Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Diversity and Inclusion
• Environmental Matters

Social Achievements

• As of December 31, 2022, the Company’s employee base includes 23.8% females and 61.2% minorities.
• In 2023, we aim to focus on partnering with local schools and supporting diverse students with an anticipated scholarship program that will provide financial assistance, mentorship and internship opportunities with the ultimate goal being full time employment at one of our facilities.

Climate Goals & Targets

Environmental Challenges

• The ongoing COVID-19 pandemic, including associated variants, has had a material adverse impact, and could in the future have a material adverse impact, on our business, operating results, financial condition, and liquidity.
• Supply chain disruptions could have adverse effects on our ability to provide certain services
• Factors that adversely impact the commercial aviation industry
• The war in the Ukraine is creating an adverse climate for our business.

Mitigation Strategies

• Implemented processes and procedures to ensure compliance with applicable government-imposed health and safety-related operating restrictions, enhanced the safety of our facilities, protected the health of our employees, and monitored trends in infection rates at locations where we have facilities.
• Actively managing supply chain issues and potential supplier performance failures and delays.
• Monitoring FAA publications and industry trade groups in an effort to obtain as much advance notice as possible concerning future regulatory mandates.
• Ceased pursuing future business in Russia and terminated our three leases with operators doing business in Russia, successfully recovering two aircraft with one engine still unrecovered. Fully impaired the unrecovered asset.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• AerSafe ® product line
• AerAwareTM

Environmental Metrics

ESG Focus Areas

• Diversity and Inclusion
• Environmental Matters
• Health and Safety

Social Achievements

• Created employment opportunities in diverse communities.
• As of December 31, 2023, the Company’s employee base includes 24% females and 64% minorities.
• Conducted an employment survey to assess diversity efforts and measure progress on our commitment to fostering a culture of inclusion and diversity and ensuring employees can reach their potential.

Governance Achievements

• Established health, safety and awareness programs in each AerSale facility.
• Developed an Environmental Policy and Procedures Manual in compliance with applicable federal, state, and local environmental laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to global factors, geopolitical conditions, and sanctions.
• Factors adversely impacting the commercial aviation industry (geopolitical events, terrorism, high fuel prices, labor issues, weak economic conditions, airline bankruptcies).
• Inability to acquire Flight Equipment on favorable terms.
• Fluctuating market values for aviation products.
• Inability to repossess Flight Equipment when lessees default.
• Dependence on continued outsourcing by airlines for MRO activities.
• Shortage of skilled personnel or work stoppages.
• Inability to obtain certain components and raw materials from suppliers.
• Highly competitive markets.
• Risks associated with international operations.
• Risks from business acquisitions and integration.
• Unique risks of supplying to the U.S. government.
• Further consolidation of customers and suppliers.
• Cybersecurity threats.
• Significant capital expenditures needed to keep pace with technological developments.
• Lack of ownership of certain intellectual property and tooling.
• Intellectual property litigation.
• Dependence on facilities subject to physical risks.
• Improper conduct by employees, agents, or subcontractors.
• Loss of services from key employees.
• Failure of subcontractors to perform.
• Impacts from future outbreaks and infectious diseases.
• Dependence on continued availability of financing.
• Failure to comply with debt covenants.
• Restrictive covenants limiting operations.
• Unanticipated changes in tax provision.
• Possible goodwill and other asset impairments.
• Changes in interest rates, foreign currency exchange rates, and swap counterparty risks.
• Significant government regulation and compliance expenses.
• Compliance with anti-corruption laws.
• Regulatory proceedings or litigation.
• Liens on Flight Equipment exceeding value.
• Risk that leased aircraft engines are deemed accessions to the aircraft.
• Product and other liability claims not covered by insurance.
• Extensive environmental requirements.
• Global climate change and market responses.
• Depressed stock price from substantial future sales of common stock.
• Lack of analyst coverage.
• Ineffective internal control over financial reporting.
• Insolvency of customers.
• Adverse effects of negative economic conditions.

Mitigation Strategies

• Comprehensive cybersecurity risk management program.
• Monitoring FAA publications and industry trade groups for regulatory changes.
• Policies, procedures, training, and compliance controls to prevent misconduct.
• Health, safety, and awareness programs in each facility.
• Competitive compensation and benefits programs to attract and retain employees.
• Career readiness program for aviation mechanics and technicians.
• Tuition reimbursement program.
• Annual talent and performance review and succession planning.
• Maintaining an environmental impairment liability policy (Goodyear facility).
• Amended and Restated Credit Agreement with extended maturity date.
• Diligent monitoring of debt covenants.
• Annual assessment of goodwill and other intangible assets for impairment.
• Amended Revolving Credit Agreement to replace LIBOR with SOFR.
• Vigorous defense of litigation matters and maintenance of significant levels of insurance.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• AerSafe®
• AerAware™

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• disruptions in supply chain
• factors that adversely impact the commercial aviation industry
• shortage of skilled personnel or work stoppages
• the inability to obtain certain components and raw materials from suppliers
• the highly competitive nature of the markets in which we operate
• risks associated with our international operations
• risks from business acquisitions and integration of new businesses acquired
• cyber or other security threats or disruptions
• lack of ownership of certain intellectual property and tooling that is important to our business
• impacts from future outbreaks and infectious diseases on flight activity, demand for MRO and leasing services, our business partners or customers, and the related macro environment
• our dependence on continued availability of financing to manage our business and to execute our business strategy, and unavailability of additional financing on terms acceptable to us
• global climate change, or by legal, regulatory or market responses to such change
• ineffective internal control over financial reporting
• insolvency of our customers
• the adverse effect of negative economic conditions

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• AerSafe® product line
• AerAware™ product