Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduction in water consumption thanks to system improvement activities.
• Reduction in hazardous waste through improved waste management processes.
• Development of washable and reusable surgical masks to reduce waste.

Social Achievements

• Stabilization of 12 temporary blue-collar workers in Italy.
• Donation of €500,000 to Kourou Hospital and Colleferro Civil Protection to combat COVID-19.
• Implementation of smart working and agile work methods during COVID-19.

Governance Achievements

• Establishment of a Sustainability Committee to oversee ESG issues.
• Update of the Organization, Management, and Control Models pursuant to Legislative Decree 231/01.
• Approval of a new Diversity Policy for administrative and control bodies.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic causing limitations and slowdowns in some activities.
• Temporary suspension of launch preparation activities from Kourou base.
• Supply chain disruptions due to COVID-19 restrictions.

Mitigation Strategies

• Implementation of government provisions and national protocols for COVID-19.
• Establishment of an internal COVID-19 Committee to mitigate risks.
• Use of smart working and agile work methods.

Supply Chain Management

Supplier Audits: 33 audits in 2020 (5 on product, 14 on process, 14 on suppliers)

Responsible Procurement

• Supplier selection based on quality, innovation, cost, service, integrity, and professionalism.
• Verification of supplier compliance with ethical-legal, environmental, social, and safety requirements.
• Requirement for Italian suppliers to sign the Corporate Code of Conduct.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Core)

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: Deloitte & Touche S.p.A. (Limited assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 13 (Climate action)
• Goal 17 (Partnerships for the goals)

Avio contributes through its activities in space transport, propulsion systems, and research and development.

Sustainable Products & Innovation

• LOx-LNG propulsion system
• Paraffin-based hybrid propulsion system

Awards & Recognition

• Green Star Company 2021

Environmental Metrics

ESG Focus Areas

• Environmental remediation
• Energy consumption and emission
• Waste management
• Management & water resources
• Human capital management and talent retention
• Training and skills development
• Management and retention talent
• Equal opportunities
• Staff remuneration
• Health, safety, wellbeing of employees and human rights
• Integrated Corporate Governance
• Cybersecurity and data protection
• Quality management system
• Social & Environmental Initiative
• Prevention of corruption
• Quality and safety of products and processes
• Responsible relationship with suppliers
• R&S e Innovation
• Safety in industrial management

Environmental Achievements

• Improved water consumption efficiency
• Planned measures to improve waste management

Social Achievements

• Launched several Gender Inclusion projects
• Implemented a comprehensive “Merit and Development Plan” covering 43% of the workforce
• Extended remote working options for parents and employees with special needs
• Organized training days dedicated to diversity and inclusion
• Launched the “AVIO4WOMEN” event focused on the growth and empowerment of women
• Initiated a Mentorship program

Governance Achievements

• Updated the Code of Ethics
• Implemented an Endpoint Detection & Response (EDR) solution and a Network Access Control (NAC) solution to enhance cybersecurity
• Conducted 45 audits in 2022 (product, process, supplier, and subcontractor audits)
• Confirmed continued membership of the Business Integrity Forum (BIF)

Climate Goals & Targets

Environmental Challenges

• Significant rise in energy costs and inflation in 2022
• Supply chain disruptions due to the war in Ukraine (components for Vega and Vega-C launchers and carbon-carbon inserts)
• Unexpected anomaly leading to Vega C mission failure (VV22)
• Potential impacts from dependence on Ukrainian strategic suppliers
• General economic risks (COVID-19 pandemic, economic growth contraction, recession, financial crisis)
• Current inflationary effects on raw materials
• Dependency on public contracting authorities and/or public subsidies
• Risks related to fixed-price contracts
• Limited number of programs and clients
• Risks associated with the use of explosive or chemically hazardous materials

Mitigation Strategies

• Stock strategy adopted in Colleferro with advance orders placed as early as 2017 for Vega and Vega-C launchers
• Investing in strengthening know-how in the production of carbon-carbon inserts since 2019
• Procured a strategic stock of carbon-carbon inserts
• ESA allocated specific financial resources to mitigate long-term supply risk through the development of complementary technological solutions
• Implemented protective measures to limit the spread of COVID-19
• Developed alternative sourcing strategies for Ukrainian components
• Implemented a comprehensive risk management strategy (ERM)
• Dual sourcing supplier selection policy
• Continuous monitoring of suppliers
• Gradual minimization and elimination of hazardous raw materials under REACH
• ESA support program of approximately Euro 30 million to cover costs of return-to-flight activities for Vega C
• Implementing recommendations from the Independent Commission of Inquiry (IEC) to ensure the safe return to flight of Vega and Vega C

Supply Chain Management

Supplier Audits: 16 supplier audits in 2022

Responsible Procurement

• Supplier Sustainability Survey
• Code of Ethics/Charter of Ethics signing
• Verification of supplier compliance with ethical-legal, environmental, social, and health and safety requirements
• Dual sourcing policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme natural or weather events

Transition Risks

• Changes in the regulatory framework

Opportunities

• Development of energy-efficient products
• Development of green propulsion technologies

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (2021)

Certifications: ISO 14001 (Environmental Management System), UNI ISO 45001 (Occupational Health and Safety Management System), EN 9100:2018 (Quality Management System)

Third-party Assurance: Deloitte & Touche S.p.A. (limited assurance engagement)

UN Sustainable Development Goals

• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 13 (Climate Action)
• SDG 15 (Life on Land)
• SDG 17 (Partnerships for the goals)

Developing cleaner space technologies, improving Earth observation for sustainable development, supporting life in space

Sustainable Products & Innovation

• LOx-LNG propulsion technology
• M10 engine

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy consumption and emissions in production processes, building operation, logistics, and new product development.
• Reduced waste generated along the entire value chain.
• Maximized waste sorting, recovery, and recycling.
• Minimized water consumption and maximized reuse of water resources.

Social Achievements

• Provided 41,005 hours of training in 2023, focusing on safety, specialized processes, soft skills, and sustainability.
• Launched initiatives to promote gender equality and inclusion.
• Implemented a merit-based remuneration policy.
• Maintained a high rate of permanent employment contracts (96.6%).

Governance Achievements

• Established a Sustainability Committee and internal Sustainability Steering Committee.
• Updated the Organisation, Management and Control Model (231 Model) to account for legislative changes.
• Implemented a Whistleblowing Procedure in compliance with Legislative Decree No. 24/2023.
• Confirmed membership of the Business Integrity Forum (BIF) and cooperated with AITRA.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the war in Ukraine (affecting MEA engine and carbon-carbon inserts for Vega C).
• Inflationary pressures on raw materials and energy costs.
• Vega C return-to-flight activities following an anomaly.
• Potential risks associated with climate change (extreme weather events, energy costs).

Mitigation Strategies

• Developed alternative sourcing strategies for MEA engine and carbon-carbon inserts.
• Secured additional funding from ESA to cover inflationary pressures.
• Implemented recommendations from the Independent Commission of Inquiry to address Vega C anomaly.
• Implemented metering devices to monitor energy consumption and infrastructure works to improve building resistance.

Supply Chain Management

Supplier Audits: 19 supplier audits and 18 subcontractor audits in 2023.

Responsible Procurement

• Supplier Code of Conduct
• Supplier Sustainability Survey
• Verification of supplier ethical practices

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events affecting energy consumption and potentially causing plant shutdowns.
• Seismic events, flooding, tornadoes, and fires.

Transition Risks

• Increased energy costs due to climate change mitigation efforts.

Opportunities

• Development of energy-efficient products and processes
• Development of green propulsion technologies.

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (2021)

Certifications: ISO 14001, ISO 45001, EN 9100:2018

Third-party Assurance: Deloitte & Touche S.p.A. (limited assurance)

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 13 (Climate Action)
• SDG 15 (Life on Land)
• SDG 16 (Peace, Justice and Strong Institutions)
• SDG 17 (Partnerships for the Goals)

Avio's initiatives contribute to these goals through various programs and activities related to technology, innovation, environmental protection, social responsibility, and ethical governance.

Sustainable Products & Innovation

• LOx-LNG propulsion technology
• M10 engine for Vega E
• MPGE (multi-purpose green engine)

Awards & Recognition

• Consob report recognizing Avio among the best in sustainable governance.