as always, our number one priority.

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 leader in the civil nuclear sector within our remit and areas of expertise. Our strategy is continually evolving and is updated every five 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. We seek ways to reduce the level of public funding by generating revenue through our commercial activities.

How we're set up

We're a non-departmental public body created by the Energy Act 2004 to lead the clean-up and decommissioning work at our 17 sites. 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 offices across the UK, in Cumbria, Warrington, Dounreay, Harwell and London and employ just over 350 permanent staff. As a non-departmental public body, the NDA supports a wide range of Government policy developments such as the Ten Point Plan for a Green Industrial Revolution with intellectual thought, physical assets and research and development.

Our sites

The UK's nuclear landscape began to take shape in the post-war period and has evolved over many decades. 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, from1956 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 2125, with all land on Scottish sites expected to be de-designated by 2333.

The NDA group

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, important decisions have been taken about how the organisations delivering our mission are managed, with the intention of simplifying structures and creating a stronger NDA group.

Last year we took the final steps to move to a group (subsidiary) operating model, away from the previous contractual, parent body organisation approach. Dounreay Site Restoration Limited (DSRL) became an NDA subsidiary in April 2021, followed by Low Level Waste Repository Limited (LLWR) in July. These follow similar changes for Sellafield in 2016 and Magnox in 2019.

Moving to a group model is enabling us to make further improvements and simplify structures. In January 2022 Radioactive Waste Management (RWM) and LLWR came together into one waste organisation, Nuclear Waste Services. We have also announced our intention to join Dounreay with Magnox, subject to regulatory agreement.

The NDA group will then be made up of the NDA and its four key component parts: Sellafield, Magnox with Dounreay, Nuclear Waste Services and Nuclear Transport Solutions. Our other subsidiaries include Rutherford Indemnity, NDA Archives, NDA Properties and Energus.

With the finalisation of this structure comes the ability to introduce group-wide policy statements in a number of areas. There are nine policy statements and the NDA and its operating companies will meet the requirements of these through their individual arrangements:

• Ethics
• Sustainability
• Socio-economics
• Health and safety
• Environment
• Security
• Accounting
• Value for money*
• Diversity and inclusion*

The scope of the NDA group is set to grow, following arrangements agreed by the Government and EDF Energy for decommissioning Britain's seven advanced gas-cooled reactor (AGR) stations.

The AGRs will reach the end of their operational lives over the next 10 years and, as they come offline, their ownership will transfer to the NDA for decommissioning, utilising the expertise of our group and significantly Magnox and its experience in decommissioning the older Magnox stations.

*Still under development

The NDA organisational structure

Our strategic approach and themes

Our Strategic themes

We use five strategic themes to describe all the activities needed to deliver the NDA's mission.

The first four 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.

Integration of our strategies

Our driving themes and strategic outcomes

Across our four 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 (THORP) 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:	Percentage complete by 2022:	Associated sites:
1. All Magnox sites defueled	100%	Sellafield, Magnox and NTS
2. All legacy Magnox fuel retrieved	25%	Sellafield
3. All Magnox fuel reprocessing completed	96%	Sellafield
4. All remaining Magnox fuel in interim storage	25%	Sellafield
5. All remaining Magnox fuel disposed	0%	Sellafield and NWS

Spent Oxide fuel:

Strategic outcome:	Percentage complete by 2022:	Associated sites:
6. All EDF Energy oxide fuel received	60%	Sellafield and 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	56%	Sellafield
10. All remaining oxide fuel disposed	0%	Sellafield and NWS

Spent Exotic fuel:

Strategic outcome:	Percentage complete by 2022:	Associated sites:
11. All exotic fuel defueled	73%	Sellafield and Dounreay
12. All exotic fuel consolidated	62%	Sellafield, Dounreay and NTS
13. All exotic fuel reprocessing completed	93%	Sellafield
14. All remaining exotic fuel in interim storage	84%	Sellafield
15. All remaining exotic fuel disposed	0%	Sellafield and NWS

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:	Percentage complete by 2022:	Associated sites:
16. All plutonium produced	97%	Sellafield
17. All plutonium consolidated	100%	Sellafield, Dounreay and NTS
18. A: All plutonium repacked in long-term storage	0%	Sellafield
18. B: All cans not suitable for extended storage repackaged	35%
19. All plutonium in interim storage	0%	Sellafield
20. All plutonium reused or disposed	0%	Sellafield and NWS

Uranics:

Strategic outcome:	Percentage complete by 2022:	Associated sites:
21. All uranium produced	94%	Sellafield
22. All uranium consolidated	80%	Sellafield, Magnox Dounreay, NTS, Capenhurst and Springfields
23. All uranium treated	4%	Capenhurst and Springfields
24. All uranium in interim storage	61%	Sellafield and Capenhurst
25. All uranium reused or disposed	3%	Sellafield, NWS and Capenhurst

Case study - Nuclear Materials

Major Sellafield construction making progress

MISSION DELIVERY Helping us to deliver strategic outcome: 19

Sellafield has seen progress with a large construction project this year, the Sellafield Product and Residue Store Retreatment Plant (SRP).

A huge slab has been constructed, forming the ground floor of the SRP, which will provide safe storage of special nuclear material.

The SRP pour marked a hefty 8,374m3 of concrete laid, reinforced with 1,230 tonnes of steel.

When finished the facility will be an integral part of our mission to create a clean and safe environment for future generations.

Find out more about this case study and meet some of those involved in the project in our ARAC case study blog.

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 four 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:	Percentage complete by 2022:	Associated sites:
26. All LLW produced	7%	Sellafield, Magnox Dounreay, NWS, Capenhurst and Springfields
27. All LLW treated - to enable diversion or reuse	9%	Sellafield, Magnox Dounreay, NWS, NTS, Capenhurst and Springfields
28. All waste suitable for disposal in NDA facilities	15%	Sellafield, Magnox Dounreay, NWS, NTS, Capenhurst and Springfields
29. All waste suitable for permitted landfill disposed	4%	Sellafield, Magnox Dounreay, NWS, NTS, Capenhurst and Springfields

Intermediate Level Waste:

Strategic outcome:	Percentage complete by 2022:	Associated sites:
30. All ILW produced	33%	Sellafield, Magnox Dounreay, NWS, Capenhurst and Springfields
31. All legacy waste retrieved	9%	Sellafield and NWS
32. All ILW treated	10%	Sellafield, Magnox Dounreay, Capenhurst and Springfields
33. All ILW in interim storage	15%	Sellafield, Magnox Dounreay, Capenhurst and Springfields
34. All ILW disposed	0%	Sellafield, NWS and NTS

High Level Waste:

Strategic outcome:	Percentage complete by 2022:	Associated sites:
35. All HLW produced	71%	Sellafield
36. All HLW treated	74%	Sellafield and NTS
37. All HLW waste in interim storage	83%	Sellafield and NTS
38. All overseas HLW exported	11%	Sellafield and NTS
39. All HLW disposed	0%

Case study - Integrated Waste Management

Chapelcross first active waste package in storage

MISSION DELIVERY Helping us to deliver strategic outcome: 33

May 2021 saw the first active waste package placed in a storage facility at Magnox's Chapelcross site, achieving a major step forward for the site's waste management and clean-up programme.

The package, made of ductile cast iron, holds Intermediate Level Waste (ILW) from the site's former cooling ponds.

It was sent to an on-site interim storage facility which can hold more than 700 waste packages safely and securely for over 120 years.

The achievement is the first step to safely securing all the ILW generated during Chapelcross' operations, until the Scottish Government Higher Activity Waste Policy identifies final storage and disposal options for Scotland's ILW.

High hazard waste retrievals progress at Sellafield

MISSION DELIVERY Helping us to deliver strategic outcome: 31

The first of three machines that will grab waste out of the Magnox Swarf Storage Silo (MSSS) at Sellafield moved into position in May 2021.

The 350-tonne Silo Emptying Plant (SEP2) machine was moved over three days across specially installed rails at the top of the silo from compartment six to compartment ten, where the first waste will be removed.

Shifting the equivalent weight of three blue whales along the metal rails was done by hand using twin tirfors, which are effectively a horizontal block and tackle arrangement.

It allowed preparations to begin for active commissioning and the upcoming start of retrievals, a major step towards cleaning up the most important hazard and risk reduction job on the site.

Major construction project milestone

MISSION DELIVERY Helping us to deliver strategic outcome: 32

Sellafield site's Site Ion Exchange Effluent Plant (SIXEP) Continuity Project (SCP) has marked the first concrete pour on its construction site.

The SCP will help to ensure the continued operation of SIXEP.

SIXEP treats and makes safe the effluent created by risk reduction activities in the First Generation Magnox Storage Pond and Magnox Swarf Storage Silo. Completion of this work will enable Sellafield to continue treating this waste for decades to come.

Find out more about these case studies and meet some of those involved in our ARAC case study blog.

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 reuse the land.

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

Operational and planned:

Strategic outcome:	Percentage complete by 2022:	Associated sites:
40. All planned new buildings operational	TBD	Sellafield, Magnox Dounreay, NWS, and Capenhurst
41. All buildings primary function completed	38%	Sellafield, Magnox Dounreay, NWS, and Capenhurst

Decommissioning and demolition:

Strategic outcome:	Percentage complete by 2022:	Associated sites:
42. All buildings decommissioned	21%	Sellafield, Magnox Dounreay, NWS, and Capenhurst
43. All buildings demolished or reused	19%	Sellafield, Magnox Dounreay, NWS, and Capenhurst
44. All land delicensed or relicensed	9%	Magnox Dounreay and NWS
45. All land in End State: all planned physical work complete	43%	Sellafield, Magnox Dounreay, NWS, Capenhurst and Springfields
46. All land demonstrated as suitable for reuse	9%	Sellafield, Magnox Dounreay, NWS, Capenhurst and Springfields
47. All land dedesignated or reused	9%	Sellafield, Magnox Dounreay, NWS, and Capenhurst

Case study - Integrated Waste Management

Sellafield skyline change

MISSION DELIVERY Helping us to deliver strategic outcome: 42 43

The removal of a huge diffuser at the top of the Windscale Pile Chimney marked a key milestone for decommissioning work at Sellafield at the end of 2021.

The diffuser gave the 125-metre chimney its distinctive top-heavy appearance and has been part of the Cumbrian landscape for nearly 70 years.

Demolition work started in December 2018, with the first block removed in January 2019. It had to be cut up in-situ, more than 100 metres above ground.

Sections were then transported separately down to the ground, requiring 200 moves to clear the entire block. The achievement has also removed the seismic risk associated with the chimney. Work will now start on demolishing the chimney barrel.

The removal of this iconic part of such a large structure, and the progress made on the demolition work, marks an important achievement in our mission to clean up the UK's earliest nuclear sites.

Dounreay decommissioning success

MISSION DELIVERY Helping us to deliver strategic outcome: 42 43

World-first innovation helped solve a significant decommissioning challenge at Dounreay, with 1,810 litres of radioactive sodium coolant removed from a shallow heel pool at the base of a reactor vessel within the site's Prototype Fast Reactor (PFR).

Two solutions were developed to remove the hazard. The first was the design and installation of 11 external heating elements to melt the sodium to allow it to be pumped out of the hard-to-reach pool. The second, was the creation of an in-reactor pump that was remotely manoeuvrable to reach the sodium pool.

Taking away the sodium heel pool removed a major obstacle to allow for the next stage of reactor decommissioning.

The technical and practical challenges to overcome were considerable. The project required input from all the disciplines and specialists available on site, as well as support from the supply chain and it could not have been delivered without this collaborative approach.

The next phase will be to decommission and remove the pump from the reactor and install the treatment system, which will use a water vapour/ nitrogen mixture, using purpose-built skids, to reach all the remaining sodium residues within the vessel and pipework. The project is on course to complete the clean-out work by the end of 2023.

Find out more about these case studies and meet some of those involved in our ARAC case study blog.

Our 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 aim to be recognised as a leading environmental remediation organisation. Our environment strategy is maturing and we are working towards a low carbon future and improved environmental outcomes to ensure that our mission outcomes are delivered in an environmentally sustainable manner.

Our strategy for health and wellbeing is to provide a supportive working environment across the NDA group by actively promoting and working with our employees and trade unions (see People) to develop and implement policies and standards with employee health and wellbeing at the forefront.

Sustainability

Our sustainability strategy is also maturing and its emphasis will change over time as our mission progresses. In the short-term, we are making specific efforts to measure our carbon footprint consistently across the NDA group and determine the impact of mission delivery to identify additional opportunities for decarbonisation. In the medium to long-term, ongoing collaboration on our technical grand challenges programme will generate further opportunities to improve the sustainability of our mission delivery.

Our recently published strategy sets out our ambition and focuses on delivering sustainable outcomes through decommissioning practices, with care for the environment, through positive and sustainable socio-economic outcomes for nuclear communities. For more information on sustainability at the NDA see page 66.

Security and resilience

Security is a fundamental element of all civil nuclear operations. We are committed to providing proportionate security and resilience solutions throughout the decommissioning lifecycle.

We recognise the many threats that face the NDA and its supply chain, from cyber attacks, data breaches and Information Technology (IT) system failures to extreme weather conditions, global pandemics and terrorism.

Our strategy brings the NDA operating companies together, taking a group-wide approach to security and resilience in order to improve collaborative working and, where appropriate, implement a shared approach to security arrangements.

Cyber security

Our cyber security strategy is well established, but requires further integration with organisational and operational planning across the whole NDA group. The nature of the threat continues to change and is so prevalent that we have established a group-wide programme (Cyber Security Resilience Programme) to ensure that we become an increasingly harder target for those who seek to do harm to our businesses or our sites. We will ensure that we can collectively protect ourselves, detect cyber incidents early and have mature response and recovery plans to minimise disruption to our core mission of nuclear clean-up and environmental restoration.

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.

Our strategy is established and effective, but our objective has evolved, and will continue to do so, in response to the priorities and challenges across the NDA group and the need for social acceptability of the NDA mission.

People

Our people are a significant strategic enabler to the delivery of our mission. We strive to create great and diverse places to work so that we can retain our people, maintain our skills base and recruit into our businesses.

Our people topic strategy has three main focus areas: ensuring we have the right people at the right time to deliver the mission; creating the culture in which our people can thrive; and working in partnership with our recognised trade unions and the broader stakeholder community.

Asset management

The NDA group has assets in all stages of the asset management lifecycle and we have a responsibility to secure safe, environmentally considerate and cost-effective asset management across the group.

To ensure our assets achieve this objective, we need a continually improving asset management approach informed by good practice that focuses on value for money mission delivery.

Our strategy continues to address the enduring risk that poor asset performance adversely impacts our mission. We will further develop our strategy for new and existing assets and look to obtain through-life asset management plans that fully integrate new assets into current operations.

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.

With our one NDA way of working, we are now uniquely placed to identify synergies across the group and continue to perform collaborative procurement activities.

We continue to broaden the routes to market and our supply base for the NDA group. A more diverse and sustainable range of suppliers with nuclear experience will provide greater resilience and access to innovative solutions for safe, secure and cost-effective decommissioning.

Information governance

The NDA owns most of the information produced and managed by the NDA group. We aim to support all businesses Information Governance topic aims to support all businesses within the group to comply with statutory and regulatory requirements and realise the value of these assets to enable delivery of the NDA mission. The first step has been achieved by embedding group- wide policies, procedures and guidance together with key centralised infrastructure consisting of an archive facility (Nucleus), a secure collaboration platform and a secure private cloud.

Socio-economics

We have a responsibility to support the maintenance of sustainable local economies for communities living near NDA sites and, where possible, contribute to regional economic growth.

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.

In supporting our local communities, our primary strategy is to ensure that decisions that direct the delivery of our decommissioning mission support local sustainable and inclusive economic growth and greater social value wherever possible. To ensure our local communities can attract future economic activity, we prioritise support and fund projects which are consistent with our responsibilities to the UK taxpayer. We work in partnership with others to increase the impact of our funding.

Public and stakeholder engagement

Open and transparent engagement is key to building support, confidence and trust among all our stakeholders and we continue to encourage two-way dialogue about strategic direction and when consulting on statutory documents. The open dialogue we have with our stakeholders has encouraged the discussion of difficult and complex issues. We are committed to listening to and integrating a diverse range of views and

giving confidence to stakeholders that their views and input will be considered fully as part of this engagement, helping to drive and influence progress in delivering the NDA's mission. This would not be possible without the support of our stakeholders and the trust we have built with communities and local authorities close to our nuclear sites.

Transport and logistics

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

In 2021, we brought together the extensive transport and logistics expertise of our subsidiaries, INS and DRS into a single transport division, Nuclear Transport Solutions (NTS) to support the NDA group and provide value beyond the NDA mission, both in the UK and overseas.

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

International relations

The NDA's operating environment is inherently international and the risks we manage transcend national boundaries. The materials in our inventory have safety and security considerations on a global scale, and the policy framework in which our strategy is developed is underpinned by international standards and guidance.

The nuclear decommissioning market is growing globally and we will continue to use our experience and relationships to enhance the reputation of the UK nuclear industry, sharing our experience and skills, accessing peer reviews, and conducting joint technology development projects.

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

Sustainability at the NDA

Sustainability is a new critical enabler.

In 2021 the NDA group's Sustainability Policy and Strategy was approved with demonstrable influence and integration of the agreed approach across the operating companies.

Sustainability at the NDA is structured across four legacies; decommissioning, environmental, socio- economic and cultural.

Vision

Our group sustainability vision is to be recognised as a leader in transforming nuclear legacies into opportunities for local, regional and national sustainable development.

Definition

The NDA group's sustainability definition is to create value through nuclear decommissioning - at pace, affordably, with participation and creatively.

While an important part of sustainability is about protecting and enhancing the environment, as laid out in our environmental legacy, it also means protecting and enhancing the lives of people, creating sustainable local and regional economies, and creating an impact conscious and future focused mindset. In our decisions and actions, we have a responsibility to transform the legacies we have inherited to those we wish to leave behind.

A governance structure that reaches all levels within the NDA group is fundamental to achieving the vision. The creation of an NDA Board Sustainability and Governance Committee and engagement with the Group Leadership Team will enable the highest levels of leadership to expedite and achieve progress.

Key Performance Indicators (KPIs)

Sustainability KPIs have been defined in consultation with our functions and operating companies. They are intended to ensure meaningful progress across our four legacies, covering areas such as procurement, emission reductions, socio-economic spend and cultural changes.

The NDA has also recently launched mandatory sustainability training for its staff. This will help develop a culture of sustainability leadership, with key objectives to raise awareness and understand how the NDA's approach can be used in varying roles.

See pages 263 to 279 for more information on sustainability at the NDA and our performance this year.

Case study - Critical enablers – Sustainability

Recycling success for nuclear vessel

The decommissioning of Oceanic Pintail has set the standard for others to follow after 100% of the 3,865-tonne specialist nuclear vessel was recycled.

Nuclear Transport Solutions, which operated Oceanic Pintail, set Dales Marine Services the challenge of ensuring the world-class cargo vessel was reused.

Applying a number of innovative techniques, every part of the NDA-owned vessel was recycled in a UK first.

The achievement supports the NDA groups sustainability ambitions.

On track to cut plastic pollution

Nuclear Waste Services is playing its part in reducing waste plastic by substituting an additive in the tarmac used to resurface the perimeter track at the Low Level Waste Repository site.

In every tonne of asphalt used for resurfacing, 3kg of bitumen are replaced with the equivalent of the plastic additive.

This additive is composed of non-recyclable waste plastics which would have previously been destined for landfill.

Some 12,840kg of the additive will be used in the project. A single use plastic bag weighs around 4.5g, so the amount of recycled plastic equates to 2,853,333 single use bags that will now no longer reach landfill.

The Well Project

Western Excellence in Learning and Leadership (WELL) was a project co-designed by Sellafield Ltd, the NDA, Cumbria County Council and school heads from the Cumbria Alliance of System Leaders. It aims to close the disadvantage attainment gap, raise pupil achievement, improve the quality of teaching, and enhance students' health and wellbeing in Cumbria. Highlights include:

• 118 schools have implemented proven interventions to support resilience and learning for disadvantaged students
• 43 schools have completed youth mental health first aid training
• 40 schools now have staff qualified as Emotional Literacy Support Assistants
• 71 schools were provided with surplus IT equipment to support disadvantaged learners to access material through the lockdown

Find out more about these case studies and meet some of those involved in our ARAC case study blog.

Carbon net zero journey

We have published an NDA group Carbon Policy setting out our commitment to achieve carbon net zero by 2050 and how this will be delivered.

Base and stretch carbon emission reduction targets were set for 2021/22 and, while data is still being verified, most operating companies have met both targets – reducing the NDA group's scope one and two carbon footprint by around 15% (see page 267 for a description of these). This has been achieved because of positive changes in operational practices, as well as some continued impact from COVID-19 and energy generation plant outages. It compares to a reduction of around 16% in the previous year, where the impact of COVID-19 was much larger.

In addition, all operating companies have developed carbon management plans. There has been a

focus on energy audits to identify opportunities for reductions and efficiencies. Magnox in particular has exceeded its target and audited all its sites.

Challenging targets have been agreed with all operating companies for the year ahead and we are also ensuring that carbon emissions are now a consideration in our decision making and procurement process, with business case guidance updated to ensure this.

Case study - Critical enablers - Socio-economics

Multi-million pound upgrades transform Scrabster Harbour

The latest port development at Scrabster Harbour, close to the Dounreay site in Caithness, was officially opened in December 2021.

St Ola Pier has been at the heart of a major development project to increase capacity and accommodate larger vessels at the port on the north coast of Scotland.

The investment will allow Scrabster to access new opportunities, including offshore energy and cruise ships.

The project has cost a total of £18.9 million, with NDA providing funding support of £5 million along with its partner Highlands and Islands Enterprise (HIE).

The opening of the pier is an example of our socio-economic strategy in action, helping Scrabster Harbour to develop a range of new opportunities and make a significant contribution to the long-term sustainability of the local economy.

Case study - Critical enablers - Equality, Diversity and Inclusion

NDA group inclusion strategy launched

A new NDA group inclusion strategy 2021-2025 has been launched.

Building on the foundations laid since our initial Equality, Diversity, and Inclusion strategy was published in 2018, the strategy focuses on five key areas and supporting commitments that we'll prioritise across the group as we move from foundation building to embedding inclusion into the DNA and culture of our organisations.

The strategy also includes goals against which we'll measure ourselves and use to report progress. The themes are:

• Inclusive culture and leadership
• Diverse workforce
• Embedding inclusion into our employee lifecycle
• Respect, dignity and employee voice
• Flexibility, agility and smarter working

Building great places to work remains a key part of our group vision. Creating workplaces where everyone feels respected, included and able to perform at their best, is not only the right thing to do but will help us to deliver our mission.

Case study - Critical enablers - Group Structure

Nuclear Waste Services launched

January 2022 saw the launch of Nuclear Waste Services (NWS) which brought together into one organisation the expertise of site operator Low Level Waste Repository Limited (LLWR), Geological Disposal Facility (GDF) developer Radioactive Waste Management Limited and the NDA group's Integrated Waste Management Programme.

NWS brings together a huge amount of expertise and capability in dealing with radioactive waste across the UK. It also maintains the commitments made to the GDF programme, to the Low Level Waste Repository, and to the communities we operate in.

The organisation builds on work delivered over many decades, while adding more essential services for customers in the nuclear energy, defence, industrial, medical, and research sectors.

By working more closely together we can enable better decision-making and help identify opportunities that can deliver wider benefits like earlier risk reduction at decommissioning sites or greater efficiency and lower costs to the taxpayer.

We announced our decision to create the new business at the start of 2021, as part of wider moves to simplify structures across the group and enhance capabilities. Its creation underlines our one NDA approach to working more collaboratively and efficiently to clean up the UK's earliest civil nuclear sites.

Case study - Critical enablers - Stakeholder Relations

Engaging on the Geological Disposal Facility

The Geological Disposal Facility (GDF) Programme team within Nuclear Waste Services is working with local communities to find a willing community and a suitable site to host a GDF.

In January 2021, Allerdale Working Group was launched and a Community Partnership was established a year later.

The Theddlethorpe GDF Working Group followed in October 2021 (Theddlethorpe, Lincolnshire), and a Community Partnership was formed in June 2022.

Community Partnerships unlock investment funding of up to £1 million a year for community projects that drive economic development, improve the environment and community well-being. This figure would rise to £2.5 million a year if site investigations progress to the point of deep borehole drilling.

The continued community engagement over the last 12 months follows the launch of the Copeland Working Group in November 2020, with0 two Community Partnerships for Mid Copeland and South Copeland subsequently established.

Case study - Critical enablers - Cyber Security

National Cyber collaboration

Working with partners from across the sector, the NDA's cyber security resilience programme held its fifth national cyber exercise Golden Osprey.

Working closely with Department for Business, Energy and Industrial Strategy, Office for Nuclear Regulation and the National Cyber Security Centre, the virtual event included an exercise scenario and simulation developed by a group of cross-sector experts.

To ensure an authentic scenario, the simulation exercise was supported by a host of industry organisations including, EDF Energy, Westinghouse Springfields Fuels, Urenco, Sellafield, Nuclear Transport Solutions, Dounreay, Atos, and the Civil Nuclear Constabulary.

The exercise provided the opportunity for experts to test and renew skills, improve technical knowledge and proficiency, and develop analytical and communications skills.

It was based on the concept of a sophisticated attack on critical infrastructure and the supply chains that support it.

Attended by over 20 different sector organisations from across the UK over the years, the one-of-a-kind exercise brings significant training and upskilling opportunities to the region.

Through on-site and remote visits, the exercise series has helped hundreds of people to better prepare and train for cyber incidents.

Case study - Critical enablers - Asset Management

Drones support decommissioning

Through group-wide collaboration, drones are now being used across a number of the NDA's sites to support decommissioning and clean-up work.

The unmanned aerial vehicles, that are remotely operated, are being used to get to places that are more difficult or hazardous for people to access.

The equipment is being used to perform maintenance activities every six months, supporting building condition monitoring and analysis to inform better asset management planning and plans.

The technology is helping Magnox's Wylfa site to inspect areas of internal integrity of its reactors that previously required scaffolding involving working at height and potential exposure to asbestos or radiation risk.

The use of drones is enabling better information to be provided that can be digitised to maintain building configuration and improve personnel safety. The Asset Management Digital Roadmap once implemented, will enable information from remote sensing capability like drones to be seamlessly managed. This will enable more effective decision making whilst removing workers from hazardous environments and allowing resources to be used elsewhere.

The new, more efficient approach to improved asset management is saving around £150,000 per year for this site alone with similar benefits being achieved across the Group.

Changing asset management practices to meet modern standards is a key commitment within Strategy 4.

Case study - Critical enablers - Research Development and Innovation

Robots helping to solve decommissioning challenges

A robot, called Lyra, has successfully surveyed an underground radioactive ventilation duct in Dounreay's redundant laboratories.

Following an initial trial at the Caithness site in 2020 in an inactive building and a limited survey in the laboratories that took place last year, a second-generation robot – Lyra - was developed, with an improved package of surveying measures including LIDAR (a laser detection system), multiple angle cameras, radiation probes and the ability to take swabs using a manipulator arm.

In February and April 2022, the Lyra robot, carried out a survey of the 140m-long underfloor duct which runs under the central corridor between the laboratories, providing useful information that will help to solve the challenge of decommissioning it.

The technology was developed by teams at Dounreay, the Robotics and Artificial Intelligence in Nuclear (RAIN) Hub and FIS360, and was made available for the survey through the National Nuclear User Facility's Hot Robotics programme.

Now the characterisation survey is complete, a comprehensive picture of the duct will help make informed decisions on how the duct should be decommissioned.

David Peattie Accounting Officer and Group Chief Executive Officer 7 July 2022

Accountability report

The accountability report sets out how the NDA meets the key accountability requirements to Government. The report is divided into three sections:

The corporate governance report which:

• Includes details of the Board members and leadership team
• Explains the governance structures and reviews our risk management and the internal control systems

Remuneration and people report which:

• Discloses the remuneration of our Board members
• Highlights employee matters and details staff numbers, costs and pension arrangements

Parliamentary accountability and audit report which includes:

• The Parliamentary accountability disclosures, reporting on losses and special payments and remote contingent liabilities of interest to Parliament
• The Audit report prepared by the National Audit Office setting out the Audit opinion on the annual accounts

Director's report

The NDA is an Executive Non-Departmental Public Body, established by the Energy Act 2004 to secure 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 Chief Executive Officer and the NDA Group Chief Financial Officer whose details are set out in the Governance Statement on page 106.

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 therefore was excluded from any involvement with Moorside deliberations before he stood down from the NDA Board in January 2022.

The other members have no personal, private or commercial interests which present material conflicts with their role as a member of the NDA Board. See the full register of members' interests and the associated procedure.

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.

Prompt payments

It is Government policy to pay 90% of undisputed invoices within five days, with the remainder paid within 30 days.

	2021/22	2020/21	2019/20
Invoices paid within 5 days	66.1%	62.2%	46.1%
Invoices paid within 30 days	93.4%	90.5%	91.2%

The average number of payment days from invoice date for a valid invoice was nine days, an improvement from 14 days in 2020/21. Performance compared with Government policy has been impacted by the lack of an integrated purchase to payment system which significantly reduces our ability to achieve five day payment terms and resolve invoice queries on a timely basis. As part of the Integrated Financial Framework we have implemented a new enterprise resource planning system in April 2022 which has introduced electronic approval workflows and improves our linkage between purchase orders and supplier invoices.

This provides a platform for improving our prompt payment performance.

Personal data

There were three data breaches during 2021/22.

Due to the nature, type or scale of personal data involved, all three incidents were self-reported to the Information Commissioner's Office, with no further action taken by them.

They did, however, suggest mitigating actions to reduce the chance of re-occurrence, all of which have been implemented.

Other disclosures

Disclosures on equal opportunities, learning and development and how the NDA engages with all staff are in the Remuneration and People Report on pages 181 to 239.

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 on pages 240 to 262.

Events after the reporting period

IAS 10 requires the NDA to disclose the date on which the accounts are authorised for issue. The Accounting Officer authorised these Financial Statements on 7 July 2022. The Report of the Comptroller and Auditor General was issued on 11 July 2022 (pages 298-311).

Low Level Waste Repository Limited acquired 100% of the issued share capital of Nuclear Waste Services Limited, which is a dormant company, on 15 June 2022. The event has no material financial effect on the company.

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 four 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). This year, the Board has also implemented attendance in rotation for the Chairs of each operating company at the NDA Board.

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 relating to community engagement for the GDF and creation of the new Nuclear Waste Services division.

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 2022. These decisions include:

Speak Up

This year we have refreshed our approach to whistleblowing - launching our new Speak Up policy and associated training for NDA employees in September 2021 to encourage people to bring any concerns forward. To support our approach we have an independently hosted Speak Up helpline, available at all times, and where reports can be made on an anonymous basis if preferred.

The Audit and Risk Assurance committee has received quarterly reports on Speak Ups received and investigations, as well as reports on themes, trends and lessons learned arising. Serious cases are reported to the A&RA committee as they occur and the committee has dealt with a number of investigations during the year.

In the vast majority of instances, even where an allegation raised was not proven, we were able to make recommendations for improvements to policy, training and communications. During the year, we have also begun to work more closely with our operating companies to ensure greater transparency in relation to Speak Ups raised across the group, and begun to work on reporting on this at a high level to the A&RA committee as well. Going forward we plan to improve reporting, visibility and learning across the group on Speak Up.

Ethical conduct

During the year the Group Leadership Team has agreed a group-wide Ethics Policy, which has also been approved by the NDA Board. The Ethics Policy sets out our standard in relation to key ethics and compliance topics for us and our operating companies to ensure we are working consistently. This policy will be implemented during 2022/23, with training and champions to support it.

COVID-19

The NDA has continued 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. 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. This support continues and has been regularly reviewed and revised to respond to the emerging situation as Government restrictions around the pandemic are eased. This is allowing a phased return to offices for employees who have been working from home.

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 give 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. The Board, through its committees has carried out a review of the support provided to its supply chain during the pandemic.

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.

Advanced gas-cooled reactors

The transfer of seven AGR stations from EDF to the public sector for decommissioning pursuant, to an option exercised by the Secretary of State and the Scottish Minister (with respect to the two AGR stations in Scotland), and which the NDA has been directed by Government to undertake.

The transaction involved significant stakeholder engagement across BEIS, EDF, the Office for Nuclear Regulation (ONR), Nuclear Liabilities Fund and Scottish Government.

Board Governance training

The Board most recently received Governance training in October 2021 and March 2022 from internal and external legal teams. Topics included the role of a fiduciary board, directors' duties in the context of a non-departmental public body, the NDA's functions, powers and duties under the Energy Act 2004 and the NDA group's governance framework.

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 take 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 Group 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 7 July 2022

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 arrangements between the NDA and BEIS are 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 2021/22.

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 draws on best practice as set out in the UK Corporate Governance Code where appropriate, reporting exceptions to UKGI. This is within the context that the NDA's value is not primarily financially metric driven and that its remuneration policy is in line with public sector guidance.

The NDA's governance has been reviewed not only as a result of the findings of recent external reviews and, the revised framework document but as a result of the transition to an operating model where the operating companies are wholly owned subsidiaries of the NDA. Work is underway in several areas as outlined within this report to clarify and articulate the group's governance arrangements and ways of working.

The Energy Act 2004 requires the NDA to prepare a strategy for carrying out its functions and to prepare an annual plan in respect of each financial year. The strategy and annual plan must be approved by the Secretary of State and, to the extent appropriate, by 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 is accountable to the Secretary of State for all aspects of the NDA's activities and performance; 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 to an executive management team.

This includes two Board members: the Group Chief Executive Officer (CEO) and the Group Chief Financial Officer (CFO), and other NDA senior executives. This team has evolved into the newly formed Executive Leadership Team.

The Chair of the Board is accountable to the Secretary of State for the NDA's activities and performance in implementing the NDA Strategy and Annual Plan, for formulating the Board's strategy for discharging the NDA's statutory functions and duties and providing effective leadership and direction of the Board.

The Group CEO is responsible for leadership and operational management of the NDA and as CEO 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 and Board committees.

Board and Board committees	Purpose	Meeting Chair
NDA Board	Accountable to the Secretary of State for all aspects of the NDA's activities and performance, 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 appropriatecontrols.The Secretary of State and, to the extent appropriate, Scottish Ministers, are responsible for approving the NDA's Strategy and annual BusinessPlan.The Board is advised by, and delegates some responsibilities to, six committees and delegates the day-to-day management of the NDA to an Executive Leadership Team, which includes two Board members - the Group Chief Executive Officer and the Group Chief Financial Officer, and other NDA seniorexecutives.	Chair
Audit and Risk Assurance Committee (A&RAC)	To provide 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, consider senior appointments and assess succession planning and talent management.	Chair
Remuneration Committee (REMCO)	To set the reward and governance framework for the NDA group and set the remuneration of executive Board members and members of the NDA Executive Leadership Team who report to the Group Chief Executive Officer of the NDA.	Non-Executive Board Member
Health, Safety, Security and Environment Committee (HSSE)	To support the Board in discharging its responsibilities in respect of issues of Health, Safety (including both nuclear andnon-nuclear safety), Security and Environment in the NDAgroup. This committee 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, and provide additional oversight and scrutiny of, major programmes and projects within the NDA group.	Non-Executive Board Member
Sustainability and Governance Committee (S&G)	To support the Board in respect of sustainability, socio-economics and (non-financial) governance goals and commitments across the NDA group and provide strategic oversight of the group's management of these matters and, in relation to the NDA, compliance with relevant legal and regulatory requirements.	Non-Executive Board Member

As of 31 March 2022, the NDA Board comprised of seven non-executive Board members, including the Non-Executive Chair and two 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 2021 to 31 March 2022, their respective terms of office and membership of Board committees.

Non-Executive Board members

Name:	Role	Board Committee Chair	Term of office ends/ ended
Ros Rivaz	Non-Executive Chair	NOMCO	31 August 2023
Janet Ashdown (1)	Non-Executive Board Member and Senior Independent Member	HSSE and S&G	31 July 2023
Volker Beckers (2)	Non-Executive Board Member	A&RAC	31 October 2022
Evelyn Dickey (3)	Non-Executive Board Member	REMCO	31 July 2023
Rob Holden (4)	Non-Executive Board Member	P&PC	31 January 2022
Alex Reeves	Non-Executive Board Member	Not applicable	31 January 2025
Nick Elliott (5)	Non-Executive Board Member	Not applicable	30 April 2021
Francis Livens	Non-Executive Board Member	Not applicable	30 November 2023
Chris Train (6)	Non-Executive Chair	P&PC (from January 2022)	31 January 2025

Executive Board Members

Name:	Role	Board CommitteeChair	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) The term of office for Janet Ashdown was extended from 31 January 2022 to 31 July 2023 (2) The term of office for Volker Beckers was extended from 31 October 2021 to 31 July 2022 and subsequently from 31 July 2022 to 31 October 2022 (3) The term of office for Evelyn Dickey was extended from 31 January 2022 to 31 July 2023 (4) The term of office for Rob Holden concluded on 31 January 2022 (5) Nick Elliott was appointed to the Board on 15 March 2021 and resigned on 30 April 2021 (6) Chris Train was appointed to the Board on 10 January 2022

The following table provides details of each Board member's attendance at Board and committee meetings during the period 1 April 2021 to 31 March 2022.

	Board	A&RAC	REMCO	HSSE	P&PC	NOMCO	S&G
Total number of meetings	11(1)	5	5	4	10	2	3
Non-Executive Board members
Ros Rivaz	11	5 (3)	5 (3)	4 (3)	8 (3)	2	3 (3)
Janet Ashdown	11	5	-	4	10	2	3
Volker Beckers	11	5	5	-	-	2	3 (3)
Evelyn Dickey	11	-	5	4	-	2	3
Rob Holden (part year)	9	-	4	-	8	2	-
Alex Reeves	11	5	5	-	-	2	-
Francis Livens	11	-	-	4	9	1	3 (3)
Chris Train (part year)	3 (2)	-	-	-	3	-	-
Nick Elliott (part year)	0	-	-	-	1	-	-
Executive Board members
David Peattie	11	5 (3)	5 (3)	4	9	2 (2)	3 (3)
Mel Zuydam	11	5 (3)	2(3)	-	10	2 (2)	-

Notes:

(1) Includes one special meeting (2) One in attendance only (3) In attendance only

Board Members

Dr Ros Rivaz (NDA Chair)

Board skills and experience:

Ros has wide ranging leadership experience, predominantly in highly regulated and high hazard environments in the UK and internationally.

She started her career at Exxon- Mobil, before progressing to senior roles in international companies including Tate & Lyle, ICI, Diageo and Smith & Nephew.

Her executive career culminated as Smith & Nephew's Global Chief Operating Officer. 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.

External appointments:

Ros holds non-executive, senior independent director and committee chair roles 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.

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, especially girls; 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.

David Peattie (Group Chief Executive Officer and Accounting Officer)

Board skills and experience:

David is a Chartered Engineer and began his career at BP in 1979 as a petroleum engineer. During 33 years at the company, he 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 was also Chief Executive of Fairfield Energy, a late-life North Sea oil and gas producer, which developed into a company leading the decommissioning of the Dunlin Alpha platform.

External appointments:

David is Chair of PNTL, the international nuclear shipping company, partly owned by the NDA.

He established and personally funds a bursary at the University of Dundee. The fund provides financial support to undergraduate students in the Engineering Department of the University.

Mel Zuydam (Group Chief Financial Officer)

Board skills and experience:

Mel is an experienced Chief Financial Officer with a strong track record in financial change, business growth, mergers and acquisitions and Treasury, and effective performance management in the UK and international infrastructure and engineering sectors.

Previously, Mel worked across the private and public sector, including as a Listed Company Chief Financial Officer in Europe-wide engineering consulting group Sweco, and with organisations including Balfour Beatty, CH2M, and The Highways Agency. He has also been Chief Financial Officer with private infrastructure investors, such as Singapore Sovereign Wealth Fund GIC and JP Morgan Infrastructure Fund.

External appointments:

Mel is a trustee of Mercy Ships UK. The charity aims to provide free healthcare and improve healthcare delivery systems in the poorest nations.

Janet Ashdown (Senior Non-Executive Board Member)

Board skills and experience:

Janet has held a number of local and global positions in fuel supply, manufacturing, oil trading and retail marketing.

She was a senior leader at BP, running its UK retail and commercial fuel business in her last role.

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

External appointments: Janet is a Non-Executive Director and the Chair of the Remuneration Committee at Victrex plc, a Non-Executive Director and Chair of the Corporate Sustainability and Remuneration Committees at RHI - Magnesita NV and a Non-Executive Director at Stolt Nielsen.

Volker Beckers (Non-Executive Board Member)

Board skills and experience:

After working in the IT sector, Volker worked as a 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.

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.

External appointments:

Volker holds non-executive roles in the public and private sector as well as academia and charities. He supports start-up businesses and works in his non- executive portfolio with larger companies as well.

Evelyn Dickey (Non-Executive Board Member)

Board skills and experience:

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.

External appointments:

Evelyn is a member of the independent panel for Menopause Friendly Accreditation.

Rob Holden CBE (Non-Executive Board Member (until 31 January 2022))

Board skills and experience:

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.

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.

External appointments:

Rob undertakes advisory assignments on transport and defence projects both in the UK and overseas.

Alex Reeves (Non-Executive Board Member and UKGI Representative))

Board skills and experience:

Prior to joining UKGI, Alex spent over ten years in corporate advisory and investment banking roles focused on the financial services sector, most recently in the FIG M&A Team at Jefferies in London. During this time, he advised on and managed a large number of UK and cross- border M&A transactions for UK, European and US clients, with a particular focus on the asset management sector.

Alex was a Non Executive Director of London & Continental Railways Limited from 2018 to 2021.

External appointments:

Alex is a Director at UKGI, having joined its predecessor organisation, the Shareholder Executive, in 2010.

He currently leads on inward Mergers and Acquisitions and other corporate finance projects, as well as running UKGI's Non- Executive Director Forum.

Alex is a co-opted member of the Investment Committee of the Charity for Civil Servants.

Chris Train OBE (Non-Executive Board Member (from January 2022))

Board skills and experience:

Chris has over 38 years' experience in the Energy, Utilities, Regulation and Infrastructure sectors.

He has held CEO, senior project management, operations and business development roles at Cadent, National Grid, Transco and Lattice.

He has also sat on various European and international committees covering subjects such as regulation, commercial and infrastructure development.

External appointments:

Chris is the Chair of South East Water and Clean Power Hydrogen (CPH2). He undertakes advisory work on the energy transition and is a member of the BEIS Hydrogen Advisory Council.

Professor Francis Livens (Non-Executive Board Member)

Board skills and experience:

Francis has performed numerous important advisory roles in the UK and internationally, as a recognised expert in radiochemistry in particular plutonium and nuclear materials.

External appointments:

Francis is Chair of the Nuclear Innovation and Research Advisory Board advising Government, as well as a member of the Office for Nuclear Regulation Independent Advisory Panel.

As Director of the Dalton Nuclear Institute, he is responsible for co-ordination of nuclear research and education across The University of Manchester.

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

Board performance

Corporate governance compliance

The NDA applies high standards of governance and where appropriate, given the size, status and complexity of the organisation, it 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 a 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, in its role acting as NDA's shareholder.

Continuing review of compliance against the codes will take place in parallel with further developments under the one NDA way of working and the BEIS Departmental Review of its governance.

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

• Transitioning fully to a group ownership model
• Reviewing risk areas and mitigations in line with the agreed risk appetite
• Introducing the Group Leadership Team
• Taking an active role in stakeholder relations and seeking greater engagement with the workforce

A S172 statement is set out on pages 88 to 96 which details key engagements including employee breakfast sessions, attendance at the Joint Consultation Group and site visits.

Improvements to the internal governance framework have included:

• Revising the Framework Document, published in June 2021
• Reviewing the Terms of Reference for all Board Committees
• Implementing the findings of an external effectiveness review undertaken at the end of the previous financial year (more information on page 126)
• Approving a schedule of Reserved Matters for the Board
• Improving the induction process for new members
• Implementing the recommendations
• from the Magnox Inquiry, Departmental Review, and the Chair's Review in the Integrated Review Response and several Public Accounts Committee hearings
• Strengthening the HSSE Committee remit further considering the roles and responsibilities of key individuals
• Setting up a Sustainability and Governance Committee

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 can be found on pages 109 to 120.

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.

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 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 collective responsibility for decisions taken by the Board, to hold the Executive Leadership Team to account and the 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 their Executive Leadership Team and has established a series of committees to advise it.

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 11 times during the year, including a special meeting to consider the Government's

Advanced Gas-cooled Reactor (AGR) transaction. Due to COVID-19, the majority of these meetings (and committee meetings) have been held remotely 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
• The Government's 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. Redacted Board meeting minutes are published on the NDA's website. The Board ensures that a balanced assessment of performance is reported to BEIS and regularly reviews the main strategic risks facing the NDA group.

Board performance and effectiveness review

The Board undertakes regular evaluations of its effectiveness which look at both the Board and its committees. In line with best practice, an externally facilitated review takes place every three years and an internally facilitated review every year in between.

The last externally facilitated review was undertaken in February 2021. This was at the end of the previous financial year but the findings of this review were published and acted upon during

this financial year. This review highlighted some key themes, including the need to clearly define Board and Board committee roles and authorities, defining

Board composition priorities and ensuring that the Board has a clear accountability framework in place between the NDA Board and the four operating company Boards. These are all things that the Board has addressed during the current period.

The next scheduled internally facilitated review will take place in Summer 2022. An internal effectiveness review was not undertaken during this financial year because reviews were carried out at the start and end of the year and to allow the Chair, who was fairly early into her appointment at the start of the financial year, to undertake a Chair's Review and understand the findings and recommendations coming out of several external reviews.

In July 2021, the NDA also published its response to the Magnox Inquiry and the BEIS Departmental Review which included a response to each recommendation and progress to date. The Chair also published the findings of her Chair's Review in September 2021.

Significant change had been introduced since the interim Magnox report in 2017 and the NDA has continued to strengthen the organisation and improve the structure of the group, with this reflected in the response report. During the year, all outstanding recommendations from each of the three reviews were allocated to the Board and Board committees to review and approve. While good progress has been made, work continues and the reviews provide additional value as the new operating model is developed and embedded.

Collective assessments by the Board during 2021/22 agreed that findings are being acted upon and good progress is being made in all key areas.

The Chair undertook the annual performance appraisals of the Non-Executive Board members during March 2022. The senior independent member led the annual appraisal of the Chair's performance during March 2022.

The Board was 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, LLW Repository, Harwell and the PNTL terminal at Barrow-in- Furness and (virtually) the Magnox sites at Wylfa and Trawsfynydd. The Board welcomed the attendance of the Chairs of the operating company Boards in rotation.

Board committees

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

Membership of committees is made up of a combination of Executive and 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 and Deputy Company Secretary attend 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.

Audit and Risk Assurance Committee (A&RAC)

Number of meetings in the year: 5

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

• Volker Beckers (Chair)
• Janet Ashdown
• Alex Reeves

The following persons may also attend the committee meetings:

• Standing Advisor (Bruce Martin)
• 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 Director of Internal Audit
• Group Chief Ethics and Compliance Officer
• Group Financial Controller
• 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 NDA, and across the wider 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 A&RAC has:

• Carried out a deep dive on risks around a change in Government priorities and the effect on NDA funding
• Reviewed and updated the A&RAC Terms of Reference incorporating best practice from across NAO/BEIS/Government Internal Audit Agency
• Reviewed the frequency of meetings and scheduled them to take place quarterly to align with key reporting deadlines
• Commissioned an internal audit on supplier support schemes following COVID-19
• Set up a digitalised audit platform allowing for closer integration of the audit functions across the group as well as better analysis of key areas
• Focused on emerging risks such as cybersecurity and energy prices

Nominations Committee (NOMCO)

Number of meetings in the year: 2

The NOMCO consists of seven 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, senior appointments and assesses succession planning and talent management.

During the year, the NOMCO has:

• Reviewed and updated the committee Terms of
• Reference and developed a set of Nominations
• Committee Principles
• Reviewed Executive performance and succession

Remuneration Committee (REMCO)

Number of meetings in the year: 5

The REMCO consists of four Non-Executive Board members:

• Evelyn Dickey (Chair)
• Volker Beckers
• Alex Reeves
• Rob Holden (until 31 January 2022)
• Chris Train (from 21 March 2022)

The following persons may also attend the committee meetings:

• NDA Chair/Group 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 Non-Executive Board Members
• Group Head of Reward

Further details on the work of the REMCO is contained in the Remuneration Report on pages 100 to 107.

Health, Safety, Security and Environment Committee (HSSE)

Number of meetings in the year: 4

The HSSE Committee consists of four members, three of which are Non-Executive Board Members:

• Janet Ashdown (Chair)
• Evelyn Dickey
• Francis Livens
• David Peattie (Group Chief Executive and Accounting Officer)

The following persons may also attend the committee meetings:

• Per Lindell – Standing Advisor
• NDA Chair
• Group Chief Operations and Performance Improvements Officer
• 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 Safety and Security Committees

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

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

Corporate governance compliance

The NDA applies high standards of governance and where appropriate, given the size, status and complexity of the organisation, it 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 a 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, in its role acting as NDA's shareholder.

Continuing review of compliance against the codes will take place in parallel with further developments under the one NDA way of working and the BEIS Departmental Review of its governance.

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

• Transitioning fully to a group ownership model
• Reviewing risk areas and mitigations in line with the agreed risk appetite
• Introducing the Group Leadership Team
• Taking an active role in stakeholder relations and seeking greater engagement with the workforce

A S172 statement is set out on pages 88 to 96 which details key engagements including employee breakfast sessions, attendance at the Joint Consultation Group and site visits.

Improvements to the internal governance framework have included:

• Revising the Framework Document, published in June 2021
• Reviewing the Terms of Reference for all Board Committees
• Implementing the findings of an external effectiveness review undertaken at the end of the previous financial year (more information on page 126)
• Approving a schedule of Reserved Matters for the Board
• Improving the induction process for new members
• Implementing the recommendations
• from the Magnox Inquiry, Departmental Review, and the Chair's Review in the Integrated Review Response and several Public Accounts Committee hearings
• Strengthening the HSSE Committee remit further considering the roles and responsibilities of key individuals
• Setting up a Sustainability and Governance Committee

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 can be found on pages 109 to 120.

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.

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 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 collective responsibility for decisions taken by the Board, to hold the Executive Leadership Team to account and the 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 their Executive Leadership Team and has established a series of committees to advise it.

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 11 times during the year, including a special meeting to consider the Government's

Advanced Gas-cooled Reactor (AGR) transaction. Due to COVID-19, the majority of these meetings (and committee meetings) have been held remotely 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
• The Government's 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. Redacted Board meeting minutes are published on the NDA's website. The Board ensures that a balanced assessment of performance is reported to BEIS and regularly reviews the main strategic risks facing the NDA group.

Board performance and effectiveness review

The Board undertakes regular evaluations of its effectiveness which look at both the Board and its committees. In line with best practice, an externally facilitated review takes place every three years and an internally facilitated review every year in between.

The last externally facilitated review was undertaken in February 2021. This was at the end of the previous financial year but the findings of this review were published and acted upon during

this financial year. This review highlighted some key themes, including the need to clearly define Board and Board committee roles and authorities, defining

Board composition priorities and ensuring that the Board has a clear accountability framework in place between the NDA Board and the four operating company Boards. These are all things that the Board has addressed during the current period.

The next scheduled internally facilitated review will take place in Summer 2022. An internal effectiveness review was not undertaken during this financial year because reviews were carried out at the start and end of the year and to allow the Chair, who was fairly early into her appointment at the start of the financial year, to undertake a Chair's Review and understand the findings and recommendations coming out of several external reviews.

In July 2021, the NDA also published its response to the Magnox Inquiry and the BEIS Departmental Review which included a response to each recommendation and progress to date. The Chair also published the findings of her Chair's Review in September 2021.

Significant change had been introduced since the interim Magnox report in 2017 and the NDA has continued to strengthen the organisation and improve the structure of the group, with this reflected in the response report. During the year, all outstanding recommendations from each of the three reviews were allocated to the Board and Board committees to review and approve. While good progress has been made, work continues and the reviews provide additional value as the new operating model is developed and embedded.

Collective assessments by the Board during 2021/22 agreed that findings are being acted upon and good progress is being made in all key areas.

The Chair undertook the annual performance appraisals of the Non-Executive Board members during March 2022. The senior independent member led the annual appraisal of the Chair's performance during March 2022.

The Board was 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, LLW Repository, Harwell and the PNTL terminal at Barrow-in- Furness and (virtually) the Magnox sites at Wylfa and Trawsfynydd. The Board welcomed the attendance of the Chairs of the operating company Boards in rotation.

Board committees

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

Membership of committees is made up of a combination of Executive and 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 and Deputy Company Secretary attend 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.

Audit and Risk Assurance Committee (A&RAC)

Number of meetings in the year: 5

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

• Volker Beckers (Chair)
• Janet Ashdown
• Alex Reeves

The following persons may also attend the committee meetings:

• Standing Advisor (Bruce Martin)
• 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 Director of Internal Audit
• Group Chief Ethics and Compliance Officer
• Group Financial Controller
• 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 NDA, and across the wider 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 A&RAC has:

• Carried out a deep dive on risks around a change in Government priorities and the effect on NDA funding
• Reviewed and updated the A&RAC Terms of Reference incorporating best practice from across NAO/BEIS/Government Internal Audit Agency
• Reviewed the frequency of meetings and scheduled them to take place quarterly to align with key reporting deadlines
• Commissioned an internal audit on supplier support schemes following COVID-19
• Set up a digitalised audit platform allowing for closer integration of the audit functions across the group as well as better analysis of key areas
• Focused on emerging risks such as cybersecurity and energy prices

Nominations Committee (NOMCO)

Number of meetings in the year: 2

The NOMCO consists of seven 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, senior appointments and assesses succession planning and talent management.

During the year, the NOMCO has:

• Reviewed and updated the committee Terms of
• Reference and developed a set of Nominations
• Committee Principles
• Reviewed Executive performance and succession

Remuneration Committee (REMCO)

Number of meetings in the year: 5

The REMCO consists of four Non-Executive Board members:

• Evelyn Dickey (Chair)
• Volker Beckers
• Alex Reeves
• Rob Holden (until 31 January 2022)
• Chris Train (from 21 March 2022)

The following persons may also attend the committee meetings:

• NDA Chair/Group 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 Non-Executive Board Members
• Group Head of Reward

Further details on the work of the REMCO is contained in the Remuneration Report on pages 100 to 107.

Health, Safety, Security and Environment Committee (HSSE)

Number of meetings in the year: 4

The HSSE Committee consists of four members, three of which are Non-Executive Board Members:

• Janet Ashdown (Chair)
• Evelyn Dickey
• Francis Livens
• David Peattie (Group Chief Executive and Accounting Officer)

The following persons may also attend the committee meetings:

• Per Lindell – Standing Advisor
• NDA Chair
• Group Chief Operations and Performance Improvements Officer
• 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 Safety and Security Committees

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

The responsibility for these issues within the NDA group lies with the Site Licence Companies (SLC). In particular, the SLCs have responsibility for health, safety, security and environment on their sites. However, the NDA Board is accountable for the performance of the 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 include 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 (prior to the launch of the S&G), 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:

• Carried out an asset management deep dive by developing a group wide asset management strategy
• Set up a One NDA Environmental Group
• Focused on group-wide common issues such as demolition and asbestos, and for the latter developing a code of practice
• Prior to the creation of the S&G committee, the HSSE committee oversaw the formation of the Sustainability Steering Group
• Provided focus on improvements around electrical safety across the NDA group
• Focused on the mental and physical wellbeing of the group workforce during the ongoing COVID-19 pandemic.

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.

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.

Sustainability and Governance Committee (S&G)

Number of meetings in the year: 3

The S&G Committee consists of three Non-Executive Board members:

• Janet Ashdown (Chair)
• Evelyn Dickey
• Francis Livens

The following persons may also attend committee meetings:

• Group Chief Executive and Accounting Officer
• Group Chief Operations and Performance Improvements Officer
• Group Chief Communications and Stakeholder Relations Officer
• Group Chief People Officer
• Director of Environment
• Director of Sustainability
• Director of Social Value
• Group Chief Ethics and Compliance Officer
• Director of Special Projects and One NDA
• Subsidiary Directors responsible for matters considered by the Committee (as required)

The S&G Committee supports the NDA Board in respect of sustainability, socio-economic and governance goals and commitments across the NDA group.

The Committee's remit is to provide strategic oversight of the NDA group's management of sustainability, socio- economics and (non-financial) governance matters and, in relation to the NDA, compliance with relevant legal and regulatory requirements.

The S&G Committee advises the NDA Board on:

• To oversee and monitor the NDA group's Sustainability Strategy
• To assure compliance with sustainability legislation and group policies, corporate governance requirements, including s172 Companies Act 2006 reporting and oversee any relevant corporate governance or regulatory developments that may impact the NDA group
• To oversee the evolution and impact of the Socio-Economic Strategy and Equality, Diversity and Inclusion Strategy
• To keep up to date with social value topics, including stakeholder expectations on these matters
• To support the evolution of the group's one NDA culture, including key metrics, stakeholder engagement and employee feedback surveys
• To ensure top-level awareness of the group's interactions with employees, customers, suppliers, other stakeholders and the communities in which it operates and how this impacts the execution of the Sustainability, Socio-Economic and ED&I Strategies
• To oversee the role of the group in its supply chain, promoting high standards of ethical procurement practices and responsible sourcing practices, in line with the NDA mission and values
• To oversee the ethical conduct of the group, including monitoring themes and trends evident from potential breaches of the NDA Code of Conduct and Speak Up concerns raised
• To support the evolution, as appropriate, of a group Code of Conduct
• To oversee any sustainability-related beacon projects and report into the Board
• To review any relevant group strategic risks allocated to the committee

During the year, the S&G Committee has:

• Overseen the launch of a Speak Up Policy
• Developed a Sustainability Policy and Strategy in conjunction with BEIS, SEPA and ONR
• Received BEIS endorsement of the S&G Committee as a lead sustainability body

Programmes and Projects Committee (P&PC)

Number of meetings in the year: 10

The P&PC consists of four members, three of which are Non-Executive Board members:

• Rob Holden (Chair) (until January 2022)
• Chris Train (Chair) (from January 2022)
• Janet Ashdown
• Francis Livens
• David Peattie (Group Chief Executive and Accounting Officer)

The following persons may also attend committee meetings:

• Group Chief Operations and Performance Improvements Officer
• Group Chief Financial Officer
• Group Director of Risk and Assurance
• Head of Sanction
• Subsidiary representatives and senior responsible officers (SROs)

The P&PC 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:

• Reviewed and updated the Terms of Reference for the Committee
• Facilitated progress on improving the quality of business cases and scheduling of sanctions
• Reviewed several strategically important group projects
• Assumed responsibility for a significant number of the recommendations from the Integrated Review Response
• Focused on skills retention and capability (in particular SRO) across the NDA group

Executive leadership team

David Peattie (Group Chief Executive Officer and Accounting Officer)

Board and Executive Team Member

For more information see page 111

Mel Zuydam (Group Chief Financial Officer)

Board and Executive Team Member

For more information see page 113

Alan Cumming (Group Chief Operations and Performance Improvements Officer)

Executive Leadership Team Member

Alan joined the NDA 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 Programme and Director of Projects for British Energy.

Kate Ellis (Group Chief Commercial and Business Development Officer (until December 2021))

Executive Leadership 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.

Emma Ferguson- Gould (Group Chief Commercial and Business Development Officer (from February 2022))

Executive Leadership Team Member

Emma joined the NDA as Group Chief Commercial and Business Development Officer in February 2022. She joined from BEIS, where she was the Commercial and Operations Director and a Non- Executive Director for UK Shared Business Services Ltd.

Emma brings a wealth of cross- sector commercial experience obtained in both leadership and delivery roles across Whitehall and the private sector.

Neil Harnby (Group General Counsel and Company Secretary)

Executive Leadership 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.

Frank Rainford (Group Chief of Staff and Security Officer)

Executive Leadership 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 a one NDA way of working.

Prior to joining the NDA, Frank spent three 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.

Paul Vallance (Group Chief Communications and Stakeholder Relations Officer)

Executive Leadership 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 Leadership 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 Engineering Construction Industry Training Board, deputy chair for the Nuclear National Skills Strategy Group and vice chair for the National College for Nuclear.

Clive Nixon (Group Chief Nuclear Strategy Officer)

Executive Leadership Team Member

Clive joined the NDA in 2005, after 15 years with BNFL, where he held a number of roles across research and development, technical and commercial areas. Through this he covered the full range of activities and facilities at Sellafield, including reprocessing, waste management and decommissioning. He also spent time in the US and overseas.

Roles undertaken within NDA, culminating in his current appointment, have allowed him to gain a comprehensive understanding of the NDA group, the strategy and policy landscape, and provide leadership

on strategy development and implementation for the group, and with BEIS, through strong collaborative relationships.

Clive has a BSc and MSc in Engineering and Applied Mathematics, is a graduate of the Cabinet Office Project Leadership Programme and was part of the first NDA Leadership Academy cohort.

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 leadership team comprising of: Group Chief Financial Officer; Group Chief Operations and Performance Improvements Officer; Group Chief People Officer; 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; and Group Chief Nuclear Strategy Officer. Biographies of each can be found on pages 141-146.

Financial control

The NDA had strong financial controls in place to ensure it remained within its budgetary spend for 2021/22 of £3.7 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' own governance and assurance processes, overseen by their Boards.

Where a programme or project is above the delegation given to the operating company Managing Director by the NDA Accounting Officer, the NDA Group Investment Committee (previously the Sanction Committee) advises the NDA Accounting Officer to enable them to approve or endorse investment proposals. If above the NDA Accounting Officer's delegation from the BEIS Principal Accounting Officer, the NDA Board followed by BEIS Projects Investment Committee and BEIS minister will approve before being presented to HMT for approval by Treasury Approval Process and Chief Secretary to the Treasury.

Group risk management and assurance

Effective management of risk across the NDA group 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. Achievement of our business objectives requires minimising and managing the impact of threats and, maximising the likelihood of realising opportunities. Risks are considered proportionately when taking business decisions.

NDA's risk management approach is aligned to the BEIS Risk Management Principles. Our group risk management and assurance processes have been in place throughout 2021/22.

Embedding risk management

Risk management is at the heart of our decision making through establishing a positive risk culture, where open and transparent discussion of risk forms part of everyday activities. During 2021/22 we achieved this by:

• Providing a supportive environment with open collaborative conversations about our risks and individuals are comfortable to escalate risks and concerns
• Regularly discussing our risk appetite, understanding the effort required to manage the risk and empowering our people to seek business opportunities and be innovative and creative
• Ensuring that our people had the skills and knowledge to manage risks effectively
• Ensuring that key risks were visible, owned, actively, and managed, support is prioritised to where it's needed most.

Risk assurance framework

All processes and associated risk outputs are assured in accordance with the NDA Three Lines of Defence (LoD) assurance model. Risks are linked to controls which encourages assurance to be built into standard management practices at the earliest appropriate points.

Integration is enabled through the Risk Assurance Framework. This defines how we assure ourselves, how we assess the effectiveness of risk management across the businesses and how we support the Assurance function in delivering assurance activities.

During 2021/22, a dynamic planning interface was developed between Risk, Assurance and Internal Audit enabling cross pollination and adjust our focus on a risk basis. This has been developed on the principle of risk, control and assure.

Roles and responsibilities

The Accounting Officer is ultimately accountable for NDA risks. All staff across 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 clearly defined through the regulatory framework.

NDA group operating company present their top risks and describe their management of them through the Accounting Officer Review process. In addition, the NDA risk team is engaged in additional challenge and assurance of risks across the businesses.

Our risk management

What we monitor

Group strategic risks: Risks which could impact on the NDA group and force a fundamental change to the current NDA Strategy and impacts on the mission. Risks that requires pro-active management and co-ordination by NDA, with GLT sponsorship and ownership.

Our risk landscape:

• Current risks: Risks we are managing now that could stop us achieving our strategic objectives.
• Emerging risks: Risks with a future impact from external or internal opportunities or threats. These can be slow moving or have a rapid velocity.

What we assess:

• Risk ownership: each risk has a named owner.
• Likelihood and impact: assessed using our Group PID (probability impact diagram).
• Control Performance: Assessment of the effectiveness of our management controls.
• Risk appetite: risk assessed against our level of appetite and required response
• Actions: future actions to further reduce our risk exposure.

Our impact categories : We assess our risks against seven key impact categories:

• Safety
• Environment
• Legal
• Reputation
• Delivery
• Security
• Financial

Business risk registers : Our operating companies identify threats and opportunities to their operations and interdependencies. These in turn support the development of our Group Strategic Risk Profile.

How we monitor

NDA Board: Accountable to the Secretary of State for all aspects of the NDA's activities and performance; 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 NDA performance is measured; and maintains an appropriate control framework that provides assurances on risk assessments and the application of appropriate controls.

Board committees:

• Audit and Risk Assurance: Provides advice and assurance to the Board on risk, control and governance.
• Sustainability and Governance: Oversight and scrutiny of risks specific to sustainability and governance.
• Programmes and Projects: Oversight and scrutiny of risks specific to projects and programmes.
• Health Safety Security and Environment: Oversight and scrutiny of risks specific to health, safety, security and environment.

NDA Group Risk : Maintains the risk management framework, identifies and shares best practice and provides oversight and challenge of risk at both NDA and group level.

Risk Owners and Sponsors: Are responsible for ensuring strategic and group risks are understood, appropriately assessed, actively managed, reported and monitored.

Performance Improvement Interface Team (PIIT): Are the main point of contact/link between the NDA group and the operating companies. They provide assurance and challenge that the operating companies follow guidance set by the group and the NDA.

Group Risk Forum (GRF): Considers (key) threats and opportunities across the entirety of the NDA group, to develop collaboration and cross pollination of risks in line with the one NDA way of working ethos. The GRF also considers emerging risks and potential new group risks.

NDA Risk Forum: Considers (key) threats and opportunities across the NDA. Facilitates learning, knowledge enhancement and communication of risk information.

Accounting Officer's Review: NDA operating companies present their top risks and describe their management of them through the Accounting Officer Review process to ensure their appropriate management.

Group Leadership Team: Routine oversight and monitoring of risks and exposure against risk appetite with onward reporting to Board committees. Ensuring the risk management framework is acted upon.

The responsibility for monitoring risks works upwards of the list above, ending at NDA Board.

The responsibility for implementing works down from NDA Board.

Risk appetite

Risk appetite is a key part of our Enterprise Risk Management framework, helping the NDA to find the balance between innovation and caution, without exposing the organisation to irrecoverable damage or stagnation. Risk appetite provides us with a guiding framework on the level of potential exposure that can be tolerated and encourages consistency in decision making across the organisation.

The NDA Board sets the risk appetite for the group. This approach supports effective decision making and risk escalation. It is embedded within our Strategic Management System and underpinned by our Value Framework.

Risk appetite and tolerance statement

The health, safety, wellbeing and security of employees, contractors, visitors, neighbours and the environment are core to the NDA's operations. The NDA group accepts that it is not possible, nor necessarily desirable, to eliminate all the risks inherent in its activities.

However, it will always seek to reduce risks so far as is reasonably practicable by applying appropriate mitigation. Increases in near- term risk exposure may be tolerated in order to achieve the mission and secure overall risk reduction in the longer term.

The NDA group is required to comply with statutory duties and other legal obligations. NDA group businesses may tolerate some risk of breaching laws or regulations when making decisions based on a balance of risks, providing that the risk is always reduced as far as possible and the decision to proceed is defensible. The NDA group maintains zero tolerance for activities or decisions which are intentionally recklessly or deliberately in breach of the law.

Stakeholder confidence and support is vital to the achievement of the NDA's mission. NDA group objectives must be delivered transparently, cost- effectively and ensure value to the taxpayer, whilst ensuring that group activities remain compliant with legal requirements.

The NDA group maintains very low tolerance of activities that would be likely to have a severe negative impact on its reputation. There may, however, be circumstances where, as a group, we take a stance which may not always be supported by all of our stakeholders where we believe – in line with so far as is reasonably practicable principles - it is necessary for the effective and efficient achievement of our mission. NDA group however maintains its long-standing commitment to always act with openness, respect and transparency and engage with stakeholders around significant changes to its plans and strategy.

Group Strategic Risks (GSRs)

Our GSRs are key threats which cause uncertainty in the delivery of the NDA mission to clean up the UK's nuclear sites safely, securely and cost effectively with care for people and the environment. Management of these risks helps to increase certainty in the delivery of this mission. The table below contains the NDA's 13 strategic risks, their link to NDA's five mission themes and the response to mitigate these risks in 2021/22.

During 2021/22 changes to external factors increased the risk environment for a number of GSRs. These include cost inflation and material shortage post COVID-19, labour market dynamics, rising cost of energy, the Ukraine / Russia conflict and funding pressures. In response, the GSRs were re-assessed and the NDA group have taken measures, where applicable, to address the increased level of risk.

1. Reference class forecasting (RCF) predicts the outcome of a planned project based on actual outcomes in a reference class of similar projects to that being forecast. The theories behind reference class forecasting were developed by Daniel Kahneman and Amos Tversky. This theoretical work helped Kahneman win the Nobel Prize in Economics.

Mission themes

| Risk title | Mission theme | Responses | Change in risk environment | Likelihood | Impact | | — | — | — | — | — | — | | 1. Project, programme and portfolio management performance across the group is not performing as required, impacting mission delivery | Spent Fuels, Nuclear Materials, Integrated Waste Management, Site Decommissioning and Remediation and Critical Enablers | Restructuring of the NDA group is complete with the final PBO (LLWR) becoming a subsidiary in July 2021. Several NDA initiatives are starting to demonstrate their value. The use of reference class forecasting(1) in business cases has been more prevalent to support evaluation of risk and NDA has adopted a cross-group Project Definition Rating Index to improve project definition. There has been positive progress on the Chair’s Review, aligning to NDA Assurance Programmes and Projects Committee Reporting. Two beacon projects have been launched for 2022/23 - Sustainability and Skills (with a focus on programme and project management skills and succession planning). | Decreased as a result of the NDA group restructure. | Likely | Moderate | | 2. An inability to safely, securely and cost effectively manage radioactive waste | Integrated Waste Management | Good progress has been made to embed the Integrated Waste Management Programme and agree/further develop lifetime plans, in order to support our ability to plan for and optimise future capabilities. From an organisational perspective, Nuclear Waste Services continues to deliver against the Strategic Outcome Specifications. | No change | Unlikely | Major | | 3. The NDA group has insufficient capability and capacity | Spent Fuels, Nuclear Materials, Integrated Waste Management, Site Decommissioning and Remediation and Critical Enablers | Opportunities identified to develop a group-wide Strategic Workforce Plan, identifying group-wide skills gaps – scarce, critical and high demand. Embedding a group wide approach to talent (leveraging of talent across the operating companies) and retraining and upskilling the current workforce to meet future needs. | Increased | Possible | Moderate | | 4. Supply chain may not have the capacity or capability | Critical Enablers | Work continues to mature the group-wide commercial pipeline; delivery of a group electronic sourcing system will further aid this position. Once established this will support the understanding of both capacity and capability needs to meet future demand. In addition, price inflation, resource shortages and the heated labour dynamic continue to be actively monitored. Close collaboration with supply chain partners continues to ensure aligned responses. Due to the ongoing conflict involving Russia, there is an increased probability of cyber-attacks within the supply chain. NDA continues to work closely with cyber teams to monitor, mitigate and respond accordingly. | Increased | Unlikely | Major | | 5. Change in Government priorities. NDA funding is not sufficient | Spent Fuels, Nuclear Materials, Integrated Waste Management, Site Decommissioning and Remediation and Critical Enablers | The longer term impact on public finances of COVID-19 and current increased inflationary pressures will pose a real challenge to the NDA’s funding over the Spending Review 2021 period. The NDA has continued to focus on improving mission delivery to demonstrate value for money and help maintain stakeholder support in prioritising NDA expenditure. Strong portfolio management of threats and opportunities across the group is key to optimise value for money and mission delivery. | Increased | Possible | Major | | 6. Inappropriate contractual arrangements, ineffective relationships or overly complex interface arrangements | Critical Enablers | From 2015 through to 2022 the NDA group has mitigated the risk associated with inappropriate contractual arrangements through moving from the PBO model to a wholly owned subsidiary model and now has in place a new structure for the group. Regarding ineffective relationships, the NDA has developed the Group Operating Framework (GOF) which is intended to remove ambiguity and clarify roles, responsibilities, accountabilities and authorities. It focuses on the desired behaviours to create an enabling environment. NDA articulated governance arrangements, defined obligations from the Energy Act and Framework document and crystalised the role of its functions. The extant Interface Agreements describe standards committed to by NDA and operating companies along with details of group policies and operational arrangements. The focus for the coming year is to review and update the Agreements and deliver against the commitment to further simplify arrangements at the interface, minimising the burden on operating companies through rationalising policies and simplification of processes. | No change | Possible | Moderate | | 7. Major incident at an NDA site | Spent Fuels, Nuclear Materials, Integrated Waste Management, Site Decommissioning and Remediation and Critical Enablers | Within the nuclear Site Licence Companies, emergency planning exercises are carried out on a regular basis and well established governance systems are in place. Emergency management processes within NDA have improved significantly in the last 18 months but further work remains to fully embed these within NDA and the wider group. Asset management plans and environment management policies are being put in place and an assurance process is being developed which focuses on achievement of expectations and improvement activities. | New | Very unlikely | Severe | | 8. Health, Safety, Wellbeing (HSW) | Spent Fuels, Nuclear Materials, Integrated Waste Management, Site Decommissioning and Remediation and Critical Enablers | The Deconstruction Project, Asbestos Working Group and Construction Design and Management working group each have a significant impact on health, safety and wellbeing and establish good working practices across the group. A Mental Health and Wellbeing Delivery Group has been established to support and drive consistency. A health and safety climate survey is planned across the majority of the group in the coming year. | New | Unlikely | Major | | 9. A nuclear event external to the NDA group | Spent Fuels, Nuclear Materials, Integrated Waste Management, Site Decommissioning and Remediation and Critical Enablers | This risk was updated in 2020 to account for Emergency Management response in the short- and medium-term. With the establishment of GSR 007, 010 and 011 the focus of the risk will shift back to recovery in the medium to long term. The threat scenarios continue to be aligned to the International Nuclear Event Scale categories. Controls for short-to medium term mitigations are shared with GSR 007, 010 and 011 and they will be referred to in GSR 009 rather than explained in full. The risk score for external Nuclear Event risk remains elevated and has now increased as malicious act likelihood has been increased to likely due to the ongoing conflict in Ukraine. The conflict is also likely to have an impact on other threat scenarios from a human factors perspective, but the change in the likelihood of these threat scenarios has not been assessed. | Increased |Very unlikely | Severe | | 10. Cyber threats | Critical Enablers | NDA fully supports the civil nuclear sector new Cyber Strategy, which recognises the step-change in recent cyber threat and business needs. The NDA group Cyber Strategy has been refreshed in line with this and focuses on enabling the mission, security culture and continuing to increase capability. The NDA group has continued to bolster its security and step up its vigilance, working closely with and taking direction from UK Government, including the National Cyber Security Centre (NCSC) and Government Communications Headquarters (GCHQ). | Increased | Possible | Major | | 11. Security breach | Spent Fuels, Nuclear Materials, Integrated Waste Management, Site Decommissioning and Remediation and Critical Enablers | A full analysis of this risk was conducted in collaboration with the NDA group and an independent analysis was conducted in parallel by Control Risks. A group intelligence management system, CLUE was implemented to facilitate intelligence sharing between the NDA group and National Police and intelligence agencies. The NDA Security Forum (NDA SF) provides regular quarterly group working group sessions in: supply chain, personnel and physical security, intelligence, emergency preparedness, business continuity and security governance. Security training and awareness packages for the NDA group are under development and aligned with the wider HMG security awareness plan. Controls are in place focused on the risk reduction actions and maturing risk reduction curve. Security and resilience continues to be in a stable position across the NDA group. | New | Unlikely | Major | | 12. NDA assets not performing as required, impacting mission delivery | Spent Fuels, Nuclear Materials, Integrated Waste Management, Site Decommissioning and Remediation and Critical Enablers | Tactical plans to deliver NDA group commitments are in development through asset management plans, key performance indicator line-of-sight and an Asset Management Digital Roadmap. | New | Very unlikely | Major | | 13. Laws, regulations, contractual obligations, policies and a governance framework | Spent Fuels, Nuclear Materials, Integrated Waste Management, Site Decommissioning and Remediation and Critical Enablers | The NDA group’s external legal services panel has been refreshed to set up a hybrid resourcing model to flex with business demands. The NDA group is also seeking to ensure that sufficiently resourced legal and governance teams are available to provide advice, manage external lawyers and ensure Boards are sufficiently advised. Further mitigation will continue through senior leadership training and development of a rolling programme of legal risk management training and robust horizon scanning. Senior leadership will:</br> - Embed and roll out legal policies and training in their part of the business or function; and</br> - Ensure they have a good understanding of the legal implications of actions (or inactions) in their business area and involve their lawyers in the right things at the right time, including in lessons learned activities when litigation/challenges arise. | New | Unlikely | Major |

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 committees have reviewed five GSRs – 1, 3, 5, 7 and 11. During this year we have utilised expertise from across the group including Non-Executive Directors (NEDs) and other independent advisors. These bring 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.

Impact of COVID-19

Management of the impact of COVID-19 has required significant commitment of resource and time to ensure all our sites remained COVID-19 secure.

We quickly implemented our COVID-19 response strategy, underpinned by a strong leadership commitment to keeping our people safe and to following Government guidance.

We implemented a three phase strategy:

• Recovery
• Restart
• Reimagine

Several of our group operational sites were placed into their passive and safe state. A rapid return to full operational capability was managed through a phased plan with our critical workforce.

To support colleagues working from home we implemented policies on travel, annual leave, supporting mental health and wellbeing, and encouraging flexibility around caring issues and responsibilities.

We supported our staff throughout the pandemic with the CEO providing regular staff briefings, the broadcasting of regular wellbeing communications, and regular management updates.

COVID-19 had an unavoidable impact on NDA's performance. However, risks were managed and performance was maintained as much as possible through leadership, the adaptability and resilience of the workforce and a robust safety culture. Our re-imagine phase will result in different ways of working. We have now enhanced our resilience to ensure we protect our operation and maintain readiness for future crises.

Impact of risk on sustainability

The NDA's mission is to clean up the UK's nuclear sites safely, securely, and cost-effectively. We have a legal, moral, and ethical responsibility to deliver our work sustainably with care for our people, communities, and the environment, leaving a positive legacy for future generations.

Our vision is to be recognised as a leader in transforming nuclear legacies into opportunities for local, regional and national sustainable development. Delivery of this is centred around four legacies: decommissioning, environmental, socio-economics and cultural. Each of the GSRs may impact the achievement of the sustainability vision and the implementation of the Sustainability Policy.

Decommissioning

Decommissioning is at the heart of what we do and thus is subject to performance risk and spans the whole programme lifecycle.

Delivering our mission safely, securely, protecting people and the environment requires adequate progression of mission deliverables. Insufficient capability and capacity, as well as not having the right people with the right skills at the right time and place are major threats to achieving this.

Stakeholder confidence aids our mission, it helps to provide lifetime value for money and is critical in achieving intergenerational equity.

Environmental

Protecting, remediating, and enhancing the environment, reaching carbon net zero and being recognised by our stakeholders for our environmental performance is at the core of our environmental sustainability legacy.

A major incident at an NDA site, leading to large scale release to the environment, is one of the NDA's highest impacting risks, one which would have an effect on stakeholder confidence and acceptance of nuclear activities. This could lead to additional clean- up liabilities, additional cost and significant legal consequences, ultimately impacting performance against delivering our mission.

Key to managing this risk is ensuring that asset management and environment management policies are put in place. Development of assurance processes, which focus on achievement of expectations and improvement activities across the estate are also essential.

Socio-economic

Empowering people and communities in a fair and transparent manner to create sustainable local and regional economies is fundamental to our mission. Developing the UK skills base in this way helps facilitate decommissioning and ensure the workforce is prepared for future missions and ultimately mission delivery. Thinking internationally and acting locally helps to ensure that NDA group has sufficient capability and capacity at the right time and place, with the opportunity to export our expertise and know-how.

Cultural

The cultural legacy of sustainability outlines the importance of mindset within the workforce.

Sustainability must be embedded in the way we carry out our work, from diversity and inclusion, to how we think about the other legacies.

Working together to establish respectful and inclusive working environments, ensures our people can perform at their best. This results in a reduced risk of inadequate performance and delivery across the group. Creating an impact conscious and future focused mindset, for example through training and leadership activities, prepares our people for positive change and future missions.

Information Governance

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

• Cyber, physical and personnel security and resilience
• Knowledge and information management (including intellectual property and information risk management)
• Digital and data management
• Information and communications technology

The Security and Corporate Services team has continued to provide effective leadership and management of information risks and issues arising across the group. 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:

• Improved group intelligence through improved collaboration with UK Police Constabularies,
• CNC Special Branch and procurement of a secure intelligence database
• Improved group emergency communications in implementing a connected emergency alert system
• Approved the NDA group Digital Vision and Strategy
• Approved the NDA group Information Security and Cyber Resilience Strategy and supported the development of the civil nuclear sector's cyber security strategy
• Continued delivery of the Cyber Security and Resilience Programme (CSRP) including a successful pilot of a Group Security Operations Capability (GSOC)
• Improved group emergency response, business continuity, recovery and resilience through assessment of links to the critical National infrastructure and wider collaboration with external agencies, such as local resilience forums, UK Health Security Agency, DEFRA and BEIS
• Continued to develop the group's cyber apprentice and graduate scheme that supports the whole civil nuclear sector
• Worked with the Cabinet Office's Emergency Planning College to align cyber incident and wider emergency management planning and exercising
• Continued the reduction of our carbon footprint by reducing our physical (on-premises) servers and through the adoption of greener cloud alternatives
• Ensured compliance with the new UK General Data Protection Regulations and Data Protection Act 2018
• Matured our ways of working through the establishment of an IT delivery capability with improved portfolio management, new end-to- end service design and service integration process and governance structure, and a new IT Assurance function to better assure group-wide IT investments
• Rolled-out Microsoft Office 365, SharePoint, One Drive, Condeco and other technologies in support of a hybrid working model
• 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
• Completed a sector-wide cyber exercise 'Golden Osprey 2021' and accompanying cyber conference day
• Provided cyber health checks and training to NDA Board members, along with a Board-level cyber exercise
• Led sector-wide working groups in unmanned aerial vehicles, supply chain and personnel security
• Supported DEFRA, UK Health Security Agency, Environment Agency and BEIS in the development of nuclear and radiological response and recovery
• Established improved security and resilience working across the NDA group through the introduction of a quarterly 2-day security and resilience forum. This is further supported through regular monthly assurance activities throughout the NDA group.

The NDA group Senior Information Risk Owner (SIRO) forum, comprising senior NDA staff and directors from each of our operating companies, 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. A 2020/21 statement was approved by the NDA Board on 29 September 2021 in line with requirements. 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 actively assess 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 throughout the commercial lifecycle. 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, 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 2021 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 Leadership 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 (A&RAC), 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 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. Our approach to managing ethics and compliance risk continues to mature.

This year we have refreshed our approach to whistleblowing - launching our new Speak Up policy and associated training for NDA employees in September 2021 to encourage people to bring any concerns forward. To support our approach to Speak Up we have an independently hosted Speak Up helpline, available at all times, and where reports can be made on an anonymous basis if preferred.

The A&RAC has received quarterly reports on Speak Ups received and investigation, as well as reports on themes, trends and lessons learned arising. Serious cases are reported to the A&RAC as they occur.

In the vast majority of instances, even where an allegation raised was not proven, we were able to make recommendations for improvements to policy, training and communications. During the year, we have also begun to work more closely with our operating companies to ensure greater transparency in relation to Speak Ups raised across the group, and begun to work on reporting on this at a high level to the A&RAC as well. Going forward we plan to improve reporting, visibility and learning.

During the year the Group Leadership Team has agreed a group-wide Ethics Policy, which has also been approved by the NDA Board. The Ethics Policy sets out our standard in relation to key ethics and compliance topics for us and our operating companies to ensure we are working to consistently. This policy will be implemented during 2022/23, with training and champions to support it.

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. We have continued to hold quarterly group-wide sessions for NDA and business A&RAC Chairs and members, retaining a focus on emerging risks, sharing best practice and bringing knowledge from external subject matter experts.

For the first time, we held a hybrid NDA Group A&RAC and Internal Audit Conference, with around half of our attendees able to meet in person, and the remainder attending virtually by video conference. The event tells us this format worked exceptionally well, and resulted in our best attendance yet, including executive and non- executive representation from all our businesses.

We spent the first day looking externally, at how our operating environment is changing and the key external risks we need to focus on moving forward.

Our second day was for reflection internally, thinking about how we can continue to foster our great working relationships and continue to improve for the year ahead.

Our group internal audit function developed and delivered a group internal audit plan for 2021/22; which included group audit themes for the second year running, aligning our approach to the review of significant group-wide risks and controls. We completed six group audit theme reviews, across the areas of risk management; sustainability; cyber security; business continuity; people strategy and commercial assurance. Insights from these group wide reviews are further promoting the sharing of challenges and good practices.

The internal audit work for 2021/22 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 Leadership Team and the Board via the A&RAC.

In line with the standard ratings of the Government Internal Audit Agency, the NDA's Group Director

of Internal Audit has provided an overall rating of 'moderate' to the level of assurance, meaning 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.

At the NDA the assigned internal audit review ratings were as follows: 'moderate assurance' 11%, 'high level of assurance' 21% and 'substantial assurance' 16%, with 32% advisory. We also provided ongoing advisory support in four areas (20%) for which no report output was produced.

Across the group as a whole, internal audit review ratings were as follows: 'limited assurance' 2%, 'moderate assurance' 33%, 'high assurance' 23%, and 'substantial assurance' 16% with 18% advisory. We also provided ongoing advisory support in seven areas (8%) for which no report output was produced.

The overall 'moderate' assessment is reflective of the group position, recognising that there has been a year on year strengthening of governance, risk management and control alignment. The focus should now be on the embedding of these arrangements in order to realise the required efficiencies and effectiveness.

The results of our group audit theme reviews have highlighted progress made in our approaches to monitor and manage the key risks in the areas of enterprise risk management, commercial, cyber and people, with opportunities to further strengthen our control arrangements. A consistent area of focus has been information and digital and a number of improvement initiatives are being designed and implemented. 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 embedding of improvement activities. Business operating processes, including purchasing, expenditure 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 National Audit Office (NAO), the Parliamentary Public Accounts Committee and the Magnox Inquiry. The NDA internal audit has provided independent input to the response document 'NDA Response to the Magnox Inquiry and the BEIS Departmental Review', published July 2021. Phase one of the audit work involved reviewing the action plans to ensure they were complete and accurate in addressing the recommendations. Subsequently, phase two reviewed the governance structure to oversee implementation and embedding of the actions in the response document, as well as a review on a sample basis of action implementation.

Looking forward, and as we continue to respond to the changing risk profile left by 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. This year audit has been able to respond to the needs of the business real-time by adopting a 'risk theme' approach. This has allowed us to be agile in performing assurance or advisory services at the right time in the areas that matter.

This has enabled us to provide the most value to our stakeholders, at a time when priorities and business risks are evolving continuously, given the environment in which we are operating.

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 Director of Internal Audit and the Group Chief Ethics and Compliance Officer.

David Peattie Accounting Officer and Group Chief Executive Officer 7 July 2022

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 2021/22 remuneration report for the NDA, outlining the areas of activity for the committee during this financial year.

Group-wide remuneration

In 2021, the process of moving previous private-sector decommissioning companies to become subsidiaries of the NDA was completed and BEIS decided it was an appropriate time to update the Framework Document. This was a welcome opportunity to clarify what Government senior pay controls would apply to the wider NDA organisation. It was decided that senior individuals within the operating companies would be part of the Cabinet Office High Earners transparency report and they were included in the data issued in January 2022.

The expanded group structure has also brought with it an opportune time to review the NDA's own reward and governance policies. These have been updated to reflect group requirements and clarifies what reward decisions can be taken by operating companies, by remuneration committees or what requires approval or consultation with the NDA Accounting Officer or beyond into Government.

The Committee is cognisant that the remuneration policies and practices vary across the group, with each business having its own people strategy and supporting remuneration framework. Whilst the Remuneration Committee has oversight, there is a desire for greater mobility, especially in a post-COVID world, and we are looking to develop a coherent reward structure that would facilitate this. As part of this, a group-wide incentive review across the senior populations was carried out during 2021/22. The Committee will carefully consider the implications and how best to proceed, alongside the operating companies, during 2022/23.

Our approach to NDA remuneration in 2021/22

Base salaries

The Government's decision to freeze annual pay awards was implemented in the NDA, and across all the operating companies.

The impact of COVID-19

Our response to COVID-19 continued to be a major focus in 2021 and the impact on incentive arrangements was considered carefully.

2021/2022 incentive outcomes

In May 2022 the committee considered the performance of the 2021/22 annual incentive plan and the 2019 -2022 Long-term Incentive Plan (LTIP). The outturns of these plans are reflected in the Directors payments table on page 193.

In line with the strong performance against the financial year's Group Key Targets and significant additional operational and people related achievements over the course of the year, the committee decided to declare a corporate out-turn for the 2021/22 annual incentive plan in line with the formulaic target achievement at 80% of the maximum.

Similarly, the performance of the 2019-2021 long-term incentive plan was carefully considered and a payment of 141% of the award value declared in line with the target achievement.

Payments of these awards will be made in June 2022.

2020/21 incentive outcomes

The 2020/21 incentive payments were published as part of last year's Executive Directors Remuneration reporting. Subsequently, we are sharing narrative below.

Early in the financial year, the Committee reviewed performance against the 2020/21 incentive plan targets. These targets were drafted prior to COVID-19, and the committee decided not to adjust the targets for COVID-19 but to exercise discretion on the outcome at the end of the year if it felt necessary to take the impact of, and our response to, the pandemic into account. The company demonstrated a resilient response to COVID-19 and an incentive out-turn of 60% of the maximum was deemed appropriate based on the formulaic target achievement and the committee did not feel that the use of discretion was required. As COVID-19 restrictions have lifted we have continued to maintain operational delivery and encourage and demonstrate the benefits of a more agile way of working through a mix of flexible hours and hybrid office / site and home working.

Similarly, the performance of the 2018-2021 LTIP was carefully considered and a payment of 147% of the award value declared in line with the independently audited achievement of the six target areas identified and measured for this plan period.

The setting of incentive targets for the annual 2021/22 plan and the long-term 2021-2024 plan commenced in early 2021 and targets were finalised as the 2021/22 year commenced. In doing this the committee took account of our Strategy 4 document and the opportunities of one NDA and was mindful that targets should not be inappropriately influenced by COVID-impacted performance in 2020/21.

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 has been formalised within the committee's Terms of Reference and the updated Reward and Governance Policy mentioned above. The committee also takes an oversight of reward in the NDA 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.

On a final note, Rob Holden, one of our long-standing remuneration committee members, has stepped down and we thank him for his support over the years and wish him well for the future.

Chris Train has replaced Rob Holden on the Remuneration Committee and his appointment was agreed and effective from the 21 March 2022.

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 NDA subsidiaries.

Remuneration Committee Membership (2021/22):

• Evelyn Dickey (Independent Chair)
• Volker Beckers (Non-Executive Board Member)
• Alex Reeves (UKGI Representative Board Member)
• Rob Holden (Non-Executive Board Member) until 31 January 2022
• Chris Train (Non-Executive Board Member) from 21 March 2022

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 2021 to March 2022, 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 2020 to March 2021
• Finalised the performance targets for the 2021/22 STIP.

• Agreed the outcome and payments for the LTIP plan April 2018 to March 2021, paid in 2021.

• Agreed the targets of the LTIP for years April 2021 to March 2024, payable on vesting in 2024
• Commenced work to set the targets for the STIP 2022/23 and the LTIP 2022-2025 which will be finalised early in financial year 2022/23.
• Reviewed market practice on incentive structures and quantum, using insight from PricewaterhouseCoopers (PWC) and specific job benchmarking information from Korn Ferry.
• Supported the Executive to develop the reward section of the new Framework Agreement between BEIS and the NDA, and internal reward and governance policies, particularly providing advice on appropriate governance
• Supported the NDA CEO in deciding reward packages for new appointments within the executive team. There were no annual pay increases in April 2021 in line with Government's pay pause.
• Incentive payouts for the 2021/22 STIP and the LTIP 2019-22, both ending on 31 March 2022, were decided early in 2022/23

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 information sets out the NDA's Executive Remuneration Policy and gives highlights of how this is being operated:

Basic salary:

• Policy and Purpose: Salaries are set at a level required to attract and retain the right calibre of executives, reflecting the skills and experience of the individual, market reward data, scope/size of role and responsibility whilst being mindful of taxpayer value.
• Operation of policy : Salaries are reviewed each year, effective 1 April, taking the above matters into account and the level of salary increases made in the wider organisation.
• Outcome 2021/22 : There were no annual salary increases for the Executive Directors, the wider executive team or NDA employees in line with Government's pay pause guidelines.
• Implementation for 2022/23: The NDA is subject to the Civil Service Pay Remit. The rises for executives will be considered once Government pay guidance has been issued to ensure that they remain aligned to the Civil Service Pay Remit guidance which applies to delegated grades within the organisation.

Short-term Incentive Plan (STIP)

• Policy and 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. Standard Malus and Clawback provisions apply under the STIP rules.
• Operation of policy: The NDA CEO has an STIP up to a maximum of 50% of salary and the Group Chief Financial Officer 40%, based on achievement of corporate and personal objectives linked to the group operating plan.
• Outcome 2021/22 plan: Shortly after the year end the Committee approved the corporate elements of the 2021/22 STIP, with an achievement of 80% of maximum and determined the payout for the personal elements for the CEO, CFO and other executives.
• Implementation for 2022/23: No change to the STIP quantums are planned. The design of the STIP for the executive is planned to change for this plan year, increasing the NDA and operating company performance elements of the STIP and reducing the personal performance element. These changes have been made following the review of current market practice in relation to incentive structures. In setting incentive targets for this plan the committee is mindful that targets are fully relevant and suitably stretching for the period ahead.

Long-term Incentive Plan (LTIP)

• Policy and Purpose: The aim of the long-term incentive plan (LTIP) is to encourage strong and sustained performance 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. Standard Malus and Clawback provisions apply under the LTIP rules.
• 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 three-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 which also regularly monitors the performance. The CEO typically has an award of 25% of salary and the CFO 20%.
• Outcome of LTIPs commencing 2019: Shortly after the year end, the Committee reviewed the performance of the LTIP 2019-2022 which concluded on 31 March 2022. An out-turn award of 141% was approved.
• Implementation for LTIP 2022-25: No change to the LTIP design is planned for year 2022 -2025 but the way in which the quanta are communicated will be simplified as follows: The CEO has an LTIP up to a maximum of 50% of base salary and the CFO 40% of base salary, The potential payment could be in the range of 0% up to a maximum of 100% of the LTIP opportunity subject to our performance and the LTIP rules. The Committee will set targets for this plan in late Spring/Summer 2022 and will ensure these are relevant and suitably stretching for the period ahead.

Benefits

• Policy and Purpose: Benefits are offered to be competitive with the markets in which we compete for talent.
• Operation of policy : Executive Directors receive a market benefits 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 2022/23.

Pensions

• Policy and 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 are on page 117. 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 2022/23.

The Committee routinely seeks independent advice on remuneration matters to support the setting of reward levels at an appropriately competitive level. PwC act as advisors to the committee and they also provide support where required to other parts of the NDA group to obtain synergies and support consistency.

Directors' 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 BEISin conjunction with Scottish Ministers and in line with the Commission of Public Appointments Codes of Practice. Their service contracts have a six 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. 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. For year 2021/22, the Chair received a fee of £187,500 and other Non- Executive Directors were eligible to receive £40,000. Some members decided to remain on a previous fee structure. The fees are fully inclusive and there are no additional payments for chairing committees and members do not receive any performance-related bonuses or pension entitlements but are reimbursed for reasonable expenses incurred in the performance of theirduties.

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 at the end of the section on page 236.

Details on the gender pay gap can be found on page 206.

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 (*)	2020/21	336,600	61,118	-	126,225	115,634	639,577
David Peattie (*)	2021/22	336,600	62,180	-	143,055	116,325	658,160
Mel Zuydam (**)	2020/21	260,000	16,981	99,710	63,960	-	440,651
Mel Zuydam (**)	2021/22	260,000	16,981	99,710	70,200	-	446,891

(*) Additional benefits received were a market benefit of £12,000, and a cash payment of £50,180 (2020/21: 49,118) in lieu of membership of the Civil Service Pension Plan. (**)Additionalbenefitsreceivedwereamarketbenefitof£12,000,andholidaypayallowanceof£4,981(2020/21:£4,981). (***) Details on pension arrangements are shown on page236.

Non-Executive Board Members remuneration

This information is subject to audit.

Non-Executive Board Members	Additional role(Effective date of becoming a member)	20/21 Total fees £	21/22 Total fees £
Dr Ros Rivaz	Chair of the Nomination Committee (01.09.20 - date)	109,375	187,500
Volker Beckers	Chair of the Audit and Risk Assurance Committee (01.03.15 - date)	30,457	40,000
Evelyn Dickey (1)	Chair of the Remuneration Committee (01.03.15 – date)	30,000	30,000
Janet Ashdown (1)	Chair of the Safety and Security Committee (01.06.15 - date)	30,000	30,000
Rob Holden	Chair of the Programmes and Projects Committee (01.06.15 - 31.01.22)	30,457	33,333
Nick Elliott	Non-Executive Board Member (15.03.21 – 30.04.21)	-	-
Francis Livens	Non-Executive Board Member (01.12.20 – date)	9,019	40,000
Alex Reeves (2)	UKGI Representative Board Member (01.02.20 – date)	-	-
Chris Train	Chair of the Programmes and Projects Committee (31.01.22 - date)	-	9,032

(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.

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. This alignment has been cascaded through the incentive targets for all NDA employees.
• Executives and all employees are eligible for the Civil Service Pension arrangements

Fair pay disclosures ('Hutton' Disclosure)

Reporting bodies are required to disclose the relationship between the remuneration of the highest- paid director in their organisation and the lower quartile, median and upper quartile remuneration of the organisation's workforce.

Additionally, for both the highest-paid director and also the organisation's workforce the percentage change in the following must be reported:

• salary and allowance; and
• performance pay and bonuses payable

The banded remuneration of the highest-paid director in the NDA, in the financial year 2021/22, was £655,000 - £660,000, (2020/21, £635,000 – 640,000). This was:

• 5 times the remuneration of the lower quartile of the workforce, which was £48,702
• 8 times (8.4 times 2020/21) the median remuneration of the workforce, which was £74,461 (2020/21, £75,515)
• 3 times the remuneration of the upper quartile of the workforce, which was £103,953

The highest paid director's salary and allowance increased by 0% over the previous reporting year and in line with the public sector pay pause. Performance pay and bonuses increased by 6.2% due to improved performance against business objectives.

The salary and allowances for the remainder of the organisation reduced by 1.6% over the previous year, with a reduction of 5.4% in Performance pay and bonuses; this was driven by the level of recruitment in the financial year, pay controls in place and a lower overall incentive performance outcome.

In 2021/22, zero (2020/21, 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 £655,000 - £660,000 (2020/21 band £20,000 - £25,000 to £635,000- £640,000).

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.

	2021/22 Total £	2020/21Total £
Band of highest paid Director's total remuneration	655,000 – 660,000	635,000 - 640,000
Upper quartile total remuneration	103,953
Median total remuneration	74,461	75,515
Lower quartile total remuneration	48,702
Ratio Director: Upper quartile	6.3:1
Ratio Director: Median quartile	8.8:1	8.4:1
Ratio Director: Lower quartile	13.5:1
Band of lowest paid employee's total remuneration	20,000 - 25,000	20,000 - 25,000

The small decrease in the median remuneration level of -1.4% is partially due to the public sector pay pause in 2021/22 and changes arising from turnover. The highest paid director did not receive a salary increase in 2021/22.

The median pay ratio is reflective of the range of roles at the NDA; including an executive team with leadership roles across the NDA group. NDA pay, reward and progression policies balance value for money while enabling the NDA to recruit and retain the necessary skills to deliver its mission.

	Salary	Total pay and benefits
Upper quartile	79,454	103,953
Median	58,483	74,461
Lower quartile	32,235	48,702

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, where everyone feels 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 2021/22. Our Strategy 4 document outlines and underpins the objectives for the NDA group in our People Strategy workstream. It is built around three key themes:

1. Ensure we have people with the right skills, 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 one NDA way of working has enabled us to continue to collaborate meaningfully and effectively on developing a strategy to create a thriving workforce for the future. One NDA thinking is around all of us, together, achieving more than we do in our separate operational companies. Examples of this are our joint approach to COVID-19, talent, mobility, skills and diversity and inclusion.

We are also continuing our commitment to the targets and objectives of Government's policy position. 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 people with the right skills, in the right roles at the right time

Leadership and talent was one of four beacon projects for 2021/22, designed and created to future- proof our capability and capacity through a strategic group-wide focus on talent, leadership and succession planning and also to encourage collaboration and innovation across the group.

There were five focus areas for the beacon project:

• Succession
• Leadership Academy
• Leadership Standard
• Group Talent Strategy
• Mobility

Executive succession is a strategic priority for the NDA group, we have matured our approach to succession planning and have created a CEO talent forum to calibrate the plans. This ensures that we are considering successors from across the group to develop more robust and rigorous succession plans enabling us to manage risk, identify senior talent and ensure that appropriate development opportunities are in place. The Leadership Academy was launched in March 2021 and the programme lasts for 18 months, anchored on our Leadership Standard, which describes how we expect our leaders to behave and lead. During this time each delegate receives 'tripartite' support, from their sponsor, an external executive coach and a mentor from another operating company. The NDA group has partnered with Ashridge to provide the academic facilitation, the delivery is a blend of face-to-face sessions, virtual sessions and each cohort has access to 'masterclasses', some of which are delivered by senior leaders and Non-Executive Directors from across the NDA, others are external speakers and subject matter experts.

The delegates are senior leaders who demonstrate the behaviours within the standard and who will visibly champion our values and ambitions for the NDA group. Our aim is to create a cadre of NDA group leaders who are inspiring, curious, self-aware and confident to engage with our diverse set of stakeholders, to safely deliver our collective mission and the one NDA way of working, whilst ensuring value for money for the taxpayer.

The Leadership Standard was launched across the NDA group in January 2021. The Standard has been adopted by all the operating companies, creating a single language of leadership. A huge amount of work has taken place across the group to embed the Leadership Standard across people policies and processes, including in local leadership and management training programmes, induction processes and performance management processes.

We have procured a group 360 assessment tool, with the Leadership Standard underpinned through the competencies within the 360 framework, which will be used across the group to support leadership and talent initiatives. This has been a great example of cross group collaboration.

The Leadership Standard won a silver award for "People Development Programme of the Year Public Sector" in the Learning Awards 2022. The panel highlighted the collaborative creation process and the impact it is making to support leaders and cultural change in the NDA group.

Through our commitment to developing our people we continue to progress our functional focus on talent. We have developed our 'talking talent' programme to support the development of functional career pathways, identify key skills gaps and encourage greater visibility of our talent across the group. We have worked with eight functions so far, developing our approach and enabling functional leaders across the group to support meaningful careers, share opportunities and allow us to retain and develop our people.

Enabling and supporting greater levels of mobility is key to the successful delivery of our mission and in creating a culture in which our people can thrive. We have increased the number of secondments and permanent moves across the group through the 'talking talent' programme, promoting greater levels of flexibility in terms of remote and hybrid working and in raising the profile of individuals across the group who have had, and are having, successful secondments or movement between the operating companies.

We have also launched a Group Jobs Portal, ensuring that opportunities and vacancies are visible and accessible to everyone across the group.

We are committed to attracting, developing and retaining the right skills to deliver the mission. We continue to recruit and invest in apprentices and Graduates. as well as attracting new talent, we invest in our existing workforce enabling us to meet the challenges we face in key skills areas such as project management, radiation protection, engineering, specialist nuclear skills and cyber as well as a whole host of other broader and more specialist skills.

Currently we have over 300 graduates and 800 apprentices on programmes across the group in technical, engineering, scientific and professional pathways.

This year will see us focus on skills across the NDA. We will continue our role in national skills leadership for the nuclear sector, working closely with Government, defence and the broader civil nuclear sector to identify areas in which we can collaborate meaningfully on skills and the broader people agenda.

Our commitment to equality, diversity and inclusion

Creating great places to work is a core part of the NDA group's vision. At the heart of this is the development of a culture of respect and inclusion where diversity is embraced, and people can feel included, respected, and able to perform at their best.

We published our equality objectives in the NDA Inclusion Strategy 2025, which sets out our goals, targets and how progress will be measured. The NDA and its operating companies have in place governance to oversee the implementation of annual improvement plans aligned to the strategy.

The NDA group ensures it meets legal obligations as an employer and as a statutory body listed under schedule 19 of the Equality Act 2010. The NDA will be fully compliant with both the general and specific public sector equality duties in exercising its functions by giving due regard to the need to:

• Eliminate discrimination harassment and victimisation and other conduct prohibited by the Act
• Advance equality of opportunity between people who share a protected characteristic and those who do not
• Foster good relations between people who share a protected characteristic and those who do not

Under the Act, protected characteristics include, age, disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation and – for the discrimination element of the duty only – marriage and civil partnership.

The specific duties, set out in The Equality Act 2010 (Specific Duties) Regulations 2011, help public bodies to comply with the general duty by improving the focus and transparency of their activities to meet the duty.

Gender Pay Gap Reporting

In line with our equality duties, in 2021/22 we published our annual gender pay gap data. Within the NDA group, the figures published as at March 2022 showed the overall average gender pay gap (when weighted by employee numbers), when comparing mean pay, to be 12.7% (compared to a national average of 15.4%) and the average median pay gap 12.3%.

We are committed to ensuring we drive down our gender pay gap by 2025 by increasing our representation of women in senior roles and women at all levels across the NDA group. Gender balance is a key area of our strategy and goals for 2025. The NDA and operating companies have been tasked with aligning to strategy measures, targets, and have in place an annual gender pay gap improvement plan (this will include improving gender balance).

Creating a culture in which our people can thrive

Our diversity and inclusion (D&I) journey has gained further momentum this year as we launched our NDA group Inclusion Strategy 2025. This strategy builds on the positive foundations that have been built since the development of our first strategy in 2018. Since then we have put in place strong group- wide governance through our D&I Council, we've embedded an active and collaborative cross-group D&I Delivery Group, and we've amplified employee voice through establishing group-wide employee networks for gender, race, disability and LGBT+.

Over the next five years we want to build on these foundations to ensure the NDA group is a best in sector inclusive employer.

Our NDA group Inclusion Strategy 2025 focuses on five key themes:

• Inclusive culture and leadership: Leading inclusively, creating safe environments so people can bring their full selves to work.
• Workforce diversity: Building diversity, recruiting and maintaining a workforce that includes people from all backgrounds, bringing different viewpoints and ideas into our business.
• Embedding inclusion through the employee lifecycle: Integrating inclusivity, ensuring our employees feel included at every step, so everyone can flourish.
• Respect, dignity, and employee voice: Engaging our people, listening, understanding, and acting on what our employees think and feel, so we can build a truly inclusive culture.
• Flexibility, agility, and smarter working: Creating an agile culture, developing working arrangements built on mutual trust and business benefit, supporting productivity, employee wellbeing and helping us to attract and keep our talent.

We have set ourselves some stretching diversity goals as part of the strategy, against which we'll measure ourselves and use to report progress over the next five years.

2021/22 D&I successes and highlights

Inclusive culture and leadership

Following a stakeholder engagement programme with trade unions, employee networks and senior leaders, we reimagined and published our NDA group Inclusion Strategy 2025 – all operating companies have aligned their D&I plans to the strategy measures and goals and progress is reported via our D&I Council.

We designed and facilitated a series of bespoke inclusive leadership workshops delivered to 120 leaders from the group and will continue to roll this out in 2022/23.

We launched our group-wide Women's Leadership Development Programme (Step up, step across cohorts and senior leader's cohorts) which was facilitated by the Whitehall Industry Group.

The NDA chairs the Equality, Diversity and Inclusion Sub Committee of the Nuclear Skills Strategy Group (NSSG) to drive sector-wide improvements and has shared insights and learning with partners and the Engineering Construction Industry Training Board.

Workforce diversity

2021/22 saw us improve the data we hold about our employees. A group-wide inclusion data campaign was delivered which saw our data disclosure figures for employees improve by over 50%. Gathering this inclusion data has helped us to understand the diversity make up of our employees better, measure our progress against our goals in our Inclusion Strategy and helped us to understand differences between workforce groups in terms of representation and outcomes.

We have set aspirational goals to achieve a gender balanced and diverse workforce that represents modern Britain.

All operating companies and the NDA have achieved Disability Confident status level 2, and we will aim to achieve level 3 in 2023.

All operating companies and the NDA have signed the Race at Work charter and are now developing race improvement plans to focus our efforts in 2022/23.

Embedding inclusion through the employee lifecycle

We have continued to embed our group-wide fairness and meritocracy principles which outline our collective commitment to current and future employees, ensuring we're aligned with leading recruitment and talent development practice. To support this, we have worked with an external expert organisation to complete a full end to end process of our recruitment lifecycle with a focus on D&I. We have engaged with new starters, hiring managers, resourcing leads / partners, D&I leads and HR teams. In 2022/23 we will implement the recommendations across the group to ensure we are attracting talent from all communities.

Respect, dignity, and employee voice

Previous group D&I surveys have informed the development of a new group-wide employee engagement survey which included a focus on D&I. Employee feedback continues to inform our approach 'you said, and we did'.

We have continued to work closely with the trade unions and our employee networks to strengthen employee voice. We now have over 30 networks including five group-wide networks and they are developing knowledge and skills each year through our network training and development programme, coaching and professional development to network executive sponsors, chairs and steering group members.

Flexibility, agility, and smarter working

We have continued to embed and bring to life our group- wide 'WE TRUST' flexibility and agility principles. As COVID-19 restrictions have lifted we have continued to maintain operational delivery, encourage and demonstrate the benefits of a more agile way of working through a mix of flexible hours and hybrid office / site and home working.

Throughout the past 12 months we have carefully considered access to sites / offices, operational capability, new technology, enabling teams to stay connected, health and safety, wellbeing, and work life balance.

NDA group roles are advertised under the banner of 'happy to talk flexible working' and we work closely with external partners such as Working Families so we are aware of the latest research and best practice.

Annual celebration days

Throughout 2021/22 we have celebrated and highlighted key events from the D&I calendar including International Women's Day, International Day Against Homophobia, Biphobia, Interphobia and Transphobia (IDAHoBiT), Pride month, National Inclusion Week, Black History Month, International Men's Day and International Day of People with Disabilities. We use these events to amplify our message of D&I across the NDA group supporting employees to share their lived experiences, run webinars and training sessions, have 'town hall' discussions, offer opportunities to connect and network and educate our employees.

Employee networks

We have five NDA group networks gender balance, race equality, LGBT+, enable (disability), and most recently meno hub (menopause). The networks provide colleagues with valuable support and advice, create development opportunities, and raise awareness of issues and challenges, all of which closely align to our D&I strategic themes and are open to all employees.

Our networks influence our people policies, help us to challenge the status quo, and give us insight into how we need to adapt to give colleagues the support they need to succeed. With so many colleagues working remotely this year, our networks worked creatively to ensure their members felt supported and connected. Using digital tools and new platforms, the networks successfully increased their membership.

Disability confident

In line with our policies, and the establishment of our group-wide 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' level 2 employer·
• 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 to continue their employment, training, career development and promotion.

Employee Engagement Survey

This year we launched our group-wide employee engagement survey, via our provider Peakon. It was designed to capture employees' overall perception of engagement, D&I and health and wellbeing.

Across the group, we had nearly 60% return rate with some organisations achieving over 90%. In addition, we received over 13,000 comments. NDA and the operating companies have now analysed the data and feedback, tested and engaged the inputs internally and created action plans based upon the 'You Said, We Did' philosophy.

Areas of strength identified were in:

• Delivery of the mission
• Autonomy
• Environment - both physical environment but also in the availability of tools and resources

Areas requiring focus were in:

• Accomplishment
• Organisational fit
• Diversity
• Diverse recruitment.

Much of the work is well underway to address the areas of focus and all plans across the NDA include these areas as a priority. The plan is to conduct this survey annually supported by pulse surveys in key areas for improvement.

Women's Leadership Development Programme (WLDP)

Our group Inclusion Strategy 2025 seeks to improve the diversity of our workforce as part of our journey to become representative of modern Britain, while aspiring to meet our external commitments to improve gender balance in the sector.

This year saw the launch of a bespoke WLDP designed for the NDA group in partnership with Whitehall Industry Group (WIG). Two cohorts included a senior women's leadership programme and a step up, step across development programme for female middle managers. Both programmes were fully virtual (due to COVID–19 restrictions), and lasted between four to six months including one-on-one coaching sessions. The first two programmes concluded in February 2021 with amazingly positive feedback from the 40 strong cohort.

The WDLP and Leadership Academy are strengthening the leadership talent pipeline. WLDP aims to deliver 80 places (two cohorts per programme) a year on the step up, step across and senior leaders programmes. Our target over the next five years is to provide 450 places.

This women-only programme does not replace existing leadership programmes, it is an additional 'positive action' offering in response to our need to achieve a better gender balance by developing, growing and retaining from within. Nominees are identified from the group utilising the talent frameworks to identify participants. WIG brings together a combination of topics, speakers, theories and practical learning to offer a real diversity of perspectives and insights to common leadership challenges.

Each cohort will be unique, as it draws upon participants' own examples and is expertly facilitated to deliver a dynamic learning environment. The programme provides women with a wider breadth and view of the career opportunities available across the NDA group and aligns with the principles underlying our mobility policy. Each cohort will have the opportunity to learn about the NDA group operating companies whilst building strong internal networks.

Enable Network – Workplace Adjustment Passports

During 2021/22 we have continued to work in partnership with our employee led networks including Gender Balance Disability, LGBT+ and Race Equality. These networks play a vital role in the effort to keep our employees connected and included. 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.

Our group disability network 'Enable' sponsored a group-wide initiative in the introduction of workplace adjustment passports. Workplace adjustment passports are intended to be used by all employees, not just those with recognised disabilities, long term illnesses or caring responsibilities; they can be used to record any informal agreements that are made between employees and their managers.

Passports are intended to facilitate a discussion with line managers and can be utilised to record any agreed reasonable adjustments, changes to work schedules, role and responsibilities, working environments, provision of specialist technology and other support and assistance as may be required. If employees move roles within the NDA group, then they take the passport with them, and it can help to have the conversation about adjustments in the workplace with new managers.

The most important thing about the passport is that it's owned by the employee; it's for them to share when, and with whom, they want.

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

The NDA 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. Our partnership approach has ensured positive relations have endured during some challenging times, constructive challenge and joint working has continued throughout.

Employee health and wellbeing

The NDA continues to recognise the importance health and wellbeing at work and we have continued to work closely with MIND and our other health partners. This has been important as we continue to emerge from the pandemic, and we adapted to an agile and flexible approach to the work within the NDA.

We took part in the Mind Workplace Index Survey, achieving a Silver Award in June 2021. This provided the NDA with insights into areas for our ongoing future focus in 2021/22 and also for 2022/23. We are also incorporating the recent Peakon engagement survey's wellbeing findings in our plans to ensure that our future plans continue to remain aligned. We are intending to re- enter the Mind Workplace Index awards in early 2023 at the next cycle and this will ensure we monitor and re-validate our progress.

We have developed and are introducing a new Mental Health and Wellbeing Strategy and Plan and this has been supported and approved by the Group Leadership Team. We have identified the three key areas of focus for continued development: Line manager's Mental health and wellbeing support toolkit, core annual wellbeing campaigns focus across the whole of the NDA group and to ensure that the necessary resources are available for the mental health and wellbeing leads to support and deliver these plans.

This is being co-ordinated and supported via our cross NDA mental health and wellbeing delivery group and supported by our NDA Executive Sponsor and the Head of Mental Health and Wellbeing.

Furthermore, the 2022/23 programme of mental health and wellbeing events has commenced with the 'This is Me' video campaign starting this year's activities. We continue to closely monitor both short-term and long-term sickness absence and have policies and support mechanisms in place. Our policies have been enhanced to support the additional pressures the pandemic and the extended period of lockdown had on our employees as we emerge into a more agile working approach across the NDA. We have also worked closely with our Occupational Health provider to review and improve the access to occupational support, and we are seeing the benefits of this developing relationship and we are trialling Wellness Actions Plan for individual needing support. Our Employee Assistance Provider (EAP) continues to provide support, reflecting the commitment we 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.

MIND continues to be 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. We are also looking to develop a Wellbeing Champion role during 2022/23.

Furthermore, MIND continues to support Mental Health and Wellbeing sessions delivered via line manager briefings, departmental tea and talk sessions and wellbeing intranet updates. These group discussions cover various anxieties around the impact of workplace and agile working on the social/ domestic environment and individuals and their families at the NDA as the business emerges from the pandemic. Individual wellbeing coaching sessions were also provided on request.

During the year, the NDA, through the CEO and executive team, has 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 and as we emerge to the new agile working environment.

The NDA is progressing to become a nationally recognised Menopause Accredited Employer, the NDA has set up a Menopause Steering Group with a dedicated Meno-hub site with access to all across the NDA.

This has developed a programme of events available to raise awareness and education with support from Menopause health professionals for all. The group is setting up a network of Meno Allies who will promote and support this work across the NDA as a whole.

For 2021/22 an average of 4.6 days per employee was lost to sickness absence. This equates to an absence rate of 1.78% and is more than the national average of 3.6 days. An analysis of 2021/22 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 17.6 days according to the Office for National Statistics. 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 health issues and how we manage these within the workplace.

Employee turnover

The average length of service is five years and for the year 2021/22 turnover of permanent people was 13.8%. This compares to an average external turnover rate of 14.4% (as per latest CIPD survey).

This information is subject to audit

2021/22 Exit package cost band	Number of compulsory redundancies	Number of other agreed departures	Total number of exit packages by cost band
£0-£25,000	0	0	0
£25,001-£50,000	0	0	0
£50,001 - £100,000	0	0	0
£100,001+	0	0	0
Total no of exit packages	0	0	0

Headcount and employee costs

NDA group staff costs

This information is subject to audit

NDA Group 2022	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	20	1	13	1	871	69	975
Social security costs	2	-	2	-	99	-	103
Pension costs	4	-	3	-	180	-	187
Total staff costs	26	1	18	1	1,150	69	1,265

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

a) NDA Authority people costs are included within administration expenditure (see note five to the accounts).

The increase in total spend compared to the previous year was due to further improvements driven by one NDA way of working 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 six to the accounts)

c) During 2021/22 we reviewed the allocation of resource between admin and programme to more accurately reflect roles supporting the operating companies. This resulted in 128 heads and associated costs being reclassified from admin to programme.

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	Others	Total 2021/22	Total 2020/21
Directly employed - authority (Admin)	211	21	232	323
Directly employed - authority (Estate)	138	20	158	37
Directly employed - subsidiaries	15,415	1,095	16,510	14,583
Total	15,764	1,136	16,900	14,943

1. The total number of permanently employed people has increased this year from 13,977 last year due to the inclusion of Dounreay and LLWR as subsidiary employers.

Of the total NDA permanent and fixed term employees at the end of March 2022, the breakdown by gender is as follows:

	NDA Authority (Male)	NDA Authority (Female)	NDA Programme (Male)	NDA Programme (Female)	Total
Chief Executive	1	0	0	0	1
Exec Directors excl. CEO	1	0	0	0	1
Other directors (non-Board)	8	1	1	0	10
Other employees	93	109	91	52	345
Total	103	110	92	52	357

Notes to the Remuneration and People reports

Tax arrangements of public sector appointees

As a public body, the NDA adheres to 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 six months. 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 2022 for those individuals on more than £245 per day and lasting more than six months (up until the expected end date – not 31 March 2022) are detailed below. There were three new off-payroll workers in the year whose assignments lasted more than six months (between start (after 1 April 2021) up to 31 March 2022 (not end of contract)). No senior management were paid through off payroll arrangement during this reporting period.

Off-payroll contractor engagements as at 31 March 2022, earning £245 per day or greater.

Length of appointment at 31 March 2022	No. of offpayrollcontractors
Less than 1 year	3
1-2 years	0
2-3 years	1
3-4 years	0
More than 4 years	0
Total of existing off payrollcontractors	4

Off-payroll contractor engagements as at 31 March 2022, earning £245 per day or greater.

Number of new engagements, between1 April 2021 and 31 March 2022Of which…	22
Not subject to off-payroll legislation	19
Subject to off-payroll legislation anddetermined as in-scope of IR35	3
Subject to off-payroll legislation anddetermined as out-of-scope of IR35	0
No. of engagements reassessed for compliance or assurance purposes during the year	0
Of which: number of engagements that saw a change to IR35 status following review.	0

Consultancy spend in the year was £211,250 (2020/21: £65,000)

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 four sections: three 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 and all PCSPSSchemes 2021/22 employee contribution rates
Up to £23,100	4.60%
£23,100-£56,000	5.45%
£56,001-£150,000	7.35%
Over £150,001	8.05%

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

Scheme	% of employees
Alpha	93.4
Nuvos/Premium/Classic	1.8
Partnership	1.3
UKAEA (INS TUPE)	2.6
Opt Out	0.9

Annual pensionable earnings(full-time equivalent basis)	Alpha and all PCSPS Schemes 2021/22 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 have now switched to the Alpha pension scheme. All members who switched to Alpha have had 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 two 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 three 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 pensions

This information is subject to audit

| | Real increase in pension during the year 2021/22£000's | Accrued pension at 31 March 2022 £000's | CETV at 31March 2021 £000's | CETV at 31March 2022 £000's | Real increase in CETV funded by employer£000's | | — | — | — | — | — | — | | Mel Zuydam | 5-7.5 | 10-15 | 128 | 222 | 69 | | David Peattie* | 0 | 0 | 0 | 0 | 0 | * Does not participate in the Civil Service Pension arrangements – see page 193

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 figures include the value of any pension benefit in another scheme or arrangement which the member has transferred to the Civil Service pension arrangements. They also include any additional pension benefit accrued to the member as a result of their buying additional pension benefits at their own cost. CETVs are worked out in accordance with The Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are taken.

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
4	349

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%	4
51-99%	-
100%	-

Percentage of pay bill spent on facility time

Total cost of facility time	£56,523
Total pay bill	£36,164,535
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 and wellbeing report

The effects of COVID-19 were felt across all parts of the NDA group for a second year, with the last 12 months providing a different challenge to the first year. Government guidelines required the organisation to be flexible, responding to restrictions and variations in place to protect people and manage risk, while continuing to deliver our mission.

The safety of our people and sites remained our priority across the NDA group. Despite the number of COVID-19 cases in the UK, we ensured that critical operating plants remained staffed and safely operated.

The roll out of a vaccination programme helped reduce the risk, but NDA operating companies still faced some challenges in ensuring that they maintained critical personnel in place for safety. Restrictions largely ended in March 2022 in the UK, with limited rules remaining in Wales and Scotland. Whilst there are no longer requirements to test, absence as a result of outbreaks is still a risk, particularly where there are critical personnel requirements.

Our total recordable incident rate (TRIR) for the year was 0.33. This represents an increase from last year but remains strong and compares favourably with industry. It reflects the challenge of stepping up work activities increasing productivity as COVID-19 restrictions eased.

Effective working from home was made possible thanks to the early introduction of IT changes. This not only helped to balance COVID-19 risk, but also supported employee work life balance and wellbeing and reduced risks associated with travel.

The wellbeing of our employees continues to be paramount. Our health and wellbeing teams have ensured that appropriate support has been in place and accessible to all staff. Agile working and mental health programmes have been implemented, enabling us to target further focused health issues such as menopause in the workplace.

A MIND survey has also been carried out and the results and findings are shaping our forthcoming update to our mental health strategy.

An NDA group policy and framework for health, safety and wellbeing, based on key performance indicators (KPIs), is now being established reflecting the transition to a group operating model. The framework will initially focus on the following priority topics for the group: demolition, asbestos, control of contractors, and construction design and management. It will also consider assurance on four further key risk topics: working at height, workplace transport, electrical safety, and lifting equipment and lifting operations. Safety assurance visits to sites also commenced this year.

We have 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 our latest strategy, 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.

Last year we developed an Environment Strategy. This seeks to ensure that the NDA mission outcomes, and the journey to deliver them, are sustainable, improving and protecting the environment. This year both a group Sustainability Policy and Carbon Policy were launched. These set the direction for embedding sustainability across the NDA group as we take action to meet Government carbon net zero targets. Work to develop a stand-alone NDA group Environment Policy to further strengthen environmental commitments and direction is nearly complete.

The NDA group has updated environmental key performance indicators, focusing on assets, compliance, audit progress, training, skills and experience. New metrics have also been established to track environmental events. These include a new environmental-total recordable incident rate (e-TRIR) measure aimed at tracking significant environmental events in a similar manner to conventional safety TRIR data. Use of e-TRIR will be reviewed and targets set over the coming year as further data is gathered.

This year has also seen good progress in the development of conventional waste management plans. These will enable a better understanding of wastes generated and the targeting of actions to apply the waste management hierarchy. Progress has also been made to establish a natural capital baseline for all NDA land. This will help us to develop our understanding of the environmental and social value of our land in the future, therefore enabling the targeting of environmental improvements.

A common theme across many of our operating companies has been the challenge of attracting sufficient competent environmental resource. Recruitment processes are continuing and interim arrangements are being identified, whilst a strategic workforce planning project is undertaken.

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 processes to follow in the event of a significant event.

Operating company Safety performance

Sellafield Limited

Sellafield's accident rate has gradually risen throughout the year, finishing at 0.37, higher than the 2020/21 rate (0.22). Sellafield investigations found that the majority of accidents have had a root cause related to situational awareness. Communication with the workforce has focused on core human performance tools to reduce error-likely situations. Line managers and senior leaders have been encouraged to increase the amount of time spent in the workplace observing operations and promoting sound safety behaviours.

Early in 2021/22 Sellafield identified shortfalls within one of its criticality detection systems (CIDAS). These shortfalls related to historical modifications which had remained latent before being recognised this year.

The shortfalls were categorised as a level one event on the International Nuclear and Radiological Event Scale (INES). This is one of two INES Level 1 events to occur at Sellafield during this year, the second being the fire event which is described below.

Sellafield has had two Nuclear Site Incident Reports (SIRs) this year: the first related to the CIDAS system (detailed above) and the second related to a suspected leak from a ventilation duct. Sellafield's radiological protection has performed particularly well through 2021/22, with four personal contamination cases greater than the threshold criteria- a reduction from 12 in the previous year. The improvements are reflective of Sellafield's radiological protection strategy which has increased focus at all levels of the organisation.

Asset degradation and fire protection are areas of challenge at Sellafield. Much of its equipment, especially electrical, is old and requires increasing attention to maintain. This includes fire protection systems. Degraded electrical systems give rise to increased risk of fires and electrical contacts. In October 2021 a fire occurred within an active facility when a faulty light fitting caused a fire. There were no injuries, but the facility was shut down for several weeks as a result. This has been reported as an INES Level 1 event.

Sellafield's Fire Protection Improvement Strategy is actively working to improve overall visibility of asset health and fire assessments to ensure timely response to early risk indicators.

Work continues to ensure Sellafield's electrical safety improvement plan is discharged in full. The Office for Nuclear Regulation (ONR) has confirmed that Sellafield satisfactorily closed out the requirements from its improvement notice.

Magnox Limited

As the COVID-19 pandemic progressed, Magnox site operations gradually restarted. By the end of the year, the organisation was challenged with a series of relatively minor TRIR injuries that prompted a focus on site behaviours. The TRIR at the end of 2020/21 was 0.18, and has gradually risen to 0.31, having peaked at 0.39 in P8. The TRIR has remained at or below the corporate target of \<0.39. As a result, a start of year stand-down message was issued from the Chief Executive Officer, Chief Operating Officer and EHSS&Q Director, all emphasising a renewed focus on human performance and error avoidance. Presentation of the 2022 Behavioural Programme has also commenced.

Magnox experienced a significant nuclear safety incident during the year, recording an INES 1 event. This related to the spillage of radioactive liquor from a heat exchanger at Winfrith. A number of cultural factors are being addressed as a result, and engagement is taking place with the regulator.

Magnox continues 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 three to five years.

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 generally identified good safety management and continued compliance. This is demonstrated through consistently adequate (green) ratings from site specific licence condition inspections.

A Regulatory Level 4 meeting on the management of lifting operations and lifting equipment (LOLER) has been a focus this year and ONR is satisfied with the progress Magnox is making against its improvement plan.

Regular communications were issued to advise staff of COVID-19 risks and controls. The Business Continuity Group has continued to steer the company response to the pandemic and Government restrictions. This included responding to a notable increase in rising COVID-19 cases across the business which reached a pandemic high during the first week of January. Since then, case rates have steadily declined and the rates within the local communities around the sites have significantly reduced.

Nuclear Waste Services (NWS)

Nuclear Waste Services was established on 31 January 2022 as a trading name for Radioactive Waste Management (RWM) Limited and Low Level Waste Repository (LLWR) Limited.

Radioactive Waste Management (RWM) Limited

Overall, RWM's safety performance for 2021/22 was good, safely maintaining essential operations and successfully managing the implications of the COVID-19 pandemic. There were no Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR) reportable injuries during the year, with the TRIR dropping from 0.43 at the start of 2021/22 to 0.00 at the end.

Low Level Waste Repository (LLWR) Limited

LLWR's TRIR has remained at 0.0 since July 2021, below the corporate target of \<0.25. Two significant milestones in safety performance were reached during the year: in November 2021 LLWR reached three million hours worked since the last RIDDOR \> 7 day lost time injury (which occurred in February 2018), and in the same month the company also reached one million hours worked since the last lost time injury (which occurred in July 2020).

Overall, LLWR's safety performance was excellent for the year, safely maintaining all essential operations and keeping the site open throughout the ongoing COVID-19 pandemic and alongside a transition to join RWM as part of Nuclear Waste Services subsidiary.

Construction work has progressed across the site with large-scale mobilisation of the Repository Development Programme preliminary works for the encapsulation of LLW in former trenches and Vault 8, taking place with no recordable injuries or incidents.

Dounreay Site Restoration Limited (DSRL)

DSRL's TRIR has risen from 0.04 to 0.07, remaining below the DSRL corporate target of 0.10 and essentially relating to a low number of events. Monitoring is key to guard against complacency going forward.

DSRL has continued to work in line with Scottish COVID-19 guidelines and operate the site as the relevant provisions have allowed. A cautious approach has been taken and a significant proportion of employees continued to work from home, while managing safe operation for those continuing to work on site. On 1 April 2021, DSRL became a subsidiary of the NDA. Due diligence was undertaken, as well as monitoring, to ensure that the transition into NDA ownership did not distract or affect safety performance.

A Speak Up report was received during the year relating to safety culture. DSRL management sought the support of the NDA to carry out an independent review. It concluded that there was no evidence for the claims and concerns, but the NDA took the opportunity to identify improvements for DSRL to take forward.

Nuclear Transport Solutions (NTS)

The newly formed transport business, NTS, comprising Direct Rail Services Ltd (DRS) and International Nuclear Services Ltd (INS), maintained a steady safety performance throughout the year. TRIR closed for the year at 0.33 against a corporate target of 0.64. Both NTS Rail and NTS Shipping have maintained their accredited health and safety management systems in line with ISO standard 45001. NTS Rail has had its Safety Certificate (Office of Rail and Road) renewed for the coming year.

NTS Shipping is currently in the process of transitioning to a new ship management contractor and safety management systems are a key focus area. Following an increase in operational incidents within NTS Rail, immediate intervention was taken addressing short and long-term solutions. Current performance has improved, bringing it back in line with previous years' performance. PNTL successfully had a lost time accident-free period between January–December 2021.

Operating company Environmental performance

In this financial year all our operating companies have made good progress against targets for carbon reduction, water reduction, business mileage reduction and increasing the percentage of waste which is recycled.

Data is still being quality checked but most operating companies met most of the targets and so for example, as a group we have made an approximate 15% reduction in our scope one and two carbon footprint, which compares with a 16% reduction in 2020/21 when there was a larger COVID-19 impact.

This represents some positive changes in operational practice and some on-site energy improvements, but other factors such as reduction in some workstreams due to COVID-19 and some energy generation plant outage has had an impact.

Sellafield Limited

Against the challenges of COVID-19 there has been positive environmental management progress at Sellafield. The launch of a new manifesto and enterprise strategy clearly defines the purpose to create a clean and safe environment for future generations and the profile of environment has never been higher. This is further underpinned by a sustainability steering group and a set of sustainability principles and carbon reduction principles. During the year a sustainability portal was successfully launched within the business.

This online tool allows the workforce to explore sustainability progress at Sellafield, increasing awareness and engagement.

Sellafield has successfully retained certification to the ISO14001 environmental standard with only minor non-conformances identified.

Access to environmental competent staff has become an increasing challenge across aqueous, aerial and solid waste roles and positions.

Sellafield accounts for 78% of the NDA group's carbon emissions due to its scale and energy needs. Alongside the priority delivery of high hazard risk reduction, Sellafield is seeking to deliver improved environmental outcomes for the site, such as reduction of carbon emissions.

Throughout the COVID-19 pandemic Sellafield continued to work with the Environment Agency (EA) to ensure that risks and priorities continued to be appropriately managed.

The site continued to have environmental events which have been assessed as having minor or no environmental affect. These are subject to investigation by Sellafield and the Environment Agency. At the end of the year, the e-TRIR was 0.04 against a target of 0.12. This data will enable improved comparison of environmental performance in future years as further data is collected.

There is an ongoing leak at one of the facilities on site which has been reported as an INES level 2 incident. This presents no risk to the public or workforce. 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. Sellafield is placing significant focus on this issue, including a dedicated sub-programme to address the leak.

Magnox Limited

The COVID-19 pandemic continued to impact Magnox but to a lesser extent than the previous year. During the period good progress continued to be made with hazard reduction and environmental performance showed a general improvement.

During 2020/21, Magnox launched a sustainability strategy based around the five key goals of governance, supply chain, employees, community and environment. This year, Magnox has established roadmaps against each of these goals and completed a sustainability culture survey across staff and contractors, alongside a sustainability target zero campaign. A community of trained sustainability coordinators has been established across the fleet. Energy audits have been completed across all the sites, identifying carbon saving opportunities, which will form the basis of carbon reduction in future years.

Over the period there was an improving trend in compliance, although a number of environment events were recorded. One event related to contractor performance for the provision of environmental radiochemical analysis, such as delays in reporting, although this had no negative impact on the environment. This affected a number of sites and is being investigated, with the EA being kept informed of progress. Magnox has worked with the contractor to resolve the issues and continue to maintain a heightened level of contractual supervision.

The availability of environmentally suitably qualified and experienced persons (SQEP) has remained a challenge throughout the year, with some posts being covered by interim arrangements. However, some vacant Head of Environment posts have now been filled, with new staff starting later in the year. Environmental audit performance started the year with a high number of open actions, in part a legacy from an operational pause during the previous year as a result of COVID-19. A significant improvement has been seen during the second half of the year which has been maintained. Magnox retained certification to the ISO14001 standard during the year.

A review by Magnox of its best available technique/ best practicable means (BAT/BPM) process was commenced following observations of inconsistencies in quality and feedback from the environmental regulators. Following a number of workshops and focus groups, a series of improvements have been identified and are now being taken forward.

Nuclear Waste Services (NWS)

Nuclear Waste Services was established on 31 January 2022 as a trading name for Radioactive Waste Management (RWM) Ltd and Low Level Waste Repository (LLWR) Ltd.

Radioactive Waste Management (RWM) Limited

RWM maintained good environmental compliance during the year. Over the period RWM issued a sustainability approach and their first sustainability policy which will underpin and steer future improvements in this area.

Work has started on reviewing the competency process and matrix to enable a better understanding of the environmental skills that lie across the business and its various teams that intervene as environmental subject matter experts.

Ongoing conformity to the ISO14001 environmental standard was confirmed in September by Lloyds Register and RWM's certification renewed.

Regulatory engagement continued in preparation for potential future applications for environmental permits and a nuclear site licence.

Low Level Waste Repository (LLWR) Limited

Against the challenges of COVID-19 and alongside a transition to join RWM as part of the Nuclear Waste Services subsidiary, LLWR continued to make good environmental progress in a number of areas. The Repository Development Programme was progressed, which will see an important milestone for environment protection with the start to capping and closure of parts of the facility. Development of the site's environmental safety case, which supports disposal safety, has progressed well, enabled by regular engagement with the EA. LLWR continued successful delivery of waste diversion and safe disposal where diversion isn't possible, with the associated environmental benefits such as carbon saving and metals recycling.

During the period LLWR has implemented a sustainability policy and strategy and included sustainability actions within its improvement plan. In April 2021 LLWR Ltd successfully achieved re-certification to the ISO14001 environmental standard. Although environmental performance continues to be good at LLWR, one significant event occurred, with no environmental impact, which involving elevated suspended solids exceeding permitted limits being discharged to sea following exceptional rainfall.

Dounreay Site Restoration Limited (DSRL)

At DSRL, improvements achieved in previous years were largely sustained, with a low number of events. With risks from COVID-19 reducing, work on site and associated regulation by the Scottish Environment Protection Agency (SEPA) returned closer to normal, but with some backlogs in work such as statutory sample analysis.

Substantial work continued in response to regulatory notices received from SEPA in previous years. One was successfully closed in summer 2021 and work continues on a further notice, due for closure in December 2022. In May 2020 an event was notified to SEPA against which the regulator issued a warning letter. This related to very low levels of radioactivity in surface water discharges, due to historic low-level contamination and deposition. DSRL is continuing to work to a plan with SEPA to include appropriate low permit limits for radioactivity in these discharges and to adjust drainage systems. This will ensure clear regulatory control is in place.

An Environment Manager and a Trainee Environmental Advisor have been successfully recruited, but there have been challenges to recruiting experienced Environmental Advisors, which has required contract staff to be used as an interim measure.

During the period, DRSL applied to SEPA for a variation to its Environment Authorisations (Scotland) Regulations 2018 (EASR) permit for the Low Level Waste Disposal Facility. This sought changes to allow greater flexibility in disposal, while easing the demonstration of compliance and a response to this is awaited. DRSL also refined Corporate Radioactive Waste Advisor (CRWA) arrangements. These were inspected by SEPA and a letter advising the Radioactive Waste Advisor (RWA) Assessment board of the improvements to arrangements for their awareness has been issued.

Nuclear Transport Solutions (NTS)

At NTS, work to reduce carbon emissions have included adapting their shipping operations to reduce fuel use and trialling alternative fuels in their train fleet, both of which have made significant carbon reductions.

Other companies and subsidiaries

Elsewhere, there has been good environmental performance in our businesses NDA Properties Ltd, NDA Archives Ltd and Rutherford Indemnity Ltd. For example, at NDA Archives Ltd significant improvements to energy efficiency have been achieved through adjustments to operation of climate control units used to preserve optimum environmental conditions for documents stored in Nucleus, the Nuclear and Caithness Archive.

Sustainability report

The NDA's mission is to clean up the UK's earliest nuclear sites safely, securely, and cost-effectively. We have a legal, moral and ethical responsibility to deliver our work sustainably with care for our people, communities and the environment, leaving a positive legacy for future generations.

This year both a group-wide Sustainability Policy and Carbon Policy were launched. These set the direction for embedding sustainability across the NDA group and for taking action to meet Government carbon net zero targets. Work to develop a stand-alone NDA group Environment Policy also progressed to further strengthen our commitments in this area. Following a review of all NDA group policies, the Environment Policy Statement was issued incorporating the Carbon Policy. The Sustainability Policy was re-issued as the NDA Group Sustainability Policy Statement.

Carbon net zero

Through our Carbon Policy, issued this year, we are committed to being carbon net zero by 2050. We recognise the urgency of acting and will significantly reduce our emissions over the next 15 years, with some reductions already achieved. To us, carbon net zero means that we will reduce our emissions as much as we can, and we will offset any residual emissions by removing an equivalent amount of greenhouse gases from the atmosphere.

We will achieve carbon reduction by delivering our mission, reducing our reliance on fossil fuels, investing in renewable energy and working with the supply chain to secure low carbon goods and services.

In the coming year we will be reviewing how best to implement the recommendations of the Task Force on Climate Related Financial Disclosure and associated Government expectations.

As part of our commitment to environmental sustainability, the NDA participates in the Greening Government Commitments (GGC). GGCs set out the actions Government departments and their agencies will take to reduce their impacts on the environment. The NDA has been part of GGC since the scheme's inception in 2009/10. The targets are set by the Department for Environment, Food and Rural Affairs (Defra) and NDA reports data quarterly through BEIS.

In March 2022, NDA received the final new suite of GGC targets to be delivered by the end of 2024/25. The new baseline year is 2017/18. The headline targets, alongside our performance this year, are given in the table on the next page.

The data remains positively influenced by most of our employees being based at home in 2021/22. While it represents reduced travel and less people in offices, it does not consider the use of energy or other resources by employees working from home. As we return to greater office occupancy and opportunity for business travel, we will keep the impact on our targets under review. We have secured funding this year from Government under the Public Sector Decarbonisation Fund to replace old gas boilers at our Herdus House office with air source heat pumps. We will deliver this in the coming year. We will also focus on the implementation of our updated Travel Policy, which asks people to consider whether there is a need for travel. Where it is necessary, we will encourage the use of trains rather than flying or driving.

GGC target (2024/25)	2021/22NDAperformance
Reduce greenhouse gas emissions by 45%	61%
Reduce direct greenhouse gas emissions by 30%	27%
Reduce greenhouse gas emissions from domestic flights by 30%	29%
Reduce waste generation by 15%	32%
At least 70% of waste to be recycled	76%
Reduce landfill disposal to less than 5%2	0%
Reduce water use by 8%	77%
Reduce paper use by 50%	85%

2 All non-recyclable waste from the NDA is used in an energy from waste plant rather than sending to landfill.

Domestic greenhouse gas emissions for NDA

Overall emissions have reduced from the 2017/18 baseline by 61%. The reasons for this include:

-Reduction in electricity use - Reduction in business travel - Reduction in direct emissions

Greenhouse gas emissions:

Under GGC, the following emission sources are considered3:

• Scope One: Direct emissions from burning gas and any inadvertent releases of fluorinated gases from refrigeration systems. It also includes emissions from fleet vehicles, but NDA does not have any fleet vehicles
• Scope Two: Indirect emissions from the purchase of electricity.
• Scope Three: Indirect emissions from domestic business travel

3 Scopes one, two and three are defined by the Greenhouse Gas Protocol. For GGC a limited subset of Scope 3 emissions is considered.

Electricity use in Herdus

This is affected by reduced office occupancy but also reduced reliance on local IT servers as we make more use of cloud services. We have also started several energy improvements at Herdus House, including replacement of all fluorescent lights with LEDs. Due to COVID-19 protection measures, electric hand dryers were disabled through much of 2021/22 (with paper towels used instead). The figures do not consider the impact on energy use of homeworking. This is a Scope three indirect emission and is not part of GGC.

Business travel - driving miles for the NDA

Due to COVID-19 restrictions, business travel was subdued for much of 2021/22 but showed an increasing trend towards the end of the year. The biggest contribution to emissions comes from driving, including both personal and hire car miles. GGC requires reporting of the details of any hire car loan over five or more days. None of these hires for NDA has been an Ultra-Low Emission Vehicle (ULEV)4.

4Government considers ULEV to be those that have emissions \< 50g of CO2 per km.

Business travel - Carbon emissions from domestic flights

Emissions reduced from the 2017/18 baseline by 29%, which is just under the target of 30%.

In 2022/23, NDA is updating its Travel Policy asking people to consider the travel hierarchy when making their plans. It indicates that air travel is the least preferred option. This may help reduce emissions from business travel.

Direct emissions (Scope 1) for NDA

Direct emissions have reduced from the 2017/18 baseline by 27% which is just under the target of 30%.

NDA gas usage (Herdus House)

There were no inadvertent leaks of fluorinated gases in 2021/22. Gas use reduced to normal levels following a high in 2020/215.

5 In 2020/21 this was due to higher levels of ventilation, required for COVID-19 protection, inadvertently resulting in higher gas use.

Waste

Waste generation has reduced from the 2017/18 baseline by 32%. Waste generation continues to be positively affected by reduced office occupancy. The biggest contributor to waste is paper which has reduced in line with occupancy. Currently 76% of waste generated is recycled. This comprises information communication technology and waste electronic and electrical equipment waste plus dry mixed recyclables (DMR) such as paper, cardboard, cans and plastic. Zero waste currently goes to landfill. Waste which cannot be recycled is sent to a contractor and turned into refuse derived fuel for use in combined heat and power plants. Food waste is sent for anaerobic digestion, a form of composting.

There is a new GGC target for the removal of consumer single use plastic (CSUP). In 2021/22, due to COVID-19 protection measures, CSUP increased in NDA offices. For example, plastic water cups, milk jiggers, coffee sachets, hand sanitisers, wet wipes etc. Towards the end of the year, restrictions were lifted and CSUP stock was not replenished and has been reduced.

ICT and digital

NDA IT made its first report to BEIS under the Sustainable Technology Advice and Reporting (STAR) framework for 2021/22. The report includes the inventory of IT devices plus data on how redundant equipment is reused and/or disposed.

The NDA makes redundant equipment, such as laptops, available to local schools and charities, but where there is sensitive data, the equipment is securely destroyed, and the remnants recycled.

Completing the report has highlighted opportunities for improving the collection of data. For example, the reuse of equipment is not captured. Likewise, in 2021/22, NDA offices were refurbished to enhance collaborative working spaces and much of the furniture was replaced.

However, the old furniture has been reused in other locations. We need to improve the collection and reporting of this data.

Paper

Paper use has reduced from the 2017/18 baseline by 85%. This continues to be positively affected by reduced office occupancy.

Water

Water use has reduced from the 2017/18 baseline by 77%. This continues to be positively affected by reduced office occupancy. Water use in 2020/21 appears higher than that in 2021/22 due to estimates made at the start of lockdown which overestimated use for 2020/21. Herdus House already has water saving devices in taps and cisterns and uses only high efficiency rated dishwashers. There is an opportunity to install a rainwater harvesting system for grey water. This was investigated in 2021/22 but the cost and complexity of retrofitting such a system was judged to be prohibitively high.

Summary

Area	Actual	Performance against 2024/25 target
Greenhouse gas emissions (GGC Scopes one, two and three)	284 te CO2e	Bettered target
Greenhouse gas emissions from direct emissions (Scope one)	37 te CO2e	Less than target
Greenhouse gas emissions from purchase of electricity (Scope two)	128 te CO2e	No specific target
Greenhouse gas emissions from domestic flights (Scope three)	15 te CO2e	Less than target
Greenhouse gas emissions from all domestic business travel (Scope three)	119 te CO2e	No specific target
Expenditure from travel within GGC scope plus international flights	£403,045	No target
Office energy (electricity plus gas)Herdus House	Amount	757,699 kWh	No target
Expenditure	£123,272
Office waste, Herdus House	Generated	13.8 te	Bettered target
Recycled (DMR)	9.5 te
ICT/WEEE	1.0 te
Incinerated (with energy recovery)	2.8 te
Composted	0.5 te
Expenditure	£24,000
Office paper, Herdus House	Amount (A4 and A3/A5 reams equivalent)	158	Bettered target
Water, Herdus House	Amount	309 m3	Bettered target
Expenditure	£8,913	Bettered target

Nature recovery plans

The GGC requirement is to develop and deliver Nature recovery plans for departmental land, estates, development, and operations (aligning with the new duty in the Environment Bill). NDA, and its subsidiary NDA Properties, own over 3,000 hectares of land outside of the nuclear sites. In 2021/22 NDA developed a natural capital baseline of its land and assets. From this work and in collaboration with NDA Properties and NDA group, NDA aims to develop an environmental improvement plan in 2022/23. This plan will meet the requirements of the nature recovery plan where possible.

Climate adaptation plans

The GGC requirement is to develop an organisational climate change adaptation strategy. This headline commitment is broken down into two parts:

• Departments should conduct a climate change risk assessment across their estates and operations to better understand risk and to target areas that need greater resilience
• Departments should develop a climate change adaptation action plan, including existing or planned actions in response to the risks identified

NDA has business continuity and resilience plans. We will review these plans in 2022/23 to ensure climate change risks are managed.

Sustainable procurement

The sustainability networks across the group, as well as within the NDA are actively engaged in embedding sustainability into our ways of working. There are numerous examples where the foundations are being put in place to enable an effective, joined-up consideration of sustainability in decision making. Embedding sustainability in business cases is one such example where it is becoming part of our decision making. Business case templates released in November 2021 included such requirements with a subsequent guidance note in development to set out more detail. The note incorporates the four NDA sustainability legacies; decommissioning, environmental, socio- economic and cultural, and aligns the requirements from other external guidance, notably the HM Treasury Green Book and Procurement Policy Notes, see below diagram.

Financial summary 2021/22

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	2021/2022	2020/2021
Spend on tackling the legacy	£3,038m	£2,440m
Commercial and energy costs	£279m	£335m
NDA central costs	£36m	£55m
Fees paid to businesses	£2m	£16m
Other	£117m	£213m

NDA spend by business

Spend in 2021/22 was £3.472 billion.More than 67% 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 over £2.3 billion per year.

Business	2021/2022	2020/2021
Sellafield	£2,353m	£2,082m
Magnox	£466m	£408m
LLWR, Springfields, Capenhurst	£138m	£118m
Dounreay	£204m	£169m
NDA (including energy, RWM)	£240m	£233m
Nuclear materials and transport	£71m	£49m
Total	£3,472m	£3,059m

NDA's running costs

The NDA's own running costs reduced to £36 million per year, or approximately 1.1% of overall expenditure, reflecting the NDA's investment in enhanced capability and capacity.

Cost	2021/2022	2020/2021
Staff costs	£28m	£40m
Other	£8m	£15m
Total	£36m	£55m

###

NDA's income

The NDA recognised income of over £0.7 billion in the year, with over £0.5 billion arising from reprocessing and management of spent fuels and waste.

Income source	2021/2022	2020/2021
Reprocessing/waste contracts	£289m	£275m
Future fuel contract	£254m	£213m
Energy sales	£11m	£4m
Nuclear materials and transport	£70m	£49m
Other	£90m	£71m

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.

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.

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.

NDA's running costs

After the early years in establishing the NDA's structure and programme, annual running costs stabilised 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.

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 2021/22 estimate (Authority)

The discounted nuclear provision at the end of 2020/21 was £135.8 billion. Since then the movements have been:

Release

The value released from the provision in 2021/22, which was previously provided in 2020/21, is £3.2 billion.

Changes in price levels

Before applying changes to discount rates and the cost estimates, the Authority applied an inflationary adjustment to the opening provision balance to up the figure to money values as at the reporting date. This adjustment is the combination of how inflation is assumed to specifically impact each component of the estimate, producing an increase of £6.9 billion or approximately 5% of the opening balance value.

Unwind of discount

The unwinding, by one year, of the discounting applied to the provision in the previous year, resulting in a decrease in the provision of £0.1 billion. This does not change the underlying (undiscounted) cost estimates.

Changes in discount rates

The Authority applied the discount rates published by HM Treasury in December 2021, resulting in an impact of £84.0 billion. This does not change the underlying (undiscounted) cost estimates.

Cost estimate changes

The Authority reviews the cost estimates each year, reflecting changes in the site lifetime plans and other assumptions. Major changes applied in the reporting period included:

• The outcome of a comprehensive review of the long term cost estimates for the Sellafield site, resulting in a net increase in the nuclear provision of £10,350 million million (before inflation and discounting), which in turn included:
• An increase of £4,480 million to reflect the new strategy for the SIXEP (Site Ion Exchange Plant) Waste Management programme
• A net increase of £8,085 million reflecting the change in the estimating assumptions for other programmes and projects
• Changes in the estimate for near term programmes and projects at Sellafield of £280 million.
• The revision of assumptions for long term efficiencies in the cost of delivering the lifetime plan, replacing previous generic assumptions with specific initiative based target savings, an overall net impact (reduction in overall cost estimate) of £2,495 million
• A change in the estimate of the Magnox programme, reflecting the proposed rolling decommissioning approach to achieve earlier final site clearance dates for the Magnox sites. The impact of this (before inflation and discounting), was an increase of £1.5 billion.

Closing balance

The above movements bring the 2021/22 Authority estimate to £237.0 billion discounted.

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

Movement in nuclear provision 2021-22

Diagram not to scale

Total expenditure profile (£m, undiscounted)

The graph (above) 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.

Site/Activity	2020/21 undiscounted £m	2020/21 dis-counted £m	Unwind of dis-count (Movements) £m	Discountrate change (Movements) £m	Released in year (Movements) £m	Inflation (Movements)	Other cost change (Movements) £m	Movement dis-counted £m	2021/22 undiscounted £m	2021/22 discounted £m
Sellafield	96,605	99,276	(53)	64,170	(2,324)	4,041	11,485	77,318	109,622	176,594
Magnox	19,698	20,247	(27)	8,216	(492)	1,362	2,392	11,451	22,789	31,698
Dounreay	2,432	2,617	-	132	(188)	107	-	49	2,344	2,665
LLWRepository	604	631	(5)	522	(27)	27	26	545	623	1,176
Transport	45	45	-	4	-	3	21	28	64	73
Capenhurst	1,477	1,523	(5)	437	(61)	101	110	582	1,590	2,106
Springfields	613	621	(1)	610	(20)	42	-	631	634	1,252
GDF	10,592	10,803	5	9,955	(84)	734	-	10,610	11,227	21,413
Authority	132,066	135,763	(86)	84,046	(3,196)	6,417	14,034	101,214	148,893	236,977
NDA group companies	23	26	-	-	-	1	-	1	24	27
Group Provision Adjustment	(569)	(569)	-	-	-	-	133	133	(286)	(286)
NDA Group	131,520	135,220	(86)	84,046	(3,196)	6,418	14,167	101,348	148,631	236,718

Parliamentary accountability disclosures

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

Regularity of expenditure

The NDA administers its affairs ensuring prudent and economical administration, avoidance of waste and extravagance and it ensures efficient and effective use of all available resources. Adequate controls exist to ensure the propriety and regularity of its finances.

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 £23,451,322 (2021: £2,575,559).

Type of loss	2022 Total £	2022 Number ofcases	2021 Total £	2021 Number ofcases
Cash losses	-	-	-	-
Store losses	23,448,578	47,098	2,111,024	40
Losses of pay, allowances and superannuation	26,165	1	-	-
Fruitless payments	59,753	245	83,883	127
Constructive losses	-	-	-	-
Claims waived or abandoned	-	-	-	-
Book-keeping losses	-	-	-	-
Failure to make adequate charges	-	-	-	-
Exchange rate fluctuation losses	(83,164)	12	48,573	1
Special payments	-	-	332,079	1
Total	23,451,322		2,575,559

Store losses related to obsolescence write-offs of store items on the licensed sites. In 2022 the store losses included the write-off of inventory previously purchased for use by electricity generating sites, and no longer required following the conclusion of generation activity (value £17,324,973) of which one item was valued at £791,655 and another at £798,736.

Special payments in 2021 related to a fine (£320,000) and associated costs (£12,079) paid by Sellafield Limited 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 Parent Body Organisations of Sellafield, Magnox, Dounreay and Low Level Waste Repository 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 disruption caused by the pandemic has created significant economic uncertainty, and this uncertainty is expected to continue. 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 7 July 2022

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 and its Group for the year ended 31 March 2022 under the Energy Act 2004. The financial statements comprise the Nuclear Decommissioning Authority and its Group's

• Statement of Financial Position as at 31 March 2022;
• Statement of Comprehensive Net Expenditure, Statement of Cash Flows and Statement of Changes in Taxpayers' Equity for the year then ended; and
• the related notes including the significant accounting policies.

The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law and UK adopted International Accounting Standards.

In my opinion, the financial statements:

• give a true and fair view of the state of the Nuclear Decommissioning Authority and its Group's affairs as at 31 March 2022 and its net expenditure after taxation for the year then ended; and
• have been properly prepared in accordance with the Energy Act 2004 and Secretary of State directions issued thereunder.

Emphasis of matter – nuclear provisions

I draw attention to the disclosures made in notes 3.3(b) 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. My opinion is not modified in respect of this matter.

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 (UK) (ISAs UK), applicable law and Practice Note 10 Audit of Financial Statements and Regularity of Public Sector Bodies 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 and its Group 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

In auditing the financial statements, I have concluded that the Nuclear Decommissioning Authority and its Group'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 and its Group'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 Accounting Officer with respect to going concern are described in the relevant sections of this report.

The going concern basis of accounting for the Nuclear Decommissioning Authority and its Group is adopted in consideration of the requirements set out in 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 financial statements nor my auditor's report thereafter. 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 the part of the Remuneration and People Report to be audited has been properly prepared in accordance with Secretary of State directions issued under the Energy Act 2004.

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

• the parts of the Accountability Report subject to audit have 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 and is in accordance with the applicable legal requirements.

Matters on which I report by exception

In the light of the knowledge and understanding of the Nuclear Decommissioning Authority and its Group and its environment obtained in the course of the audit, I have not identified material misstatements in the Performance and Accountability Report.

I have nothing to report in respect of the following matters which I report to you if, in my opinion:

• I have not received all of the information and explanations I require for my audit; or
• adequate accounting records have not been kept by the Nuclear Decommissioning Authority 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 subject to audit are not in agreement with the accounting records and returns; or
• certain disclosures of remuneration specified by HM Treasury's Government Financial Reporting Manual have not been made or parts of the Remuneration and People Reports to be audited is not in agreement with the accounting records and returns; 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 Accounting Officer are responsible for:

• maintaining proper accounting records;
• the preparation of the financial statements and Annual Report in accordance with the applicable financial reporting framework and for being satisfied that they give a true and fair view;
• ensuring that the Annual Report and accounts as a whole is fair, balanced and understandable;
• internal controls as 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; and
• assessing the Nuclear Decommissioning Authority and its Group'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 Accounting Officer anticipates that the services provided by the Nuclear Decommissioning Authority and its Group 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 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.

Extent to which the audit was considered capable of detecting non-compliance with laws and regulations including fraud

I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of non-compliance with laws and regulations, including fraud. The extent to which my procedures are capable of detecting non-compliance with laws and regulations, including fraud is detailed below.

Identifying and assessing potential risks related to non-compliance with laws and regulations, including fraud

In identifying and assessing risks of material misstatement in respect of non-compliance with laws and regulations, including fraud, we considered the following:

• the nature of the sector, control environment and operational performance including the design of
• the Nuclear Decommissioning Authority and its Group's accounting policies, key performance indicators and performance incentives.
• 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 and its Group'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 Nuclear Decommissioning Authority and its Group's controls relating to the Nuclear Decommissioning Authority's compliance with the Energy Act 2004, Managing Public Money.
• discussing among the engagement team including significant component audit teams and involving relevant internal and external specialists, including IT audit, nuclear, pensions, property, and legal experts, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, I considered the opportunities and incentives that may exist within Nuclear Decommissioning Authority and its Group for fraud and identified the greatest potential for fraud in the following areas: revenue recognition, posting of unusual journals, complex transactions, and bias in management estimates. In common with all audits under ISAs (UK), I am also required to perform specific procedures to respond to the risk of management override of controls.

I also obtained an understanding of the Nuclear Decommissioning Authority and its Group's framework of authority as well as other legal and regulatory frameworks in which the Nuclear Decommissioning Authority and its Group operates, focusing on those laws and regulations that had a direct effect on material amounts and disclosures in the financial statements or that had a fundamental effect on the operations of the Nuclear Decommissioning Authority and its Group. The key laws and regulations I considered in this context included Energy Act 2004, Managing Public Money, Employment Law, Pensions Legislation and Tax Legislation.

Audit response to identified risk

As a result of performing the above, the procedures I implemented to respond to identified risks included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described above as having direct effect on the financial statements;
• enquiring of management, the Audit Committee and in-house legal counsel concerning actual and potential litigation and claims;
• reading and reviewing minutes of meetings of those charged with governance and the Board and internal audit reports; and
• 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.

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 at: www.frc.org.uk/auditorsresponsibilities. This description forms part of my report.

Other auditor's responsibilities

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 11 July 2022

National Audit Office 157-197 Buckingham Palace Road Victoria London SW1W 9SP

Annual Accounts

Performance analysis

The following section provides a summary as to how each of the organisations in the NDA group has performed in 2021/22 against the key activities and milestones set out in our 2021-24 Business Plan. 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 'golden thread' from the NDA's 47 strategic outcomes to each of these key activities and milestones is also shown.

In addition to the activities set out in the NDA Business Plan, the top tier of targets for the group to achieve in 2021/22 are reflected in our Group Key Targets.

Progress against these targets is reported to the NDA Board and Government on a monthly basis.

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 Group Key Targets 2021/22

During 2021/22 we had 28 Group Key Targets. These cover group-wide targets, targets specific to our individual businesses and targets specific to the NDA.

Status	Number of targets
Complete	Target achieved	22
Missed	Target missed	6
Status	Operating company	Strategic outcomes	Priority target/detail	Year end status	Commentary
1	Sellafield	3136,18B	Combined operational throughput	Missed	Target missed due to poor performance at the facility as a result of COVID-19, asset condition at the plant, and an electrical fault.
2	Sellafield	3,4	Delivery of the closure of the Magnox Operating Plan (MOP) End of repro - Intact bulk fuel remaining. Reprocessing of DFR fuel – DFR Skip turnaround rates	Missed	Target missed due to safety concerns around making the fifth shipment of fuel required to achieve this target, and a decision made not to complete the shipment.
3	Sellafield	3133	MSSS Basket of Measures: Operational delivery by 31 March 2022Numbers of boxes to store	Missed	Target missed due to not having licences to complete the waste retrieval and putting this into boxes before year end.
4	Sellafield	CE	Asset ManagementEach key facility will have aligned and effective maintenance and engineering control centre and plant operations control centre	Complete
5	Sellafield	CE	Procurement of ICT services (PICTS)	Complete
6	Sellafield	CE	Demonstrable progress on new capability	Complete
7	Sellafield	CE	Portfolio, Programme and Project (PIP) Improvements	Complete
8	Sellafield	CE	Demonstrable progress towards the delivery of the Programme and Project Partners (PPP) critical success factors	Complete
9	Magnox	313233	Company-wide: Agreed tonnes of ILW retrieved during financial year	Complete
10	Magnox	42	Company-wide: Agreed metres squared of asbestos remediation during the financial year.	Complete
11	Magnox	CE	Trawsfynydd: Application of variation to the Radioactive Substances Permit to permit in-situ disposal	Complete
12	Dounreay	33	Dounreay Cementation Plant (DCP) Store Extension 2 – main civils complete D2702	Missed	Target missed due to its challenging nature, adverse weather conditions making it difficult to operate and ongoing COVID-19 challenges with resource.
13	Dounreay	22	Completion of the disposition of remnants exotics fuel - category 1 un-irradiated uranium fuel inventory (HEU)	Complete
14	RWM	3439	As part of the GDF Programme, develop Working Groups and progress to the formation of Community Partnerships	Complete
15	NTS	CE	Deliver excellent customer services for NDA, UK and international customers	Complete
16	NDA group	CE	Sustainability / working towards net carbon zero NDA BEACON	Complete
17	NDA group	CE	ED&I – Respect and Inclusion Beacon	Complete
18	NDA group	CE	Re-imagine Beacon	Complete
19	NDA group	CE	Leadership Academy Beacon	Complete
20	NDA	CE	Group structure (waste company)	Complete
21	NDA	CE	Programme and Project Management Upskilling	Complete
22	NDA	CE	Project Victory	Complete
23	NDA	CE	Digital	Complete
24	NDA	CE	Responses to reviews	Missed	Target missed due to all actions not being signed off as complete at the March 2022 Board
25	NDA	CE	One NDA – Ways of working/Group Operating Framework	Missed	Target missed due to not achieving sign off of the Group Operating Framework by the GLT and all steps necessary to achieve this sign off.
26	NDA	CE	Integrated Waste Management	Complete
27	NDA	CE	Spending review	Complete
28	NDA	CE	AGR	Complete

Performance analysis - Business Plan activities 2021-24

NDA

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).

Spent Fuels

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Continue to work with EDF Energy and our subsidiaries on the integrated and collab- orative delivery programme for the safe and cost-effective defueling of AGR power stations, the AGR Operating Programme		2021-2024		ONTRACK
Continue to work with our subsidiaries, especially RWM, on the potential disposal of our spent fuels to a GDF		2021-2024		ONTRACK

Nuclear Materials

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Work with the UK government on a disposition solution that puts the UK's plutonium beyond reach		2021-2024		ONTRACK
Implement a programme of research and development to mature the credible options for plutoniumdisposition		2021-2024		ONTRACK
Support our Safeguards experts across the Group in developing and implementing their plans to meet the new safeguards regulations which come into force when the UK leaves Euratom at the end of the transition period		2021-2024		ACHIEVED

Integrated Waste Management

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
To make more use of a risk informed approach for waste management and to seek solutions that help to optimise the lifecycle of both radioactive andnonradioactive wastes. This risk-informed approach enables wider application of the Waste Hierarchy and allows us to make optimum use of our treatment, storage and disposal infrastructure		2021-2024		ONTRACK
Work with group businesses to explore alternative disposal options for Higher Activity Waste		2021-2024		ONTRACK

Site Decommissioning and Remediation

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Ensure that approaches to decommissioning and remediation reflect the changing level and nature of hazards that exist throughout the lifetime of a nuclear installation, andsupportbusinesses with developing proportionate arrangements		2021-2024		ONTRACK
Review the use of Safety and Environmental Detriment scores to determine if and how they might be improved as a consistent means of expressing the level of risk to people and the environment. Seek to develop meaningful indicators for other factors in the value framework as an input todecision-making		2021-2024		ONTRACK
Work with government, regulators and local communities to ensure that remediation of our sites is safe, sustainable and publicly acceptable, and enables their beneficial reuse as early as possible		2021-2024		ONTRACK
Facilitate beneficial reuse of wastes generated from demolition activities and land remediation to restore sites where it represents the most sustainable solution		2021-2024		ONTRACK
Engage with Government and local government to better understand what they need from NDA land and develop our understanding of the controlsrequiredto reuse our sites safely where residual contamination is being managed		2021-2024		ONTRACK

Critical Enablers

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Implement recommendations from the Departmental Review		2021-2022	MISSED		Group Key Target missed for 2021/22 but on schedule to address all recommendations by 2024.
Complete transition to NDA subsidiaries of the two remaining SLC's Dounreay Site Restoration Ltd and Low Level Waste RepositoryLtd		2021-2022	ACHIEVED
Operations as one transport and logistics division commences, bringing together our expert capabilities from DRS and INS into one single division		2021-2022	ACHIEVED
Implement Strategy 4		2021-2024		ONTRACK
Develop strategic opportunities that optimise delivery of the mission		2021-2024		ONTRACK
Embed the key tenets of the Industrial Strategy, including active participation in the Nuclear Sector Deal to help achieve HMG deliverables		2021-2024		ONTRACK	The Industrial Strategy and Nuclear Sector Deal have now been replaced with the British Energy Security Strategy which the NDA continues to support
Provide support to government on nuclear new build decommissioning plans		2021-2024		ONTRACK
Develop a group-wide accommodation strategy (including welfare, warehousing, transport and logistics) allowing effective re-use of the operational land for construction of new facilities required to deliver the NDA mission and support the UK's Industrial Strategy		2021-2024		ONTRACK

HSSE&W

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Lead in the area of mental health and wellbeing across the NDA group and further enhance the wellbeing community across the group		2021-2024		ONTRACK
Contribute to sustainability performance and meet Greening Government commitments		2021-2024		ONTRACK
Having established our group carbon foot- print, we will work with our businesses to identify opportunities for carbon reduction and to develop a roadmap for how we will support the government commitment to net zero greenhouse gas emissions for the UK by 2050		2021-2024		ONTRACK

Security and Resilience

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Implement new ICT infrastructure, software and working practices to allow smarter, flexible working across the NDA		2021-2024		ONTRACK
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		2021-2024	ACHIEVED

Cyber Security

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Enable the group to proactively deter, detect, defend against, recover from and be resilient to both current and evolving cyber threats		2021-2024		ONTRACK

Research, Development and Innovation

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Work with other nuclear and non-nuclear organisations to encourage and leverage cross-sector investment in RD&I and foster technology transfer between sectors and internationally		2021-2024		ONTRACK
Lead the promotion and adoption of technology and innovation across the NDA group, developing an environment where innovation can thrive		2021-2024		ONTRACK
Work collaboratively across the NDA group to embed good practices in Technology and Innovation Management, Technical Assurance, Radioactive Waste Inventory and Materials and SamplesManagement		2021-2024		ONTRACK

People

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Implement our strategic people delivery plan to enable resource planning, skills development and flexibility and mobility across the group		2021-2024		ONTRACK
Develop a one NDA Leadership Academy to future proof our leadership capability to deliver the mission		2021-2022	ACHIEVED
Lead the strategic diversity and inclusion agenda across the NDA group ensuring effective governance and oversight to drive one NDA inclusion and support our vision to create great places to work		2021-2024		ONTRACK
Implement Government led reforms of public sector pensions across the NDA group		2021-2024		ONTRACK

Asset Management

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Work with our businesses to mature and deliver asset management and continuous improvement capability and performance to support mission delivery at best value for money		2021-2024		ONTRACK

Supply Chain

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Support small and medium enterprise organisations by increasing overall spend with them in line with Government growth agenda		2021-2022	ACHIEVED
Implement and exercise amendments to UK procurement and supply chain regulations as a result of the UK leaving the EuropeanUnion		2021-2024		ONTRACK

Socio-Economics

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Implement the group Socio-Economic Strategy outlining opportunities for the wider economy and supporting thegovernment's economic policy such as the levelling up agenda		2021-2024		ONTRACK

International Relations

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
International support, sharing knowledge and expertise in decommissioning and clean-up activities		2021-2024		ONTRACK

Regulatory Engagement

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Continue working with regulators and government to determine institutional controls appropriate to restoration of nuclear sites		2021-2024		ONTRACK

Sellafield Limited

Sellafield Limited 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 Fuels

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.

Spent Magnox Fuel

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
First Generation Magnox Storage PondComplete the capability to export all fuel for interim storage	2	2022-2023		BEHIND TARGET	Impacted by delays to permissioning and commissioning of zeolite route and still some regulatory challenges with respect to safety case for storage of fuel in self shielded boxes.
Complete Magnox reprocessing and continued interim storage in FHP for any remnant fuel	3 4	2021-2022	MISSED		COVID-19 impacts, and asset resilience issues have delayed reprocessing operations.The completion of Magnox reprocessing is now scheduled for July 2022

Spent Oxide Fuel

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Enhance capacity to receive/ manage and interim store AGR spent fuel from EDF Energy, to support bulk defueling	6 9	2021-2024		ONTRACK

Spent Exotic Fuel

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Continue to receive Dounreay spent exotic fuel to be reprocessed or stored, and develop alternative capability for receipt and management ofremaining spent exotic fuels from Dounreay	12 14	2021-2024		BEHIND TARGET	Further inventory information required to support transport case and Sellafield receipt of remaining Dounreay fuel. Increasingscope on transport and storage requirements due to nature of fuel.

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

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Continue the safe and secure storage of plutonium by developing the capability to repack/retreat plutonium in line with UK policy	18 19	2021-2024		ONTRACK

Uranics

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Support future decommissioning by implementing plans for consolidated storage of Sellafield uranics	22 24	2021-2024		ONTRACK

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. 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.

Low level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Continue to generate savings and preserve capacity at the Low Level Waste Repository by enhancing capa- bility to divert waste to LLWR and the supply chain	27	2021-2024		ONTRACK

Intermediate level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Support the NDA's strategy by con- tinuing the programmes to receive and treat waste materials from Har- well and AWE Aldermaston	32	2021-2024		ONTRACK
Support future waste treatment through implementing the capability to actively demonstrate characterisation, size reduction and decommissioning	32	2021-2024		ONTRACK
Support risk reduction by developing additional capability for treatment of intermediate level liquid wastes and storage of by-products	32	2021-2024		ONTRACK
Support future decommissioning through optimisation of future storage and treatment arrangements	32 33	2021-2022	MISSED		There is currently insufficient waste storage andtreatment capacity/capability within the higher activity waste system to meet the site's aspirations for broadfrontdecommissioning. A detailed capability study is underway which is scheduled to complete in Q1 22/23.

Pile Fuel Storage Pond

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Progress waste retrieval by having waste skips either exported or ready to export	31	2021-2024		ONTRACK
Demonstrate pond dewatering capability through completion of the bay dewatering trials	31	2021-2023		ONTRACK

First Generation Magnox Storage Pond (FGMSP)

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Support risk reduction from FGMSP through continued removal of fuel and waste from the facility	31	2021-2024		ONTRACK

Magnox Swarf Storage Silo (MSSS)

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Commence retrievals from MSSS		2022-2023		ONTRACK
Progress the capability required for bulk retrievals	31	2021-2024		BEHIND TARGET	Current timescales for Box Encapsulation Plant which is required to support bulkretrievals is plant available in range 2025 to 2027.

High level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Continue the programme to repatriate overseas-owned vitrified waste to its country of origin	38	2021-2024		BEHIND TARGET	Delays with Japanese returns due to design issues. Other country returns proceeding to plan.
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	2021-2024		BEHIND TARGET	COVID-19 impacts, and asset resilience issues have delayed reprocessing operations into 2022 with similar impacts on vitrification. POCO of Magnox Reprocessing now scheduled for late 2022/early 2023.

Site Decommissioning and Remediation:

Decommissioning and demolition

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Complete decommissioning and demolition of the upper diffuser section of the Windscale Pile Chimney Number 1	42 43	2021-2023		ACHIEVED
Establish decommissioning capability by implementing the alpha andbeta gamma decommissioning programmes	43	2021-2022	ACHIEVED
Commence post operational clean- out (POCO) of Magnox Reprocessing Plant	42	2021-2022	MISSED		COVID-19 impacts, and asset resilience issues have delayed reprocessing operations into 2022 with POCO to commence on ceoperations have completed

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	2021/22 Activities	2021/24 Activities	Comments
Continue the Sellafield transformation to support future business requirements including the development and embedding of a value-led culture		2021-2024		ONTRACK
Develop and embed the long-term partnership with the supply chain		2021-2024		ONTRACK
Progress the transformation of project delivery on site and continue to embed the Programme and Project Partnership		2021-2024		ONTRACK
Support small and medium enterprise organisations by targeting overall spend with them in line with the government growth agenda		2021-2024		ONTRACK	Was behind target but through delivery of a recovery plan during the latter half of FY 21/22 the position has been recovered with SL on target to meet Government SME spend target.
Continue the Sellafield securityenhancement programme		2021-2024		ONTRACK
Continue with improvements to the site utilities infrastructure and new Steam Generating Plant		2021-2024		DEFERRED	Project de-scoped due to improved asset strategy.
Continue the programme to ensure the analytical services capability is available to support the mission		2021-2024		BEHIND TARGET	Plan to deliver the full business case to Sellafield Limited Investment Review Panel by the end of 2024 is still on target, delayed from 31 March 2024 due to impact of COVID-19.
Embed the key tenets of the Industrial Strategy, including the Nuclear Sector Deal		2021-2024		ONTRACK	The Industrial Strategy and Nuclear Sector Deal have now been replaced with the British Energy Security Strategy which the NDA continues to support
Working to embed the capability to proactively protect, detect, respond and recover against current and evolving cyber threats		2021-2024		ACHIEVED
Manage and deliver asset management and continuous improvement capability and performance to support mission delivery		2021-2024		ONTRACK

Regulatory Control

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Ensure discharges are in line with UK discharge strategy		2021-2024		ONTRACK
Reduce environmental risk (including retrieval and treatment of legacy wastes, reduction of HAL stocks)		2021-2024		BEHIND TARGET	DelaysinreductionofHALstocksdue toCOVID-19impactonstaffinglevels, vitrification equipment failures and extended lineoutages.

Magnox Limited

Magnox is an NDA subsidiary, responsible for 12 nuclear sites across the UK: Berkeley, Bradwell, Chapel- cross, 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

Low level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Delivery of the Magnox elements of the estate-wide low level waste management plan, including diversion to alternative treatment including development of updated Integrated Waste Strategy	26272829	2021-2024		ON TRACK

Intermediate level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Progress activities to retrieve, treat and store ILW	313233	2021-2024		ON TRACK
Continue to pursue opportunities to consolidate ILW to interim stores		2021-2024		BEHIND TARGET	Overall progress good but some elements behind target

Nuclear Materials

Uranics

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Continue the programme for the transfer of nuclear materials	22	2021-2024		ON TRACK
Regulatory permissioning in support of the transfer of nuclear materials between sites	22	2021-2024		ON TRACK

Site Decommissioning and Remediation

Decommissioning and demolition

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Continue estate decommissioning and demolition activities in line with individual site strategies	4243	2021-2024		BEHIND TARGET
Continue reactor decommissioning	43	2021-2024		BEHIND TARGET
Asbestos management – Continued focus on the major risk of asbestos including production of an optimised, underpinned strategy for asbestos	42	2021-2024		ON TRACK
Continue development of site specific strategies as part of a rolling programme of decommissioning	42	2021-2024		ON TRACK

Berkeley

Integrated Waste Management

Intermediate level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
New build – complete design and build of remaining ILW retrieval plant	31	2021-2023		BEHIND TARGET	This activity has been impacted by COVID-19 (inc. supply chain) and first of a kind technical challenges.
Progress activities to retrieve, treat and store ILW	31 32 33	2021-2024		BEHIND TARGET	This activity has been impacted by COVID-19 (inc. supply chain) and MILWEP plant commissioning behind schedule.
Progress encapsulation of ILW packages	32	2021-2024		BEHIND TARGET	This activity has been impacted by COVID-19 (inc. supply chain) and MILWEP plant commissioning behind schedule.

Site Decommissioning and Remediation

Decommissioning and demolition

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Decommissioning (including asbestos removal) and demolition activities ongoing in preparation for the site's deferral period	4243	2021-2024		BEHIND TARGET	This activity is a summary of the other targets contained in this section.
Commence and progress the asbestos and plant removal from the Blower Houses.	4243	2021-2024		BEHIND TARGET	This activity has been impacted by pro­longed procurement timescales but there are opportunities to recover

Bradwell in care and maintenance

Site Decommissioning and Remediation

Decommissioning and demolition

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Ongoing management of site during care and maintenance period	44	2021-2024		ON TRACK

Chapelcross

Integrated Waste Management

Intermediate level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
New build - complete active commissioning of the Modular Active Effluent Treatment Plant	32	2021-2022	ACHIEVED
Progress activities to retrieve, treat and storeILW wastes	213233	2021-2024		ON TRACK
New build - complete design and build ofILW Encapsulation facility	32	2021-2022	MISSED		The activity has been impacted by resource availability (inc. supply chain/COVID-19 impacts); forecast to complete in early 2022-23.
Operation of Interim Storage Facility	33	2021-2024		ON TRACK

Site Decommissioning and Remediation

Decommissioning and demolition

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Preparations for pond draining and stabilisation	42	2021-2024		BEHIND TARGET	Impacted by interdependencies with other plant on site.
Decommissioning (including asbestos removal) and demolition activities in preparation for entry into care and maintenance	4243	2021-2024		BEHIND TARGET	This activity is a summary of the other targets contained in this section.
Prepare and execute land remediation activities	46	2021-2023		BEHIND TARGET	This activity has been impacted by Magnox re-baselining the overall delivery plan.
Commence and progress turbine hall asbestos removal.	42	2021-2024		DEFERRED

Dungeness A

Integrated Waste Management

Low level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Progress activities supporting consolidated ILW storage	33	2021-2024		ON TRACK

Intermediate level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Progress activities to retrieve, treat and store ILW wastes	313233	2021-2024		BEHIND TARGET	This activity has been impacted by resource (inc. supply chain/COVID-19 impacts) and technical issues.

Site Decommissioning and Remediation

Decommissioning and demolition

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Decommissioning (including asbestos removal) and demolition activities in preparation for the site's deferral period	4243	2021-2024		BEHIND TARGET	This activity is a summary of the other targets contained in this section.
Preparatory works for Safe Store Project	42	2021-2024		BEHIND TARGET	This activity has been impacted by plant issues but opportunities to recover.
Complete the current asbestos removal programme within the reactor buildings	43	2021-2024		BEHIND TARGET	Currently behind schedule but opportunities to recover.
Complete ponds stabilisation	42	2021-2022	ACHIEVED

Harwell

Nuclear Materials

Uranics

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Continue the programme for the transfer of nuclear materials	22	2021-2024		ON TRACK

Integrated Waste Management

Intermediate level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Progress activities to retrieve, treat and store ILW	313233	2021-2024		ON TRACK

Site Decommissioning and Remediation

Decommissioning and demolition

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Decommissioning (including asbestos removal) and demolition activities	4243	2021-2024		BEHIND TARGET	This activity is a summary of the other targets contained in this section.
Continue preparations for decommissioning of Radium Chemistry Laboratory facilities (B220)	42	2021-2024		BEHIND TARGET	This activity has been impacted by resource availability(inc. supply chain/COVID-19 impacts) but there are opportunities to recover.
Decommissioning, demolition, land remediation, reinstatement and delicensing of the Liquid Effluent Treatment Plant (LETP)	424346	2021-2024		BEHIND TARGET	Physical works now complete and now progressing with de-licensing process. The activity has been impacted by the need for additional excavations, but there are opportunities to recover.
Prepare, commence, and progress the decommissioning of the British Experimental Pile Zero reactor (BEP0)	42	2021-2024		BEHIND TARGET	This activity has been impacted by Magnox re-baselining the overall delivery plan.
Prepare, commence, and progress the decommissioning of the Solid Waste Complex facility (B462)	42	2021-2024		DEFERRED	This activity has been impacted by the Rolling Programme of Decommissioning Strategy.
Prepare and commence the decommissioning of the Active Waste Handling facility (B459).	42	2021-2024		BEHIND TARGET	This activity has been impacted by resource availability (inc. supply chain/COVID-19 impacts) but there are opportunities to recover

De-designate or re-use

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Continue incremental release of land to the Harwell campus through targeted demolitions, remediation and clearance of land tracts	47	2021-2024		ON TRACK

Hinkley Point A

Integrated Waste Management

Low level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
New build - completion of active commissioning of the Modular Active Effluent Treatment Plant	28	2021-2022	MISSED		This activity has been impacted by resource availability (inc. supply chain/ COVID-19 impacts) and by Magnox rebaselining the overall delivery plan. Now forecast to complete in early 2022/23

Intermediate level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Progress activities to retrieve, treat and store ILW	313233	2021-2024		ON TRACK
New Build - Complete Design and Build of ILW Encapsulation facility	32	2021-2022	MISSED		This activity has been impacted by resource availability (inc. supply chain/COVID-19 impacts). Now forecast to complete early 2022/23

Site Decommissioning and Remediation

Decommissioning and demolition

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Decommissioning (including asbestos removal) and demolition activities in preparation for the site's deferral period	4243	2021-2024		ON TRACK
Continue asbestos removal from the reactor building complex	42	2021-2024		ON TRACK
Complete the decommissioning of the turbine hall	42	2021-2023		DEFERRED	This activity has been impacted by the rolling programme of decommissioning strategy
Commence the decommissioning of the Active Effluent Treatment facilities	42	2021-2024		BEHIND TARGET	This activity has been impacted by resource availability (inc. supply chain/COVID-19 impacts) but there are opportunities to recover

Hunterston A

Integrated Waste Management

Intermediate level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Progress activities to retrieve, treat and store ILW	313233	2021-2024		ON TRACK
Continue complete solid active waste bunker retrieval operations excluding post operational clean out	31	2021-2022	ACHIEVED
New build – commissioning of the solid ILW encapsulation plant	32	2021-2024		BEHIND TARGET	This activity has been impacted by technical and resource issues (including supply chain /COVID-19 impacts).

Site Decommissioning and Remediation

Decommissioning and demolition

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Decommissioning (including asbestos removal) and demolition activities in preparation for the site's deferral period	4243	2021-2024		ON TRACK
Continue the decommissioning of the Active Effluent Treatment facilities	42	2021-2024		BEHIND TARGET	This activity has been impacted by technical issues.
Commence the re-cladding of the reactor building	42	2021-2024		DEFERRED	This activity has been deferred whilst an assessment of the value for money case is made.
Commence the deplanting of the cooling pond overbuilding	43	2021-2024		BEHIND TARGET	This activity has been impacted by technical issues.

Oldbury

Integrated Waste Management

Intermediate level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Progress activities supporting consolidated ILW storage	33	2021-2024		BEHIND TARGET	An assessment of strategic storage requirements underway.
Progress activities to retrieve, treat and store ILW	313233	2021-2024		BEHIND TARGET	This activity has been impacted by resource availability (inc. supply chain/COVID-19 impacts).

Site Decommissioning and Remediation

Decommissioning and demolition

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Decommissioning (including asbestos removal) and demolition activities in preparation for the site's deferral period	4243	2021-2024		ON TRACK
Commence and progress the decommissioning of the Active Effluent Treatment facilities.	42	2021-2024		ON TRACK
Commence and progress the asbestos removal, deplant and demolition of the Turbine Hall.	42	2021-2024		BEHIND TARGET	This activity has been impacted by resource availability (inc. supply chain/COVID-19 impacts) but there are opportunities to recover.
Commence the asbestos removal from the Reactor Building	42	2021-2024		ON TRACK

Sizewell A

Integrated Waste Management

Intermediate level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Progress activities to support consolidation of ILW storage	33	2021-2024		BEHIND TARGET	Assessment of strategic storage requirements underway.
Progress activities to retrieve, treat and store ILW	313233	2021-2024		BEHIND TARGET	This activity has been impacted by resource availability (inc. supply chain/COVID-19 impacts).
Commence and progress ILW retrievalenabling works	31	2021-2024		BEHIND TARGET	This activity has been impacted by resource availability (inc. supply chain/COVID-19 impacts).

Site Decommissioning and Remediation

Decommissioning and demolition

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Decommissioning (including asbestos removal) and demolition activities in preparation for the site's deferral period	4243	2021-2024		BEHIND TARGET	This activity is a summary of the other targets contained in this section.
Commence and progress the decommissioning of the Active Effluent Treatment facilities	42	2021-2024		BEHIND TARGET	This activity has been impacted by resource availability (inc. supply chain/COVID-19 impacts).
Commence and progress the asbestos removal, deplant and demolition of the Turbine Hall	42	2021-2024		ON TRACK
Commence the asbestos removal from the Reactor Building	42	2021-2024		DEFERRED	This activity has been impacted by the Rolling Programme of Decommissioning Strategy and a value for money assessment.
Complete the Cooling Ponds stabilisation	42	2021-2022	MISSED		This activity has been impacted by resource availability (inc. supply chain/COVID-19 impacts).

Trawsfynydd

Integrated Waste Management

Intermediate level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Continue and complete ILW retrievals and encapsulation	3133	2021-2023		ON TRACK
Progress activities to retrieve, treat and store ILW	313233	2021-2024		ON TRACK

Site Decommissioning and Remediation

Decommissioning and demolition

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Decommissioning (including asbestos removal) and demolition activities in preparation for the site's deferral period	42, 43	2021-2024		ON TRACK
Continue reactor height reduction preparations	43	2021-2024		ON TRACK
Decommissioning and demolition of the Ponds complex facility	42	2021-2024		ON TRACK

Winfrith

Integrated Waste Management

Low level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Continue and complete shipments of LLW drums to LLWR	28	2021-2024		BEHIND TARGET	This activity has been impacted by technical issues and resource availability (supply chain/COVID-19 impacts).

Site Decommissioning and Remediation

Decommissioning and demolition

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Continue DRAGON reactor decommissioning, including the construction and installation of the Core Segmentation equipment	42	2021-2024		BEHIND TARGET	This activity has been impacted by technical issues but there are opportunities to recover.
Continue SGHWR decommissioning, including the construction and installation of the Core Segmentation equipment	42	2021-2024		ON TARGET
Preparatory works for the removal of the discharge pipelines	42	2021-2024		ON TARGET
Complete the removal of active drains	42	2021-2022	DEFERRED		This activity has been impacted by resource availability (inc. supply chain/COVID-19 impacts) and therefore the activity has been reprioritised.
Continue land remediation activities and end state development	46	2021-2024		ON TARGET
Decommissioning (including asbestos removal) and demolition activities	4243	2021-2024		BEHIND TARGET	This activity is a summary of the other targets contained in this section; with many of the elements on target.

Wylfa

Integrated Waste Management

Intermediate level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Prepare for ILW retrievals and packaging	31	2021-2024		BEHIND TARGET	This activity has been impacted by resource availability (inc. supply chain/COVID-19 impacts) but there are opportunities to recover.
Progress activities to retrieve, treat and store ILW	313233	2021-2024		BEHIND TARGET	This activity has been impacted by resource availability (inc. supply chain/COVID-19 impacts).

Site Decommissioning and Remediation

Decommissioning and demolition

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Prepare for decommissioning (including asbestos removal) and demolition for the site's deferral period	4243	2021-2024		BEHIND TARGET	This activity is a summary of the other targets contained in this section.
Continue asbestos removal from turbine hall	42	2021-2024		BEHIND TARGET	This activity has been impacted by resource availability (inc. supply chain) but there are opportunities to recover.
Commence and progress asbestos removal from the reactor building	42	2021-2024		DEFERRED	This activity has been impacted by the rolling programme of decommissioning strategy and a value for money assessment.
Prepare and install a replacement electrical overlay scheme	42	2021-2024		BEHIND TARGET	This activity has been impacted by prolonged procurement timescales but there are opportunities to recover.

Dounreay Site Restoration Limited

Dounreay Site Restoration Limited (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 Limited, up to 31 March 2021 and became a wholly-owned subsidiary of the NDA from 1 April 2021.

Spent Fuels

Spent Exotic Fuel

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Continue removal of Breeder Fuel elements from DFR	11	2021-2022	MISSED		DRSL have decoupled breeder de fuel operations from Sellafield. We are now mitigating asset risk and reconfiguring process equipment. Which will enable resumption of defuel activities in 2022.
Complete delivery of all in reactor DFR Breeder Fuel to Sellafield	12	2021-2023		BEHIND TARGET	Wet shipments to Sellafield paused due to COVID-19 and process line outages at Sellafield. Decisions taken in conjunction with NDA strategy team are that future Breeder shipments will be delivered suitable for dry storage at Sellafield.
Complete delivery of all fuels from DFR	12	2021-2023		BEHIND TARGET	The pause of fuel receipt and reprocessing at Sellafield due to COVID-19 has caused delay. Any elements which will not be reprocessed are to be packaged and delivered to Sellafield for dry storage. Dry storage is dependent on the availability of the receipt facility at Sellafield and the transport flask safety report.

Nuclear Materials

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Continue consolidation of remaining unirradiated exotics material (remnants)		2021-2023		ON TRACK

Integrated Waste Management

Low level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Continue transfer of LLW to LLW vault	27	2021-2024		ON TRACK
Complete design and build of D3110 Waste Treatment Plant	28	2022-2023		BEHIND TARGET	Subsequent to re setting our waste validation and consignment arrangements (waste characterization and fingerprint data which led to a hiatus in operations). The site will re-open the waste route and continue against the target

Intermediate level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Complete construction of Dounreay Cementation Plant (DCP) Store Extension Construction	32	2021-2022	MISSED		Current project forecast completion date is March 2023 after factoring in changes for COVID-19 and weather. The schedule shows commencement of inactive commissioning in the third quarter. We have commenced integration of the project delivery and operations teams in order to expedite the handover period
PFR Raffinate Immobilisation Complete	32	2022-2023		BEHIND TARGET	Completion of this activity is dependent on completion of DCP store extension, hence knock-on delay

Site Decommissioning and Remediation

Decommissioning and demolition

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Dounreay Material Test Reactor Building Complex Decontamination Complete	42	2021-2023		BEHIND TARGET	Completion date now 2024. Decommissioning work has uncovered higher than anticipated levels of tritium. A recovery plan is in place and is being monitored
PFR – Removal of Sodium Disposal Plant Equipment (not tanks)	42	2021-2022	MISSED		Revised detail programme following COVID-19 delay, with equipment removal now expected to be underway in 2023
PFR - Complete Reactor Vessel Residual Na Treatment Operations - Turn Reactor Vessel atmosphere from nitrogen to air	42	2022-2023		ON TRACK
Dounreay Material Test Reactor Structures demolished	43	2022-2023		BEHIND TARGET	Completion date now 2024. Recovery plan is in place and is being monitored

De-designate or re-use

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
NDA and Regulatory permissioning in support of the Interim End State definition and arrangements for Dounreay	44	2021-2024		ON TRACK

Critical Enablers

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Support small and medium enterprise organisations by increasing overall spend with them in line with the government growth agenda		2021-2024		ON TRACK

Low Level Waste Repository Limited

Low Level Waste Repository (LLWR) Limited 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 Limited, up to 11 July 2021 and became a wholly owned subsidiary of the NDA from 12 July 2021. It is part of Nuclear Waste Services.

Integrated Waste Management

Low level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
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	2021-2024		ON TRACK

Intermediate level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Work with NDA to support innovation in approaches to integrated waste management	32, 33, 34	2021-2024		ON TRACK
Type B Packaging capability to support NDA and MOD customers	33	2021-2024		ON TRACK

Site Decommissioning and Remediation

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Site End State Gate B paper delivered		2021-2024		ON TRACK

New build and operations

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Enabling works for phased construction of the final cap for trenches 1 to 7 and Vault 8	41	2021-2024		BEHIND TARGET	Significant progress has been made with the site enabling works at LLWR ahead of construction of the final cap but issues with ground conditions and issues associated with the site's former use as a Royal Ordnance Factory have led to delays that mean it will no longer be possible to complete the enabling work in line with the 2021/22 target.

Critical Enablers

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Support hazard reduction across the NDA group		2021-2024		ON TRACK
Deliver the LLW packaging and transport services		2021-2024		ON TRACK
Manage and operate LLWR safely to provide an effective UK disposal service		2021-2024		ON TRACK
Consider options to further optimise operations at the LLWR		2021-2024		ON TRACK
Continue to pursue overall cost savings in delivery of the Lifetime Plan		2021-2024		ON TRACK
Support small and medium enterprise organisations by increasing overall spend with them in line with the government growth agenda		2021-2024		ON TRACK
Active participation in the Nuclear Sector Deal and the North West Nuclear Arc to help achieve HMG key deliverables		2021-2024		ON TRACK
Manage the existing LLWR Management and Operations contract through to completion and transition to new ownership arrangements		2021-2024		ACHIEVED
Deliver the LLWR Transformation Programme and actively support the development of One NDA		2021-2024		ON TRACK
Mature and deliver asset management and continuous improvement capability and performance to support mission delivery		2021-2024		ON TRACK

Regulatory control

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Contribute to sustainability performance under the Greening Government Commitments (GGC)		2021-2024		ON TRACK

Radioactive Waste Management

Radioactive Waste Management (RWM) Limited is an NDA subsidiary, responsible for delivering a geological disposal facility in the UK, on behalf of the NDA. This includes finding a suitable site with a willing community to host this permanent and safe solution for managing radioactive waste. It is part of Nuclear Waste Services.

Integrated Waste Management

Intermediate level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Implement Government policy on geological disposal of higher activity waste	3439	2021-2024		ON TRACK
Through activity and enabling partners - work proactively with waste producers, planning for and delivering waste management solutions	3438	2021-2024		ON TRACK
Through activity and enabling partners - deliver a robust technical programme, support the GDF programme and waste management	3439	2021-2024		ON TRACK

Critical Enablers

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Develop RWM into a high performing delivery organisation		2021-2024		ON TRACK
Continue to work with each community to provide information and help develop a detailed com-munity vision		2021-2024		ON TRACK
Work in partnership with communities to evaluate potential sites for a GDF		2021-2024		ON TRACK
Design studies for specific sites, initial safety analyses, and environmental and economic assess-ments to help establish whether sites could be suitable		2021-2024		ON TRACK

Nuclear Transport Solutions

Established in 2021, Nuclear Transport Solutions (NTS) is a centre of excellence and a strategic UK capability for the transport of radioactive and other critical materials.

Delivering our mission relies on being able to transport radioactive materials and other freight safely and sustainably. NTS supports this by transporting spent nuclear fuel from UK power stations to Sellafield, returning reprocessed 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 Direct Rail Services (DRS) and Pacific Nuclear Transport Limited (PNTL) to deliver rail and shipping services for customers, building on decades of experience of providing safe, secure and reliable transport solutions.

Spent Fuels

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Support AGR fuel movements by rail for EDF Energy from stations to Sellafield, including prepara-tions for the AGR defueling programme.	6	2021-2024		ON TRACK

Nuclear Materials

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Support national nuclear material rail movements for Harwell, Winfrith and DSRL	1722	2021-2024		ON TRACK

Integrated Waste Management

High level waste

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Continue to deliver important international transports of vitrified High Level Waste (HLW) and conditioned Intermediate Level Waste (ILW)	3637	2021-2024		ON TRACK

Critical Enablers

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Develop a comprehensive overview of projected nuclear and critical non-nuclear transports, identifying opportunities to deliver more efficient and environmentally sustainable solutions to the NDA's transport requirements		2021-2024		ON TRACK
Seek opportunities for new business within nuclear shipping, rail, packaging and design by provid-ing transport enabling solutions to UK and international markets		2021-2024		ON TRACK
Undertake appropriate non-nuclear business to maintain and enhance the skills and capabilities required to support the core nuclear mission		2021-2024		ON TRACK
Maintain and operate a fleet of specialist transport assets which meet the highest standards of quality, safety and security in order to support NDA operations		2021-2024		ON TRACK
Attract and retain the necessary skills, capability and diversity of talent to deliver business in a safe, secure and reliable manner		2021-2024		ON TRACK
Support the discharge of NDA obligations with respect to MOD nuclear rail transportation		2021-2024		ON TRACK
Continue to deliver NDA's contractual obligations for transport of mixed oxide (MOX) fuel from France to Japan		2021-2024		ON TRACK
Undertake a series of transformation activities that bring transport capabilities together into a sin-gle division that is efficient, commercially competitive and self-funding		2021-2024		ON TRACK

NDA Archives Limited

NDA Archives Limited is an NDA subsidiary, responsible for 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	2021/22 Activities	2021/24 Activities	Comments
Develop NDA group Digital Preservation and Digitisation policies		2021-2022	DEFERRED		Core principles have been established through productive engagement with subject matter experts (DPC). Additional scope (issues to be addressed) means that work will extend into 2022-2023.
Mature and implement the NDA Group Heritage Guidelines		2021-2022	ACHIEVED
Development of the Hub and Spokes delivery model – centralised inventory and management with dispersed, offsite storage where appropriate		2021-2023		ON TRACK
Magnox collection sift completed and ready for accession		2021-2024		ON TRACK
Sellafield offsite collection sift completed and ready for accession		2021-2024		ON TRACK
Capacity management planning		2021-2024		ON TRACK
Re-competition of the commercial partner contract		2021-2023		ON TRACK

NDA Properties Limited

NDA Properties Limited 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	2021/22 Activities	2021/24 Activities	Comments
Effective and efficient management and assurance of retained landholding consisting of 1,203 hectares across 92 properties		2021-2024		ON TRACK
Effective management and close out of the Landlord's Essential Works Programme, including property portfolio projects for repair work (CAPEX) and improved preventative on-going repair and maintenance		2021-2022	MISSED		Essential works will not be complete by March 2022 due to resource constraints within NDA pro-curement team. Listed Building applications continue to cause delay
Review and deliver progressive environmental stewardship across the portfolio estate		2021-2024		ON TRACK
Effective management of Hinton House including collaborative partnership working with Sellafield Ltd to align with the award on the next generation Facilities Management contract		2021-2023		ON TRACK
Strategic transfer of land and property from NDAPL to NDA to facilitate and enhance operational activities and objectives		2021-2022	DEFERRED		On hold as transfer of NDA Properties Limited assets to Government Property Agency currently being discussed
Proactively dispose/release surplus assets no longer required by the NDA group or wider parts of government, including those that have high socioeconomic value		2021-2024		ON TRACK
To engage and collaborate with NDA group and stakeholders to target carbon net zero objectives		2021-2024		ON TRACK

Rutherford Indemnity Limited

Rutherford Indemnity Limited 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	2021/22 Activities	2021/24 Activities	Comments
Provide optimal insurance coverage to the NDA to support its NDA groupwide insurance programme and exploit opportunities to reduce overall cost of insurance risk		2021-2024		ON TRACK
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 required from January 2022		2021-2024	ACHIEVED
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		2021-2024		ON TRACK
Continue to use a prudent proportion of Rutherford's assets to support infrastructure investment within the NDA group		2021-2024		ON TRACK
Assist with the NDA group insurance broker tender to ensure all outsourced activities improve ef-ficiency and are aligned to support NDA group Insurance Strategy		2021-2024		ON TRACK
Develop and implement comprehensive major incident claims management solution		2021-2024	DEFFERED		System will be delivered by 2023.
Procure Third Party Administrator to implement NDA-controlled nuclear liability claims handling administration		2021-2024	DEFFERED		Contract will be placed by 2023.

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	2021/22 Activities	2021/24 Activities	Comments
Continue to work closely with the NDA and stakeholders across the nuclear sector to upskill and develop the workforce of today and tomorrow		2021-2024		ON TRACK
Continue to manage and facilitate a number of training opportunities for the NDA group and wid-er nuclear sector; including nucleargraduates, cyber security graduates and apprentices and other bespoke programmes to support the NDA People Strategy		2021-2024		ON TRACK
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. Deliv-er CyberFirst and be the venue of choice for Cyber Security training in the North West		2021-2024		ON TRACK
Continue to be a Cumbrian venue of choice for the NDA group's events, conferences and delivery of training and education.		2021-2024		ON TRACK

Springfields Fuels Limited

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 Ltd (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.

Nuclear Materials

Uranics

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Continue to appropriately manage, care and maintain NDA stock of uranic materials	2325	2021-2024		ON TRACK

Site Decommissioning and Remediation

Decommissioning and demolition

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Complete post operational clean out of the Residues Recovery Plant	42	2021-2023		ON TRACK
Continue decommissioning of the Magnox Island		2021-2023		BEHIND TARGET	Delayed due to difficulties within the SFL supply chain. Recovery

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	2021/22 Activities	2021/24 Activities	Comments
Continue decommissioning and demolition of key facilities	4243	2021-2024		ON TRACK

Nuclear Materials

Key activities	Strategic outcome	Timescale	2021/22 Activities	2021/24 Activities	Comments
Continue the safe storage and management of uranic materials, including uranium hexafluoride tails prior to processing through the Tails Management Facility	232425	2021-2024		ON TRACK

David Peattie Accounting Officer and Group Chief Executive Officer 7 July 2022

Glossary and abbreviations

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.

End state : Condition of anuclear 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.

Interim state : An interim state describes the condition of a site or facility (including land) at specific points en-route to the site end state. It is a natural milestone or decision point in the decommissioning and remediation programme that typically represents a significant reduction inrisk or hazard. An interim state does not automatically infer a period of quiescence; it can be followed by continuous or deferred decommissioning.

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 willtake 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 ofcontamination.

NDA authority : This is used to describe the Non-Departmental Public Body created under the Energy Act and the performance of which is reported in thisdocument.

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.

NDA group : This is the group of businesses included in the statutory accounts. These are NDA, Sellafield, Magnox, DSRL, LLWR, INS (including subsidiaries PNTL, INS Japan, INS France SAS), DRS, RWM, NDA Archives, NDA Properties and Rutherford Indemnity. LLWR and RWM havecombined to become Nuclear Waste Services (NWS).

One NDA : A way of working more effectively and efficiently to maximise the opportunities within the group of businesses.

Useful links and documentation

• Nuclear Decommissioning Authority
• Department for Business, Energy and Industrial Strategy
• Sellafield Ltd)
• Magnox Ltd
• Dounreay Ltd
• Capenhurst Nuclear Services
• Springfields Fuels Ltd
• Nuclear Waste Services
• Nuclear Transport Solutions

Useful documentation

• The NDA group Sustainability Strategy 2022 - GOV.UK(www.gov.uk/nda))
• NDA's response to the Magnox Inquiry and Departmental review(www.gov.uk/nda))
• NDA Strategy - March 2021(www.gov.uk/nda))
• NDA Business Plan 2020 to 2023 and NDA Business Plan 2021 to 2024(www.gov.uk/nda))
• NDA Mid-Year Performance Report 2020 to 2021(www.gov.uk/nda))
• NDA Research and Development 5 year plan: 2019 to 2024 (www.gov.uk/nda))
• NDA Direct Research Portfolio (DRP) Projects: Quarterly Update – Oct 2019(www.gov.uk/nda))
• Nuclear Decommissioning: attracting and retaining skills (brochure) Nov 2016 (www.gov.uk/nda)
• NDA Corporate Centre: gender pay gap report, 2020(www.gov.uk/nda))
• Register of Director's Interests and associated procedure(www.gov.uk/nda))
• NDA sustainability report April 2020 to March 2021:(www.gov.uk/nda))

Contact details

NDA Headquarters
Herdus House Westlakes Science & Technology Park Moor Row Cumbria CA24 3HU
Contact: +44 (0)1925 802001
Visit: www.gov.uk/nda

London Office
10 Victoria Street Westminster London
SW1H 0NN
Harwell Office
Building 329
West Thomson Avenue Harwell Campus
OX11 0GD

Department for 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

Dounreay Office
D2003 – Zone 8
Dounreay
Thurso
Caithness
KW14 7TZ

Cockermouth Hub
Unit 5,
Lakeland Business Park,
Cockermouth,
CA13 0QT

Warrington Office
Hinton House
Birchwood Park Avenue
Risley
Warrington
WA3 6GR

Appendix A - NDA group - Summary of events confirmed as INES1 or higher during 2021/22

INES 2 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</br>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	Currently this presents no risk to the public or workforce. Both the ONR and the EA are closely involved in the regulation of, and investigation into, this event, with the EA issuing a variation to the site permit to include some improvement conditions relating to the leak and the ONR raising a level 2 regulatory issue. Sellafield is placing significant focus on this issue and are addressing it through a dedicated sub-programme. 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	Shortfalls within one of its criticalitydetection systems (CIDAS)	These shortfalls related to historical modifications which had remained latent before being recognised this year. The incident was rated as an INES Level 1
Magnox Ltd	Spillage of radioactive liquor from a heat exchanger at Winfrith	A number of cultural factors are being addressed as a result, and engagement with the regulator is underway. The incident was rated as an INES Level 1
Sellafield Ltd	Small fire in building	A number of operational improvements have been implemented and recovery work carried out including repairs to electrical cables. The incident was rated as an 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 within the NDA group are defined as being those projects with a business case that has been approved by Government. For each of these projects, the table below provides the project whole life costs and end dates from the original HM Treasury-approved business case (on a 'P80' basis), the current HM Treasury-approved business case (P80 values), the current forecasts, and any changes to these forecasts this year.

Sellafield Limited

Bulk Sludge and Fuel Retrievals

Current status and reasons for changes to project cost and/or end date from original HMT approved business case: Increases in cost and schedule compared to original HMT approved business case were associated with the complexity of installing new equipment into an existing radioactively contaminated and sensitive nuclear facility as well as project performance issues. The equipment has now been handed over to operations and the project is complete.

Year started	Original HMT approved business case cost (£m)	Current business case cost (£m)	Estimated cost as at Mar 2022 (£m)	Change in forecast cost this year (£m)	Original HMT approved business case project end date	Current business case project end date	Forecast project end date as at Mar 2022	Change in forecast end date this year
2004	229.0	400.0	340.0 (Complete)	0.0	Dec 2012	Mar 2020	April 2021 (complete)	0 mths

Chimney Decommissioning Phase 2F

Current status and reasons for changes to project cost and/or end date from original HMT approved business case: The demolition of the diffuser section of the chimney has now been completed, which has retired the seismic risk associated with the chimney. Some cost challenges have been experienced due to COVID-19 delays, market-driven cost increases in steelwork and commodities, and additional scope required to manage unforeseen asset conditions. The project continues to drive opportunities to manage these cost pressures.

Year started	Original HMT approved business case cost (£m)	Current business case cost (£m)	Estimated cost as at Mar 2022 (£m)	Change in forecast cost this year (£m)	Original HMT approved business case project end date	Current business case project end date	Forecast project end date as at Mar 2022	Change in forecast end date this year
2012	122.6	122.6	118.5	+3.5	May 2029	May 2029	Jul 2028	0 mths

Box Encapsulation Plant Product Store Direct Import Facility

Current status and reasons for changes to project cost and/or end date from original HMT approved business case: 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 took full control of the project in 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. As a result of this and the impact of COVID-19 pandemic the project had to be re-sanctioned in September 2021. In year changes in cost driven by continued impact of COVID-19 on commissioning and associated engineering support activities. All construction activities are now complete, and the facility is in the final stages of commissioning and system cycle demonstrations as part of handover to operations.

Year started	Original HMT approved business case cost (£m)	Current business case cost (£m)	Estimated cost as at Mar 2022 (£m)	Change in forecast cost this year (£m)	Original HMT approved business case project end date	Current business case project end date	Forecast project end date as at Mar 2022	Change in forecast end date this year
2013	215.4	446.4	458.9	+4.4	Dec 2018	Apr 2023	May 2023	0 mths

SEP Solid Waste Storage Retrievals

Current status and reasons for changes to project cost and/or end date from original HMT approved business case: Cost and schedule increases are as a result of contractor performance issues in the manufacture and works testing of the Silo Emptying Plant (SEP) machines, and the complex working arrangements around the facility. The understanding of this, and the learning from SEP 2 commissioning, is being factored into the forward plan for the SEP 1 and SEP 3 machines and the overall strategy, cost, and schedule for completing the project is being reviewed. Start of waste retrievals using SEP 3 is also contingent on BEP availability, the delivery of which has slipped to July 2026 and is driving out the end date for this project. Cost and schedule increases in year are a result of the ongoing impact of COVID-19 and close out of issues identified during commissioning. The first retrieval machine (SEP 2) is expected to commence active operations in Q1 2022/23 with the first package of waste being retrieved and the second retrieval machine (SEP1) is expected to be mechanically installed by the end of 2022/23.

Year started	Original HMT approved business case cost (£m)	Current business case cost (£m)	Estimated cost as at Mar 2022 (£m)	Change in forecast cost this year (£m)	Original HMT approved business case project end date	Current business case project end date	Forecast project end date as at Mar 2022	Change in forecast end date this year
2007	759.2	871.0	916.9	+5.4	Jan 2023	Sep 2023	Aug 2026	+7mths

Box Encapsulation Plant

Current status and reasons for changes to project cost and/or end date from original HMT approved business case: Variances in the early stages of the project were due to 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 project has experienced significant delivery issues and following Sellafield and NDA executive intervention action has been taken to address these and the project is now delivering in line with its revised forecasts. However, the cost and schedule forecast exceed business case approvals and a request for additional funding is being made to Government. The reduction in forecasts costs this year reflects the success of the improvement actions put in place by the NDA, Sellafield and contractor executives with the project achieving all in year milestones in line with the contractors agreed performance schedule. Schedule increase reflects the continued impact of COVID-19 beyond the initial planning assumption of June 2021.

Year started	Original HMT approved business case cost (£m)	Current business case cost (£m)	Estimated cost as at Mar 2022 (£m)	Change in forecast cost this year (£m)	Original HMT approved business case project end date	Current business case project end date	Forecast project end date as at Mar 2022	Change in forecast end date this year
2014	615.0	887.0	1,316.0	-11.0	Jan 2021	Jun 2023	Jul 2026	+2 mths

SIXEP Continuity Plant

Current status and reasons for changes to project cost and/or end date from original HMT approved business case: As the project has matured through the concept and preliminary design stages the increased scope definition has 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 resulted in a five-month schedule variance and additional cost of £28.1m, however current progress on valve manufacture is positive with supplier in contract and performing well. The project achieved HMT approval of its Full Business Case (FBC) in December 2021 and is in its construction phase. The project is currently performing well against the FBC dates and is forecasting to be delivered in January 2031 ahead of its business case end date of February 2033.

Year started	Original HMT approved business case cost (£m)	Current business case cost (£m)	Estimated cost as at Mar 2022 (£m)	Change in forecast cost this year (£m)	Original HMT approved business case project end date	Current business case project end date	Forecast project end date as at Mar 2022	Change in forecast end date this year
2014	498.0	1,182.0	947.2	+344.9	Feb 2026	Feb 2033	Jan 2031	+24 mths

Sellafield Product and Residue Store Retreatment Plant

Current status and reasons for changes to project cost and/or end date from original HMT approved business case: The project achieved HMT approval of its Full Business Case (FBC) in July 2021 and is in its construction phase. The project is currently performing well against the FBC dates and is forecasting to be delivered in August 2029 ahead of its business case end date of March 2032 with supply chain identified and most contracts in place. The development of the FBC was informed by more robust market informed data and assurance of the forward schedule by the Programme and Project Partners (PPP) which resulted in a significant cost and schedule variance from the original HMT approved business case. This cost and schedule increase has been heavily assured and benchmarked and is captured within the FBC. On site construction activities during 2021/22 have progressed well, delivering in line with its COVID-19 impacted cost and schedule.

Year started	Original HMT approved business case cost (£m)	Current business case cost (£m)	Estimated cost as at Mar 2022 (£m)	Change in forecast cost this year (£m)	Original HMT approved business case project end date	Current business case project end date	Forecast project end date as at Mar 2022	Change in forecast end date this year
2015	885.0	1,673.0	1,258.2	+115.9	Mar 2027	Mar 2032	Aug 2029	+6 mths

Electrical Supply New Construction

Current status and reasons for changes to project cost and/or end date from original HMT approved business case: Cost and schedule variance from the original approved HMT business case 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 and schedule assured by Sellafield Limited in December 2020. This takes into account the impacts of COVID-19 as well as the improved scope and design definition. Further independent assurance was undertaken by the NDA in the form of an IPA style review. The project will submit the Full Business Case to the NDA Group Investment Committee in July 2022.

Year started	Original HMT approved business case cost (£m)	Current business case cost (£m)	Estimated cost as at Mar 2022 (£m)	Change in forecast cost this year (£m)	Original HMT approved business case project end date	Current business case project end date	Forecast project end date as at Mar 2022	Change in forecast end date this year
2016	238.0	238.0	324.3	-1.0	Mar 2023	Mar 2023	Nov 2026	0 mths

Replacement Analytical Project

Current status and reasons for changes to project cost and/or end date from original HMT approved business case: Cost and schedule increases primarily associated with maturity of scope and estimate since Outline Business Case along with COVID-19 impact (£23m), annual indexation and resource shortfall related delays. Project delivery continues in line with COVID-19 forecasts. 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 and a series of optimisation activities is ongoing. In P12 the project underwent an Assurance of Action Plan in response to a red Delivery Confidence Assessment from an IPA Gate Zero Review in late 2021, with five out of six of the findings closed.

Year started	Original HMT approved business case cost (£m)	Current business case cost (£m)	Estimated cost as at Mar 2022 (£m)	Change in forecast cost this year (£m)	Original HMT approved business case project end date	Current business case project end date	Forecast project end date as at Mar 2022	Change in forecast end date this year
2016	878.0	878.0	668.9	+9.6	Feb 2029	Feb 2029	Nov 2028	+7 mths

Magnox Limited

Steam Generating Heavy Water Reactor (SGHWR)

Current status and reasons for changes to project cost and/or end date from original HMT approved business case: T he project achieved HMT approval of its Full Business Case (FBC) in September 2021. The project is currently within the FBC dates and is forecasting to be delivered in March 2034 ahead of its business case end date of March 2035. In terms of cost the project is forecasting to be delivered within its business case end cost of 266.0m. In year forecast increases have resulted from inflation, the Detailed Design and Build (DD&B) subcontract and additional cost to deliver the ILW Encapsulation Plant, Project offices and clean-up of primary containment.

Year started	Original HMT approved business case cost (£m)	Current business case cost (£m)	Estimated cost as at Mar 2022 (£m)	Change in forecast cost this year (£m)	Original HMT approved business case project end date	Current business case project end date	Forecast project end date as at Mar 2022	Change in forecast end date this year
2015	266.0	266.0	247.3	+23.4	Mar 2035	Mar 2035	Mar 2034	+3 mths

RWM Limited

GDF Community Engagement & Site Evaluation (Project 2)

Main reasons for changes to project cost and/or end date from original HMT approved business case to March 2022: Significant progress has been made on this, despite constraints of COVID-19. Much of the underpinning process, structure and procedure for siting is now in place. Confidence in finding a willing community continues to increase with three Community Partnerships now formed in West Cumbria and a working group progressing towards Community Partnership in East Lindsey. There is a pipeline of further potential communities, and some showing promising prospects, although discussions are at a very early stage. Budget variance is primarily due to slower than anticipated progression of communities to form Working Groups and move to Community Partnerships, however this should change in future periods as site evaluation activity is planned to significantly increase. There are fewer Working Groups and Community Partnerships being formed than assumed in the budget, however costs to run them are slightly higher than initially estimated.