Inmarsat

Code of Conduct

We maintain and require the highest ethical standards in carrying out our business activities and have clear guidelines for dealing with gifts, hospitality, corruption, fraud, the use of inside information and whistleblowing.

The Code of Ethics policies state that Directors, officers and employees are expected to conduct business in accordance with the highest standards of personal and professional integrity. The Code of Ethics is published on www.inmarsat.com.

Safety at sea remains core to our Company’s activities. We are proud of our maritime heritage and that our business continues this commitment. Inmarsat remains the only approved provider of satellite communications services for the GMDSS. This service is trusted throughout the world by mariners and by the rescue co-ordination centres that are integral to ensuring that a safety alert is actioned. The GMDSS service gives maritime users complete confidence that if they send a distress call, it will be received by a rescue authority.

Our award winning ‘505’ emergency calling service launched in 2009 has already been utilised more than 100 times. This short code dialling facility connects to the rescue co-ordination centre. One example of its successful use was the recent rescue of a yachtsman in Puerto Rico whose yacht was sinking after taking in water. ‘505’ does not replace our GMDSS service, it does though provide mariners with additional peace of mind that they have a reliable trusted service they can use in an emergency situation.

We have continued our charitable support of the International Maritime Organization’s (‘IMO’) Safety and Rescue (‘SAR’) fund. This is part of a five-year agreement which was signed in 2005 to support the IMO’s International SAR fund.

Our Inmarsat C SafetyNET service continues to be used to provide vital updates on reported pirate activity. The service enables ship masters to access reports of pirate movements, giving them information to know which regions to avoid with high pirate activity and allowing them to re-route if necessary.

We continue to support Télécoms Sans Frontières (‘TSF’), the telecommunications relief aid organisation. We have a long history of supporting TSF through direct funding and the provision of free satellite terminals. TSF is able to reach disaster areas quickly and help other aid charities with their communications needs whilst also providing the opportunity for those affected to call relatives. During 2010, TSF sent response teams to deal with eight emergency missions including the Philippines, Chile, Indonesia, Haiti and Pakistan. In Haiti, the first BGAN call was made by a local aid agency within 15 minutes of the disaster happening and within two days TSF had set up BGAN networks for incoming NGOs and others. In recognition of the high volume of activity from TSF in Haiti, we made an additional donation of US$100,000 to support their operations.

TSF runs programmes of disaster relief and preparedness, training other relief organisations and regional and national disaster response agencies about the capabilities of emergency telecommunications. This helps these organisations to be able to respond to an emergency knowing they have the necessary training to use BGAN and IsatPhone Pro, our handheld satellite phone. A recent training event by TSR was within the framework of the International Emergency ICT Training Program 2010-11 and in partnership with the European Commission’s Humanitarian Aid Department to 22 humanitarian organisations from Central and South Asia. In their feedback to us, TSF advises that through our support, we are serving more than 200 organisations per year and tens of thousands of people in distress, providing them with the necessary contacts inside and outside their countries. We believe the work TSF does is vital in emergency situations and we are delighted to continue to support them.

We also work closely with the International Telecommunications Union (‘ITU’) which deployed 100 satellite terminals to parts of Pakistan that were ravaged by severe flooding last year. The terminals were used to restore communications and provide telemedicine applications and services for remote areas that were too difficult to access following the disaster. The ITU also sent terminals to the disaster zones in Indonesia after the tsunami there in 2010.

Our Universal Service Obligations seek to support the use of our services, normally payphones, in rural villages in remote regions of the world, where terrestrial voice services are poor or non-existent.

We have established policies which address key corporate objectives in the management of employee relations, communications and employee involvement, training and personal development and equal opportunities.

We have elected employee forums operating in several operating business in the UK, Batam in Indonesia and a Works Council in the Netherlands. These groups extend two-way communications between employees and management and allow the views of employees to be taken into account in making decisions which are likely to affect their interests. In the UK, the Staff Forum is an elected body constituted in accordance with prevailing legislation to provide the formal means of consultation on contractual matters, as and when required. In the Netherlands, the Works Council is constituted according to local requirements.

Perry Melton, Chief Operating Officer, has been identified as having responsibility for health and safety issues within the Inmarsat Global operations. Stratos and Segovia have various managers responsible for health and safety across their operations. The Group recognises its legal responsibilities to ensure the well-being, safety and welfare of its employees and to maintain a safe and healthy working environment for them and for visitors and sub-contractors. Regular health and safety audits are undertaken at operating sites across the Group and health and safety updates are available to staff to show what improvements have been made to their working environments.

Our aim is to have effective controls that maximise the well-being of our staff and minimise the losses resulting from ill health and injury. Our framework for health and safety management aligns with our broader strategy which focuses on the need for leadership, management and ownership of health and safety matters.

We encourage activities in each of our businesses for staff to participate in socially and as a way of also improving health awareness to create a healthier workplace. Inmarsat Global has continued to hold an annual health and wellbeing day which was supported by all levels of the organisation.

UK-based staff of Inmarsat Global are encouraged to support individual charities of their choice through the HM Revenue & Customs approved Give As You Earn scheme. The payroll-based scheme enables employees to gain tax relief on their charitable donations.

Environment

The activities of the Group are judged to have a low environmental impact and are not expected to give rise to any significant, inherent environmental risks over the next 12 months.

We do not manufacture satellite user terminals, which are produced by manufacturers who provide health and safety guidance as to how terminals should be utilised. Controls are in place to ensure that antennae do not radiate any power at low elevation angles. During 2010, we started to manufacture our handheld satellite phone, IsatPhone Pro. The design and manufacturing processes have met all the relevant safety standards and disposal requirements are included in the packaging for each handset.

Across our Group companies, we operate a number of ground earth stations, a microwave network, VSAT and telemetry and tracking facilities where there are satellite dishes which generate radiation. Access to these sites is restricted and there are regular health and safety checks to ensure that they are in protected areas away from access by the general public. Personnel who work at these sites are provided with relevant training as to the health and safety issues.

As a satellite operator, we have adopted the highest industry standards in terms of space debris mitigation, including end-of-life graveyard manoeuvre plans for the disposal of satellites when they reach the end of their commercial life. To date we have only had one satellite disposal, which was in 2006. Its disposal was undertaken in full compliance with the relevant ITU standards. There are no near-term plans for decommissioning any of the remaining satellites. We operate our satellites in geosynchronous orbit which is approximately 36,000km (22,500 miles) above the earth. This orbit has significantly less debris than in a low earth orbit which is approximately 700km above the earth and where several MSS operators have their satellite constellations.

We have over 1,355 staff worldwide represented by approximately 50 different nationalities. Due to the size and nature of our business activities, we acknowledge that we have some impact on the local and global environment. However, although the satellite industry and Inmarsat are extremely low on the scale of carbon generators, we are conscious about environmental impact as we carry out our business.

Some of these environmental impacts include the use of natural resources, the consumption of energy and water, the production of a variety of waste, in addition to staff and visitors travelling for business purposes around the globe.

Our objective is to ensure that the Group does not have any detrimental effect on the environment through our business operations. Our mission is to adopt and support the following principles:

• to provide first class energy and environmental management practices;
• to comply with all relevant global environmental legislation and regulatory controls;
• to identify significant environmental and social impacts and establish objectives and targets for improvement;
• in our main UK site, to recycle a minimum of 90% of generated waste and constantly to review the opportunity to use recycled products;
• actively to encourage the conservation of energy, water and natural resources through the increased efficiency and introduction of new and modern technology; and
• to encourage all employees in our main UK site to be proactive in their daily activities by:
  • separating their waste into dry and wet waste receptacles;
  • ensuring that printer cartridges are recycled;
  • switching off lights, computers, phone chargers and any other electrical items when not in use; and
  • reducing business travel and using more site-based technology such as video and audio conferencing.

with similar activities occurring elsewhere in our global offices.

During 2010 the Company joined the Carbon Reduction Scheme which is UK legislation based upon a Government Commitment to reduce carbon emissions by 80% by the year 2050. Although the basis of this legislation was changed by the Coalition Government in October 2100 we continue to be committed to the scheme by delivering continued energy consumption savings and reducing CO₂ emissions. We will proactively monitor and target energy savings and develop initiatives to meet this objective.

During 2010 our main UK site’s electrical consumption rose by 6% which was a direct result in the increased computing base load as new major services and test systems went live. With the installation of high efficiency machines, the building’s lift refurbishment project was completed in October and will result in electricity savings in 2011. We believe these will negate any increase in last year’s consumption.

Our main UK site continues to recycle as much of its building waste as possible. In 2010 43,000kg of waste was sent for mixed recycling which resulted in a saving of 578m³ of landfill space. Around 72,000kg of the building’s waste which could not be recycled was sent the SELCHP energy recovery plant in Deptford, South East London where it was incinerated and contributed to the power for the local community. Energy and the environment continues to be a major focus in 2011 with the objective of reducing the carbon footprint for the business.

During 2010, we sponsored The Plastiki Expedition which was a campaign to highlight severe environmental degradation across the Pacific Ocean. The Plastiki, which is a boat made almost entirely from plastic bottles – 12,500 of them in total, travelled the 8,000 nautical mile voyage from San Francisco to Sydney. Using our FleetBroadband service the crew successfully engaged with media throughout the journey drawing attention to plastics trapped forever in the Pacific gyre and to the damage being done to sea and bird life. Our FleetBroadband service even allowed one of the crew to share the experience, via video conference, when his wife gave birth to their son. The expedition has already received nominations for awards, one being from Time Magazine for ‘Invention of the Year’.

Education

We continued with our funding of the Inmarsat Chair of Maritime Education and Training at the World Maritime University which supports the education of maritime specialists. We encourage internships with schools and universities to provide students with the opportunity to experience first-hand the engineering and technical aspects of satellite operations. During the year, we also continued our support of the International Space University by funding two half scholarships for students on its Masters Programme.

We sponsored children from the American School and the local community funded Quinton Kynaston School both based in London, as a joint team to participate in one of the regional heats of the 19th season of the FIRST Robotics Competition in Boston, USA where teams compete to build robots. This has been our fourth consecutive season of sponsoring this event to foster local community relations. Government recognises that the use of space is critical to the UK’s interest and science in schools create the bedrock for the future. We believe working with schools and generating an interest of science through events and activities like this is an important part of encouraging pupils to continue to study science at school and then at university. We also have an ongoing discussion with the education minister in the current government on how to stimulate science in schools. We are pleased to be part of the debate on this subject as part of the review for how to develop the science skills of future generations. Staff working in our main UK site have recently started a mentoring programme with a school in Greater London for students who are just about to enter their key exam year, which we hope will be an inspirational experience for both the pupils and those involved from the business.

The work our partners undertake with local companies and charities are examples of the wider influence of our services and we’re delighted how these can have an impact socially and environmentally. Here are some examples of our partnership’s involvement with these types of activities:

• IsatPhone Pro units being used by teams, press and organisers to provide support for the Dakar Rally during its 9,000km off-road route;
• IsatPhone Pro used by an Argentinian search and rescue team to rescue climbers stranded on the remote Patagonian icecap;
  
• Our partnership with VSee Labs and San Diego State University aims to arm refugee camps with connectivity via BGAN;
• Supporting the Siberian Express for Water exhibition to raise awareness of the worldwide scarcity of clean water which involved two stages: a team initially running the length of Siberia’s frozen Lake Baikal and then across the Sahara Desert using BGAN as the communications service;
• Haulage companies using Inmarsat services for communications to help ensure the safety of drivers along the steep and narrow North Yungas Road, also known as the ‘Road of Death’ in Bolivia;
• IsatPhone Pro services being used by emergency services and state and community officials in Queensland, Australia during the recent devastating floods;
• London’s Natural History Museum hosted live satellite video conferences for schools with scientists on an expedition to previously unexplored rainforests in Borneo;
• Under the banner ‘L’Arbre à Noix’ (the Nut Tree), two young French environmentalists have helped eco-projects in remote regions of South America publicise their work via BGAN. They have already helped out at the Yasuni Research Station in Amazonian Ecuador, which supports scientific research into the sustainable use of natural resources;
• Use of our Inmarsat C service helped save more than 140 children and adults from two vessels both in the Atlantic after distress signals were received. The maritime rescue co-ordination centre used the Inmarsat C SafetyNET system to broadcast appeals to shipping in the region to go to the aid of the stricken craft;
• BGAN was used to break the news of Mount Everest’s youngest conqueror – a 13 year old who kept in touch with family and the media throughout his trip using a BGAN terminal; and
• FleetBroadband was used by two teenage girls each sailing solo around the world as a way to keep in touch with friends, family and supporters, and for updating their social networking sites. Both were trying to set a new record as the youngest sailor to complete a non-stop unassisted circumnavigation.