Corporate report

NDA Annual Report 2022 to 2023

Updated 2 October 2023

Overview of performance 2022/23

This overview section provides an insight into our work during 2022/23 and highlights areas of progress for this year. We have described these using our five strategic themes.

Chair’s statement, Dr Ros Rivaz

This was another year of good progress for the Nuclear Decommissioning Authority (NDA). The Board’s highest priority is to progress our purpose: reducing the nuclear legacy and associated potential hazards. Nuclear safety, conventional safety and the health and wellbeing of our employees and contractors is paramount as we progress that mission.

Regarding reduction in nuclear legacy, further progress has been achieved this year, specifically with the completion of a number of strategic outcomes at Sellafield following the end of reprocessing as well as further waste management progress across the group, including at Dounreay where the first containers were sealed into the site’s low level waste vaults. I am pleased to report that safety performance has improved this year, but there is still more to do and focus must continue, taking further steps to systematically improve, including in response to regulators.

Strategic areas that have made significant progress include the arrangements for transfer of the Advanced Gas-cooled Reactor sites following completion of defueling and important steps forward with the development of Geological Disposal Facility options, including further dialogue with potential host communities.

Financial

Rising interest rates and inflation have had a considerable impact on the NDA as on others, including high and volatile energy costs and challenges within our supply chain. This has emphasised the need for constant attention and innovative thinking to reduce the impact on costs and progress of the mission. Any delay in delivering projects results in further deterioration of assets, and while the prioritisation of work for achieving the mission is constantly reviewed, there is awareness of the risk of sub-optimal decisions on deferral in the longer term. The Board is very aware of the financial pressure on the UK Government but welcomes its appreciation of the importance of our work.

Stakeholders

During the year, I continued to meet with ministers and officials from the UK Government and devolved administrations, representing the NDA and Board. The relationship with regulators is critical and we have worked closely with the Office of Nuclear Regulation, the Environment Agency, Scottish Environmental Protection Agency and Natural Resources Wales. Regular Chair meetings with these and other bodies in the nuclear sector ensure effective and appropriate connections to progress the NDA’s mission, for example with the resourcing challenge as new nuclear developments progress in the UK and beyond. Local stakeholders are extremely important in areas of existing work, future work - such as the Advanced Gas cooled Reactor transitions - and with future potential communities, for example exploring options for a Geological Disposal Facility. Our customers, both in UK and internationally, are critical to our mission.

People

The NDA group’s people are highly skilled and capable and can benefit the wider sector as well as the NDA itself. UK Government policy regarding new nuclear, and its importance in energy security and the carbon net zero commitment, shows resources to be in demand. We are pleased to have supported the UK Government’s creation of Great British Nuclear, providing resources, most notably the secondment of Gwen Parry-Jones OBE from Magnox to take the post of Interim Chief Executive Officer as of 1 May 2023. Capability and capacity of people is one of the key risks in achieving the NDA’s mission. There are considerable challenges in recruiting and retaining staff in a very tight labour market, with nuclear and other high-level skills at a premium. The NDA is working hard to ensure its remuneration and wider offer to employees and potential employees is attractive and competitive.

Environmental, social and governance

This agenda has progressed substantially in the year and the success of the first annual sustainability conference for leaders and subject matter experts was pivotal. External speakers shared best practice and inspired us on our impressive journey regarding sustainability.

Meanwhile governance has enhanced further, aided by the annual Board effectiveness review, which was conducted internally this year. Opportunity areas identified were to focus on fewer and more strategic matters and to continue to build the effective use of Board sub-committees, having implemented Matters Reserved for the Board and clear Terms of Reference for Board sub-committees the previous year.

The opportunity to continue to improve the culture across the NDA group is fully recognised and significant steps have been taken again during the year. A best-in-class ‘Speak up’ policy has been developed across the NDA and its subsidiary companies, with the group approach facilitating standard ways of working that were not possible when the parent body organisations were in place.

The Board

Chris Train OBE joined us in January 2022 as an independent Non-Executive Director and leads the Projects and Programmes Board sub-committee, with Rob Holden having left at the end of his term. Volker Beckers also departed following the conclusion of his term in October 2022, and we welcomed Kathryn Cearns OBE to the Board, heading the Audit, Risk and Assurance sub-committee from 1 August 2022. Both Volker and Rob’s commitment and expertise have made a lasting contribution to the performance of the NDA and we thank them most sincerely. I am pleased to say that the Board’s new composition means it remains strong and fit for the challenges we face.

At the end of March we announced that Chief Financial Officer (CFO) Mel Zuydam would be departing to take up a new position in the private sector. We thank Mel for his contribution and, after a rigorous recruitment process, were delighted to appoint Kate Bowyer as CFO and Board member, taking up her role in May 2023.

My term as Chair came to an end in August 2023. I am delighted with what we have achieved during the journey and my thanks go to my Board colleagues, including the Chief Executive, and to the executive teams and wider colleagues at the NDA and subsidiary companies. This important mission will continue to develop and progress for more than a hundred years, with innovation allowing continuous challenge to both the cost and duration of the mission. I am pleased that Chris Train is taking the reins as NDA Chair on an interim basis whilst the recruitment process is underway for a permanent Chair.

The year ahead – a strong culture to achieve our mission

The Board is committed in its support and scrutiny of the important work being done at the NDA to reduce the UK’s high hazards associated with the nuclear legacy. It recognises that the journey in relation to internal culture is critical to achieve the outcomes that must be achieved, and this subject will stay front and centre of the Board’s attention. It is resolute in its focus to continue to develop and strengthen the NDA to achieve this critical national task.

Dr Ros Rivaz NDA Chair 31 August 2023 (Term of office ended: 31 August 2023)

Interim Chair’s statement, Chris Train OBE

I am delighted to have been appointed Interim Chair of the NDA as of 1 September 2023. The NDA delivers a vital role on behalf of the nation and my commitment is to continue to work with the Board and wider leadership team to ensure that our values are upheld to support the safe and efficient delivery of the mission, create great places to work and enable the NDA to be trusted to do more.

As a member of the Board I have already had the opportunity to visit many sites and offices, as well as meet some of our key stakeholders. I am looking forward to the opportunity to visit more locations and meet more people to ensure that the Board is offering the right support and challenge to the organisation.

On behalf of the Board, I would like to thank Dr Ros Rivaz for her dedication and leadership as Chair and to offer our ongoing thanks to the workforce and other stakeholders for their efforts to deliver our vitally important work.

Chris Train OBE Interim NDA Chair 12 September 2023

Group Chief Executive Officer’s statement, David Peattie

At the NDA we want to deliver our mission safely, securely and sustainably, create great places to work and be trusted to do more on behalf of the nation. I’m clear we’ve made significant progress towards these ambitions in the last year.

We’ve operated for our first full year with all parts of the group as NDA subsidiaries, leading to greater collaboration and engagement. Phase one of creating a simpler NDA group structure was completed in April 2023 when Dounreay became a division of Magnox Ltd, further reducing complexity with fewer Boards and more streamlined governance arrangements. Staff and stakeholders across Magnox and Dounreay have been developing options for a new name and identity for Magnox Ltd, with more details due later this year. It will be an important step, recognising the company already represents much more than the original Magnox reactors and is preparing for other future missions. With structural changes complete, the NDA group is now focused on getting full benefit for taxpayers and our people. We’re in a strong position to do this, despite operating in an increasingly complex environment. As the Ukraine war goes on and we see continued inflationary challenges, we are very aware that our programme must be affordable. Like elsewhere, we’ve seen rises in energy bills and other costs but we’re working hard to develop solutions that achieve value for taxpayers and ensure delivery of our mission.

Delivering the mission

Our work is organised into 47 strategic outcomes and, with a mission that lasts well into the next century, it’s not every year that you get to say one is permanently complete. So I’m particularly proud to celebrate not one, but four additional outcomes being closed out in this report as a result of reprocessing ending at Sellafield after almost six decades. This allows the team to focus fully on decommissioning and we’ve seen national news interest in the progress made to start waste retrievals from some of the site’s most complex facilities.

Many of our plants and ageing assets are complex and challenging, meaning innovation is hugely important to our future success. Dounreay has been working with partners to develop a robot that can access areas once thought impossible and it’s been recognised by Time magazine as one of its top 200 innovations of 2022. It’s a true demonstration of the international impact and significance of the pioneering work being delivered by our teams.

Innovation isn’t just about what’s possible in the future, the results are visible every day at our sites. This year Magnox’s Berkeley site finalised development of a new disposal package and perfected waste retrieval techniques so that the first concrete box of intermediate level waste could be safely transferred into a purpose-built store ready for final disposal.

Thinking differently is also a theme of the first Nuclear Waste Services (NWS) Strategy. I was delighted to help launch it and mark the company’s first birthday earlier this year. The team is passionate about making waste permanently safe, sooner and it’s encouraging to see continued progress with their most significant project – finding a suitable site and willing community to host a Geological Disposal Facility (GDF). Geophysical investigations have been undertaken, as well as acquiring existing geological information, supporting assessments to better understand what hosting a GDF would mean for potential host communities.

Of course, delivering the mission is about more than decommissioning sites and managing waste. It’s also about doing it safely, securely and sustainably, as well as considering the legacies we leave. The health and wellbeing of our people, communities and the environment remains our highest priority. There is always more to do and, despite reporting strong safety results, we remain focused on further improvements.

We’ve also continued investing in community projects, from the Cumbria Community Forest to the Morlais Tidal Energy Project and Sutherland Spaceport, delivering on our Energy Act obligation to support economic growth, diversification and future employment near our sites.

Creating great places to work

There’s a marked increase in competition for talent in our sector and wider industry, so we’re prioritising efforts to make sure we have the right skills to deliver our mission. This means developing and retaining colleagues, redoubling efforts with our award-winning Leadership Academy, and attracting new people to join us.

A new NDA group graduate programme launched in 2022, taking advantage of our group model to collaborate and reach new audiences. Together with Energus and the sector-wide Nuclear Graduates programme, 6,000 people applied for roles and more than 60 graduates will join us soon.

Creating great places to work is critical for attraction and retention. It’s been a focus throughout my time with the NDA and we’re seeing results including Nuclear Transport Solutions launching a career returners scheme and lifting a top diversity trophy at the Northern Power Women Awards. Many parts of the group have also received Disability Confident status, with plans to reach even higher levels of the award. There’s more to do, but we’re committed to ensuring people are respected and included, so they can perform at their best.

Trusted to do more

The next phase of our journey is about getting full benefit from the new, simpler way that we’re structured and using it as a platform for growth, ready for future missions as we are trusted to do more.

It’s an exciting time for us as preparations remain on track for Hunterston B to be the first advanced gas-cooled reactor to transfer to Magnox from EDF Energy for decommissioning when defueling completes, and we’re working closely with the Ministry of Defence as the feasibility of Magnox decommissioning its Vulcan site is assessed.

More broadly, we’re supporting the UK Government’s Energy Security Strategy as its expert advisor for new nuclear waste management and decommissioning. New nuclear has a role to play in this strategy and we have land and expertise available that can support future developments. I welcome the creation of Great British Nuclear to co-ordinate efforts and we’re already working closely with the new team.

Accounting Officer scrutiny

At the NDA we take our accountability for the money we spend very seriously. Our end of financial year NDA Accounting Officer review process identified a management override of financial controls in determining the outcome of an employee incentive plan at Sellafield resulting in an overpayment to staff. With the support of the Sellafield Board, we are taking steps to recover the overpayment and enhancements to Reward Governance will be implemented with lessons learned shared across the NDA Group.

Thank you

I was particularly proud to see the results of our stakeholder survey this year, noting an increase in positive perceptions and an endorsement of NDA staff’s professionalism and integrity. Thank you to those who responded and to all our stakeholders for the time they take to engage with us.

My ongoing thanks also go to my dedicated colleagues throughout the group, as well as our Board and the Governments of the UK and devolved administrations. I’d like to thank Ros Rivaz who recently completed her term as NDA Chair and welcome Chris Train who has taken on the role of interim Chair while a permanent successor is recruited. Our work is one of the most important environmental programmes in the world, protecting people and the planet. I remain confident that we have the right team and strategy to deliver our commitments on behalf of the nation.

David Peattie CEng HonFNucl Accounting Officer and Group Chief Executive Officer 12 September 2023

Financial review, Kate Bowyer, Group Chief Financial Officer

This year has seen success in securing additional revenue to support our mission and active portfolio management across the estate to mitigate the risk from high energy costs and inflation.

I am delighted to have joined the NDA on 2 May 2023 and am looking forward to building on my predecessor’s improvements to our systems and processes in support of our critical mission. 2022/23 was one of financial challenges and emerging risks, with the effects of inflation being felt in budgetary management across the NDA group. In particular the unprecedented increases in energy costs resulting from the conflict in Ukraine required constant management and forward planning.

Despite these challenges, financial risks and opportunities were managed effectively on a portfolio basis, ensuring that the Group remained within the overall funding settlement agreed with UK Government through the Supplementary Estimate process. With the support of the Group Leadership Team and working closely with UK Government, we were able to take risk-based prioritised investment decisions and maximise commercial revenues. Commercial revenues increased by 48% to £1,059 million (2021/22: £714 million) with higher levels of fuel deliveries from the UK’s operational nuclear power stations and the successful conclusion of a package of contracts for the management of wastes from overseas utilities. The high levels of inflation impacted expenditure budgets but also delivered a beneficial impact in the accounting for our long-term contract income.

Net expenditure for the year was £2,700 million (2021/22: £2,758 million), compared to the original voted net expenditure limit of £2,833 million (2021/22: £2,791 million). Capital investment was £2,193 million (2021/22: £2,024 million) and our resource expenditure was £1,566 million (2021/22: £1,448 million). The Statement of Financial Position of the NDA group is dominated by the nuclear provision, the discounted best estimate of the future costs of the decommissioning mission, of £124.4 billion (31 March 2022: £237.0 billion). It is important to note the inherent uncertainty around this estimate and therefore that it represents a single point in a credible range of potential outcomes. The basis is discussed on pages 133 to 135, showing that the principal movement in the year has been the change in the discount rate, along with some cost estimate changes. Detailed disclosures are given in note 24 to the accounts.

Building on the current spending settlement from UK Government, we continue to develop our longer term financial plans and mission progress reporting in anticipation of future spending reviews.

Following the finalisation of the last two parent body organisation contracts last year the structure of the NDA Group has continued to develop, with Magnox Limited and Dounreay Site Restoration Limited joining on 1 April 2023. This provides a single legal entity which will grow in future years to deliver the decommissioning of the advanced gas-cooled reactor sites when they transition into the group.

We continue to deliver improvements to our systems and processes through a series of workstreams focused on people, reporting, controls and risk. Reporting used by the Group Leadership Team, NDA Board and UK Government has been enhanced in the year. The approach to Counter Fraud, Bribery and Corruption has been improved through the creation of a group wide forum and the launch of compulsory training within the NDA. We are now into our third year of intake to our Finance, Audit and Risk graduate scheme and we have welcomed our first cohort of finance apprentices. This will help to ensure that we have the right skills and resources in place to support the group in its important work.

Kate Bowyer Group Chief Financial Officer

Performance against financial targets

Performance against financial targets infographic

Figures in the above graphic are prepared on the basis of Government financial reporting (HM Consolidated Budgeting Guidance) which differs in part from the basis used to prepare the financial statements:

Accounting adjustments totalling £793 million are added to the actual expenditure figure of £3,759 million. These relate to non-cash items including amortisation, revalorisation and treatment of leases and the elimination of internal trading transactions shown above to produce the Authority programme expenditure total of £4,551 million (see note 6 to the financial statements). Accounting adjustments of £85 million are made to the actual income figure of £1,059 million to produce the Authority income total of £974 million shown in note 9 to the financial statements. These relate to the elimination of internal trading transactions, and a timing difference on the recognition of revenue in long term contracts.

Funding infographic

The NDA and our mission

We’re responsible for keeping the UK’s former nuclear sites and facilities, once at the heart of supporting national defence and generating nuclear power for electricity, safe and secure, as we decommission them and overcome the challenges of managing nuclear waste. It’s one of the most important environmental programmes in the world, protecting people and the planet.

Our 17,000 strong, skilled group workforce works hard on behalf of the UK, using innovation and technology to overcome the challenges of identifying and removing nuclear waste from ageing facilities, so we can store safely and permanently dispose of it. The work is complex and challenging. Dealing with all the waste, dismantling hundreds of buildings and facilities, and building a Geological Disposal Facility (GDF), to dispose of the most radioactive nuclear waste, will take decades. However, by investing today in the challenges left over from the UK’s proud nuclear history, we can remove the burden for future generations and continue to deliver social and environmental benefits through our jobs, knowledge, skills, technology and social investment.

Our team is working with partners in research and industry to drive innovation, using cutting-edge technology to reduce hazards and risks, so that over time the sites can be used again for worthwhile purposes.

Our history

The UK is a pioneer of nuclear technologies, which have been part of our lives since the 1950s. Our sites and facilities have been at the heart of delivering nuclear benefits for the UK, including national defence programmes and supplying safe, low-carbon power to UK homes, businesses, schools and hospitals, for decades.

Unlike modern day equivalents however, our old nuclear plants and facilities weren’t designed for managing the nuclear waste they created, or for decommissioning. There are limited historical records on what, or how much, nuclear waste was left on some of the sites during their working lives. Generating nuclear power today will not leave future generations with the challenges we’re trying to overcome. Nuclear waste produced today is carefully managed, and following in the footsteps of other countries, a Geological Disposal Facility (GDF) will provide us with a safe way of disposing of higher active waste, permanently in England and Wales. Scotland has a distinct policy for higher activity radioactive waste which sets out a near site, near surface approach.

How we work

How we go about our work is very important to us and we must deliver results safely, responsibly, and sustainably. Our commitment to creating environmental and social benefits builds on our long history of providing value for the UK and we want to ensure that our actions and decisions continue to have a lasting, positive impact.

• The NDA is an executive non-departmental public body, created through the Energy Act 2004, sponsored and funded by the Department for Energy Security and Net Zero (formerly the Department for Business, Energy and Industrial Strategy). We have just over 380 permanent staff and are accountable to UK Government and Scottish Government ministers for delivery of our mission through our subsidiary companies.

• Sellafield is responsible for decommissioning the UK’s most complex and challenging nuclear site. 75 years ago, the Sellafield site helped to create the UK’s nuclear deterrent and later became the home of the UK’s first commercial nuclear power station, Calder Hall. The site houses around 85 per cent of all the UK’s nuclear waste, on an area of less than two square miles. The Sellafield workforce is taking waste out of buildings as old as the site itself, looking after fuel so that nuclear power stations can continue to operate, and repackaging the country’s stockpile of nuclear materials.

• Magnox is responsible for the safe and secure closure of former Magnox nuclear power stations and research facilities, removing all the fuel from the stations, taking down the buildings and managing the waste. Magnox will also manage the decommissioning of seven advanced gas cooled reactor stations, as they stop generating nuclear power and progressively move over to the NDA group over the next ten years. In April 2023 Dounreay became a division of Magnox, responsible for safely and securely cleaning-up and demolishing Britain’s former centre of fast reactor research and development. Because many of its facilities were once the home for experimental research, Dounreay’s work requires innovation as well as great care.

• Nuclear Waste Services is the UK’s leading nuclear waste management organisation, focused on managing the UK’s nuclear waste, safely and securely, for generations to come. This includes delivering a Geological Disposal Facility (GDF).

• Nuclear Transport Solutions is our leading global provider of safe, secure and reliable nuclear transport solutions. It uses its specialist transport and logistics expertise to support our nuclear decommissioning mission and help customers and partners around the world solve their own complex challenges. Other NDA group companies include NDA Archives Ltd, NDA Properties Ltd, Rutherford Indemnity Ltd and Energus. An organisational structure for the NDA group is shown on page 22 and reflects the group structure during the year.

Trusted to do more

As we look forward, our work will be expanding. We have been asked to use our specialist expertise and skills, to decommission newer reactors as they reach the end of their power-generating lives. Arrangements have been agreed by the UK Government, Scottish Government and EDF Energy for the NDA group to decommission 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, after defueling, with the fuel being transferred to Sellafield for interim storage, will transfer to Magnox for decommissioning.

UK site map

The NDA group

Our group is made up of the Nuclear Decommissioning Authority (NDA) and four key component parts: Sellafield, Magnox with Dounreay, Nuclear Waste Services and Nuclear Transport Solutions.

• The NDA is an executive non-departmental public body, created through the Energy Act 2004, sponsored and funded by the Department for Energy Security and Net Zero (formerly the Department for Business, Energy and Industrial Strategy). We have just over 380 permanent staff and are accountable to UK Government and Scottish Government ministers for delivery of our mission through our subsidiary companies.

• Sellafield is responsible for decommissioning the UK’s most complex and challenging nuclear site. 75 years ago, the Sellafield site helped to create the UK’s nuclear deterrent and later became the home of the UK’s first commercial nuclear power station, Calder Hall. The site houses around 85 per cent of all the UK’s nuclear waste, on an area of less than two square miles. The Sellafield workforce is taking waste out of buildings as old as the site itself, looking after fuel so that nuclear power stations can continue to operate, and repackaging the country’s stockpile of nuclear materials.

• Magnox is responsible for the safe and secure closure of former Magnox nuclear power stations and research facilities, removing all the fuel from the stations, taking down the buildings and managing the waste. Magnox will also manage the decommissioning of seven advanced gas cooled reactor stations, as they stop generating nuclear power and progressively move over to the NDA group over the next ten years. In April 2023 Dounreay became a division of Magnox, responsible for safely and securely cleaning-up and demolishing Britain’s former centre of fast reactor research and development. Because many of its facilities were once the home for experimental research, Dounreay’s work requires innovation as well as great care.

• Nuclear Waste Services is the UK’s leading nuclear waste management organisation, focused on managing the UK’s nuclear waste, safely and securely, for generations to come. This includes delivering a Geological Disposal Facility (GDF).

• Nuclear Transport Solutions is our leading global provider of safe, secure and reliable nuclear transport solutions. It uses its specialist transport and logistics expertise to support our nuclear decommissioning mission and help customers and partners around the world solve their own complex challenges.

Other NDA group companies include NDA Archives Ltd, NDA Properties Ltd, Rutherford Indemnity Ltd and Energus. An organisational structure for the NDA group is shown on page 22 and reflects the group structure during the year.

The NDA organisational structure

NDA organisational structure

Sustainability in the NDA

How we go about our work is very important to us and we must deliver results safely, responsibly, and sustainably. Our commitment to creating environmental and social benefits builds on our long history of providing value for the UK and we want to ensure that our actions and decisions continue to have a lasting, positive impact.

This year work has progressed to implement the NDA’s Sustainability Strategy and roadmap, embedding the approaches into different parts of the organisation and wider group.

Sustainability as a critical enabler

Sustainability is one of the NDA’s critical enablers, added for the first time as part of our 2021-2026 Strategy published 2021, with the objective to ensure that mission outcomes and the journey to deliver them are sustainable.

Sustainability is often associated with an organisation’s environmental activities. The NDA group supports Government aspirations to be carbon net zero by 2050, or 2045 in Scotland. However, sustainability for us entails a much broader commitment to the way our work is delivered, aligned with the United Nations Sustainable Development Goals.

Extensive engagement has been undertaken to understand the impact of our work and the factors that influence it. This has resulted in the identification of four sustainability legacies - decommissioning, environment, socio-economics and culture.

Progress towards sustainable outcomes

Step changes continue to be made that will bring longer-term benefits in the future. For example, the process for preparing a business case now requires sustainability considerations to be included. This ensures that sustainability is at the heart of the NDA’s future decision making.

It is however recognised that there is much more to do. Last year a sustainability report was added to the Annual Report and Accounts for the first time. This year its position has moved forward in the document, but the content has been streamlined. This is a deliberate decision, intended to recognise that progress is not just being made under the banner of sustainability, but across all parts of the organisation, aligned to a common goal.

Progress towards the sustainable outcomes outlined in this report can be seen throughout all subsequent reports and case studies in this document.

Janet Ashdown Chair, Sustainability and Governance Committee

Our definition of sustainability

To create value through nuclear decommissioning - at pace, affordably, with participation and creatively.

At pace - Keep safety and security paramount, optimise progress in decommissioning

Affordably - Consider the long-term value for money alongside short-term financing, optimising investment decisions

With participation - Seek and support the opinions, plans and aspirations of our workforce, communities and stakeholders

Creatively - Decommission our nuclear sites, enhancing the environment and achieving net carbon zero.

Our approach

We want to be recognised as a leader in transforming nuclear legacies into opportunities for local, regional, national and international sustainable development.

The NDA Sustainability Strategy was published in March 2022. It followed significant engagement with key stakeholders from around the NDA group, as well as regulators, Government and community stakeholders. This followed a structured process, known as a materiality assessment, identifying areas which both represent the organisation’s most significant impact on the economy, environment, and people, and equally the most significant impacts of those areas on the business.

The result was the identification of four overarching themes, known in the NDA as our legacies, setting out how the NDA could achieve the desired vision, with a roadmap of activities to get there.

More information can be found on our website

The NDA group Sustainability Strategy 2022 - GOV.UK (www.gov.uk)

Sustainability legacies

Our sustainability roadmap identifies four legacies:

Decommissioning * Deliver our mission safely, securely, protecting people and the environment * Be outcomes based, high performing and innovative * Balance pace and priority of activities to provide lifetime value for money and achieve intergenerational equity * Be guided by sustainability criteria embedded in delivery and outcomes

Environmental * Protect, remediate, and enhance the environment * Be recognised by our stakeholders for our environmental performance * Achieve net zero

Socio-economic * Empower people and communities to create sustainable local and regional economies * Think internationally and act locally on nuclear skills, developing the capabilities of the UK skills base to facilitate decommissioning and the wider nuclear sector * Be a positive contributor to the national and international trade agenda

Cultural * Engage openly, transparently, and authentically * Work together to establish respectful and inclusive working environments so our people can perform at their best * Create an impact conscious and future focused mindset * Be trusted to deliver in a safe, responsible, and timely manner

Each legacy area is led by a senior representative of the NDA. The cultural legacy is collectively owned by a Sustainability Next Generation group. This is made up of young people from different professional backgrounds with representatives from each of the operating companies.

Governance and incentivisation

A governance structure that reaches all levels of the NDA group is fundamental to achieving the vision.

In collaboration with the Group Leadership Team and the Sustainability Steering Group, there is clear leadership with decision making capability in the NDA, helping to expedite progress. Across the NDA group there is the Sustainability Working Group with representatives from each operating company, and the Sustainability Next Generation group which leads the cultural legacy workstream. In addition, complementary sustainability steering and working groups drive progress within each operating company.

Several incentives are given to sustainability across the NDA group. One of these is the Long-Term Incentive Plan, setting incentivised targets until 2025, as well as incentives associated with being a beacon project.

United Nations Sustainable Development Goals

The United Nations Sustainable Development Goals are a blueprint for peace and prosperity, now and into the future. Many are directly related to the environment and work we do, including responsible consumption and life on land, as well people focused impacts such as gender equality and sustainable cities and communities.

The case studies highlight how our work contributes towards these goals.

UN sustainability goals

A small number of topics are chosen each year to be NDA group beacon projects, with senior sponsorship, aiming to deliver consistent change and progress in all parts of the group. Sustainability has been a beacon project for two years in a row.

Sustainability networks across the group 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. New business case templates include such requirements with a subsequent guidance note which sets out more detail. The note incorporates the four NDA sustainability legacies; decommissioning, environmental, socio- economic and cultural, and aligns with the requirements from other external guidance, notably the HM Treasury Green Book and Procurement Policy Notes, [see fig]

Sustainability in supply chain and procurement

Specific activities include:

1. Procurement Policy Notes (PPN) a. 06/20 Social Value incorporated into all NDA group in-scope procurements, across the following themes: Fighting climate change Tackling economic inequality Equal opportunity Wellbeing Covid recovery b. 06/21 Carbon reduction plans incorporated into all NDA group in-scope procurements

2. NDA group-wide Atamis procurement and supply chain platform captures PPN06/20 and PPN 06/21 adherence

3. Procurement specific sustainability guidance incorporated into NDA commercial toolkit

4. Delivery of procurement elements of NDA Social Value Beacon Project relating to PPN 06/20

5. Creation and roll-out of carbon questionnaires for incumbent suppliers and development for future invitations to tender

Business case sustainability considerations and alignment

NDA sustainability legacy	NDA value framework	HMT green book	Procurement Policy Notes (PPN)
Socio-economic	Socio-economic impacts	Productivity and employment, Place based impacts	PPN 06/20 Social Value - covid 19 recovery - tackling economic recovery, PPN 05/21 National Procurement Policy - new business/jobs/skills
Environment	Environment	Greenhouse gases, Natural capital, Climate change resilience, Place based impacts	PPN 06/21 Carbon Plans - bidders for procurements >£5m must have a carbon plan, PPN 05/21 National Procurement Policy - climate change and waste, PPN 06/20 Social Value - fighting climate change
Cultural		Public Sector Equality Duty (PSID)	PPN 06/20 Social Value - equal opportunity - well being
Decommissioning	Enabling the mission, Risk and hazard reduction	Place based impacts	PPN 05/21 National Procurement Policy - improving supplier diversity, innovation and resilience

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 interact.

Currently, the most urgent tasks are dealing with our sites’ highest-hazard materials, spent fuel, nuclear materials and highly-radioactive wastes. Once the inventory has been removed and either securely stored or disposed of, the redundant nuclear facilities can be dismantled and demolished.

Integration of our strategies

Integration of our strategies diagram

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 must be achieved to deliver our mission.

In March 2021 we published our new Strategy. As a consequence, we have revised some of the detail around 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 has been completed across our 47 outcomes and that which is still left to do.

The percentage figures in the charts opposite show the proportion of work that has so far been completed towards the achievement of each outcome. 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 pending final disposal. Four more strategic outcomes have been achieved in relation to the end of reprocessing, whilst work continues with 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. The full mission progress report will be available on our website later this year.

Case studies for 2022/23

Click on the links below to read our case studies

Case studies: Spent Fuels strategic theme - GOV.UK (www.gov.uk))

Case studies: Nuclear Materials strategic theme - GOV.UK (www.gov.uk)

Case studies: Integrated Waste Management strategic theme - GOV.UK (www.gov.uk)

Case studies: Site Decommissioning and Remediation strategic theme - GOV.UK (www.gov.uk)

Case studies: Critical enablers - GOV.UK (www.gov.uk)

Accountability report

The accountability report sets out how we meet our 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

Directors’ report

We are an executive non-departmental public body, established by the Energy Act 2004 to secure the decommissioning of the UK’s civil nuclear legacy. Since then, our 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.

As permitted by the guidance for preparing Government annual report and accounts in the UK, some of the matters required to be included in the Directors’ Report are disclosed elsewhere in the annual report and accounts, identifiable from the cross references provided.

Sponsoring department

The Department for Energy Security and Net Zero (DESNZ) is the sponsoring department for the NDA. Further detail on the role of DESNZ and UK Government Investments in relation to the NDA can be found in the Governance Statement.

NDA Board

The Board is comprised of executive members and non-executive members (including the Chair) with the latter forming a majority. The non-executive members must comprise a Chair, appointed by the Secretary of State, and a number of other persons appointed by the Secretary of State after consultation with the Chair. The executive members must comprise a Chief Executive, appointed by the non-executive members. Whether there are to be any executive members in addition to the Chief Executive is a matter for the non-executive members. In May 2023 the Board resolved that the Group Chief Financial Officer should be an executive member of the Board. All matters presented to the Board are decided by a majority of votes of those Board members present. There is no distinction in the voting rights of the executive and non-executive members. Details of the current Board members are set out in the Governance Statement.

Changes to the NDA Board during the year

Volker Beckers served as a non-executive Board member during the year and stepped down on 31 October 2022 (his last term having been extended by three months from 31 July 2022). Kathryn Cearns was appointed as a non-executive Board member on 1 August 2022. Mel Zuydam resigned as the Group Chief Financial Officer on 31 March 2023. Kate Bowyer joined us as Group Chief Financial Officer on 1 May 2023.

Outside of the 2022/23 financial year, Ros Rivaz stepped down as Chair on 31 August 2023 and Chris Train was appointed as Interim Chair from 1 September 2023.

Directors’ interests

Members of the Board must declare any personal or business interests which may, or may be perceived to, influence their individual decisions and judgments in performing their role as Board members. We maintain a register of such interests. During the year, the Chair, Ros Rivaz, highlighted a potential conflict of interest in respect of an IT services agreement extension proposal for Sellafield due to her directorship at a different provider (Computacenter). The Board considered the matter and resolved that Ros Rivaz did not need to recuse herself from the discussion at that meeting and on other occasions of similar discussion during the year.

The other members have no personal or business interests which present material conflicts with their role as a member of the Board.

A full register of members’ interests and the associated procedure for Board members to manage their interests is available at: www.gov.uk/government/ publications/nda-register-of-directors-interests

Auditor of the NDA

We are audited by the Comptroller and Auditor General (C&AG) in accordance with the Energy Act 2004. The audit is carried out on the C&AG’s behalf by the National Audit Office (NAO). 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.

Group employees 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 UK Government policy to pay 90% of undisputed invoices within five days, with the remainder paid within 30 days.

	2022/23	2021/22	2010/21
Invoices paid within 5 days	62%	66.1%	62.2%
Invoices paid within 30 days	93%	93.4%	90.5%

The average number of payment days from invoice date for a valid invoice is 10 days, a slight increase from 9 days in 2021/22. Performance compared with Government policy has been impacted by the implementation of a new enterprise resource planning system in the first half of the year (April 2022 to September 2022: 55% of invoices paid in 5 days and 92% in 30 days; October 2022 to March 2023: 67% invoices paid in 5 days and 94% paid in 30 days) which has introduced electronic approval workflows and has improved our linkage between purchase orders and supplier invoices. This provides a platform for improving our prompt payment performance.

Personal data

There were six internal data breaches recorded during 2022/23, five of which were investigated and classed as minor, non-reportable incidents. One incident was initially reported to the Information Commissioner’s Office; however, it was ultimately confirmed that no personal data had been compromised and therefore no further action was required.

In all cases appropriate mitigating measures were taken subsequently in order to reduce the chance of re-occurrence.

Other disclosures

Details on how the Board has engaged with our stakeholders and discharged its section 172 duties can be found in the section 172 statement.

Our assessment of the effectiveness of NDA controls is detailed on page 94 including the actions we are taking to learn from two events identified during the year.

Disclosures on equal opportunities, learning and development and how we engage with all staff are in the Remuneration and People Reports.

Our environmental performance is detailed in the Health, Safety, Security, Environment and Wellbeing report.

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

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 12 September 2023. The Report of the Comptroller and Auditor General was issued on X September 2023.

On 1 April 2023 Dounreay Site Restoration Ltd combined with Magnox Ltd.

Going concern

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

Chris Train Interim NDA Chair 12 September 2023

Section 172 statement

Under our obligations as an executive non-departmental public body, we adopt a best practice approach in terms of our corporate governance oversight and reporting. The Board therefore voluntarily adheres to the requirements outlined in Section 172 of the Companies Act 2006 in respect of its decision making, and reports on stakeholder considerations accordingly.

Given the nature of its work, we have a large number and wide range of stakeholders. The Board considers stakeholder engagement an essential element of its responsibilities as well as a key enabler to mission delivery. It allows us to understand issues better by obtaining stakeholders’ points of view, supporting informed decision-making by the Board and creating confidence in the operation of the organisation.

We divide our stakeholders into the following broad categories:

• Government, Regulators and external authorities. This includes decision-makers with a direct or indirect impact on our ability to make decisions and allocate resources
• Employees, workforce and their representatives
• Supply chain and commercial partners
• Customers, both in the UK and internationally, contributing to the revenue generating activities of the group
• Other influencers and opinion formers including: MPs, MSPs, Welsh assembly members, County Councils, Borough Councils, civil society, Non- Governmental Organisations, local communities (including site stakeholder groups), international organisations etc.

The fair treatment of stakeholders is always a key consideration in decisions taken by the Board, although the Board acknowledge that in some situations, stakeholders’ interests will be conflicted and they may have to prioritise as appropriate. All Board members are involved in a wide range of events, such as staff meetings, engagement with Government, parliamentary meetings and site stakeholder meetings. Stakeholder engagement by the Board and executives is supported by specialists in the communications team who have a comprehensive understanding of our stakeholder network. Engagements during the year are supplemented by roadshows and an annual stakeholder summit.

Stakeholder engagement takes place through regular and structured contact, augmented by informal relationships. For example, formal decision-making in the NDA is supported by regular 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 sites and their site stakeholder groups, multiple other standing forums and 11,000 people regularly engaged through our database. The results of our most recent stakeholder survey, conducted by Opinion Research Services during the summer of 2022, showed an increase in positive perception, and an endorsement of our staff’s professionalism and integrity. The research also highlighted areas where respondents feel we could be doing better including the challenge for us to reach a wider, more diverse set of stakeholders and inviting more communication from us around the technical challenges faced in dealing with high-hazard materials.

The full report is available at: Survey reflects increasingly positive stakeholder’s view of NDA - GOV.UK (www.gov.uk)

In respect of employee engagement, there are well-established formal bargaining and consultation mechanisms in place to engage with trade union representatives. Board members also engage individually with employees, hearing from them first-hand during the Board’s site visits, at employee breakfast sessions, employee conferences and at Joint Consultation Group sessions which bring together management and employee representatives.

The Board has welcomed the attendance of each of the operating company Board Chairs in rotation. Senior executives from the operating companies also frequently present items at NDA Board and committee meetings.

The NDA Group Chief Communications and Stakeholder Relations Officer attends Board meetings and provides a link to stakeholders and a specialist view of different perspectives and concerns.

In addition to stakeholder considerations, the Board also evaluates each decision against our mission and risk appetite, providing constructive challenge where required. We set out the issues and factors we take account of in our decision making in our Value Framework. This 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. The Board evaluates each decision against our mission and risk appetite, providing constructive challenge as well as support.

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 it has taken during the year ending 31 March 2023. Examples of some of these decisions are listed below.

Chris Train Interim NDA Chair 12 September 2023

Joining of Magnox and Dounreay

In March 2023 the Board approved the final proposal to join Magnox Limited and Dounreay Site Restoration Limited as one entity.

Relevant stakeholders

• Employees, workforce and their representatives
• Supply chain and commercial partners
• Other influencers and opinion formers, in particular: local communities and site stakeholder groups
• Scottish Government and Regulators

The Board’s decision-making process

• Since the decision taken in 2020/21 to commence with the joining, the Board has carefully monitored all activities relating to its delivery
• The primary focus of the Board has been on the fair treatment of colleagues impacted across the group alongside community partners in the Dounreay area
• At its meeting in November 2022, the Board received updates on the TUPE status and revised pension arrangements of those Dounreay colleagues transferring to Magnox Limited
• During the year, the Board received reports from the employee forums established to support the process. This allowed colleagues a platform to express their views on the process as well as a medium by which they were kept informed of key developments
• The Board scrutinised the arrangements made for asset and service transfer within the joining, ensuring the fair treatment of key partners and suppliers

‘One NDA’ Group Operating Framework (GOF)

Following the successful completion of phase one of reshaping the NDA group, the Board’s focus has turned to subsequent decisions associated with the implementation of the new GOF.

Relevant stakeholders

• Employees, workforce and their representatives
• Regulators and other external bodies

The Board’s decision-making process

• During the year, the Board turned its attention to supporting the successful implementation of the new GOF which focuses primarily on people, behaviours, and ways of working
• The Board has received and scrutinised regular reports from the GOF Working Group which have provided updates on developments and concerns and interests of key stakeholders impacted by the recent changes. Further to feedback received, the Board examined the governance structure of the NDA and endorsed changes to the Group Leadership Team and Executive Leadership Team to support the more efficient deployment of senior staff
• The Board also led the way in establishing cross-working peer groups with colleagues in the operating companies. The following have met within the year and an All-Boards event took place in July 2023:
• Board Chairs’ Forum
• Committee Chairs’ Forums

Early performance award payment

In 2022/23, the Board approved an early partial performance related payment to eligible employees under the terms of the Short-Term Incentive Plan.

Relevant stakeholders

• Employees, workforce and their representatives
• Regulators and external governors (including the Nuclear Liabilities Fund)

The Board’s decision-making process

• In consideration of the financial climate, the cost-of-living increase and associated challenges, the Board reviewed and approved an early partial payment of the 2022/23 Short-Term Incentive Plan (STIP) award to eligible colleagues in December 2022. Pending final performance against the NDA Group Key Targets, the award would have normally been paid after the close of the 2022/23 financial year
• The Board scruitinised reports from colleagues, stakeholder groups and from our engagement with its recognised trade unions and other colleague representatives, taking their input on the best way forward
• In approving the proposal, the Board scrutinised the payments, ensuring they sat within guaranteed STIP performance outturns as defined against our Group Key Targets forecast for the year

Statement of Accounting Officer’s Responsibilities

Under Section 26 of the Energy Act 2004, the Secretary of State (with 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 of our 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 Energy Security and Net Zero (formerly 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 the 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.

As the Accounting Officer, I confirm that to the best of my knowledge and belief, this annual report and accounts as a whole is a fair, balanced and understandable reflection of the NDA’s performance this year.

David Peattie CEng HonFNucl Accounting Officer and Group Chief Executive Officer 12 September 2023

Governance statement

The NDA is sponsored by the Department for Energy Security and Net Zero (DESNZ). UK Government Investments (UKGI) provides strategic oversight of our corporate governance and corporate performance, working closely with and reporting directly to UK Government senior officials and providing advice to ministers. The formal arrangements between us and our sponsoring department are set out in a framework document, supported by a memorandum of understanding between DESNZ and UKGI. The Scottish Government also has an important governance role to ensure its expectations are met.

The following Governance Statement provides an insight into the corporate governance framework for the NDA and our group entities during 2022/23. The framework is used to measure our performance and effectiveness in the delivery of 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). We also draw on best practice as set out in the UK Corporate Governance Code where appropriate, reporting exceptions to UKGI. This is within the context that our value is not primarily financially metric driven and that its remuneration policy is in line with public sector guidance.

Our governance is under constant review and, as part of the new operating model, a Group Operating Framework (GOF) was published in July 2022. Developed with input from all parts of the NDA group, the GOF is a suite of co-created documents that set out how the group is organised, governed and works together.

The Energy Act 2004 requires us to prepare a strategy for carrying out our functions and to prepare an annual business plan in respect of each financial year. The strategy and annual business 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 DESNZ. Where work falls outside our delegated authority, we must seek approval before commencing the work and demonstrate that it is affordable, aligned to our mission and provides value for money.

The Board

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

As at the date of this report, the NDA Board is comprised of six non-executive Board members, including the Chair, a Senior Non-Executive Member and two executive members: the Group Chief Executive Officer (CEO) and the Group Chief Financial Officer (CFO). The Group General Counsel and Company Secretary attends all Board meetings.

The names and biographies of the Board members who served during the period 1 April 2022 to 31 March 2023, their respective terms of office and memberships of the committees of the Board, can be found in the next section.

The Chair of the Board is accountable to the Secretary of State for our activities and performance in implementing our strategy and annual business plan, for formulating the Board’s strategy for discharging our statutory functions and duties and for providing effective leadership and direction of the Board.

The Chair is supported by the Senior Non-Executive Member. The Senior Non-Executive Member leads the annual performance review of the Chair.

The Group CEO is responsible for the leadership and operational management of the NDA. As CEO they are accountable to the Board and as Accounting Officer to Parliament for: NDA activities, public funds employed, ensuring targets are met and for implementing the strategy and plans approved by the Board and DESNZ.

Board committees

The Board is advised by, and delegates some of its responsibilities to, six committees:

• Audit and Risk Assurance Committee (A&RAC)
• Nominations Committee (NOMCO)
• Remuneration Committee (REMCO)
• Programmes and Projects Committee (P&PC)
• Health, Safety, Security and Environment Committee (HSSE)
• Sustainability and Governance Committee (S&G)

Each committee is chaired by a non-executive Board member. Membership of the committees is made up of a combination of executive and non-executive Board members as appropriate. The majority of members on the committees are always non-executive members.

The Group General Counsel and Company Secretary attends most committee meetings. Other Board members, members of the Executive Leadership Team (ELT), external advisors, representatives from the operating companies and other key stakeholders attend meetings at the invitation of the respective committee chairs.

Each committee reports directly to the Board by way of a Committee Chair’s report and committee minutes are made available to all Board members as appropriate. Urgent matters are escalated by the Committee Chair to the Board as appropriate. The membership, meeting attendance records, purpose, responsibilities and key activities within the year of each committee can be found on the committee pages.

Executive Leadership Team

The Board delegates execution of strategy and day-to-day operational management of the NDA to the CEO and their ELT. The ELT comprises the: Group Chief Financial Officer; Group Chief Operations and Performance Improvements Officer; Group Chief People Officer; Group Chief 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.

Board members

Dr Ros Rivaz

Non-Executive Chair (Term of office ended: 31 August 2023)

Board skills and experience: Ros is an experienced Board Member, having held non-Executive positions since 2013. She 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 and Diageo. 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 is Senior Independent Director, Remuneration Committee Chair and the Designated Director for Employee Engagement for Computacenter plc. She is Senior Independent Non-Executive Director for Victrex plc as well as Lead Independent Director for Aperam S.A. She is also on the board of the community interest company Eton Community CIC.

Chris Train OBE

Interim Non-Executive Chair (Term of office ends: 31 January 2025)

Board skills and experience: Chris has over 38 years’ experience in the Energy, Utilities, Regulation and Infrastructure sectors. He has held chief executive, 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 Non-Executive Chair of South East Water Limited and Clean Power Hydrogen (CPH2). Chris is also a member of the Department for Energy Security and Net Zero (DESNZ) Hydrogen Delivery Council.

David Peattie

Executive Board Member - Group Chief Executive Officer and Accounting Officer

Board skills and experience: David is a Chartered Engineer and began his career at BP. During his 33 years with the company, 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. He was also BP’s lead director on the board of TNK-BP and Chair of its Health, Safety and Environment Committee. David was also Chief Executive of Fairfield Energy, a late-life North Sea oil and gas producer.

External appointments: David is Chair of Pacific Nuclear Transport Limited, 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. In 2022, David was appointed as an Honorary Fellow of the Nuclear Institute.

Kate Bowyer

Executive Board Member - Group Chief Financial Officer

Board skills and experience: Kate Bowyer joined the NDA as Group Chief Financial Officer (CFO) in May 2023 and plays a key role on our Group Leadership Team and on our Board. Kate brings a wealth of financial and leadership expertise to the role, joining from Muse Places, part of the Morgan Sindall group. In her role as Managing Director, Kate led the delivery of regeneration projects with private and public sector partners, bringing sustainable and transformational change to towns and cities across the UK. Prior to this, Kate was Chief Financial Officer of The Crown Estate, a £14 billion land and property owner and manager.

External appointments: None

Janet Ashdown

Senior Non-Executive Board Member (Term of office ends: 31 July 2024)

Board skills and experience: Janet worked for BP plc for over 30 years, holding a number of local and global positions in fuel supply, manufacturing, oil trading and retail marketing. She was a senior leader in BP, running 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 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 is a Non-Executive Director at Stolt Nielsen.

Evelyn Dickey

Non-Executive Board Member (Term of office ends: 31 July 2024)

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.

Kathryn Cearns OBE

Non-Executive Board Member (Term of office ends: 31 July 2025)

Board skills and experience: A chartered accountant with extensive senior level experience in both the public and private sectors, Kathryn was Chair of the Financial Reporting Advisory Board to HM Treasury from 2010 to 2016 and was Chair of the Institute of Chartered Accountants in England and Wales (ICAEW) Financial Reporting Committee for 10 years up to the end of 2017. Her past roles include project director at the UK Accounting Standards Board and for many years she was a consultant accountant for an international law firm. Kathryn is a past Chair of the Office of Tax Simplification, past Non-executive member of Companies House and the UK Supreme Court, and a former member of the External Audit Committee of the IMF. She was also until recently a Trustee of Mencap.

External appointments: Kathryn is Vice-Chair of The Property Ombudsman. She is a Senior Independent Director and Chair of the Audit and Risk Committee of National Highways and Chair of the Press Recognition Panel. Kathryn is also a Non-Executive Member of the UK Endorsement Board and is a Member of the Group Audit, Risk and Assurance Committee of the Department for Transport. She serves as a Member of the Audit and Risk Committee of the British Medical Association and is a Non-Executive Director of Emperor Design Services.

Professor Francis Livens

Non-Executive Board Member (Term of office ends: 30 Nov 2026)

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. Francis was a Director of the Dalton Nuclear Institute from 2016 to September 2023, responsible for the coordination of nuclear research and education across The University of Manchester, where he is now a Professor of Radiochemistry. Francis is a Fellow of the Royal Society for Chemistry and Member of the Institute of Strategic Studies.

External appointments: Francis is Chair of the Nuclear Innovation and Research Advisory Board as well as a member of the Office for Nuclear Regulation Independent Advisory Panel.

Alex Reeves

Non-Executive Board Member and UKGI Representative

Board skills and experience: Alex is a Director at UK Government Investments (UKGI). He currently leads on inward mergers and acquisitions and other corporate finance projects, as well as running UKGI’s Non- Executive Director Forum. Alex also has oversight of the UKGI shareholder teams of the National Nuclear Laboratory. 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 mergers and acquisitions team at Jefferies in London. Alex was a Non-Executive Director of London & Continental Railways Limited from 2018 to 2021.

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

Board members who served during the year:

Volker Beckers

Non-Executive Board Member (June 2015 to October 2022)

Board skills and experience: After starting 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.

Mel Zuydam

Executive Director: Group Chief Financial Officer until 31 March 2023. Mel was also a member of the Executive Leadership Team.

Board skills and experience: Prior to joining the NDA, 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 was also Chief Financial Officer with private infrastructure investors, such as Singapore Sovereign Wealth Fund GIC and JP Morgan Infrastructure Fund. Mel is a member and fellow of the Institute of Chartered Accountants of England and Wales.

External appointments: Mel is a trustee of Mercy Ships UK.

Executive leadership team

David Peattie

Group Chief Executive Officer and Accounting Officer

Kate Bowyer

Group Chief Financial Officer

Alan Cumming

Group Chief Operations and Performance Improvements Officer

Alan joined the NDA in April 2018. and 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. Alan is also an NDA-nominated Non-Executive Director of Nuclear Waste Services.

Emma Ferguson-Gould

Group Chief Commercial and Business Development Officer

Emma became Group Commercial and Business Development Officer in February 2022. She joined from the Department of Business, Energy and Industrial Strategy, 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.

Clive Nixon

Group Chief Nuclear Strategy Officer

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 DESNZ, through strong collaborative relationships. He 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. Clive is also an NDA-nominated Non-Executive Director of NTS and INS Japan.

Frank Rainford

Group Chief of Staff and Security Officer

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. He is also an NDA-nominated Non-Executive Director of Magnox Limited.

Matthew Shaw

Group General Counsel and Company Secretary

Matthew joined the NDA in December 2015 from DLA Piper UK LLP where he was a Senior Associate in the litigation and regulatory team. Prior to this he was a legal advisor at the Environment Agency.

During his time with the NDA he has held a number of key roles across the NDA group, including Head of Legal and Company Secretary at Radioactive Waste Management Limited and Associate General Counsel, Strategic Transactions, and has advised on some of the NDA’s most sensitive matters, including several significant pieces of litigation and some of our most important strategic corporate and commercial projects. Matthew was appointed Group General Counsel and Company Secretary on 1 September 2023 having served as Acting Group General Counsel and Company Secretary prior to this date.

Paul Vallance

Group Chief Communications and Stakeholder Relations Officer

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. He is also an NDA nominated Non-Executive Director of Sellafield Limited.

David Vineall

Group Chief People Officer

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. He is also an NDA nominated Non-Executive Director of Sellafield Limited.

Executives in post during the year:

Neil Harnby

Group General Counsel and Company Secretary (until May 2023)

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 brought a wealth of experience, from advising and working with organisations including Royal Mail and General Electric.

Mel Zuydam

Group Chief Financial Officer (until 31 March 2023)

Board performance

Corporate governance compliance

We apply high standards of governance, operating under the principles set out in the Government Code of Corporate Governance and government guidance for an arm’s length body and a body corporate. We also aim to draw on best practice as set out in the UK Corporate Governance Code (Code) where appropriate, reporting exceptions to UKGI.

We continuously review compliance against the Code and undertake horizon scanning exercises to ensure new regulatory or legislative changes are considered and applied where appropriate.

The Board ensures that a balanced assessment of performance is reported to the Department for Energy Security and Net Zero and regularly reviews the main strategic risks facing the NDA group.

All Board and committee meetings held during the year were quorate. The proceedings at all Board and committee meetings are minuted and all decisions made are recorded appropriately. The Board reviews its effectiveness and that of its committees on an annual basis. The Matters Reserved for the Board, its Terms of Reference and the Terms of Reference of each of its committees are also reviewed on an annual basis and are maintained by the Company Secretary.

Attendance at scheduled Board meetings during the year is detailed in the following table. These meetings were all hybrid meetings with the majority of the Board attending in person and remainder joining remotely. Additional ad hoc meetings were held, and written resolutions were passed, as and when required. Scheduled committee meeting attendance records can be found in the committee reports. Additional Board and committee meetings can be called as required.

Name	Role	Meetings attended (total: 10)
Ros Rivaz1	Chair	10
Chris Train2	Interim Chair	10
Janet Ashdown3	Senior Non-Executive Member	9
Kathryn Cearns4	Non-Executive Member	7
Evelyn Dickey5	Non-Executive Member	9
Francis Livens	Non-Executive Member	10
Alex Reeves	Non-Executive Member	10
Volker Beckers6	Non-Executive Member	6
David Peattie	Group CEO (Executive Director)	10
Kate Bowyer7	Group CFO (Executive Director)	0
Mel Zuydam8	Group CFO (Executive Director)	10

Notes:

1. Ros Rivaz chaired all meetings during the year and stepped down from the Board on 31 August 2023.

2. Chris Train was appointed Interim Chair effective 1 September 2023. Prior to this date and for all board meetings during the year, he served as a Non-Executive Member of the Board.

3. Janet Ashdown was unable to attend one Board meeting in the year due to a prior commitment.

4. Kathryn Cearns joined the Board on 1 August 2022 and was therefore only a member for the last seven meetings of the year.

5. Evelyn Dickey was unable to attend one Board meeting in the year due to a prior commitment.

6. Volker Beckers stepped down from the Board on 31 October 2022 and was therefore not a member for the last four meetings of the year. Volker Beckers was retained as an advisor to the Board until April 2023.

7. Kate Bowyer joined as Group Chief Financial Officer on 1 May 2023 and therefore attended no Board meetings in 2022/23.

8. Mel Zuydam resigned as Group Chief Financial Officer on 31 March 2023.

The Board’s role and responsibilities

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.

In addition to proposing and monitoring performance against the NDA’s strategy, the Board is accountable for the NDA’s culture (including the range of ESG expectations), governance, risk appetite (working with HMG and regulators), oversight of internal control and risk management processes, ensuring effective arrangements are in place to provide assurance on operations, programmes and projects, stakeholder relationships, and succession planning for the Executive Leadership Team. The Board sets the NDA’s vision, values and standards of conduct and behaviour. It is also responsible for ensuring that these and its culture are aligned, regularly assessed and monitored.

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, holding the Executive Leadership Team to account and for the development of the NDA’s strategy and operations.

All Board members have full and timely access to relevant information and the services of the Company Secretary 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 independent review by our internal audit function which reports to the Audit and Risk Assurance Committee.

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. An externally facilitated review last took place over 2021, therefore an internally facilitated review was completed during 2022/23.

The key themes highlighted by the 2022/23 review include assessing the workings of the Board in order to identify areas for improved efficiency, specifically by:

• Continuing to focus upon fewer and more strategic matters

• Building on the renewed clarity of the Terms of Reference of the Board’s committees to use them even more effectively

• Embedding and building upon demonstrable improvements in the governance and company secretarial support provided to the Board.

The Board also identified that a review of our Board induction and training programmes would be beneficial. Further to themes highlighted in the 2021/22 effectiveness review and to support the evolution of a one NDA way of working, the Board will also host an ‘all Boards’ event with the group’s operating company Boards in summer 2023.

Magnox Inquiry, Departmental Review and Chair’s Report

Throughout the year, we have continued to make progress addressing the recommendations from the Magnox Inquiry, Departmental Review and Chair’s Report to close the identified gaps and deliver evidenced, outcomes-based improvements, which have a positive impact on mission delivery. We have strengthened our governance around the closure of the Integrated Review Response (IRR) recommendations (which combines recommendation from all three reviews) and developed existing management processes. Progress is regularly scrutinised by the Board and reported to stakeholders.

Board activities in the year

At each of its meetings, the Board reviews key performance information, including reports on the NDA group’s performance, operational activity, financial position, forecasts and sensitivities and delivery of its strategic direction. On a six-monthly and annual basis the Board reviews performance against the expectations set out in the annual Chair’s letter from HMG. It also considers annually how the NDA measures against the provisions of the UK Corporate Governance Code. A summary of some of the matters considered by the Board in the year are detailed in the table below. The Board also welcomed the attendance of each of the Chairs of the operating company Boards in rotation.

The Board takes an active role in stakeholder relations and seeking greater engagement with the workforce. The Section 172 Statement set out on pages 58 to 60 details how the Board has engaged with stakeholders on a range of matters.

Site visits

During the year, the Board has resumed its pre-pandemic practice of conducting visits to NDA group sites, combining these with Board meetings where possible. During 2022/23, the Board visited the following locations:

• Sellafield
• Harwell
• Bristol Hub Office
• Berkeley
• Carlisle Railhead

Visits were also made by some Board members to the following locations:

• Hinkley Point A
• Chapelcross
• Hunterston B
• Wick Archives
• Dounreay
• Springfields (WEC)
• National Nuclear Laboratory Preston

Strategy, performance and mission delivery

• One NDA and development of the Group Operating Framework
• Group Strategy
• Approval of Group Key Targets for 2022/23
• Review of the NDA 2023-26 Business Plan
• Progress on the implementation of the UK Government’s AGR transaction
• Oversight of our digital and cyber strategy
• Engagement with the Department for Energy Security and Net Zero (DESNZ) and other key regulators including focus on the DESNZ Nuclear Decommissioning and Radioactive Substances policy consultation which includes the potential for near surface disposal
• Oversight and approval of the joining of Magnox and Dounreay Site Restoration Ltd
• Sanction matters including:
  • Business to be submitted to DESNZ for approval
  • Infrastructure Delivery Partnerships
  • Advanced Gas-Cooled Reactor Operating Programme
  • High Integrity Stainless Steel Containers
• Improvements in performance reporting
• ‘Trusted to do more’ initiatives and a review of associated priorities
• Technology and innovation updates

Risk and compliance

• Reviewing risk areas and mitigations in line with the agreed risk appetite
• Assessment of energy security following the Russian invasion of Ukraine
• Deep dives into the following group strategic risks:
  • Legal risk management
  • Cyber risk
  • Stakeholder engagement risk
  • Supply chain risk
• Updates on the NDA’s integrated review responses
• Review of group litigation matters

Culture and governance

• The group’s continuing response to COVID-19
• Development of the group wide approach to ‘Speak Up’
• Review of stakeholder survey responses
• Skills and resourcing, recruitment and retention, succession planning and project management capability
• Approval of the Modern Slavery Statement for financial year 2021 to 2022
• Review of Gender pay gap information as at 31 March 2022
• Board and Committees’ Effectiveness Review
• Implementing the findings of the previous year’s Board and Committees’ Effectiveness Review
• Regular safety and performance updates
• Cyber security updates
• Committee activity updates
• Approval of the 2021/22 Annual Report and Accounts
• Approval of key policies including:
  • Sanctions and Delegations Policy
  • Counter Fraud, Bribery and Corruption Policy

Audit and Risk Assurance Committee (A&RAC)

The table below sets out the committee membership and attendance at scheduled meetings during 2022/23. Additional ad hoc meetings were held, and written resolutions were passed, as and when required.

Name	Role	Meetings attended5 (total: 5)
Kathryn Cearns1	Committee Chair (from 1 August 2022)	3
Janet Ashdown2	Member	3
Alex Reeves3	Member	4
Members who served during the year
Volker Beckers4	Committee Chair (until 31 July 2022) Committee Member (until 31 October 2022)	3

Notes:

1. Kathryn Cearns was appointed A&RAC Committee Chair on 1 August 2022 and was therefore not a member for the first two meetings of the year.

2. Janet Ashdown was unable to attend two meetings in the year due to prior commitments.

3. Alex Reeves was unable to attend one meeting in the year due to a prior commitment.

4. Volker Beckers stepped down as a Board member on 31 October 2022 and was therefore not a member for the last two meetings of the year.

5. Ros Rivaz, as Chair of the Board, had a standing invitation to each A&RAC meeting and joined three meetings across the year. Other Board members, senior stakeholders and subject matter experts also joined select meetings throughout the year at the invitation of the A&RAC Chair.

Message from the Committee Chair

This is my first year reporting as A&RAC Chair after stepping into the role in August 2022. I’d like to thank Volker Beckers for his leadership of the committee prior to this.

The main focus of the A&RAC in 2022/23 has been overseeing work to revise the group’s risk appetite profile and changes to the way in which assurance is delivered across the group. The committee has recommended some key policies to the Board for approval, including the Counter Fraud, Bribery and Corruption Policy. The Committee has also overseen work to implement a group-wide approach to Speak Up.

Looking ahead to 2023/24, the A&RAC will continue to oversee and support the group-wide roll-out of Speak Up. Following a successful NDA group A&RAC conference in September 2022, I look forward to working with our A&RAC colleagues across the group and aligning on priority matters.

Kathryn Cearns A&RAC Chair 12 September 2023

Committee purpose

The A&RAC provides advice and assurance to the Board on all matters within its remit. 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.

During the year the A&RAC has:

• Reviewed and endorsed the Annual Report and Accounts, Accounting Officer’s Report and Internal Audit Report and Audit Completion Report for 2021/22
• Received and reviewed the Accounting Officer’s reports for the year
• Overseen the work to assess and revise the group’s risk appetite profile
• Overseen changes to the structure of the Assurance function
• Approved and overseen the Risk Assurance Plan for 2022/23
• Approved and overseen the Group Internal Audit Plan for 2022/23
• Received reports from the Government Internal Audit Agency
• Received group security, cyber and IT updates
• Overseen updates to the NDA’s Counter Fraud, Bribery and Corruption Policy, Strategy, Incident Response Plan and Annual Action Plan
• Overseen work to implement a group wide approach to Ethics and Compliance and the development of the group’s Speak Up policy and procedures
• Approved the closure of several IRR recommendations assigned to it by the Board
• Assessed supply chain security assurance
• Reviewed the committee’s Terms of Reference and results of the committee’s annual effectiveness review
• Engaged on two Group Strategic Risk deep dives on successful mission delivery and supply chain assurance

Nominations Committee (NOMCO)

The table below sets out the committee membership and attendance at scheduled meetings during 2022/23. Additional ad hoc meetings were held, and written resolutions were passed, as and when required.

Name	Role	Meetings attended2 (total: 2)
Ros Rivaz1	Committee Chair	2
Janet Ashdown	Member	2
Kathryn Cearns	Member (from August 2022)	2
Evelyn Dickey	Member	2
Francis Livens	Member	2

Alex Reeves	Member	2
Chris Train	Member	2
Members who served during the year
Volker Beckers2	Member (until 31 October 2022)	0

Notes:

1. Ros Rivaz chaired all meetings during the year and stepped down from the Board on 31 August 2023.

2. Volker Beckers stepped down from the Board on 31 October 2022 and was therefore not a member for the last two meetings of the year.

3. The CEO, other senior stakeholders and subject matter experts also joined select meetings throughout the year at the invitation of the NOMCO Chair.
   ###Message from the outgoing Committee Chair

This year has seen changes to the composition of the Board and its committees with the appointment of Kathryn Cearns in August 2022 and the departure of Volker Beckers in October 2022.

The NOMCO’s priority focus during this period was overseeing committee membership and succession planning. Key changes in 2022 included:

• Welcoming Chris Train to the Board following the excellent work he performed chairing an Independent Review Panel prior to his appointment
• The appointment of Kathryn Cearns as Chair of the A&RAC in August 2022 ahead of Volker Beckers’ departure
• Kathryn’s appointment as a member of the REMCO and P&PC
• Janet Ashdown’s resignation from the P&PC to allow her to focus on the HSSE and S&G Committees, both of which she chairs.
• The appointment of Chris Train to the HSSE Committee

In consultation with the NOMCO, the Board also made changes to the NDA-nominated Non-Executive Directors to the operating companies. In January 2023, Alan Cumming stepped down as an NDA-nominated Non-Executive of Sellafield Limited after five years on the Board. He was replaced by Paul Vallance who was appointed as an NDA-nominated non-executive of Sellafield Limited with effect from 1 March 2023.

Looking ahead to 2023/24, the NOMCO will focus on supporting succession planning activities across the group, including induction and training programmes.

Ros Rivaz
Outgoing NOMCO Chair
31 August 2023

Committee purpose

The primary purpose of the NOMCO is to review the structure, size, composition, skills, experience, competency, independence, knowledge and diversity of the Board and its committees. We aspire to having a diverse Board in terms of gender, social and ethnic backgrounds, cognitive and personal strengths, experience, skills and knowledge. The biographical details of the current Board members can be found on pages 64 to 67.

The NOMCO considers senior appointments across the NDA group and assesses related succession planning and talent management to ensure a robust pipeline of candidates. It also recommends or considers suitable candidates for appointment to roles which are reserved for the Board to approve in the Schedule of Matters Reserved for the Board e.g. the Senior Non-Executive Board Member and the Company Secretary. In addition, upon proposals by the CEO, the NOMCO considers independent NED appointments to the NDA’s Operating Company boards.

During the year the NOMCO has:

• Reviewed NDA executive performance and succession
• Reviewed and made changes to the committee memberships
• Overseen changes to the composition of several of the operating company Boards
• Considered succession planning for key roles in the NDA’s control functions, on the Group Leadership Team and on the operating company Boards
• Overseen the recruitment of a new Chief Financial Officer following a resignation and the appointment of an appropriate search firm.

Remuneration Committee (REMCO)

The table below sets out the committee membership and attendance at scheduled meetings during 2022/23. Additional ad hoc meetings were held, and written resolutions were passed, as and when required.

Name	Role	Meetings attended5 (total: 6)
Evelyn Dickey1	Committee Chair	5
Kathryn Cearns2	Member (from 22 November 2022)	3
Alex Reeves	Member	6
Chris Train3	Member	5
Members who served during the year
Volker Beckers4	Member (until 31 October 2022)	3

Notes:

1. Evelyn Dickey was unable to attend one meeting in the year. This meeting was chaired by Alex Reeves.

2. Kathryn Cearns was appointed to the committee on 22 November 2022 and was therefore not a member for the first three meetings of the year.

3. Chris Train was unable to attend one meeting in the year due to a prior commitment.

4. Volker Beckers stood down as a Board member with effect from 31 October 2022 and was therefore not a member for the last two meetings of the year.

5. Ros Rivaz, as Chair of the Board, had a standing invitation to each REMCO meeting and joined five meetings across the year. Other Board Members, senior stakeholders and subject matter experts also joined select meetings throughout the year at the invitation of the REMCO Chair.

Message from the Committee Chair

This year has seen a change in the REMCO’s membership with the departure of Volker Beckers and the appointment of Kathryn Cearns. I would like to take this opportunity to thank Volker for his valuable contributions to the REMCO during his tenure and to welcome Kathryn to the committee.

In 2022/23 the committee reviewed and approved revised incentive scheme rules for both the annual bonus plan and the long-term incentive plan, refreshed the approach to target setting and considered executive performance as part of the annual appraisal process. In addition, the committee focused on concerns relating to the cost-of-living challenges impacting the wider workforce and endorsed management actions in supporting colleagues as appropriate.

Looking ahead to 2023/24, the committee will continue to ensure that performance metrics and rewards align with the NDA strategy and mission delivery, taking account of key stakeholder perspectives and the wider workforce experience, in line with appropriate corporate governance standards.

Evelyn Dickey
REMCO Chair
12 September 2023

Committee purpose

The primary role of the REMCO is to determine the reward and governance framework for the NDA group and to set the remuneration of the NDA Executive Leadership Team. This includes setting individual salaries, setting and assessing performance targets, determining the outturn of performance related pay and arrangements for joiners and leavers.

The REMCO does not have responsibility for reward matters in the group’s operating companies but has close links with their respective remuneration committees. The committee supports the Accounting Officer and Board respectively in the provision of assurance around compliance with the group Reward Framework.

During the year the REMCO has:

• Reviewed performance at the NDA and individual executive level to determine the Short-Term Incentive Plan (STIP) awards for 2021/22
• Approved the STIP design for 2022/23 and 2023/24
• Finalised the performance targets for the 2022/23 STIP
• Reviewed the CEO’s performance objectives for 2023/24 which are under development and due to be finalised shortly
• Considered the ELT’s performance objectives for 2023/24
• Agreed the outcome and payments for the Long-Term Incentive Plan (LTIP) 2019-22, paid in June 2022
• Agreed the targets for the LTIP 2022-25 and approved amendments to the LTIP rules
• Commenced work to set the targets for the STIP 2023/24 and the LTIP 2023-2026 which will be finalised early in 2023/24
• Considered trends in executive remuneration and how they can best be applied across the group
• Contributed to the design of the search parameters for a new Group Chief Financial Officer following the previous CFO’s resignation
• Overseen the NDA’s 2022/23 pay remit submission and proposals for the application of the remit across the group

Health, Safety, Security and Environment Committee (HSSE)

The table below sets out the committee membership and attendance at scheduled meetings during 2022/23. Additional ad hoc meetings were held, and written resolutions were passed, as and when required.

Name	Role	Meetings attended2 (total: 4)
Janet Ashdown	Committee Chair	4
Evelyn Dickey	Member	4
Francis Livens	Member	4
David Peattie	Member	4
Chris Train1	Member (from 22 November 2022)	2

Notes:

1. Chris Train was appointed to the Committee on 22 November 2022 and was therefore not a member for the first two meetings of the year

2. Ros Rivaz, as Chair of the Board, had a standing invitation to each HSSE Committee meeting and joined three meetings across the year. Other senior stakeholders and subject matter experts also attended meetings at the invitation of the HSSE Chair.

Message from the Committee Chair

I’d like to welcome Chris Train as the newest member of the HSSE Committee following his appointment in November 2022.

There have been a number of incidents within the group for which the committee has overseen deep dive reviews, including a sodium leak and subsequent fire at Dounreay and the ongoing leak to ground at the MSSS facility at Sellafield. The committee prioritised assessments of the approach taken by the operating companies in identifying the root causes of these incidents and the lessons learned.

In May 2022, the five Chairs of the group’s Health and Safety Committees toured the Dungeness site and in September 2022 held a Chairs’ meeting at Sellafield. This forum now meets two to three times per year to share best practice and to monitor trends across the group.

In December 2022, the committee was pleased to join the NDA group’s first health, safety and wellbeing conference for colleagues. The event was extremely well attended and received excellent feedback from the delegates.

The committee would also like to congratulate the mental health and wellbeing team on once again achieving Silver status on Mind’s workplace Wellbeing Index and we look forward to building on this over the coming year.

Janet Ashdown
HSSE Committee Chair
12 September 2023

Committee purpose

The HSSE Committee supports the Board in discharging its responsibilities in respect of issues of health, safety (both nuclear and non-nuclear), security and environment. Security and resilience includes business associated functions such as information governance, cyber security and ICT.

The responsibility for these issues within the NDA group lies with the operating companies. In particular, the operating companies have responsibility for health, safety, security and environment on their sites. However, the Board is accountable for the performance of the whole group in line with its governance framework and, in particular, must be assured that the operating companies are discharging their responsibilities properly.

The Committee’s routine business throughout the year includes 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 receives reports from group businesses on events and accidents
• Receive and commission 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.

During the year, the HSSE Committee has:

• Reviewed and considered the implications of various letters to and from the regulators as submitted during the year
• Received updates on Fire Prevention and Management arrangements
• Welcomed presentations from the Environment Agency
• Received updates and lessons learned on several health and safety and operational incidents and enforcement activity which has occurred
• Met with representatives from the operating companies to received feedback on the NDA’s HSSE assurance activities
• Reviewed the NDA’s Unmanned Aerial Vehicles processes and procedures
• Oversaw deep dives on the following group strategic risks: Health, safety and wellbeing, cyber threats and asset management.

Sustainability and Governance Committee (S&G)

The table below sets out the committee membership and attendance at scheduled meetings during 2022/23. Additional ad hoc meetings were held, and written resolutions were passed, as and when required.

Name

Role

Meetings attended1 (total: 3)

Janet Ashdown	Committee Chair	3
Evelyn Dickey	Member	3
Francis Livens	Member	3

Notes:

1. Ros Rivaz, as Chair of the Board, had a standing invitation to each S&G meeting and joined for one meeting in the year. Other Board Members, senior stakeholders and subject matter experts also joined select meetings throughout the year at the invitation of the S&G Committee Chair.

Message from the Committee Chair

This is the S&G Committee’s second year of reporting since its formation in 2021.

During the year in review, the committee focused upon supporting the sustainability and governance activities across the NDA. The committee has overseen the development of a sustainability strategy for the group, received reports on the NDA’s socio-economic activities, reviewed how climate related reporting obligations may apply to the NDA group and been briefed on key developments in corporate governance. Committee members also joined colleagues for the second group-wide Sustainability Forum in March 2023, building on the success of the first in 2021.

I am proud of what the committee continues to achieve given its relatively new status and look forward to supporting the sustainability agenda and ongoing workstreams across the group in 2023/24.

Janet Ashdown S&G Committee Chair
12 September 2023

Committee purpose

The S&G Committee supports the 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.

During the year, the S&G Committee has:

• Received updates on and reviewed progress against our Sustainability and People Beacon Projects
• Reviewed progress against the four key legacies of our Sustainability Roadmap
• Received updates on our Social and People strategies
• Received presentations from the Department for Energy Security and Net Zero and the National Decommissioning Strategy and Policy Group on their stance on sustainability across the sector
• Received reports from the operating companies on their sustainability activities
• Discussed our approach to climate-related financial disclosures reporting
• Received updates on our Diversity and Inclusion policy and programmes of activity
• Reviewed our Modern Slavery Statement and recommended it to the Board for approval
• Reviewed and approved our sustainability targets for 2023/24
• Received updates on the group’s Natural Capital Workstream
• Reviewed our PhD student funding programme
• Overseen risk deep dives on Diversity and Inclusion

Programmes and Projects Committee (P&PC)

The table below sets out the committee membership and attendance at scheduled meetings during 2022/23. Additional ad hoc meetings were held, and written resolutions were passed, as and when required.

Name	Role	Meetings attended5 (total: 10)
Chris Train	Committee Chair	10
Kathryn Cearns1	Member (from 12 October 2022)	5
Francis Livens2	Member	9
David Peattie3	Member	9
Members who served during the year
Janet Ashdown4	Member (until 22 November 2022)	6

Notes:

1. Kathryn Cearns was appointed to the committee effective from 12 October 2022 and was therefore not a member for the first five meetings of the year.

2. Francis Livens was unable to attend one meeting in the year due to a prior commitment.

3. David Peattie was unable to attend one meeting in the year due to a prior commitment.

4. Janet Ashdown stepped down from the committee on 22 November 2022 and was therefore not a member for the last four meetings of the year. She was unable to attend one meeting in the year due to a prior commitment.

5. Ros Rivaz, as Chair of the Board, had a standing invitation to each P&PC meeting and joined seven meetings across the year. Other senior stakeholders and subject matter experts also attended meetings at the invitation of the P&PC Chair.

Message from the Committee Chair

In October 2022 we welcomed Kathryn Cearns as a member of the committee. Following Kathryn’s appointment, Janet Ashdown stepped down as a member and I’d like to take this opportunity to thank Janet for her service to the committee.

This is my first full year chairing the committee. During the period in review, we have worked closely with our counterparts in the group’s operating companies to further improve coordination around key business cases and sanctions coming to the Board for approval and to improve and streamline the quality of submissions coming through the system.

We have undertaken a series of site visits during the year to witness progress on critical projects being considered by the committee and have assessed on behalf of the Board some key business cases for the group. These include the electricity distribution network upgrade programme at Sellafield and the blower house demolition project at Berkeley.

I am proud of the progress made and we will look to build on this over the coming year.

Chris Train P&PC Chair
12 September 2023

Committee purpose

The P&PC advises the Board on, and provides additional oversight and scrutiny of, major programmes and projects within the NDA group. The P&PC supplements Board oversight, it is not intended to supplant it.

During the year, the P&P Committee has:

• Facilitated progress on improving the quality of business cases and the timely scheduling of sanctions
• Reviewed evidence and approved the closure of six recommendations from the Integrated Review Response
• Reviewed the performance of several major strategic projects and programmes across the NDA group including:
  • The implementation of the Government’s AGR transaction
  • Group-wide programmes – a One NDA enabler
  • The Programme and Projects Partners – a Sellafield initiative with delivery partners
• Focused on skills retention and capability (in particular Senior Responsible Officers) across the NDA group
• Reviewed and monitored assurance and performance updates

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 group. This allows us to proactively identify the opportunities and threats that are relevant to our business. Achievement of our strategic 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.

Our risk management approach is aligned to the Department for Energy Security and Net Zero risk management principles. Our risk management process aligns to that set out in the international standard ISO31000:

NDA risk management process

Establish the context: Policy, processes, and procedures define the internal and external criteria to be considered when identifying and managing risks.

Risk identification: There is a defined process to help identify, recognise, and describe threats and opportunities to strategic, portfolio, programme and project objectives.

Risk analysis: We assess the likelihood and impact of all risks against a risk scoring matrix, this allows for any risk to have multiple impacts. The risk score uses the biggest impact to enable prioritisation of responses.

Risk evaluation: NDA compare the level of risk assessed with NDA risk appetite, which is set by the NDA Board, to help risk owners prioritise their responses.

Risk response: Actions are identified to increase the likelihood of our opportunities and decrease the likelihood of our threats. Key controls are identified which manage the risk. Fall back plans can also be identified to reduce the severity of impact of threats.

Monitor and review: Reporting is structured to ensure decision makers are aware of the current risk landscape and to drive robust decision making.

Communication: Consultation and communication with internal and external stakeholders through all stages of our risk management lifecycle is integral to effectiveness of our risk management.

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 parts of everyday activities. During 2022/23 this was achieved by:

• Continuing to use cross group risk forums which promote open collaborative conversations where individuals are comfortable to escalate risks and concerns
• Developing proof of concepts using AI to deliver augmented insights and enhance our ability to identify and assess risk information
• Refreshing our risk appetite profiles and risk assessment matrix with the Board
• Ensuring that our people have the skills and knowledge to manage risks effectively through the implementation of our group-wide risk management competency framework

Risk assurance framework

The framework provides the structure for assessing how effective risk management is undertaken across the group. It provides stakeholders with confidence that risk activities are being undertaken in a transparent, consistent and effective manner.

All processes and associated risk outputs are assured in accordance with our Three Lines of Defence (LoD) assurance model. Controls are applied to key risks, and controls effectiveness is assured on a regular basis.

Risk and assurance diagram

During 2022/23, the dynamic planning interface between Risk, Assurance, Internal Audit and each operating company’s risk function has been enhanced. This now includes greater alignment and risk-based prioritisation of activities and has been developed on the principle of “risk, control and assure”. The diagram below is illustrative of how the “risk, control, assure” principle integrates our assurance activities.

Our risk management - what we monitor

Illustration of how the “risk, control, assure” principle integrates our assurance activities

How it is monitored

Risk monitoring diagram

Roles and responsibilities

The Accounting Officer is accountable for the management of all NDA risks. All staff across NDA group businesses have a duty to ensure risks in their areas of responsibility are identified, managed, and reported. The requirement for risk management is further reinforced through the regulatory environment in which we operate including, for example, the need for our operating companies to hold nuclear site licences overseen by the Office for Nuclear Regulation (ONR).

The Accounting Officer Review Process examines the key risks presented by group operating companies and how these risks are being managed. Prior to, and during this process, the NDA risk management team provides additional challenge and assurance of these and other risks across the group.

Group Strategic Risks (GSRs)

The GSRs are key risks which could impact on the NDA group and force a fundamental change to the current strategy and impact the mission. They require proactive management and co-ordination by us, with Group Leadership Team (GLT) sponsorship and ownership.

The table below contains: * Our 15 group strategic risks, * Their link to our five mission themes and * The response to mitigate these risks in 2022/23.

Two new risks were added in 2022/23: * Diversity and inclusion improvements (GSR14) * Future missions integration (GSR15)

During 2022/23 there have been a number of changes to the external environment affecting GSRs. These include cost inflation and material shortages post pandemic, labour market dynamics, rising cost of energy, the Ukraine conflict and funding pressures. In response, the GSRs were re-assessed, and the NDA group has taken measures, where applicable, to address the increased level of risk.

Risk deep dives

There is a rolling schedule of deep dive reviews of GSRs, that examine all aspects of the risk. Each GSR has a specified review cycle, either 12, 18 or 36 months. Over the past year our Board committees have reviewed seven GSRs – 2, 3, 6, 8, 10, 12 and 14.

Expertise from across the group, including non-executive directors (NEDs) and other independent advisors, provide external industry and technical good practice to the in-depth reviews of these risks.

The outcome from each review are recommendations as to how to enhance the understanding of the risk, its controls and responses. These recommendations are owned by the GSR owner and tracked by the A&RAC.

Risk appetite

Risk appetite is a key part of our enterprise risk management framework. It defines the level of potential exposure that can be tolerated in order to deliver the NDA strategic objectives. The NDA Board sets the risk appetite for the group. This supports effective decision making and risk escalation and is embedded within our Strategic Management System and underpinned by our Value Framework.

During 2022/23 the Board refreshed the appetite profiles and improvements have been proposed to our reporting and governance which now include assessments against risk appetite.

Strategic risk likelihood and impact diagram

In April 2022, the NDA group launched the updated risk assessment matrix (likelihood/impact matrix). It was updated to provide better alignment across the NDA group and to align with external good practice. The risk heat map below illustrates the relative positioning of the GSRs and highlights the movement during the year. It shows the risk score once controls have been applied, described as ‘current’ score.

Strategic risk likelihood and impact diagram

Mission themes

GSR1. Project, programme and portfolio management performance across the group is not performing as required, impacting mission delivery

Change in risk score during the year

The application of assurance and performance management systems within the operating companies is at differing levels of maturity. This presents an opportunity to ‘step-up’ overall performance and potentially improve the overall risk score during 2023/24.

Effectiveness of risk mitigation

Assurance and performance monitoring tools have been further developed and applied during 2022/23 with improvements noted. An example is the Project Definition Rating Index (PDRI), this consistently benchmarks content and quality of funding requests at early project stage gates. Other tools applied include Reference Class Forecasting (RCF) and Opportunity Framing. These help validate objectives, Critical Success Factors and drivers for each project. The Project and Programme Management (PPM) Excellence initiative has been established with routine meetings involving all operating companies.

GSR2. NDA is unable to complete its mission satisfactorily due to an inability to safely, securely and cost effectively manage radioactive waste

Change in risk score during the year

The likelihood has increased due to potential GDF programme delays combined with the concerns around the adequacy of storage capacity for high active waste which has led the sites to review and update lifetime plans.

Effectiveness of risk mitigation

Progress has been made this year in developing and underpinning the approach to this risk. Nuclear Waste Services maintains a holistic oversight of the risk controls, mitigations and risk indicators, with other operating companies fully engaged and providing support. A working group has been established to institute continual dialogue on the threats and opportunities associated with the risk.

GSR3. The NDA group has insufficient capability and capacity to deliver the mission through not having the right people with the skills at the right time and place

Change in risk score during the year

The renaissance in the nuclear sector and focus on energy and defence security, presents NDA group with both an opportunity and a threat. Other external threats identified include economic pressures, pension reform and Civil Service Pay Remit.

Effectiveness of risk mitigation

Increasing demand within the nuclear sector and others is affecting the NDA group’s ability to recruit, retain and develop the skills needed to deliver the mission. The NDA group wide Beacon project in 2022/23 focused on strategic workforce intelligence to identify scarce, critical and high demand skills challenges. Specific focus has been on project and programme management, cyber and the launch of the NDA group graduate programme. The Beacon project 2023/24 will continue the focus on skills and add a focus on retention.

GSR4. Existing supply chain may not have the capacity or capability to support NDA group current targets, programmes and ultimately the mission

Change in risk score during the year

The likelihood of supply chain failure has increased due to inflation, rising energy costs, commodity price escalation and raw materials shortages. Recruitment remains a threat, due to marketplace shortages and increasing salaries.

Effectiveness of risk mitigation

The delivery of a group-wide procurement system alongside additional supporting systems has improved the maturity of the commercial pipeline. This enhances the understanding of future capability and capacity needs.

Work continues to address the increase in the likelihood of cyber-attacks within the supply chain and to bolster resilience in respect to cyber security.

GSR5. Due to change in Government priorities, NDA funding is not sufficient to maintain our preferred programmes resulting in sub optimal mission delivery / progress and reduction in value for money

Change in risk score during the year

The impact of fiscal pressures and high inflationary environment, including high energy costs, poses a real challenge to our funding over the spending review period. This resulted in an increase in both likelihood and impact.

The next spending review period (2025+) will be further challenged by the forecast decline in revenue associated with AGR fuel receipts and anticipated cost increases required to progress our preferred programmes of mission delivery.

Effectiveness of risk mitigation

We continue to portfolio manage threats and opportunities across the group to optimise value for money and mission delivery.

The spending review settlement allows special access to the reserve where absolute revenue values are lower than the settlement. The inflationary benefit on our payments on account, which increases our in-year revenue, will be used to mitigate any revenue shortfall instead of making requests to access the reserve if project revenue slips.

GSR6. Inappropriate group structure, ineffective relationships, or overly complex interface arrangements lead to stakeholder loss of confidence in NDA mission delivery resulting in delays to mission progress

Change in risk score during the year

Stable with an improving risk context. Limited progress with planned in year mitigations.

Effectiveness of risk mitigation

The Group Operating Framework (GOF) was launched July 2022 across the NDA group in response to feedback on the need for clarity of roles, responsibilities, accountabilities, and authorities. However, there was limited progress in establishing the enabling environment including procurement and onboarding of external expertise and support. As a result, the 2022/23 Group Key Target (GKT)13 was missed. Further work is planned with refreshed Interface Agreements being rolled out in 2023/24. This is the foundation for a one NDA way of working.

GSR7. Major incident at an NDA site leading to large scale release to the environment

Change in risk score during the year

The risk score is high (high impact; low probability), in light of the hazard of the facilities at Sellafield Ltd and Dounreay. A small number of facilities present this higher hazard and will do so until waste retrievals have been completed, or significantly progressed.

Effectiveness of risk mitigation

Emergency Management Arrangements at all our sites have been assured and these remain in a good position; work to improve NDA’s own emergency arrangements has progressed well.

Management of critical assets remains a priority and is resourced appropriately, however management of other supporting assets is not fully resourced. There have been improvements to asset management approaches over the last year.

GSR8. Key sources of Health, Safety and Wellbeing (HSW) risk with significant potential of loss of life, serious injury/ ill health or major property damage

Change in risk score during the year

Stable with an improving risk context, supported by a slight decrease in Total Reportable Incident Rate for the group.

Effectiveness of risk mitigation

Sustained progress has been achieved as Health, Safety and Wellbeing working groups continue to identify and share good working practices in a number of key areas. These have included Construction and Design Management, Contractor Management, Safety Culture and Mental Wellbeing. A full review of the risk process has been undertaken and improvements identified. These will be implemented in 2023/24, including enhancing how we measure mitigation effectiveness.

GSR9. A nuclear event external to the NDA group changes the NDA mission or has an impact on stakeholder acceptance of nuclear activities and public support necessary to continue the NDA mission

Change in risk score during the year

Likelihood increased due to the impact of of the conflict in Ukraine and cyber security, specifically increasing likelihood of malicious acts.

Effectiveness of risk mitigation

Short-to medium term mitigations have progressed well during the year. The focus is on medium-to-long term recovery if the threat materialised. We continue to ensure key stakeholders are engaged at various levels in strategic development and delivery. The results of the NDA stakeholder engagement survey published in November 2022 showed a marked improvement in stakeholders’ perception of the NDA’s performance, transparency and leadership.

GSR10. The NDA group does not proactively deter, detect, defend against, recover from and be resilient to, cyber threats resulting in an adverse effect on delivery of the NDA mission

Change in risk score during the year

The threat environment continues to grow and there has been increased HMG and regulatory expectations. We take cyber threats very seriously. By managing through continued growth in cyber capability and cross Group working, the overall threat to the mission remains stable.
Additional focus over the year has been on planning and rehearsing for cyber incidents, including our cyber exercising, disaster recovery and business continuity functions.

Effectiveness of risk mitigation

We continue to deliver the nuclear sector Civil Nuclear Cyber Security Strategy and the NDA group-wide cyber strategy. This includes monitoring the cyber threat environment and working closely with UK Government and the National Cyber Security Centre (NCSC). Cyber defences were bolstered in early 2022 and focus is now on maintaining a strengthened cyber posture. The NDA group, like the UK, faces a shortage of cyber talent meaning resourcing is a key risk indicator. Building on our successful cyber apprentice and graduate programmes, the Skills Beacon Project 2023/24 is focused on strategic, long-term cyber talent solutions.

GSR11. Insider / external threat leading to security breach resulting in business disruption and associated reputational impact.

Change in risk score during the year

Trends noted in 2022/23 include a changing geo-political landscape resulting in potential for impact on the supply chain.

We have worked closely with our UK Government sponsoring department to map and manage areas of concern. Insider threat awareness has been a key focus, with measures implemented to further mitigate this threat.

Effectiveness of risk mitigation

Our understanding and management of security threats have matured significantly over the last year. In addition to the national intelligence management system Clue, NDA group is now aligned with the Police ACRO Criminal Records Office database to further mitigate insider threats, and we are enrolling in the Police National Database. Inclusion in Government forums also ensures we are up-to-date and aligned with emerging threats. A new security assurance model has been developed for personnel security and delivered across the group; this improves our understanding of the group-wide threats in more granular detail. Further development of the model is underway and will continue into 2023/24.

GSR12. NDA assets not performing as required, impacting mission delivery

Change in risk score during the year

There has been continued deterioration of assets. There have been recent events such as, a fire within Magnox Reprocessing, poor Vitrification Plant performance, Dounreay Fast Reactor rod lifts, Pile Fuel Cladding Silo crane failure and First Generation Magnox Storage Pond fire system enforcement. Asset risk is enduring and will not change quickly; it is at the top of the list for Regulator interest.

Effectiveness of risk mitigation

The Asset Management Strategy Delivery was a Group Key Target in 2022/23 and key improvement themes will continue as a GKT for 2023/24. Good progress has been made. All operating companies now have Strategic Asset Management Plans (SAMPs) in place. These are enabling a revised focus on through-life asset management plans, of which the first few demonstrators have been developed within each operating Ccompany. The line of sight for asset performance/mission delivery for all operating companies has now matured to a level that is giving us real-time information on asset performance and opportunities to exploit.

GSR13. NDA is subject to a range of laws, regulations, contractual obligations, policies and a governance framework with HM Government. A breach of these requirements could result in enforcement action, claims, business disruption, reputational damage and loss of stakeholder confidence.

Change in risk score during the year

Legal risk is enduring, ubiquitous and can be encountered at any stage of an organisation’s activities. This risk is collectively managed by the GLT and senior leaders across the group from first line management to Board level. The legal and risk practitioners all have a part to play in mitigating the risk.

Effectiveness of risk mitigation

Significant progress has been made in the last 12 months towards ensuring the legal function across the group is appropriately staffed, with new hires in NDA, Sellafield, Magnox and Nuclear Transport Solutions.

A new external legal services panel has been embedded with feedback being provided to panel law firms on a regular basis. Initial mitigation has been led by the legal teams with senior leadership training developed and delivered. Legal risk awareness sessions have been delivered to NDA functions during the year with senior leadership now accountable for implementation.

GSR14. The NDA group or one of its businesses does not have the knowledge, frameworks, culture, and capacity or tools to deliver D&I improvements and effectively address discrimination, bullying and harassment concerns made by employees.

Change in risk score during the year

The risk score is high but trending towards moderate based on results from the employee engagement survey completed in 2021 and the Peakon Survey launched in October 2022.

Effectiveness of risk mitigation

A full analysis of this risk was conducted in collaboration with NDA group diversity and inclusion (D&I) leads. The NDA group Inclusion Strategy has set challenging goals/targets and the operating companies’ annual review of performance is showing positive progress across all measures and commitments. The next phase embeds D&I into DNA, strategies, plans and people policies which have commenced. We continue to explore opportunities to enhance delivery of goals and commitments across the group. Plans are aligning to our governance, assurance and project management reporting.

GSR15. NDA change agenda – Magnox future missions integration will adversely impact current programme, stretch resources and management focus, leading to adverse delivery performance

Change in risk score during the year

The risk score is high. Capacity to deliver both Magnox current and future missions simultaneously remains a key threat for us to mitigate.

Prioritisation of current and future missions remains important, along with the efficiencies being realised from the regeneration programme (enhancement of four key areas: simplification, strategic workforce planning, leadership and skills and infrastructure).

Effectiveness of risk mitigation

Future missions activity has increased in 2022/23 with Dounreay joining Magnox, the AGR transfer and exploration of other opportunities. Mitigating GSR15 has been effective through having a dedicated future missions team leading this portfolio of work, such that performance on the current programme has not been adversely impacted. Standard NDA and Magnox business processes are deployed to assess the viability of future mission opportunities. Focus has evolved from business development activities to programme-related aspects. Joining of Magnox and Dounreay has proceeded on-schedule, and the Hunterston B AGR blueprint has been created.

Financial control

We had strong financial controls in place to ensure we remained within our budgetary spend for 2022/23 of £3.8 billion. We have well-defined delegated authorities and a clear budgetary framework. The system remains effective with no significant issues identified by internal or external audit during the year.

At the NDA, we review updates to government functional standards and reflect in our policies where they are applicable to Arms Length Bodies.  During the year we released a new Counter Fraud, Bribery and Corruption Policy reflecting Government Functional Standard GovS013 – Counter Fraud which was published in August 2021.  This Policy is also designed to ensure compliance with the UK Bribery Act and we will continue to review and enhance to ensure the risks we face are appropriately addressed and mitigated.

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 Chief Executive Officer by the NDA Accounting Officer, the NDA Group Investment 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 the Department for Energy Security and Net Zero (DESNZ) Principal Accounting Officer, the NDA Board followed by DESNZ Projects Investment Committee and DESNZ minister will approve before being presented to HM Treasury for approval by Treasury Approval Process and Chief Secretary to the Treasury.

Information governance

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

• Cyber, physical and personnel security and business continuity/resilience
• Knowledge and information management (including heritage management, intellectual property and information risk management)
• Digital and data management and governance

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 workstreams, all of which have delivered key benefits.

During the last year, we have:

• Continued to improve the resilience of group-wide communications through the procurement of satellite communications systems; these have been tested during the year and continue to be tested regularly with Government stakeholders
• Conducted weekly security and resilience-related exercises based on a range of scenarios linked to the national risk register
• Approved the NDA group digital vision and strategy, produced a digital roadmap, and are in the process of setting up a Programme Office to oversee all group digital initiatives
• Continued delivery of the Cyber Security and Resilience Programme (CSRP), including starting to transition elements to an enduring group service delivery model
• Developed the pilot of a Group Security Operations Capability (GSOC) into a protective monitoring and incident response support service for the group
• Continued to develop the group’s cyber apprentice and graduate scheme that supports the whole civil nuclear sector
• Developed a group data strategy and target operating model, seeking to standardise the way in which data is managed and re-used in delivery of the NDA mission
• Continued working with the Cabinet Office’s Emergency Planning College to exercise cyber incidents
• Continued operations at Nucleus, the nuclear and Caithness archives, delivering a cross group long-term records and archive management solution
• Continued the reduction of our carbon footprint, by reducing our physical (on-premises) servers and through the adoption of greener cloud alternatives
• Ensured continued compliance with the relevant statutory legislation and regulatory guidance regarding access to NDA-owned information assets
• Delivered the first NDA group Heritage report to the Department for Culture, Media and Sports and commenced consultation and development of the NDA group Heritage Strategy
• Continued to mature our ways of working through the previously implemented IT delivery capability, with improved portfolio management, new end-to-end service design and service integration process and governance structure, fully resourced architecture function, and a fully resourced IT assurance function to better assure group-wide IT investments
• Rolled out additional Microsoft Office 365 features and other technologies in support of a hybrid working model
• Agreed that NDA, Magnox, Dounreay, Nuclear Waste Services and Nuclear Transport Solutions will collaborate on the future procurements of commodity ICT services, with the aim to deliver these more efficiently whilst improving collaboration across the group
• Initiated the production of a group IT strategy and group technology strategy, aiming for standardisation and common approaches to shared needs
• 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 ‘Cobalt Kingfisher’ and supported the delivery of the sector-wide cyber strategy
• Adopted the cyber professional standard from the Chartered Institute of Information Security (CIISec) and supported the launch of the new CIISec Nuclear Sector Hub, helping cyber professionals in the sector
• Continued to lead the sector-wide unmanned aerial vehicles working group, which included a cross sector and UK Government tabletop exercise using a modelling and simulation platform
• Initiated a future security systems innovation challenge in conjunction with the defence and security accelerator (DASA), funding several bidders’ innovative ideas that utilise artificial intelligence and robotics to deliver cost effective new security solutions that offer significant potential cost savings for security delivery during the decommissioning lifecycle
• Supported several international technical exchange sessions for nuclear security with the US Department of Energy and Department for Energy Security and Net Zero funded international nuclear security improvements programme
• Improved the NDA group’s information security capabilities through the construction of a secure compartmentalised information facility to support AWE and Ministry of Defence decommissioning programmes
• Developed a group wide security assurance model (SAM) with the initial personnel security maturity model now being used to inform the NDA group strategic risks associated with the insider threat.

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, Department for Energy Security and Net Zero and other Government departments and agencies.

Modern Slavery Act 2015

In accordance with the Modern Slavery Act 2015, we published our Modern Slavery Statement covering the period 1 April 2021 to 31 March 2022 on 30 September 2022. The Statement reflects the progress made to tackle modern slavery during the year, as well as our commitments for the following year. We continue to take Modern Slavery extremely seriously and reaffirm our commitment to ensuring our organisation and our supply chain is free from it.

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 UK 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 our position and 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. In 2022/23, no new contracts were identified as being at high risk of Modern Slavery, nor did suppliers raise any issues with us.

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. Our Commercial practitioners undertake a number of training courses to ensure they have the skills to recognise and tackle modern slavery, including training issued by the Government Commercial College. Modern Slavery has been integrated into the new Commercial system currently being implemented across the NDA group to ensure that the risks of Modern Slavery are considered and managed appropriately in every procurement undertaken.

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 2022 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.

A key element of the NDA Internal Control Framework is the quarterly Accounting Officer Review process which provides assurance over the performance of the operating companies. During the final quarter review, which took place in May 2023, an anomaly was identified in the determination of the outcome of an employee incentive plan at Sellafield, resulting in overpayments to staff. We believe this is due to a management override of financial controls and are undertaking a full investigation in order to respond appropriately, understand the root cause and identify any associated control weaknesses or gaps. At the point the issue was identified by the NDA the payment to staff at the operating company had already been actioned. Staff were immediately notified of the potential overpayment and an investigation into the circumstances was commissioned. Our sponsor department was notified and has been kept informed of the investigation. The Sellafield Board has resolved to recover the overpayment and will recommend an appropriate mechanism to the NDA for approval. A group-wide review of reward governance has commenced and will be progressed at pace, whilst ensuring we take the necessary time to fully understand and address the issues. The financial impact of the increased bonus was £2.1m.

During the year, balance sheet reviews at Magnox identified an error whereby incorrect accounting for deferred tax and the associated calculation of distributable reserves at Magnox Limited resulted in overpayment of dividends to Cavendish Fluor Partnership totalling £2.8m in August 2020 and November 2021. We are seeking to recover the overpayment. Whilst this is an isolated occurrence, which was immediately reported to the NDA finance function, we are seeking to reinforce our balance sheet review process and will share lessons learned with the group.

In line with UK 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 our key business decisions. We are compliant with the implementation of the MacPherson Review of Quality Assurance (QA) of Government Analytical Models and have 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, we have continued to operate a ‘virtual’ group internal audit function and have continued to seek ways to better align our approach, introduce consistency and share best practice. This has resulted in more visibility group-wide of matters impacting our corporate governance, risk management and internal control.

Our ethics and compliance framework has continued to evolve this year, following the implementation of the group-wide Ethics Policy and new speak up policy which focuses on the importance of speaking up about potentially illegal, unsafe or unethical behaviour or practices. We started 2022/23 with an advisory review of the current ethics and compliance landscape across the group, and developed a high-level risk map to show what each operating company considers their top ethics and compliance risks. Alongside the Ethics and Compliance function, we developed a roadmap for implementation of a target operating model, using the insights gained from the review. The A&RAC has continued to receive quarterly reports on Speak Ups received and investigations undertaken, in addition to themes, trends and lessons learned. Serious cases are reported to the A&RAC as they occur.

Our A&RAC has continued to strengthen relationships with the group’s audit committees at the operating companies. We have continued to hold quarterly group-wide forums for NDA and operating company A&RAC Chairs and members, retaining a focus on emerging risks, sharing best practice and bringing knowledge from external subject matter experts.

This year, we returned to a face-to-face format for our annual NDA group A&RAC conference, but for the first time, the event was hosted jointly by Internal Audit with our Risk function. This emphasises the continued focus on bringing our lines of defence closer together, enabling us to collaborate, share and continue to nurture our working relationships, and it was the first time the two functions across the group have been together in one place. Attendees across the two days included group-wide A&RAC Chairs, members, executives and Internal Audit and Risk professionals.

On day one we heard from our new NDA A&RAC Chair, who gave insight into what was front of mind and set the scene for the two days. We then focused externally, with a deep-dive session on net zero and cross-government priorities and risks. Day two was for reflection internally, hearing from our Group Chief Financial Officer, in addition to an A&RAC Chairs and members question and answer session.

Our group Internal Audit function developed and delivered a Group Internal Audit Plan for 2022/23, designed to provide assurance over key business processes, our Group Strategic Risks and key business risks. We have continued with a group-wide focus on key risks and controls, and completed three group audit theme reviews, across people strategy and reward, cyber security and third-party risk. Insights from these reviews are further promoting the sharing of challenges and good practices across the group. We also undertook a review of Advanced Gas-cooled Reactor (AGR) governance which, whilst delivered by the NDA Internal Audit team, required collaboration and input across the group. For the first time we have also shared resource and collaborated across Internal Audit teams, with resource from the NDA Internal Audit team providing input into a Magnox-led internal audit of their Future Missions directorate.

The findings from the internal audit reports across the group receive close attention from the Executive Leadership Team, the Group Leadership Team and the Board via the A&RAC.

In line with the standard ratings of the UK 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 us, its operating 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’ 25%, ‘high level of assurance’ 12% and ‘substantial assurance’ 13%, with 50% advisory.

Across the group as a whole, internal audit review ratings were as follows: ‘no assurance’ 3%, ‘limited assurance’ 9%, ‘moderate assurance’ 23%, ‘high assurance’ 14%, and ‘substantial assurance’ 24% with 27% advisory.

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

Careful consideration was given to the issue emerging at the time of this report with regard to Reward governance. The moderate assessment also takes into account the seriousness with which the issue is being treated and the ongoing work to consider group-wide Reward governance and identify any control gaps/weaknesses in the current arrangements.

Two areas assessed by internal audit across the group received ‘no assurance’ ratings this year; these related to aspects of inventory management at Sellafield and payroll processes at Magnox. In both cases recovery projects have been initiated by management, with oversight from the A&RAC Chairs, and good progress is being made with strengthening controls. Lessons learned have also been shared across the group.

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 cyber security, reward and commercial, with opportunities to further strengthen our control arrangements. Business operating processes, including payroll, expenses and key financial controls were generally found to be robust.

A significant area of focus for the group this year has been preparedness for the transfer of AGRs to Magnox. We undertook an advisory review towards the end of the year which considered the governance arrangements around AGR defueling during 2022/23 and the development of the Hunterston B transfer blueprint.

Looking forward, and as we continue to respond to the changing risk profile as a result of being ‘trusted to do more’, 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. Internal audit has continued 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 group-wide system of internal control operating throughout the past year is effective, and appropriate to meet the NDA’s objectives, to the best of my knowledge. 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 CEng HonFNucl
Accounting Officer and Group Chief Executive Officer 12 September 2023

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 mission.

I am pleased to present the 2022/23 remuneration report for the NDA, outlining the areas of activity for the committee during this financial year.

Group-wide remuneration

Whilst this Remuneration Report is for the NDA itself, the one NDA way of working continues to be a focus for us and for Government. We continue to strengthen in this area and this year, the operating companies have supported it by starting to embed the Group Reward Framework and Reward Governance Frameworks within their own policies. An internal audit review has recently been concluded to support and further strengthen the implementation of the frameworks and we were pleased to note progress has been made across the group. The NDA and operating companies will continue to collaborate to further strengthen this.

We continue to view mobility across the group as a priority and the committee remains mindful that a coherent approach to senior reward is needed to facilitate this. We are equally aware, given their role as site licence and duty holders, that the operating companies retain responsibility for their own reward arrangements within the boundaries set by our reward governance framework. The 2021/22 senior incentive study was an important step towards identifying areas where operating against a common framework and set of principles could be created across the group and this work has continued throughout 2022/23.

Our approach to remuneration for the NDA in 2022/23

Base salaries

Our proposals to introduce a self-funded “capability based pay progression” system for the NDA have meant a more complex approval process with government for the 2022/2023 pay award. We were disappointed not to have been able to pay this before the end of the 2022/23 year, but worked well with government and our recognised trade union, Prospect, to obtain the requisite approvals. We were able to deliver the pay award to staff in August 2023, along with an appropriate backdated payment. Senior executives of the NDA were also awarded a 2022/2023 increase in August 2023.

2022/23 incentive outcomes

We are mindful of the cost-of-living challenges being faced by many and with this in mind we were pleased to offer NDA staff an advanced payment of a portion of their annual Short-Term Incentive Plan in December 2022. This was well-received by staff at a time of uncertainty for many.

In May 2023, the committee considered the performance of the 2022/23 NDA Short-Term Incentive plan (STIP) and the 2020-2023 NDA Long-term Incentive Plan (LTIP). The outturns of these plans are reflected in the directors’ payments table on page 100.

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 2022/23 NDA Short-Term Incentive Plan in line with the formulaic target achievement at 83% of the maximum.

Similarly, the performance of the 2020-2023 NDA Long-Term Incentive Plan was carefully considered and a payment of 144% of the award value declared in line with the target achievement.

Payments of these awards were made in June 2023.

2022/23 NDA Short-Term and Long-Term Incentive Targets

Targets for the 2022/23 NDA Short-Term Incentive Plan and 2022-2025 NDA Long-Term Incentive Plan were set during the 2022/23 year. In doing this the committee was particularly keen to follow through on work undertaken to simplify the target setting, which we see as crucial to a clearer alignment between performance and reward.

In setting targets this year, the committee took particular account of our NDA Strategy document and the opportunities presented by continued progress in building a one NDA way of working. The committee worked closely with the Group Chief Executive Officer, Group Chief Financial Officer and Group Chief People Officer to ensure the strategic relevance of the targets set, to align them with the requirements of UK Government and to ensure a focus on taxpayer value for money through targets which are appropriately challenging as drivers for delivering the mission.

Other areas of oversight

During the year, the committee continued to support the Group Chief Executive Officer by looking at reward for all NDA executive team members, in line with amendments made to the committee’s Terms of Reference during 2021/22 and in accordance with the Reward Governance Frameworks. 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.

Evelyn Dickey
Chair of the Remuneration Committee
12 September 2023

Remuneration Committee (RemCo)

Remuneration Policy

Attracting and retaining the right calibre of executives remains critical for us to deliver our mission safely, securely and quickly. We have also seen a marked increase in demand in the market for the nuclear, regulatory, cyber security and programme management skills we need.

This increases the recruitment and retention challenge and makes it more important than ever that we can offer competitive reward packages, whilst remaining mindful of taxpayer value for money.

In doing this, 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 our 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.

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 delivering 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
Our Chief Executive Officer 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.

No changes to the STIP quanta are planned. The design of the STIP for the executive changed for the previous plan year, increasing the NDA and operating company performance elements of the STIP and reducing the personal performance element.

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, with LTIP awards being made at the start of each three-year performance period. In-flight plans use a multiplier to increase or decrease the outcome and we recently changed this to measure threshold, target and stretch outcomes against each target. This change has not affected the maximum LTIP outturn, which remains 50% for the Chief Executive Officer and 40% for the Chief

Financial Officer (previously 25% and 20% with a maximum multiplier of 200%).

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 2023/24.

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.

During the year, Mel Zuydam as the Group Chief Financial Officer, was a member of the pension scheme. The Group Chief Executive Officer is provided with a cash payment in lieu of membership.

There are no changes planned to this policy for 2023/24.

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 Group Chief Executive Officer and Group Chief Financial Officer, are appointed by the non-executive Board members and, in the case of the Group CEO, with the approval of the Secretary of State for the Department for Energy Security and Net Zero (DESNZ) in 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 DESNZ 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 DESNZ and the non-executives are not involved in decisions relating to their own remuneration. For year 2022/23, the Chair received a fee of £187,500 and other non-executive directors were eligible to receive £40,000. 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 their duties.

Details of directors’ remuneration and pension are shown in the table below.

Executive Directors remuneration

This information is subject to audit.

Director	Year			Fixed pay		Variable pay**	Total remuneration £
		Salary £	Benefits £	Pension*** £	Short Term Incentive £	Long Term Incentive £
David Peattie (*)	2021/22	336,600	62,180	-	143,055	116,325	658,160
	2022/23	346,698	62,673	-	145,440	121,176	675,987
Mel Zuydam (**)	2021/22	260,000	16,981	99,710	70,200	-	446,891
	2022/23	260,000	20,501	99,710	79,144	74,880	534,235

(*) Additional benefits received were a market benefit of £12,000, and a cash payment of £50,673 (2021/22: £50,180) in lieu of membership of the Civil Service Pension Plan.

() Additional benefits received were a market benefit of £12,000, and holiday pay allowance of £8,501 (2021/22: £4,981). (*) Details on pension arrangements are shown on pages 111 to 112.

(**) Details of the NDA Short-Term and Long-Term Incentives are shown in the remuneration report.

Non-executive Board members remuneration

This information is subject to audit.

Non-executive Board members	Additional role (Effective date of becoming a member)	Year	Total fees £
Dr Ros Rivaz	Chair of the Nomination Committee (01.09.20 - date)	2021/22	187,500
		2022/23	187,500
Volker Beckers	Chair of the Audit and Risk Assurance Committee (01.03.15 - 31.07.22)	2021/22	40,000
		2022/23	23,333
Evelyn Dickey (1)	Chair of the Remuneration Committee (01.03.15 – date)	2021/22	30,000
		2022/23	40,000
Janet Ashdown (1)	Chair of the Safety and Security Committee (01.06.15 - date)	2021/22	30,000
		2022/23	40,000
Kathryn Cearns	Chair of the Audit and Risk Assurance Committee (01.08.22 – date)	2021/22	-
		2022/23	26,667
Francis Livens	Non-Executive Board Member (01.12.20 – date)	2021/22	40,000
		2022/2	40,000
Alex Reeves (2)	UKGI Representative Board Member (01.02.20 – date)	2021/22	-
		2022/23	-
Chris Train	Chair of the Programmes and Projects Committee (31.01.22 - date)	2021/22	9,032
		2022/23	40,000

1. Members who decided to remain on the previous fee structure for the financial year 2021/22

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 seeks appropriate alignment.

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)

This information is subject to audit.

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 2022/23, was £675,000 - £680,000, (2021/22: £655,000 - £660,000). This was:

• 12.8 times (2021/22: 13.7 times) the remuneration of the lower quartile of the workforce, which was £52,903 (2021/22: £48,105)
• 8.5 times (2021/22: 8.8 times) the median remuneration of the workforce, which was £80,107 (2021/22: £74,461)
• 6.1 times (2021/22: 6.3 times) the remuneration of the upper quartile of the workforce, which was £111,247 (2021/22: £103,953)

The highest paid director’s performance pay and bonuses increased by 2.8%, primarily due to an increase in base salary and improved performance against long-term business objectives.

The salary and allowances for the remainder of the organisation increased by 5.7% over the previous year, with an increase of 41.6% in performance pay and bonuses; this was driven by the level of recruitment in the financial year and a higher overall incentive performance outcome.

In 2022/23, zero (2021/22, zero) employees received remuneration in excess of the highest-paid director.

Remuneration ranged from the lowest band of £25,000 - £30,000 to the highest band of £675,000 - £680,000 (2021/22 band £20,000 - £25,000 to £655,000 - £660,000).

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.

	2022/23 Total £	2021/22 Total £
Band of highest paid director’s total remuneration	675,000 – 680,000	655,000 – 660,000
Upper quartile total remuneration	111,247	103,953
Median total remuneration	80,107	74,461
Lower quartile total remuneration	52,903	48,105
Ratio director: Upper quartile	6.1:1	6.3:1
Ratio director: Median quartile	8.5:1	8.8:1
Ratio director: Lower quartile	12.8:1	13.7:1
Band of lowest paid employee’s total remuneration	25,000 - 30,000	20,000 - 25,000

The increase in the median remuneration level of 7.6% is partially due to recruitment activity and changes arising from turnover, alongside Cabinet Office approval of a pay business case covering the 2022/23 financial year. The highest paid director received a 2.7% salary and allowances increase in 2022/23. 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 us to recruit and retain the necessary skills to deliver our mission.

	Salary	Total pay and benefits
Upper quartile	84,045	111,247
Median	63,805	80,107
Lower quartile	36,805	52,903

People report

Our people are at the heart of the NDA group. 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, diverse, 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 2022/23.

Our NDA Strategy document outlines and underpins the objectives for the NDA group in our People Strategy workstream. It is built around three key themes:

Ensure we have people with the right skills, in the right roles at the right time to deliver the mission

Create a culture in which our people can thrive

Work in partnership with our recognised trade unions and the broader stakeholder community.

The one NDA way of working has enabled us to collaborate meaningfully and effectively across the NDA group on developing a strategy to create a thriving workforce for the future.

We are also continuing our commitment to the targets and objectives of UK Government’s policy position. We take a leading role in skills strategy and policy for the UK nuclear sector and continue 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.

Skills is a key priority and escalating risk for the NDA group. Ensuring that we have the right people with the rights skills in the right place at the right time is a key theme of our NDA Strategy. We want to develop a coherent strategy for skills across the group. During 2022, we enhanced our approach to strategic workforce planning, enabling us to develop an aggregated view of our current workforce and future needs.

We have developed a group-wide language for skills, identifying our critical, scarce, and high demand skills, each of which could and should require a different approach to mitigating risk. Collaboration is key and approaching these challenges together is enabling us to respond more effectively, maximising benefits and delivering greater value for money.

We are facing a perfect storm of external and internal factors which are impacting on our ability to attract and retain individuals with the skills we require to deliver the mission. The UK Energy Security Strategy has created a boost for the nuclear sector which is delivering real benefit to us as nuclear becomes a more attractive career option for a wider population and more diverse candidate pools, but it is also creating real competition for people with nuclear skills and in the broader context, skills for nuclear.

In December 2022, we launched the NDA group graduate programme, bringing together all parts of the group to attract, recruit and develop graduate talent to enable us to deliver our mission. The recruitment drive is intended to find the next generation of graduates to start in September 2023. Over 70 opportunities have been identified across the group, with a focus on critical and scarce skills, including:

• Cyber security and digital
• Commercial and business (including finance, risk, and audit)
• Project management and project controls
• Science and engineering

This is one of several ways that the NDA group is investing in early careers development. More than £30 million is invested each year in apprentices and graduates, with almost 1,000 people currently on early careers programmes across the group.

The NDA group hosted a live event during National Apprenticeship Week with over 1,400 potential apprentices registering interest. The main purpose of this event was to demystify nuclear and showcase the range of apprenticeship and career opportunities across the group, seen through the eyes of our apprentices. We had full group participation with each apprentice talking about how they were attracted to the group and their experience to-date.

There have been significant developments in leadership and talent projects throughout 2022/23. In November 2022, we held the first NDA group Leadership Academy Conference to great success, with academy delegates leading the conversation on a range of topics including: sustainability, mobility, and inclusion. We have made a commitment to continue to invest and increase the cohorts so we can have 200 NDA group leaders either completed or on the academy programme by 2025.

The NDA group Talking Talent Programmes help create collaborative opportunities to discuss talent across the whole of the NDA group looking at the breadth and depth of career opportunities. It helps to create a common language to discuss the talent lifecycle within a function that can then inform the strategic priorities and identify opportunities to collaborate from a people, skills, and talent perspective. In flight programmes include HR, Communications, Risk, Environment, Audit, Asset management, Commercial, Legal and General Council, Cyber and Waste.

We have developed an NDA talent toolkit which involves a range of initiatives and tools to support development such as the NDA group leaders 360, The NDA group Leadership Solution and Insights. Over 1,750 people collectively have undertaken these tools to support their individual talent journeys in 2022/23.
At executive and Board level we have secured a framework of executive search partners to assist us in recruiting the best and most diverse senior talent and non-executive directors. We have a Chief Executive Officer / HR Director talent forum three times a year and the ongoing dialogue and meaningful discussion of our people is supporting our ambitions for the NDA group.

Additionally, new opportunities have been created with the Department for Energy Security and Net Zero, Ministry of Defence and our colleagues in Japan with exciting secondment opportunities for individuals from a variety of functional areas, further supported by the Secondment Charter principles that were launched in 2022/23.

Creating a culture in which our people can thrive.

Our diversity and inclusion (D&I) journey has continued to gain momentum this year since we launched our NDA group Inclusion Strategy 2021-2025 which is available online. This strategy builds on the positive foundations since the development of our first strategy in 2018. In this phase of our journey, we have focused on embedding D&I into our DNA and have strengthened group-wide governance through our D&I Council, and a collaborative cross-group D&I delivery group.
Our NDA group Inclusion Strategy 2025 focuses on five key themes and 2022/23 success and highlights under those themes are:

Theme 1 - Inclusive culture and leadership

All operating companies have aligned their D&I plans to the NDA group Inclusion Strategy measures and goals. Progress is reported via our D&I Council, Sustainability and Governance Committee and NDA Board. In addition, each operating company reports their plan progress.
We have set mandatory D&I objectives for all senior leaders and delivered a group D&I leader’s event with over 60 senior leaders coming together to collaborate on our priorities and explore how we can move the dial.
Our inclusive leadership workshops have been well received by 250 leaders from the group and we will continue to roll out learning for leaders in 2023/24.

Our Women’s Development Leadership Programme (WDLP) has become very successful since its launch in 2021. We have partnered with Whitehall Industry Group to deliver two rolling programmes:

• The senior programme is for talented mid-career women with potential for top leadership roles
• A step up, step across (SUSA) programme is for mid-career professionals who are looking to take a step up into their first leadership role

To date 159 women have started or completed the programme.

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 supported industry-wide development with partners such the Engineering Construction Industry Training Board and Women in Nuclear.

Theme 2 - Workforce diversity

We have set ourselves some stretching diversity goals to monitor our progress as part of the strategy, against which we’ll report progress. Over the next three years we want to ensure the NDA group is a best in sector inclusive employer.

We have set aspirational goals in our strategy to achieve gender balance and a diverse workforce that represents modern Britain, whilst also recognising the underlying demographics of the locations in which we operate. We recognise this is a longer-term goal and as of the September 2022 data cut our: gender balance was 29.7% women to 70.3% men, 29.8% women on boards and in senior executive roles, ethnicity 2%, disability 3% and LGBT 1.4%.

We continued to improve the data we hold about our employees and over the next two years we want to improve further, gathering D&I data in respect of attraction, talent, and mobility. Gathering this helps us to better understand the diverse make up of our employees and measure our progress against our goals and helps us understand differences between workforce groups in terms of representation and outcomes.

Nuclear Transport Solutions is partnering with ‘Women Returners’ and has launched its first career returners programme. The aim is to support those who have been out of the workplace for 18 months or more to flexibly re-start their career and develop their skills and experience in an established and growing global organisation.

All operating companies and the NDA have achieved Disability Confident status level 2, and we are working towards achieving level 3 in 2023, with the NDA and Sellafield having already achieved Disability Confident Level 3 Leader status. This ensures we attract disabled talent and that our recruitment processes and workplaces are inclusive and accessible for all.

Gender pay gap reporting

We are committed to reducing 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 the NDA and operating companies have in place an annual gender balance improvement plan.

In line with our equality duties, we published our annual gender pay gap data for March 2022. Within the NDA group, the figures published at March 2023 showed the overall average gender pay gap (when weighted by employee numbers), when comparing mean pay, to be 11.7% and the average median pay gap 11.4% against an ONS national average of 14.9%.

The 2021/22 data illustrates a continuing decrease in the mean gender pay gap across the majority of NDA group operating companies and we continue to see annual variances in our gender pay gap data for those operating companies with lower employee numbers. Changes at the bottom and top of the organisations can result in a significant percentage change in the calculations on a year-on-year basis.
We are seeing a strong focus on gender balance activities across NDA group and we are actively attracting women into our early careers, supporting women in their development and creating great places to work where women’s health is talked about and supported.

Theme 3 - Embedding inclusion through the employee lifecycle

We have a collective commitment to ensure we’re aligned with leading recruitment and talent development practice. In 2021/22 an external expert organisation carried out a group-wide end to end review of our recruitment lifecycle with a focus on D&I. The report and recommendations have been adopted and we continue to embed D&I across our people processes including with new starters, hiring managers, resourcing leads / partners, D&I leads and HR teams. We use a gender decoder tool to ensure all adverts and job descriptions are appealing to all job applicants and avoid unnecessary technical jargon.

Theme 4 - Flexibility, agility, and smarter working

We have maintained operational delivery and demonstrated the benefits of a more agile way of working through a mix of site or office based, flexible hours, and home working. New ways of working and enhanced technology enable our teams to stay connected, and maintain work life balance. We also recognise the importance and benefit of face to face working to build relationships, promote connectivity, communication, team development and encourage collaboration and creativity.

Throughout 2022/23 we have highlighted key events from the D&I calendar including International Women’s Day, Race Equality Week, Neurodiversity Celebration Week, Pride Month, National Inclusion Week, International Men’s Day, Mental Health Day, World Menopause Day, and International Day of People with Disabilities. We use these events to create safe spaces to amplify our inclusion message, engage employees and promote learning through conversations. Employees often share their inspiring personal stories through blogs, videos and lived experiences, run webinars, training sessions, and ‘town hall’ discussions.

Theme 5 - Respect, dignity, and employee voice

We have leveraged employee voice through our group-wide employee engagement survey launched in 2021 and feedback continues to inform our approach using ‘You said, We did’.

We have continued to work closely with the trade unions and our five group-wide employee networks for gender, race, disability, LGBT+ and menopause which provide colleagues with valuable support, create development opportunities, and raise awareness of issues and challenges. Our networks provide insights into how we need to adapt to give colleagues support. They are developing knowledge and skills year on year through our network training and development programme, coaching and professional development for network executive sponsors, co-chairs and steering group members.

We held our first ever NDA group network event in February 2023 with all 34 networks from across the group (including the operating companies) and executive sponsors represented. The Power of Networks event brought together leading external speakers and facilitators to celebrate the great work our networks do, and to help develop them. We have committed to developing a group-wide Employee Network Framework to fully leverage the benefits of our employee networks for their members, allies, and our organisation.

Employee engagement survey

We first launched the group-wide employee engagement survey in October 2021; the survey results and employee comments provided a good base from which to identify actions and measure improvements. We have provided regular “You said, We did” communications throughout the year and launched a mini pulse survey during 2022. We undertook a further full survey in spring 2023 and plan to repeat this on an annual basis.

Employee health and wellbeing

We continue to recognise the importance of 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 which provided us with insights into areas for our ongoing future focus. 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 coordinated 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 a ‘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 individuals 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 2023/24.

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.

The NDA is progressing to become a nationally recognised Menopause Accredited Employer. A Menopause Steering Group has been established with a dedicated “Meno-hub” site with access to all across the NDA. The steering group 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. Practical support for colleagues through the introduction of the Peppy app has been extremely well received by staff.

For 2022/23 an average of 4.9 days per employee was lost to sickness absence. This equates to an absence rate of 2.3%. An analysis of 2022/23 total absence identifies that mental health was the biggest cause of the number of sickness absences.

We 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.

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

The NDA group remains committed to a partnership working approach with our recognised trade unions.

During the last year the industrial and employee relations landscape has been challenging, particularly as it was set within a public sector climate of unrest. Against this backdrop our partnership approach has enabled a constructive relationship throughout the year. With our unions we have recently established an NDA-trade union group forum to foster and sustain positive engagement on issues affecting the whole NDA group. We have also restarted a pension forum which has enabled dialogue on the forthcoming pension reform.

Employee turnover

The average length of service is five years and for the year 2022/23 turnover of permanent people was 9.7%. This compares to an average external turnover rate of 6% (as per latest CIPD survey).

The following table is subject to audit.

2022/23 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 - £150,000	0	0	0
£150,000+	0	0	0
Total no of exit packages	0	0	0

There were no exit packages for 2021/22.

Headcount and employee costs

NDA group staff costs

This information is subject to audit

NDA Group 2023		NDA Authority (a)		NDA Programme		Subsidiaries (b)	Total
	Permanently employed staff	Others	Permanently employed staff	Others	Permanently employed staff	Others
	£m	£m	£m	£m	£m	£m	£m
Wages and salaries	17	-	19	6	962	73	1,077
Social security costs	2	-	3	-	116	-	121
Pension costs	3	-	4	-	189	-	196
Total staff costs	22	-	26	6	1,267	73	1,394

NDA Group 2022		NDA Authority (a)		NDA Programme		Subsidiaries (b)	Total
	Permanently employed staff	Others	Permanently employed staff	Others	Permanently employed staff	Others
	£m	£m	£m	£m	£m	£m	£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

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

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.

Group wages and salaries include the costs associated with incentive plans at operating companies. An overpayment of the incentive plan outcome at Sellafield of £2.1m was identified after the year end and although the Sellafield Board plans to recover this amount, the table above includes this incremental bonus payment. See page 94 for details.

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:

The following table is subject to audit

NDA Group	Permanently employed people	Others	Total 2022/23	Total 2021/22
Directly employed - authority (Admin)	155	9	164	232
Directly employed - authority (Estate)	205	43	248	158
Directly employed – subsidiaries	15,910	1,042	16,952	16,510
Total	16,270	1,094	17,364	16,900

a) 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 2023, the breakdown by gender is as follows:

	NDA Authority		NDA Programme
	Male	Female	Male	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	64	85	121	77	347
Total	74	86	122	77	359

Notes to the Remuneration and People reports

Tax arrangements of public sector appointees

As a public body, we adhere 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 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 2023 for those individuals on more than £245 per day and lasting more than six months (up until the expected end date – not 31 March 2023) are detailed below. There were 11 new off-payroll workers in the year whose assignments lasted more than six months (between start (after 1 April 2022) up to 31 March 2023 (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 2023, earning £245 per day or greater.

Length of appointment at 31 March 2023	No. of off payroll contractors
Less than 1 year	18
1-2 years	11
2-3 years	3
3-4 years	0
More than 4 years	0
Total of existing off payroll contractors	32

Off-payroll contractor engagements as at 31 March 2023, earning £245 per day or greater.

Number of new engagements, between 1 April 2022 and 31 March 2023 Of which…
Not subject to off-payroll legislation	0
Subject to off-payroll legislation and determined as in-scope of IR35	32
Subject to off-payroll legislation and determined 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 £1,203,211 (2021/22: £211,250)

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 Group Chief Executive Officer, 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 PCSPS Schemes 2022/23 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	96.3
Nuvos/Premium/Classic	0.0
Partnership	0.8
UKAEA (INS TUPE)	2.6
Opt out	0.3

Annual pensionable earnings (full-time equivalent basis)	Alpha and all PCSPS Schemes 2022/23 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%

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 their 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 2022/23 £000’s	Accrued pension at 31 March 2023 £000’s	Cash equivalent transfer value (CETV) at 31 March 2022 £000’s	CETV at 31 March 2023 £000’s	Real increase in CETV funded by employer £000’s
Mel Zuydam	5-7.5	20-25	222	328	72
David Peattie*	0	0	0	0	0

• Does not participate in the Civil Service Pension arrangements

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	360

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	£79,467
Total pay bill	£47,259,606
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

Our number one priority is and always will be health, safety and wellbeing (HSW), while upholding environmental standards. Across the NDA group, we are committed to providing a safe and healthy environment where our employees are able to thrive at work. Nuclear safety is of paramount importance and well managed operating conditions continue to provide high standards of protection for workers, the public and the environment from potential radiation hazards.

Our focus is to reduce the highest hazards and risks, while ensuring safe, secure, responsible and environmentally sustainable operations at our sites. It’s our duty to carry out this highly complex mission safely and efficiently, ensuring people and the workplace are protected at all times, whilst protecting and enhancing the environment.

We are committed to improving and protecting the mental health and wellbeing of people across the NDA group through a supportive working environment. We will continue to raise awareness of mental health issues and ensure that all our people have the knowledge, guidance and tools to look after their wellbeing and that of others. More information on our work to improve mental health and wellbeing is included in the People report on pages 106 to 107.

This section reports on the overall health, safety, environmental and wellbeing performance of the NDA and where appropriate that of our operating companies.

Health and safety

Our primary health and safety key performance indicator (KPI) for the group is Total Recordable Incident Rate (TRIR). Performance continues to be strong at 0.30 for the year. This represents an improvement over last year’s figure of 0.33.

There has been an improvement compared to 2021/22 in the number of incidents reported to The regulator under The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR).

RIDDOR	2021/22	2022/23
Specified injuries	4	9
>7 day injury	18	13
Industrial diseases	5	0
Dangerous occurrences	3	2
Total	30	24

This includes employees and incidents to contractors working on site.

Following each RIDDOR event a comprehensive and systematic examination is undertaken to identify its root causes and to develop recommendations and actions to prevent a similar occurrence in the future.

From a regulatory perspective there were three formal Office for Nuclear Regulation interventions:

• A prosecution following a fall from height
• An improvement notice relating to the above fall from height
• An enforcement notice relating to fire alarms and protection systems.

All relate to Sellafield and more details are contained the operating company section.

Our current focus is on expanding our suite of key performance indicators to include more leading indicators to complement reactive measures such as TRIR. This allows increased proactive working with a view to preventing future incidents.

The development of the group HSW Assurance Framework continues with particular focus on sources of risk which are commonly associated with higher potential impacts. The next area of assurance for 2023/24 is workplace transport. This will result in comprehensive and consistent assurance being undertaken across the group with a view to highlighting areas for improvement and the identification and sharing of good working practice.

Health and safety assurance has increased with focus on key potential sources of risk including working at height, fire prevention and control, management of asbestos and control of contractors.

The aim of assurance is not just to ensure the required processes are in place, but to also identify and help propagate good working practices.

Health safety security environment flowchart

Working groups are in operation with representatives from all parts of the NDA group with a view to sharing good working practice in key areas of potential risk including construction and design management, learning and sharing, demolition and workplace transport safety.

During the year, health and safety climate surveys were undertaken across the majority of the group with good results. Action plans have now been developed to continue to deliver safety culture improvements.

Environment

We continue to deliver our environment strategy. This seeks to ensure that our mission outcomes, and the journey to deliver them, are sustainable, improving and protecting the environment. This year our NDA group Environmental Policy Statement was issued, strengthening our environmental commitments.

The policy contains our carbon commitments, including that the NDA group will be carbon net zero by 2050, and will take into take account the targets of devolved governments. We continue to work with our operating companies on the delivery of our carbon management plans and have made significant reductions in our carbon footprint over the past two years.

Following four pilots around our group we are also developing an implementation plan for BSI Publicly Available Specification (PAS) 2080: Carbon Management in Buildings and Infrastructure, the recognised good practice standard, to ensure that we take a whole lifecycle carbon approach to our decisions to secure carbon reduction. We have developed and published a carbon assessment and natural capital assessment approaches in our guidance on sustainability in business cases. We will continue to refine this guidance as we develop our carbon lifecycle approach.

We have continued to use our environmental key performance indicators across the group, focusing on assets, compliance, audit progress, training, skills and experience. These indicators show a key issue across our group is around finding sufficient numbers of environmental professionals for the future. We are in the second year of tracking environmental events group-wide, including an environmental-total recordable incident rate (e-TRIR) measure aimed at tracking significant environmental events in a similar manner to conventional safety TRIR data. We have reviewed these measures, made minor enhancements and believe they provide an improved picture of environmental performance. These indicators will be reviewed again next year with an intent to set targets for e-TRIR once sufficient evidence has been collected.

Last year we reported establishing a natural capital baseline for all NDA land holdings. This has been maintained and shared across the NDA group with a view to aiding land use planning decisions and the identification of opportunities for environmental protection and enhancement. Work is ongoing across the NDA group to improve the data in the baseline and to develop an NDA Natural Capital Improvement Plan. Over the year several practical environmental improvements have progressed including tree planting at Trawsfynydd in North Wales and in West Cumbria and installation of an Eel and Lamprey pass at a weir on the river Annan near Chapelcross, improving upstream ecological quality. Other opportunities are being progressed, such as improvements to a silt lagoon near Oldbury.

We have initiated work with our operating companies on the development of water management plans. Template plans and guidance have been developed and our operating companies are now at various stages of implementing this good practice, which will continue next year. These plans will ensure a better understanding of water use, improving the sustainability and resilience of supplies, and delivering reductions in use with the associated environmental benefits.

We have continued to assure ourselves of environmental compliance and performance across the NDA group through a range of reviews, assurance visits, environmental performance metrics and engagements.

Greening Government Commitments (NDA only)

As part of our commitment to environmental sustainability, we participate in the Greening Government Commitments (GGC) scheme. GGC sets out the actions Government departments and their Partner Organisations will take to reduce their impacts on the environment. We have been part of GGC since the scheme’s inception in 2009/10. The framework is set by the Department for Environment, Food and Rural Affairs (Defra) and we report data quarterly through the Department for Energy Security and Net Zero. The headline targets, alongside our performance this year, are given in the table below. The baseline year is 2017/18. Herdus House in Cumbria, where we have the most control, is the ‘reference building’ under GGC. Further information on performance is given in the following sections.

GGC target (2024/25)	2022/23 NDA performance
Reduce greenhouse gas emissions by 45%	Reduced by 46%
Reduce direct greenhouse gas emissions by 30%	Increased by 66%
Reduce greenhouse gas emissions from domestic flights by 30%	Reduced by 17%
Reduce waste generation by 15%	Reduced by 43%
At least 70% of waste to be recycled	74% recycled
Reduce landfill disposal to less than 5%	Non-recyclable waste is sent to an energy from waste plant, rather than landfill
Reduce water use by 8%	Reduced by 60%
Reduce paper use by 50%	Reduced by 64%

Domestic greenhouse gas emissions for NDA

Chart - Domestic greenhouse gas emissions for NDA

A reduction of 46% has been achieved this year against the 2024/25 target of 45%. The graph above shows that energy use and business travel are the key contributors to emissions. Performance needs to be sustained or improved to ensure the target will be met by the end of 2024/25. These aspects are considered further below.

Electricity usage (kWh) - Herdus House

Chart - Electricity usage kWh - Herdus House

We have significantly reduced our electricity use at Herdus House (see above graph, kWh) through replacement of all lighting with more efficient LEDs, upgrading the Building Management System to automatically control heating and cooling and replacing the obsolete chiller system in the server room with a modern, more efficient system.

Direct GHG emissions (kgCO2e) - Herdus House

Chart - Direct GHG emissions kgCO2e - Herdus_House

This year direct GHG emissions increased by 66% as shown in the above graph. The increase was largely caused by inadvertent losses of refrigerant gas from air conditioning units which are reaching their end-of-life at Herdus House. Such leaks have a big impact on GHG emissions, and we are keeping the health of these units under review.

Gas use at Herdus House (as shown below, kWh) increased slightly this year, largely due to very cold weather experienced over winter.

Gas usage (kWh) - Herdus House

Chart - Gas usage kWh - Herdus House

With a grant from Government under the Public Sector Decarbonisation Fund, we have now replaced the gas boilers with air source heat pumps, which are partly powered by solar panels. This means that for 2023/24 onwards, there will be no GHG emissions from burning gas.

NDA business travel (miles)

Chart - NDA business travel miles

NDA business travel emissions (kgCO2e):

Chart - NDA business travel_emissions kgCO2e

The return from the pandemic has seen a significant increase in business travel, with people keen to reconnect. This year we updated our travel policy to encourage our people to consider low carbon choices when deciding to travel on business and, from the graph above, most business travel miles are undertaken by train, which is one of the lowest carbon modes of travel. However, in terms of GHG emissions, driving remains the biggest contributor.

We are seeing lower emissions vehicles offered by our hire car provider and some of our people now have electric vehicles. There is more we can do to support this transition, for example through electric vehicle charging.

NDA Carbon emissions from domestic flights (kgCO2e)

Chart - NDA Carbon emissions from domestic flights kgCO2e

We achieved a reduction of 17% against the 2024/25 target of 30%. The updated travel policy encourages people to seek alternatives to flying and executive approval is now required for all flights. We will keep the efficacy of this policy under review.

Under GGC we are also required to report on GHG emissions from short and long-haul flights, although there is no specific reduction target. In 2022/23 such flights added 142 tonnes of CO2e to the 17 tonnes of CO2e from domestic flights1. During 2022/23, the number of miles travelled was 82,416 on domestic flights and 465,214 on international flights (including short haul).

Waste (kg) - Herdus House

Chart - Waste kg - Herdus House

We achieved a reduction of 43% in waste generated at Herdus House against the 2024/25 target of 15% as illustrated in the graph above. One of the largest contributors to waste is paper and we achieved a 64% reduction against the 2024/25 paper use target of 50%, as illustrated below. Printing behaviours have not returned to pre-pandemic levels.

Paper usage (A4 reams equivalent) - Herdus House

Chart - Paper usage A4 reams equivalent - Herdus House

We had a recycling rate of 74% this year, against the 70% target. In addition, we have notable success in the removal of Consumer Single Use Plastic. For example, disposable coffee cups have been removed from the restaurant at Herdus House, along with plastic bottles and stocks of plastic stationery are being run down.

Water usage (cubic metres) - Herdus House

Chart - Water usage cubic metres - Herdus House

We achieved a reduction of 64% for Herdus House against the 2024/25 target of 8% as illustrated above. This is impacted by our move to hybrid working and reduced office occupancy. However, mitigation measures such as flow restrictors in taps and reduced water use in bathrooms are already in place.

ICT and digital:

For the second year, our IT team has reported under the GGC Sustainable Technology Advice and Reporting (STAR) scheme. As well as providing a carbon inventory for all NDA IT equipment, objectives have been identified for example, to make more use of lower carbon cloud facilities.

1 CO2e or carbon dioxide equivalent means that all greenhouse gases, including carbon dioxide, are being considered

Summary

Area		Actual
Greenhouse gas emissions (GGC scopes one, two and three)		390 te CO2e
Greenhouse gas emissions from direct emissions (scope one)		84 te CO2e
Greenhouse gas emissions from purchase of electricity (scope two)		92 te CO2e
Greenhouse gas emissions from domestic flights (scope three)		17 te CO2e
Greenhouse gas emissions from all domestic business travel (scope three)		214 te CO2e
Expenditure from travel within GGC scope plus international flights		£891,190
Office energy (electricity plus gas) Herdus House	Amount	684,737 kWh
	Expenditure	£96,686
Office waste, Herdus House	Generated	11.6 te
	Recycled (DMR)	7.5 te
	ICT/WEEE	1.0 te
	Incinerated (with energy recovery)	2.2 te
	Composted	0.9 te
	Expenditure	£8-12,000
Office paper, Herdus House	Amount (A4 and A3/A5 reams equivalent)	380
Water, Herdus House	Amount	524 m3
	Expenditure	£7,764

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). Along with our subsidiary, NDA Properties, we own over 3,000 hectares of land outside of the nuclear sites. In 2021/22 we developed a natural capital baseline of its land and assets. From this work and in collaboration with NDA Properties and NDA group, we aim to develop an environmental improvement plan. 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. We have business continuity and resilience plans and we will review these plans in 2023/24 to ensure climate change risks are managed.

Climate change resilience and adaptation is now considered in business case development. Please see Sustainability in Business Cases and Assurance above.

Operating company safety performance

Sellafield Limited

During 2022/23, Sellafield Ltd reported one INES (International Nuclear Event Scale) Level 2 and one INES Level 1.

The Level 2 event was due to the identification as part of Sellafield’s routine dose assessment programme that a Sellafield Ltd employee has received a radiation dose which takes them above the annual whole body dose limit set for workers. Outside of this incident all other doses received are within expected levels.

The INES Level 1 was reported due to the aggregated impact of two close-succession power losses on the Sellafield site, which occurred on 1 January 2023.

Zero Nuclear SIR (Significant Incident Reports) have been raised through the year, in comparison with two raised through 2021/22.

Sellafield employees and contractors suffered 16 RIDDOR reportable injuries through 2022/23. The majority of these injuries were related to sprains or strains, with slip, trip, fall and striking against an object.

In comparison to 2021/22 Sellafield’s Total Recordable Incident Rate (TRIR) has fallen slightly, finishing at 0.34. Although this is above Sellafield’s year-end target of 0.28, the long-term trend for recordable injuries is downward.

Despite the overall downward trend, Sellafield are striving to reduce their accident rates. To facilitate this improvement an integrated nuclear and conventional safety improvement plan has been produced. This has been fully endorsed by Sellafield senior management and progress is being closely tracked.

The Office for Nuclear Regulation (ONR) served an Improvement Notice on Sellafield Ltd after an incident in the previous financial year (October 2021) when a worker sustained serious injuries to his back following a fall from a scaffolding ladder while undertaking maintenance and repair work in a facility at the site.

The ONR’s investigation judged there to be shortfalls with Sellafield Ltd’s risk assessment for the work being carried out.

Since the Improvement Notice was served, Sellafield Ltd has reviewed its risk assessment arrangements to ensure those arrangements are suitable and sufficient for working in cells in the Magnox Reprocessing Facility.

The Improvement Notice is now closed, although ONR notified Sellafield Ltd that it would be prosecuted under Section 2 (1) of the Health and Safety at Work etc Act 1974.

The hearing took place at Carlisle Magistrates Court on 6 March 2023 and Sellafield Ltd was fined £400,000 after admitting a health and safety breach.

During November 2022, ONR served an enforcement notice on Sellafield Ltd after inspections identified shortfalls in the fire alarm and detection system at the First-Generation Magnox Storage Pond (FGMSP) facility.

The identified shortfalls led Sellafield Ltd to suspend operations at the FGMSP, introduce enhanced fire monitoring surveillance and restrict all non-essential personnel from entering the facility.

Sellafield has developed an integrated fire safety improvement plan which is working to address the shortfalls identified. In March 2023, ONR confirmed that the enforcement notice had been complied with.

Significant progress has been made with the milestones set out in Sellafield’s Hazardous Chemical Improvement Plan. Adequate progress has also been made against its Control of Major Accident Hazards improvement plan.

Other areas of ongoing focus for improvement are:

• Legionella risk management

• Asbestos management

• Lifting operations improvements

• Conventional health and safety compliance.

Slower than desired progress on completing asbestos related improvements has resulted in an enforcement letter being received from ONR. Sellafield is now working on understanding how it can increase the pace of delivery of the requirements.

Provision and retention of specialist resource remains a critical concern, especially in the fields of radiological protection, human factors and health, safety and environmental specialists.

Magnox Limited

At the end of the year, the TRIR at Magnox was 0.29 after remaining reasonably constant throughout the year and below the corporate target of <0.39.

It has been identified from a number of accidents that hand injuries are a common consequence. As a result the response to the trend in injuries included delivery of a consistent message that focused on human performance tools, minimising distraction and psychological safety. These messages were communicated via safety stand downs and will continue through the psychological safety programme in line with operational excellence.

In February 2023, Magnox held an annual Significant Event Review meeting, attended by senior leaders, site personnel, safety representatives, contractors and NDA. A number of inputs and presentations were given to promote discussion in identifying fleetwide area for improvement. The resulting proposals will be recorded in Magnox’s safety improvement plan for 2023/24.

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.

Magnox, along with other parts of the NDA group, agreed to take part in a research project sponsored by ONR to develop and validate a safety culture survey for the nuclear industry. The survey tool has been developed by the University of Manchester and is now undergoing testing.

Nuclear Waste Services (NWS)

NWS was launched in January 2022, which brought together Radioactive Waste Management (RWM) Limited, Low Level Waste Repository (LLWR) Limited and the NDA’s Integrated Waste Management Programme. The intention is to move to a single legal entity in the future.

Overall, NWS safety performance for 2022/23 was good, safely maintaining essential operations and successfully managing the move to living with COVID-19 arrangements. LLWR, as part of NWS, was also awarded its 17th consecutive RoSPA Gold Award.

During the year, there was one Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR) reportable injury due to a trip/fall of an employee leading to a reportable injury. The TRIR for NWS at end of the year was 0.14.

A conservative decision was made in May 2022 to stand down LLWR site’s emergency response including the Incident Control Centre specific to the pandemic. New blended working arrangements have been implemented and have increased office utilisation, aiding the business to move back towards pre-pandemic levels.

Good progress continued right across key projects in the field including completion of the Security Enhancement Programme. Construction work has continued across the site with the ongoing Repository Development enabling works phase for the encapsulation of LLW in former trenches and Vault 8, continuing to have no recordable injuries or incidents.

Dounreay Site Restoration Limited (DSRL)

Dounreay’s TRIR has risen from last year to 0.18 which is above the target of 0.10. There have been two RIDDOR reportable injuries.

During the year, in excess of 150 leadership tours have been undertaken, over 110 safety compliance audits have been completed and more than 300 workplace safety inspections accomplished. These and other processes identify opportunities for improvement and ensure good standards of HSW are in place.

An INES Level 1 event occurred where a pressure excursion damaged some internal components of a tank, causing the release of a small amount of caustic liquor. There were no injuries to personnel, and only minor damage to pipework and internal components.

Nuclear Transport Solutions (NTS)

NTS, comprising Direct Rail Services Ltd (DRS) and International Nuclear Services Ltd (INS), maintained a steady safety performance throughout the year. The TRIR at the end of the year was 0.22 against a corporate target of 0.55. There were two lost time accidents and one medical treatment case.

Both NTS Rail and NTS Shipping have maintained their accredited health and safety management systems in line with ISO standard 45001. NTS Rail has also had its Safety Certificate (Office of Rail and Road) renewed for the coming year.

The new ship management company for NTS has operationally embedded well within the organisation. The number of operational incidents within NTS Rail has shown an improvement and performance is back in line with expected levels.

Summary of events confirmed as INES Level 1 or higher during 2022/23

Site	Event description	Final rating and duty holders comments on the event
INES Level 2 event
Sellafield Ltd	Employee received an internal (effective) dose in excess of the statutory annual (effective) dose limit of 20 mSv.	Sellafield’s routine internal dosimetry monitoring programme identified an unexplained positive result for one worker. Extensive investigation, including bioassay data analysis and a detailed review of working circumstances and facility state, concluded that the worker received an internal (effective) dose of 23.00 mSv in 2020 by inhalation of resuspended surface contamination of recently separated material. Additional testing found no other workers to have been affected and there was no radioactive release. Sellafield’s investigations failed to identify the direct cause of the intake.
INES Level 1 events
Dounreay	A pressure excursion damaged some internal components of a tank, causing the release of a small amount of caustic liquor. There were no injuries to personnel, and only minor damage to pipework and internal components.	Dounreay undertook a site investigation and identified the contributory factors that led to the incident and identified appropriate improvements.
Sellafield	Aggregated impact of two close-succession power losses on site.	As a result of a second power loss occurring whilst the site was mid-way through recovering from an initial power loss, unanticipated consequences occurred. These included migration of activity within a facility, safety case challenges and loss of access to the Sellafield Data Centre (where all drawings, logs and other operational information is stored). Emergency Instructions remained accessible throughout. The Sellafield Site Sentencing Authority concluded that the totality of impacts across the site meet the criteria for an INES Level 1 event.

Operating company environmental performance

Under the NDA Group Operating Framework good engagement on environmental topics is being maintained, leading to improved sharing of information and expertise across the group and the efficient targeting of common challenges.

Overall environmental performance has remained broadly level across the NDA group. However, due to 15 significant environmental events occurring in year the group e-TRIR has worsened from 0.04 to 0.08. Significant environmental events are defined as events which have or are likely to be classed as a significant breach of a permit or authorisation condition, or other legislation and/or is likely to attract significant management, stakeholder or regulatory interest or concern. Each of the 15 significant environmental events has been assessed as having minor or no actual environmental impacts, although they are still classed as significant given the above definition.

A common theme across many of our operating companies has been the challenge of attracting and retaining sufficient competent environmental resource. However, by year end there was an improving picture with successful recruitment and training in several areas. Recruitment processes are continuing, and interim arrangements are being identified as necessary whilst a strategic workforce planning project is progressed.

Annual environmental targets are aligned with the key themes in the Greening Government Commitments (see Sustainability): carbon, water and waste. Operating companies continue to make progress in carbon reduction. As a group we have made a 30% reduction in our scope one and two carbon footprint, which compares with a 21% reduction in 2021/22 when there was a larger pandemic impact. Conventional waste has greater visibility and there is good performance against recycling targets for most operating companies. The targets aligned to business travel are more challenging. The return from the pandemic has seen an increase in business travel as people seek to reconnect.

Annual environmental targets table

Each of our operating companies and the NDA have maintained ISO 14001 certification on Environmental Management Systems.

Sellafield Limited

Environmental performance has largely been sustained at Sellafield over the year, although some significant challenges remain, primarily related to environmental resourcing and capacity, continued occurrence of low impact environmental events and the ongoing leak to ground at the Magnox Swarf Storage Silo (MSSS).

The site had eight significant environmental events over the year, each of which have been assessed as having minor or no actual environmental effect. These are related to late reporting of data to the Environment Agency (EA), the identification of contamination on pipework, incorrect transfer of contaminated items, holes identified in ventilation ductwork, an overflow of chemicals and exceedance of permitted limits for chlorine, discharge flows and suspended solids. These are, or have been, subject to investigation by Sellafield and the EA. Over the year the e-TRIR increased from 0.04 to 0.06, against a target of less than 0.12. Overall, at year end there are a total of 22 events under EA investigation.

Throughout the year environmental resourcing and capacity has remained a challenge, particularly in relation to aerial, liquid and solid waste management key roles in delivery areas. By year end a slightly improving picture was being seen with recruitment to address this ongoing challenge. Further action has been taken to help develop environmental capabilities, such as an Environmental Capability Week, where presentations and events were held to increase awareness and develop skills; and a monthly Environment Brief to keep capability abreast of developments. Sellafield also received a successful re-accreditation of its Environmental Graduate Development Scheme from the Institute of Environmental Management and Assessment (IEMA) as part of its three-yearly audits.

There is an ongoing leak to ground at the MSSS facility on site which has been reported as an INES Level 2 incident in a previous year. This presents no risk to the public or workforce. Both ONR and the EA are closely involved in the regulation of this complex event. The EA has previously issued a variation to the site environmental permit to include some improvement conditions relating to the leak. A warning letter and enforcement position has also been received from the EA. Sellafield continues to place a significant focus on this issue, including the progression of retrieval of waste from the facility to reduce the risk and a dedicated sub-programme to address the impacts of the leak.

Sellafield continues to work on environmental strategic health such as the identification of climate related risks in support of the delivery of carbon management plans. A water strategy has been developed in preparation for production and implementation of more detailed water management plans aimed at better understanding water use, improving the sustainability and resilience of supplies, and delivering reductions in use with the associated environmental benefits.

Sellafield accounts for most of the NDA group’s carbon emissions due to its scale and energy needs. Focus on operational improvements at the on-site combined heat and power plant plus the boiler park, has helped secure a 39% reduction in carbon emissions, enabling Sellafield to exceed its carbon targets this year.

During the year a progress report has been issued relating to the international OSPAR Treaty, detailing significant progress in preventing pollution from radioactive discharges.

A successful UK Emissions Trading Scheme verification visit by LRQA was undertaken, with no non-conformities identified.

A Biodiversity Net Gain workshop and other events have been held to better understand how Sellafield can manage and meet new legislative requirements to be implemented by November 2023. These requirements will require industrial and commercial developers to deliver 10% “biodiversity net gain” ensuring positive benefits for nature.

Sellafield issued its Discharges and Environmental Monitoring Annual Report, representing a landmark 50th year of annual reporting.

Magnox Limited

Overall environmental performance has remained broadly level over the year, although Magnox has faced significant challenges with environmental capability and has had some low-level environmental events, some potentially linked to the capability challenges.

The company has had five significant environmental events over the year. These events have been assessed as causing minor or no actual environmental harm but are nonetheless concerning. These events have been due to failure of equipment calibration, breach of a permit sub-limit due to unexpected discharges of carbon-14 from a process, loss of small volumes of low active effluent to surface waters, use of erroneous correction factors in calculating gaseous discharges and the identification of ventilation equipment defects. These are or have been subject to investigation by Magnox and the EA or the Scottish Environment Protection Agency (SEPA). At the end of the year, the e-TRIR stood at 0.15, up from 0.06 at the start, although it had remained at 0.06 through to the mid-point of the year.

Maintenance of sufficient environmental capability has been a challenge across several Magnox sites with reliance upon singleton capability in some areas. Recruitment and development of existing staff has been progressed to address this issue with some success, although at year end challenges remain.

A project to review and improve Magnox Best Available Technique (BAT) and Best Practical Means (BPM) processes is now in the delivery phase and is intended to deliver improved processes to support environmental decisions in compliance with environmental permits across the fleet.

Magnox has focused on an ambitious plan this year of implementing the recommendations made in the energy audits undertaken last year at each of its sites. Although it fell short of meeting their own stretch targets, it has achieved notable carbon savings and plan to continue improvements in the coming year. Some early work has also been completed to understanding the status of water management planning across the fleet.

At Chapelcross planning approval has been gained by Green Energy International for the Jockstown solar farm on land adjacent to the site, bringing closer the proposal to supply the site exclusively with renewable electricity.

Magnox has engaged positively with the EA this year on joint environmental sustainability objectives and strategic environmental outcomes with a view to working more collaboratively going forward.

During the year Magnox has initiated a series of ecology surveys across the sites with the aims of improving the natural capital/biodiversity baseline, identifying areas of high value and opportunities to enhance the local environment. These surveys are ongoing.

Nuclear Waste Services (NWS)

NWS has now had its first full year of operations.

It maintained good environmental performance across the year.

There was one significant environmental event at the LLWR site during the year. This related to low levels of tritium being released into groundwater from dewatering works in support of repository development programmes to develop a water management lagoon. Tritium levels released were two orders of magnitude below World Health Organisation (WHO) Drinking Water Standards. This event was subject to investigation, along with other more minor events at the site. At the end of the year the e-TRIR stood at 0.14, down from 0.25 at the start.

Environmental capability remained broadly adequate at NWS. In support of further developing environmental capability NWS has launched a sustainability intranet page as part of a successful sustainability week and are also rolling out a sustainability e-learning module.

NWS continues to integrate sustainability considerations into its business. In terms of carbon reduction RWM has focused this year on reducing energy demand and improving efficiency in its offices. Given that they are tenants in their accommodation, the scope for improvement is limited but it has achieved carbon targets. The longer-term focus for the organisation is to ensure the delivery of a low carbon Geological Disposal Facility. At LLWR the organisation has achieved its carbon targets this year. In the latter part of the year NWS has made good progress developing a water management plan which will move into implementation next year, delivering water use reduction. Work is progressing to combine carbon and water management plans which will evolve next year.

NWS has applied to the EA for a Deposit for Recovery Environmental Permit to enable receipt of inert waste for use in site closure activities, which requires in-fill and capping material. If successful this will facilitate the effective re-use of large volumes of waste, minimising the need to import new materials with the associated environmental impacts.

Regulatory engagement has continued in preparation for potential future applications for environmental permits and a nuclear site licence in relation to a Geological Disposal Facility. Work has progressed well on an Initial Site Evaluation Template which will form the basis of any regulatory submission to the EA for borehole investigations. Regular engagement has also continued with the EA in relation to the LLWR Environmental Safety Case and repository closure.

NWS continued successful delivery of radioactive waste diversion and safe disposal where diversion isn’t possible, with the associated environmental benefits such as carbon saving and metals recycling.

During the winter of 2022/23 NWS began planting around one hectare of woodland around Pelham House near Sellafield, supporting biodiversity and recreation opportunities in support of the Cumbria Coastal Community Forest.

Dounreay Site Restoration Limited (DSRL)

Dounreay environmental performance was largely maintained, although there were environmental events during the year and resource challenges that needed to be addressed.

There were two significant environmental events in total. These related to a small maintenance-related fire in the laundry and a sodium excursion event in the Prototype Fast Reactor (PFR), although not in the reactor itself. These events have been assessed as causing minor or no environmental harm and have both been subject to investigation by DSRL and SEPA. At the end of the year the e-TRIR stood at 0.04, the same as at the start of the year.

During the year availability of environmental capability across site was an ongoing challenge. By the end of the year, following recruitment and other resourcing strategies, the situation had significantly improved, however, some vacancies remain.

Progress has been made on review of environmental governance and on environmental improvement strategies, with a five-year strategy under development.

The organisation has achieved its carbon targets this year. Work has also started on water management plans, which will be progressed further in the coming year.

Significant work was undertaken in response to SEPA Regulatory Notice 02. This relates to concerns around standards and processes for containment, including bunds, filters, gloveboxes, fumehoods and liquid effluent filters. Work was undertaken to update processes and standards and to audit and substantiate containment across site. SEPA has reviewed work on this Notice, completed an inspection and has subsequently written to confirm its withdrawal.

Nuclear Transport Solutions (NTS)

Environmental performance has remained good across the year.

During the year NTS successfully recruited an Environmental and Sustainability Advisor, bolstering environmental capability. NTS continues to push its lower carbon agenda, through improved locomotive efficiency and by reducing its heritage fleet. The national energy crisis has impacted the use of the bimodal trains, which has meant NTS failed to meet all its carbon targets this year but it has still made savings in both its shipping and rail fleet. Good progress has been made on developing a water management plan aimed at reducing water use across the NTS sites, primarily through simple improvements to welfare facilities.

Other companies and subsidiaries

Elsewhere, there has been good environmental performance in our businesses NDA Properties Ltd, Energus and Rutherford Indemnity Ltd. NDA Archives failed to meet its carbon targets due to an unplanned failure of the biomass boiler which meant reliance on the backup oil fired heating system for an extended period. The Archive remains keen to utilise its extensive roof space for solar panels which has the potential for the facility to be largely self-powered. Energus has installed solar panels, providing a significant amount of self-generated electricity to the facility.

Financial summary 2022/23

The NDA spend on tackling the legacy

The NDA spend on tackling

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

The NDA spend by division

The NDA spend by division

Spend in 2022/23 was £3,759 million (2021/22: £3,472m). Around 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 £2,516 million per year.

The NDA Administrative spend

The NDA Administrative spend

The NDA’s own running costs reduced to £29 million per year, or approximately 0.8% of overall expenditure, reflecting improved allocation of resources between administration and programme activity.

The NDA’s income

The NDAs income

The NDA recognised income of over £1.0 billion in the year, with over £0.8 billion arising from reprocessing and management of spent fuels and waste.

NDA’s spend on tackling the legacy

NDA's 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’s spend by division

NDA's spend by division

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

NDA's running costs

NDA’s administrative spend is now below £30 million per year

NDA’s income

NDA's income

Reprocessing and management of spent fuels and waste are now the dominant sources of income and have increased in recent years.

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 2022/23 estimate

The discounted nuclear provision of the Authority at the end of 2022/23 is £124.4 billion (2021/22: £237.0 billion) as shown in the chart on the next page. The movements during the year have been:

Release

The value released from the provision in 2022/23, reflecting in year spend of the amount provided in 2021/22, is £3.3 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 update the figure to money values as at the reporting date. This is the aggregate of individual inflation impacts on each component of the estimate, producing an increase of £17.7 billion or approximately 7.5% of the opening balance value.

Changes in discount rates

The nuclear provision is expressed in discounted terms, by applying discount rates to the underlying (undiscounted) cost estimates in order to reflect the time value of money. Information on the discounting process and the rates used are set out on page 179 in the notes to the financial statements. The Authority uses discount rates published annually in December by HM Treasury which change each year according to the government’s borrowing rate and forecasted inflation at the time. The application of the rates published by HM Treasury in December 2022 resulted in a decrease of £133.6 billion in the discounted value, reflecting a change from an overall negative discount rate to an overall positive discount rate.

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 £3.0 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:

• A change in the estimate of the Magnox and Dounreay programme, reflecting updated estimates of the cost, duration and timing of the decommissioning of the sites. In particular for the Magnox sites the learnings from Trawsfynydd (the lead and learn site) has been reflected in cost estimates for other sites. The impact of the overall change (discounted) was an increase of £9.1 billion

• Updates to the Sellafield lifetime plan, reflecting multiple changes in the estimates of the cost, duration and timing of projects, operations and decommissioning on the site. The impact of this (discounted) was an increase of £0.541 billion

Closing balance

The above movements bring the 2022/23 Authority estimate to £124.4 billion discounted.

Movement in nuclear provision 2022-23 (£ billion)

Movement in nuclear provision 022-23 (£billion)

Total expenditure profile (£m, undiscounted)

Total expenditure profile (£m, undiscounted)

			Movements
	2021/22 undiscounted £m	2021/22 discounted £m	Unwind of discount £m	Discount rate change £m	Released in year £m	Inflation £m	Other cost change £m	Movement discounted £m	2022/23 undiscounted £m	2022/23 discounted £m
Sellafield	109,622	176,594	(2,266)	(100,959)	(2,382)	12,330	542	(92,734)	115,397	83,859
Magnox*	25,132	34,363	(446)	(15,673)	(781)	3,586	9,090	(4,225)	42,059	30,139
NWS**	14,075	25,947	(329)	(16,992)	(170)	1,818	38	(15,636)	15,275	10,312
NTS	64	73	(1)	(16)	-	5	-	(11)	69	61
Authority	148,893	236,977	(3,042)	(133,640)	(3,333)	17,739	9,670	(112,606)	172,800	124,371
NDA group companies	24	27	-	(4)	-	1	-	(3)	26	24
Group Provision Adjustment	(286)	(286)	-	-	-	-	286	286	-	-
NDA Group	148,631	236,718	(3,042)	(133,644)	(3,333)	17,740	9,956	(112,323)	172,826	124,395

Parliamentary accountability disclosures

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

Regularity of expenditure

We administer our affairs ensuring prudent and economical administration, avoidance of waste and extravagance and ensures efficient and effective use of all available resources. Adequate controls exist to ensure the propriety and regularity of our 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 £28,672,256 (2022: £23,451,322).

Type of loss	2022/23 Total £	2022/23 Number of cases	2021/22 Total £	2021/22 Number of cases
Cash losses	1,733	12	-	-
Store losses	28,374,234	276,760	23,448,578	47,098
Losses of pay, allowances and superannuation	-	-	26,165	1
Fruitless payments	146,053	967	59,753	245
Constructive losses	-	-	-	-
Claims waived or abandoned	-	-	-	-
Book-keeping losses	-	-	-	-
Failure to make adequate charges	-	-	-	-
Exchange rate fluctuation losses	150,236	12	(83,164)	12
Special payments	-	-	-	-
Total	28,672,256		23,451,322

Store losses related to obsolescence write-offs of store items on the licensed sites.

In 2022/23 the store losses included the write-off of inventory previously purchased for use and now expected to be no longer required following the conclusion of site operations and/or due to the age of the stock items of which there were no items over £300,000.

In 2021/22 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 £789,736.

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.

David Peattie CEng HonFNucl
Accounting Officer and Group Chief Executive Officer
12 September 2023

The audit report of the Comptroller and Auditor General to the Houses of Parliament and the Scottish 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 2023 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 2023;

• 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 2023 and its net income 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 (2022). 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 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 is anticipated that the services which they provide will continue into the future.

Other Information

The other information comprises the information included in the Annual Report, but does not include the financial statements nor my auditor’s report. 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.

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 Staff 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 Overview of Performance, the Performance Analysis and the Accountability Report 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’s and their environment obtained in the course of the audit, I have not identified material misstatements in the Statutory Overview of Performance, the Performance Analysis and the Accountability Report.

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

• Adequate accounting records have not been kept by the Nuclear Decommissioning Authority and its Group or returns adequate for my audit have not been received from branches not visited by my staff; or

• I have not received all of the information and explanations I require for my audit; 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 Staff Report 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;

• providing the C&AG with access to all information of which management is aware that is relevant to the preparation of the financial statements such as records, documentation and other matters;

• providing the C&AG with additional information and explanations needed for his audit;

• providing the C&AG with unrestricted access to persons within the Nuclear Decommissioning Authority and its Group from whom the auditor determines it necessary to obtain audit evidence;

• ensuring such internal controls are in place as deemed necessary to enable the preparation of financial statement to be free from material misstatement, whether due to fraud or error;

• ensuring that the financial statements give a true and fair view and are prepared in accordance with Secretary of State directions made under the Energy Act 2004;

• ensuring that the annual report, which includes the Remuneration and Staff Report, is prepared in accordance with Secretary of State directions made under the Energy Act 2004; 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 express an opinion on the financial statements in accordance with the Energy Act 2004.

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

reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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, I:

• considered 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.

• inquired of management, the Nuclear Decommissioning Authority and its Group’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 on:

• identifying, evaluating and complying with laws and regulations;

• detecting and responding to the risks of 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, and Managing Public Money.

• inquired of management, the Nuclear Decommissioning Authority’s head of internal audit and those charged with governance whether:

• they were aware of any instances of non-compliance with laws and regulations;

• they had knowledge of any actual, suspected, or alleged fraud;

• 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 the 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.

I obtained an understanding of the Nuclear Decommissioning Authority and its Group’s framework of authority and other legal and regulatory frameworks in which the Nuclear Decommissioning Authority and its Group operates. I focused 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 the Energy Act 2004, Managing Public Money, employment Law, pensions Legislation and tax Legislation.

Audit response to identified risk

To respond to the identified risks resulting from the above procedures:

• I reviewed 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;

• I enquired of management, the Audit Committee and in-house legal counsel concerning actual and potential litigation and claims;

• I reviewed 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, I tested the appropriateness of journal entries and other adjustments; assessed whether the judgements on estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

I communicated relevant identified laws and regulations and potential risks of fraud 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 expenditure and income 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.

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 I identify during my audit.

Gareth Davies Comptroller and Auditor General

14 September 2023

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

Annual accounts

Click here to view the NDA accounts 2022-23

Performance analysis

The following section provides a summary as to how each of the organisations in the NDA group has performed in 2022/23 against the key activities and milestones set out in our 2022-25 Business Plan. The performance of Urenco Nuclear Stewardship Ltd and Springfields 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 2022/23 are reflected in our Group Key Targets.

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

NDA Group Key Targets 2022/23

During 2022/23 we had 21 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	17
Missed	Target missed	4

Status	Operating company	Strategic outcomes	Priority target/detail	Year end status	Commentary
1	Sellafield	31, 36, 18 B	Combined operational throughput	Missed	Declared missed as three out of the four operational areas included in this target have not achieved their ‘threshold’ year end target – Legacy Ponds, Waste Vitrification Plant and Special Nuclear Materials (SNM) Store 17 emptying. The fourth area, SNM Type 1 Overpack, has achieved stretch target
2	Sellafield	31	Magnox Swarf Storage Silo (MSSS) waste retrievals	Complete
3	Sellafield	31	Pile Fuel Cladding Silo (PFCS) commence retrieval operations and demonstrate the end-to-end process	Missed	Declared missed due to the requirement for additional recovery testing within BEPPS/DIF, this facility will not be in a position to receive any exports from PFCS until later in the year
4	Sellafield	3, 4	Magnox Fuel Reprocessing Exit Strategy	Complete
5	Sellafield		Acceleration of Programme and Project Partners (PPP)	Complete
6	Sellafield	19, 33	Schedule Adherence - SCP, SRP & BEP	Complete
7	Magnox	31, 32, 33, 42	Projects Delivery (Waste and Decommissioning)	Complete
8	Magnox	31, 32, 33	ILW retrievals	Complete
9	Dounreay	41	Installation of the Water Vapour Nitrogen system	Complete
10	Dounreay	33	Dounreay Cementation Plant Store Extension	Complete
11	NWS	34, 39	Community Partnerships and Seismic Work	Complete
12	NTS	CE	Deliver Mixed Oxide (MOX8) fuel	Complete
13	NDA	CE	Embedding the Group Operating Framework (GOF)	Missed	Declared missed due to one out of five sub-measures being missed, issue a Group Leadership Team approved One NDA phase 2 vision and plan, due to a delay in procurement and onboarding of Q5 Partners
14	NDA	20	Deliver Strategic Outline Case (SOC) for Pu Disposition	Complete
15	NDA	CE	Delivery of Group Asset Management Strategy	Complete
16	NDA group	CE	Sustainability	Complete
17	NDA group	CE	Social value	Complete
18	NDA group	CE	Survey response	Missed	Declared missed based on results of survey of NDA employees. Although the response rate increased by 3% points to 94% (achieving the stretch attainment level for this sub-target), the overall engagement score remained the same at 6.8
19	NDA group	CE	Skills agenda	Complete
20	NDA	CE	Delivery of the Inclusion Strategy	Complete
21	NDA / Magnox	6, 9	Advanced Gas-Cooled Reactor (AGR) Defueling receipts and Seamless Transfer	Complete

NDA

The NDA is an executive 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 Energy Security and Net Zero (DESNZ), formerly the Department for Business, Energy and Industrial Strategy (BEIS).

Status		Scheduled activities
Completed	The activity has been completed during the financial year 2022/23	0
On schedule	The activity is on track to be completed to schedule	39
Behind schedule	The activity is delayed and currently forecast for completion behind schedule	0
Missed	The activity was due for completion during the financial year 2022/23 and has been missed	0
Deferred	Activity deferred due to re-prioritisation and/or reallocation of funding	0

All activities remain on schedule to be completed during 2023-25.

Sellafield Limited

Sellafield Ltd is an NDA subsidiary, responsible for operating and decommissioning Europe’s largest and most complex nuclear site. This includes cleaning up nuclear facilities and safeguarding nuclear fuel, materials and waste.

Status		Scheduled activities
Completed	The activity has been completed during the financial year 2022/23	3
On schedule	The activity is on track to be completed to schedule	22
Behind schedule	The activity is delayed and currently forecast for completion behind schedule	4
Missed	The activity was due for completion during the financial year 2022/23 and has been missed	3
Deferred	Activity deferred due to re-prioritisation and/or reallocation of funding	0

The activities that have been completed, missed or deferred during 2022/23 are as follows:

Key activities	Strategic outcome	Timescale	Status	Commentary
Spent Fuels
Complete the capability to export all fuel for interim storage	2	2022-2023	Missed	Impacted by the Self-Shielded Box (SSB) skip clash recovery work. The requirements to complete active commissioning is now forecast to be complete in 2023/24
Complete	3, 4	Magnox reprocessing and continued interim storage in FHP for any remnant fuel 2022-2023	Complete
Integrated Waste Management
Magnox Swarf Storage Silo (MSSS) - commence retrievals	31	2022-2023	Complete
Pile Fuel Cladding Silo (PFCS) - first box of waste from early retrievals delivered to store	31	2022-2023	Missed		The failure of the Waste Retrievals Crane has delayed this activity. Commencement of waste Retrievals and export to store is currently planned for 2023/24
Site Decommissioning and Remediation
Complete decommissioning and demolition of the upper diffuser section of the Windscale Pile Chimney Number 1	42, 43	2022-2023	Complete
Commence post operational clean-out (POCO) of Magnox Reprocessing Plant	42	2022-2023	Missed	The date for transition from Spent Fuel Management into Remediation (and subsequently POCO start) has been moved to 2024 due to operational issues

Magnox Limited

Magnox is an NDA subsidiary, responsible for 12 nuclear sites across the UK: Berkeley, Bradwell, Chapelcross, Dungeness A, Harwell, Hinkley Point A, Hunterson A, Oldbury, Sizewell A, Trawsfynydd, Winfrith and Wylfa. Magnox also generates electricity at the Maentwrog hydroelectric plant.

Status		Scheduled activities
Completed	The activity has been completed during the financial year 2022/23	0
On schedule	The activity is on track to be completed to schedule	23
Behind schedule	The activity is delayed and currently forecast for completion behind schedule	0
Missed	The activity was due for completion during the financial year 2022/23 and has been missed	0
Deferred	Activity deferred due to re-prioritisation and/or reallocation of funding	0

Summary of site performance:

Site			Status
	Completed	On schedule	Behind schedule	Missed	Deferred
Berkeley	-	3	-	-	1
Bradwell (in care and maintenance)	-	1	-	-	-
Chapelcross	1	3	1	-	1
Dungeness A	-	5	-	-	-
Harwell	-	6	-	-	1
Hinkley Point A	1	4	-	-	1
Hunterston A	-	6	-	-	-
Oldbury	-	6	-	-	-
Sizewell A	-	5	-	-	-
Trawsfynydd	-	3	-	1	-
Winfrith	-	3	1	-	1
Wylfa	1	3	1	-	-

The activities that have been achieved, missed or deferred during 2022/23 are as follows:

Key activities	Strategic outcome	Timescale	Status	Commentary
Integrated Waste Management
Chapelcross - Complete design and build of ILW Encapsulation facility	31, 32	2022-2023	Complete
Hinkley Point A - Complete design and build of ILW Encapsulation facility	31, 32	2022-2023	Complete
Site Decommissioning and Remediation
Berkeley - Commence the deplant and demolition of the Caesium Removal Plant	42, 43	2022-2025	Deferred	Funding has been redirected onto higher priority projects, resulting in this work being deferred. Due to commence 2025/26
Chapelcross - Commence and progress Turbine Hall asbestos removal	42	2022-2025	Deferred	Funding has been redirected onto higher priority projects, resulting in this work being deferred. Due to commence 2025/26
Harwell - Continue decommissioning, demolition, land remediation, reinstatement and delicensing of the Liquid Effluent Treatment Plant (LETP)	42	2022-2025	Deferred	Funding has been redirected onto higher priority projects, resulting in this work being deferred. The next phase of work has been deferred and is expected to commence in 2024
Hinkley Point A - Commence the decommissioning of the Active Effluent Treatment facilities	42	2022-2025	Deferred	Funding and the limited resources have been redirected onto higher priority projects, resulting in this work being deferred
Trawsfynydd - Continue and complete Reactor Height Reduction enabling activities	42	2022-2023	Missed	Baseline extended due to additional scope when aligned to the contractor programme
Winfrith - Commence and progress the removal of the discharge pipelines	42	2022-2025	Deferred	Deferred to commence 24/25 in order to optioneer and develop the strategy
Wylfa - Continue and complete asbestos removal from the De-aerator floor of the Turbine Hall	42	2022-2023	Complete		­

Dounreay

Dounreay in the north of Scotland was operated by Dounreay Site Restoration Limited during the period of this report. On 1 April 2023 it became a division of Magnox Ltd.

Summary of operating company performance

Status		Scheduled activities
Completed	The activity has been completed during the financial year 2022/23	0
On schedule	The activity is on track to be completed to schedule	6
Behind schedule	The activity is delayed and currently forecast for completion behind schedule	0
Missed	The activity was due for completion during the financial year 2022/23 and has been missed	1
Deferred	Activity deferred due to re-prioritisation and/or reallocation of funding	4

The activities that have been completed, missed or deferred during 2022/23 are as follows:

Key activities	Strategic outcome	Timescale	Status	Commentary
Integrated Waste Management
Complete design and build of D3110 Waste Treatment Plant	28	2023-2024	Deferred	Deferred until resource becomes available from priority projects
Complete construction of Dounreay Cementation Plant (DCP) Store Extension Construction	32	2022-2023	Missed	Project delays stemming from pandemic restrictions, contractor resource issues and weather conditions limiting lifting activities
Site Decommissioning and Remediation
Dounreay Material Test Reactor Building Complex Decontamination Complete	42	2023-2024	Deferred	Resource redeployed to site priorities
PFR - Complete Reactor Vessel Residual Sodium Treatment Operations - Turn Reactor Vessel atmosphere from nitrogen to air	42	2022-2023	Deferred	Prior project over run / resource capability
Dounreay Material Test Reactor Structures demolished	43	2023-2024	Deferred	Resource redeployed to site priorities

Nuclear Waste Services

Nuclear Waste Services (NWS) launched in January 2022. This new organisation brings together the long-established expertise of site operator Low Level Waste Repository Limited (LLWR), Geological Disposal Facility (GDF) developer Radioactive Waste Management (RWM) Limited and the NDA’s Integrated Waste Management Programme. The NWS vision is to make nuclear waste permanently safe as soon as possible. It is focused on managing UK nuclear waste safely, innovatively, and sustainably, while driving value for money.

NWS is not a legal entity but provides strategic oversight over the operation and development of these businesses through a management board governance structure. The legal entities of LLWR and RWM will endure, although the intention is to move to a single legal entity operating under the NWS brand at an appropriate point in the future.

Summary of operating company performance

Status			Scheduled activities
		LLWR	RWM
Completed	The activity has been completed during the financial year 2022/23	3	0
On schedule	The activity is on track to be completed to schedule	13	6
Behind schedule	The activity is delayed and currently forecast for completion behind schedule	1	1
Missed	The activity was due for completion during the financial year 2022/23 and has been missed	0	0
Deferred	Activity deferred due to re-prioritisation and/or reallocation of funding	0	0

The activities that have been completed, missed or deferred during 2022/23 are as follows:

Key activities	Strategic outcome	Timescale	Status	Commentary
Integrated Waste Management
LLWR - Type B packaging capability to support NDA and Ministry of Defence customers	33	2022-2025	Complete
Site Decommissioning and Remediation
LLWR - Enabling works for phased construction of the final cap for trenches 1 to 7 and Vault 8	41	2022-2025	Complete
Critical Enablers
LLWR - Manage the existing LLWR Management and Operations contract through to completion and transition to new ownership arrangements	CE	2022-2025	Complete

Nuclear Transport Solutions

Nuclear Transport Solutions (NTS) provides the NDA group with specialist transport and logistics capabilities.

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.

Summary of operating company performance

Status		Scheduled activities
Completed	The activity has been completed during the financial year 2022/23	0
On schedule	The activity is on track to be completed to schedule	12
Behind schedule	The activity is delayed and currently forecast for completion behind schedule	0
Missed	The activity was due for completion during the financial year 2022/23 and has been missed	0
Deferred	Activity deferred due to re-prioritisation and/or reallocation of funding	0

There were no activities planned for completion during 2022/23 however all activities remain on schedule to be completed during 2023-25.

NDA Archives Limited

NDA Archives is an NDA subsidiary, responsible for Nucleus (the Nuclear and Caithness Archives) and related operational activities across the NDA group. The Nucleus facility is currently operated by a commercial partner and provides the centre of excellence for long-term records management, archive services, digital preservation and heritage management.

Summary of performance

Status		Scheduled activities
Completed	The activity has been completed during the financial year 2022/23	1
On schedule	The activity is on track to be completed to schedule	3
Behind schedule	The activity is delayed and currently forecast for completion behind schedule	2
Missed	The activity was due for completion during the financial year 2022/23 and has been missed	0
Deferred	Activity deferred due to re-prioritisation and/or reallocation of funding	1

The activities that have been completed, missed or deferred during 2022/23 are as follows:

Key activities	Strategic outcome	Timescale	Status	Commentary
Critical Enablers
Continuing development of the Hub and Spokes delivery model – centralised inventory and management with dispersed, off-site storage where appropriate	CE	2022-2023	Complete
Re-competition of the commercial partner contract	CE	2022-2023	Deferred	Competition process taking longer than originally expected and will now be completed in 2023/24

NDA Properties Limited

Status		Scheduled activities
Completed	The activity has been completed during the financial year 2022/23	0
On schedule	The activity is on track to be completed to schedule	4
Behind schedule	The activity is delayed and currently forecast for completion behind schedule	0
Missed	The activity was due for completion during the financial year 2022/23 and has been missed	0
Deferred	Activity deferred due to re-prioritisation and/or reallocation of funding	0

There were no activities planned for completion during 2022/23 however all activities remain on schedule to be completed during 2023-25.

Rutherford Indemnity Limited

Rutherford Indemnity Ltd provides insurance cover for the NDA group. The company is a wholly-owned subsidiary, managed for the NDA by Marsh Management Services Guernsey Limited, and has no direct employees.

Summary of performance

Status		Scheduled activities
Completed	The activity has been completed during the financial year 2022/23	1
On schedule	The activity is on track to be completed to schedule	4
Behind schedule	The activity is delayed and currently forecast for completion behind schedule	0
Missed	The activity was due for completion during the financial year 2022/23 and has been missed	0
Deferred	Activity deferred due to re-prioritisation and/or reallocation of funding	0

The activities that have been completed, missed or deferred during 2022/23 are as follows:

Key activities	Strategic outcome	Timescale	Status	Commentary
Critical Enablers
Participate in joint tender with NDA for insurance broker services that support the group insurance strategy and the Rutherford reinsurance placement	CE	2022-2023	Complete

Energus

Energus is an NDA subsidiary offering conference and events facilities and a range of training, education and business support services geared to providing and enhancing skills within both the local and national nuclear workforce.

Summary of performance

Summary of performance

Status		Scheduled activities
Completed	The activity has been completed during the financial year 2022/23	0
On schedule	The activity is on track to be completed to schedule	6
Behind schedule	The activity is delayed and currently forecast for completion behind schedule	0
Missed	The activity was due for completion during the financial year 2022/23 and has been missed	0
Deferred	Activity deferred due to re-prioritisation and/or reallocation of funding	0

There were no activities planned for completion during 2022/23 however all activities remain on schedule to be completed during 2023-25.

Springfields Fuels Limited

Springfields is a nuclear fuel manufacturing site and is located near Preston in Lancashire. The site is operated by Springfields Fuels Limited (SFL) and is used to manufacture a range of fuel products for UK and international customers, the processing of historic uranic residues and decommissioning of redundant facilities.

From April 2010, the NDA permanently transferred ownership of the company to Westinghouse Electric including the freedom to invest for the future under the terms of a new 150-year lease. SFL is contracted to provide decommissioning and clean-up services to the NDA to address historic liabilities.

Summary of performance

Status		Scheduled activities
Completed	The activity has been completed during the financial year 2022/23	1
On schedule	The activity is on track to be completed to schedule	1
Behind schedule	The activity is delayed and currently forecast for completion behind schedule	1
Missed	The activity was due for completion during the financial year 2022/23 and has been missed	0
Deferred	Activity deferred due to re-prioritisation and/or reallocation of funding	0

The activities that have been completed, missed or deferred during 2022/23 are as follows:

Key activities	Strategic outcome	Timescale	Status	Commentary
Site Decommissioning and Remediation
Complete post operational clean out of the Residues Recovery Plant	41	2022-2023	Complete

Capenhurst

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.

Summary of performance

Status		Scheduled activities
Completed	The activity has been completed during the financial year 2022/23	0
On schedule	The activity is on track to be completed to schedule	1
Behind schedule	The activity is delayed and currently forecast for completion behind schedule	1
Missed	The activity was due for completion during the financial year 2022/23 and has been missed	0
Deferred	Activity deferred due to re-prioritisation and/or reallocation of funding	0

There were no activities planned for completion during 2022/23 however all activities remain on schedule to be completed during 2023-25.

David Peattie CEng HonFNucl Accounting Officer and Group Chief Executive Officer 12 September 2023

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 Energy Security and Net Zero
• Sellafield Ltd)
• Magnox Ltd
• Dounreay Ltd
• Capenhurst Nuclear Services
• Springfields Fuels Ltd
• Nuclear Waste Services
• Nuclear Transport Solutions

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](https://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