Climate Change Data

Leonardo S.p.A.

Climate Impact & Sustainability Data (2017, 2021, 2022, 2023)

Reporting Period: 2017

Environmental Metrics

Total Carbon Emissions:587,631 tCO2e/year
Scope 1 Emissions:256,878 tCO2e/year
Scope 2 Emissions:69,422 tCO2e/year
Scope 3 Emissions:261,331 tCO2e/year
Renewable Energy Share:35%
Total Energy Consumption:5,725 TJ/year
Water Consumption:6,034,000 m3/year
Waste Generated:32,487 tons/year
Carbon Intensity:28 tonnes per € million

ESG Focus Areas

  • Climate change
  • Business conduct and compliance
  • Cyber security and data protection
  • Customer intimacy
  • Supply chain management
  • Innovation
  • Human capital empowerment
  • Value creation and competitiveness
  • Service & product stewardship
  • Welfare & labour protection
  • Health & safety at workplace
  • Contribute to community
  • Environmental responsibility

Environmental Achievements

  • Reduced CO2e emissions by around 10% compared to 2016 (587,631 tonnes of CO2e)
  • 83% of purchased electrical energy from renewable sources (75% in 2016)
  • Installed over 9,000 LED lights, resulting in energy savings of around 15,000 MWh/year
  • Reduced special waste produced by 9% compared to 2016 (32,487 tonnes)
  • 55% of waste produced is recovered (44.1% recovered, 10.5% recycled, 0.4% reused, 0.3% composted)

Social Achievements

  • Launched a flexible benefit plan for employee well-being
  • Implemented Performance & Development Management tool for 22,000 employees (98% participation among managers)
  • Provided over 650 internships, apprenticeships, and training programs
  • Ranked eighth best employer of choice by Italian graduates
  • Introduced new integrated health assistance coverage for all Italian non-management employees and their families

Governance Achievements

  • Improved CDP (Carbon Disclosure Project) ranking from level B to level A-
  • Obtained AEO-F (Authorized Economic Operator - Full) customs certification
  • Held the second edition of the Compliance Council, with 600 people involved
  • 81% of employees trained on the Anti-Corruption Code
  • Implemented Supply Chain Risk Management process with twelve suppliers

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reach 30% female employment by 2025
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Short-term, non-structural issues in the helicopters business
  • Cyber threats
  • Impact of climate change on supply chains
Mitigation Strategies
  • Corrective actions addressed short-term issues in helicopters business
  • Developed a cyber protection model with specific KPIs and training programs
  • Implemented Supply Chain Risk Management process

Supply Chain Management

Supplier Audits: 1,750 inspections of indirect suppliers

Responsible Procurement
  • Supplier Code of Conduct
  • Procurement Portal for transparency and traceability

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
Opportunities
  • Development of energy-efficient products (e.g., carbon fiber aerostructures, electric and hybrid electric ship propulsion systems)

Reporting Standards

Frameworks Used: GRI G4 (in accordance core), IIRC

Certifications: ISO 14001, OHSAS 18001, ISO 27001 (cyber security), ISO 50001 (Energy Management)

Third-party Assurance: KPMG SpA (limited assurance)

UN Sustainable Development Goals

  • Goal 4
  • Goal 8
  • Goal 9
  • Goal 13

Leonardo contributes to these goals through spreading scientific citizenship, technological partnerships, innovation processes, and improvements in products and solutions for society and the environment.

Sustainable Products & Innovation

  • Aircrafts and helicopters with carbon-fibre structures
  • Electric propulsion for helicopter tail rotors
  • Hybrid and electric marine propulsion systems

Awards & Recognition

  • Innovation Award for electric propulsion for helicopter tail rotors
  • Grover E. Bell Award for outstanding research in vertical flight
  • Best Employer of Choice 2018 (8th in Italy)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:43,214 tCO2e/year (2020)
Scope 1 Emissions:13,852 tCO2e/year (2020)
Scope 2 Emissions:14,882 tCO2e/year (2020)
Scope 3 Emissions:14,480 tCO2e/year (2020)
Renewable Energy Share:100% (since 2016)
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:231 tons/year (2020)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change

Environmental Achievements

  • 22% reduction in Scope 1 and 2 emissions from 2018 to 2020
  • Implementation of LED lighting and Light-as-a-Service (LaaS) across several sites
  • Replacement of inefficient cooling towers with more energy-efficient systems at Yeovil facility
  • Replacement of a centralised steam heating network with local heating solutions at Yeovil site

Social Achievements

  • Not disclosed

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Achieve Net Zero by 2050 across our value chain
Medium-term Goals:
  • Produce 25% of own energy by 2030
  • Transition site commercial fleet to electric options by 2025
  • Achieve Net Zero by 2030 for Scope 1 and 2 emissions
Short-term Goals:
  • Reduce Scope 1 and 2 carbon emissions by 40% by the end of 2025 against a 2018 baseline
  • Reduce total waste by 5% and recycle a minimum of 90% of non-hazardous waste by 2024
  • Reduce water consumption and water discharge by 5% by 2024
  • Implement ISO 14064-1 for all UK operations by the end of 2024

Environmental Challenges

  • Not disclosed
Mitigation Strategies
  • Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GHG Reporting Protocol corporate standard, SECR (for Scope 1 and 2 emissions), Corporate Value Chain (Scope 3) Standard, PPN 06/21

Certifications: ISO 50001, PAS 2060 (aspiration)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Climate Change
  • Decarbonisation
  • Sustainable Supply Chain
  • Circular Economy
  • Responsible Business Conduct
  • Diversity, Equity, and Inclusion
  • Scientific Citizenship
  • Digital Transformation

Environmental Achievements

  • Reduced Scope 1 and 2 market-based CO2e emissions by 15% compared to 2021
  • Reduced water withdrawal intensity on revenues by 13% compared to 2021
  • Reduced energy consumption intensity on revenues by 7% compared to 2021
  • Avoided ~160,000 tonnes of CO2e since 2020 due to partial substitution of SF6 gas
  • Avoided 12,200 tonnes of CO2e in a year thanks to Leonardo’s Free Route ATM system
  • Avoided 16,000 tonnes of CO2e by 2025 due to self-generated energy through photovoltaic panels
  • 51% recovery of waste produced in 2022

Social Achievements

  • More than 17,000 Leonardo staff completed a sustainability course
  • Almost 3,000 employees participated in Sustain-Able, a gamification platform on sustainability issues
  • 336 key suppliers trained on the SDGs
  • Springboard programme involved more than 140 female employees in leadership development
  • Over 4,900 women hired since 2018
  • Over 9,200 under-30s hired since 2018
  • Food with an economic value of over €3 million distributed through the Responsible Canteens Programme

Governance Achievements

  • Extended Trade Compliance Directive to the Group in 2022
  • Renewed/maintained ISO 37001:2016 “Anti-Bribery Management System” certification
  • Placed in Band A of Transparency International’s Defence Companies Index on Anti-Corruption and Corporate Transparency (DCI)

Climate Goals & Targets

Long-term Goals:
  • Achieve climate neutrality for Scope 1 and 2 emissions by 2030 (Leonardo UK)
  • Achieve climate neutrality throughout the value chain by 2050 (Leonardo UK)
Medium-term Goals:
  • Reduce Scope 1 + Scope 2 (market-based) emissions by 50% (baseline 2020)
  • Increase computing power by 40% per capita (baseline 2020)
  • Increase storage capacity by 40% per capita (baseline 2020)
  • 80% of key suppliers (over 500) with awareness/training on SDGs and reporting tools by 2025
  • 100% of LEAP partners with targets and plans on green energy, CO2 reduction, waste recycling, and water consumption by 2025
Short-term Goals:
  • Reduce electricity consumption from the external grid by 10% (baseline 2019)
  • Reduce water withdrawals by 25% (baseline 2019)
  • Reduce waste production by 15% (baseline 2019)
  • Achieve 32% women in total new hires by 2025
  • Achieve 30% women in STEM areas by 2025
  • Achieve 20% women in management levels by 2025
  • Achieve 20% women in total employees by 2025
  • Achieve 27% of women in succession plans by 2025
  • Avoid 16,000 tonnes of CO2e by 2025 through self-generated energy

Environmental Challenges

  • Decarbonizing the entire value chain
  • Managing the increasing number of orbiting satellites and space debris
  • Promoting sustainability among a large number of SMEs in the supply chain
Mitigation Strategies
  • Commitment to the Science Based Targets initiative (SBTi)
  • Investment in NorthStar Earth & Space for space debris tracking
  • LEAP programme, Supply Chain Sustainability Manifesto, and LEADS assessment model for supplier sustainability

Supply Chain Management

Supplier Audits: Over 800 key suppliers assessed in 2021-2022, covering over 32% of the value ordered from suppliers.

Responsible Procurement
  • LEAP programme
  • Supply Chain Sustainability Manifesto
  • LEADS assessment model
  • Training and awareness courses on sustainability for suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products and services
  • Sustainable aviation fuels

Reporting Standards

Frameworks Used: GRI, SBTi

Certifications: ISO 14001, ISO 37001

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 9 (Industry, Innovation and Infrastructure)
  • Goal 11 (Sustainable Cities and Communities)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)

Initiatives contribute to these goals through decarbonization efforts, sustainable supply chain management, development of sustainable technologies, and community engagement.

Sustainable Products & Innovation

  • Sustainable aviation fuels
  • Energy-efficient products
  • Electric wheelchairs

Awards & Recognition

  • Leonardo ESG Awards

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:250,770 tCO2e/year (market-based)
Scope 1 Emissions:195,682 tCO2e/year
Scope 2 Emissions:55,088 tCO2e/year
Renewable Energy Share:85% of electricity
Total Energy Consumption:5,311 TJ/year
Water Consumption:4,929 megaliters/year
Waste Generated:33,065 tons/year
Carbon Intensity:27.70 gCO2e/€ (location-based)

ESG Focus Areas

  • Governance
  • People
  • Planet
  • Prosperity

Environmental Achievements

  • Reduced Scope 1 and 2 (market-based) CO2 emissions by 9.5% compared to 2022, despite increased business volumes. This was achieved through the replacement of SF6 gas, energy efficiency initiatives, and increased renewable energy use.
  • Reduced energy consumption by 2.3% and water withdrawals by 7.5% compared to 2022.

Social Achievements

  • Increased female representation in managerial positions to 19.5% and increased hiring of women with STEM degrees.
  • Reduced injury rate by 13.4% compared to 2022.
  • Increased average training hours per employee by 17.1%.

Governance Achievements

  • Maintained ISO 37001:2016 “Anti-Bribery Management System” certification.
  • 55% of total financing sources linked to ESG parameters.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050 (UK commitment)
Medium-term Goals:
  • Achieve a 50% reduction in Scope 1 and 2 (market-based) emissions by 2030.
Short-term Goals:
  • Reduce electricity consumption from the external grid by 10% by 2025.
  • Reduce water withdrawals by 25% by 2030.
  • Reduce waste produced by 15% by 2030.
  • Increase computing power by 40% per capita by 2025.
  • Increase storage capacity by 40% per capita by 2025.

Environmental Challenges

  • Supply chain disruptions due to geopolitical tensions and the Russia-Ukraine conflict.
  • Increased competition in civil sectors.
  • Shortage of specialized skills.
  • Risks associated with partnerships and joint ventures.
  • Risk of fraud or illegal activities.
  • Complexity of legal disputes.
  • Compliance with regulations in complex markets (e.g., export control).
  • Potential impacts of pandemics.
  • Risks to worker health and safety and environmental risks.
  • Risks related to climate change and environmental policies.
  • Breaches of information security obligations.
  • Difficulties in protecting intellectual property.
  • Complex products and services under long-term fixed-price contracts.
  • Risks associated with the supply chain.
  • Offset obligations in certain countries.
  • Availability of chips, electronic components, and critical raw materials.
  • Intangible assets recoverability.
  • Impact of debt levels on strategies.
  • Impact of credit ratings.
  • Exchange rate fluctuations.
  • Pension plan obligations.
Mitigation Strategies
  • Integrated strategic planning process.
  • International diversification strategy.
  • Improved industrial efficiency, diversified customer base, and reduced overhead costs.
  • Qualitative and innovative product standards.
  • Competency management plans for attracting, retaining, and motivating human resources.
  • Due diligence activities before and after partnerships and joint ventures.
  • Responsible business conduct model, including ISO 37001 certification.
  • Regular monitoring of potential and existing disputes.
  • Timely implementation and management of export control formalities.
  • Action plans to contain impacts of pandemics.
  • Targeted risk analyses and improvement objectives for worker health and safety.
  • Industrial strategy for reducing energy consumption and atmospheric emissions.
  • Measures against physical risks and insurance cover.
  • Dedicated controls, training, and technologies for cybersecurity.
  • Continuous improvement of intellectual property protection processes.
  • Risk management throughout the product lifecycle.
  • Strengthening and improving the supply chain.
  • Appropriate analyses and due diligence for offset obligations.
  • Monitoring supply requirements and participation in international working groups.
  • Monitoring and limiting amounts capitalized under intangible assets.
  • Debt reduction strategy.
  • Hedging policy to combat transaction risk.
  • Monitoring pension funds’ investment plans.

Supply Chain Management

Supplier Audits: More than 400 audits on potential customers, service centers, and business partners.

Responsible Procurement
  • Supplier Code of Conduct
  • ESG targets and plans for LEAP partners
  • Training on sustainability reporting and decarbonization for suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Stringent environmental policies
  • Changes in investor and lender confidence
Opportunities
  • Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 37001, ISO 14001, ISO 45001, ISO 27001, ISO 27701, ISO 27035, ISO 22301

Third-party Assurance: EY S.p.A.

UN Sustainable Development Goals

  • SDG 4
  • SDG 8
  • SDG 9
  • SDG 11
  • SDG 12
  • SDG 13

Initiatives contribute to these goals through various programs and projects.

Sustainable Products & Innovation

  • Next Generation Tiltrotor
  • Virtual training systems
  • Sustainable Aviation Fuels
  • Hybrid/electric propulsion systems

Awards & Recognition

  • Dow Jones Sustainability Index (14 consecutive years)
  • CDP Climate Change Leadership
  • EcoVadis Platinum medal
  • Bloomberg Gender-Equality Index