Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Resource efficiency
• Employee health and safety
• Diversity, equity, and inclusion
• Community impact
• Ethics and compliance
• Risk management
• Supply chain responsibility
• Human rights

Environmental Achievements

• Reduced non-methane VOC emissions by 63% since 2019
• Reduced NOx emissions by 17% since 2019
• Recycled 747 million gallons of water at Wichita facility in 2020
• Wichita facility to operate on 100% renewable wind power by end of 2021
• 70% of Belfast operations powered by renewable energy in 2020
• IRIS™ technology achieved finalist status for JEC Innovation Award, offering potential for 20% carbon emissions reduction in composite aircraft

Social Achievements

• Partnered with Vyaire Medical to produce 20,000 critical care ventilators
• Produced PPE for local communities and hospitals globally
• Reduced global injuries by 67% over the past six years
• Employees donated approximately $31 million to nonprofit agencies and relief organizations through the Good Neighbor Fund since 2005
• Employees volunteered over 16,500 hours through Team Spirit program in 2020

Governance Achievements

• Established a robust Enterprise Risk Management Program
• Implemented a Global Ethics & Compliance Program
• Developed Site Crisis Management Plans for physical climate risks
• Seven production facilities are ISO 14001 certified

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and contraction of commercial airline travel impacted production and emissions data
• Increased weight of bulk solid hazardous waste generated per production unit in 2020 due to low production rates
• Uncertainty in market signals affecting profitability
• Potential for significant fines or penalties for non-compliance with environmental, health, and safety regulations
• Increased stakeholder concern regarding climate-related risks and opportunities
• Potential for damage or disruption to facilities from extreme weather events

Mitigation Strategies

• Strategic sourcing initiatives to mitigate market risks
• Continuous monitoring and training to ensure compliance with regulations
• Strong systems to prevent pollution, injury, and ill health
• ISO 14001 and ISO 9001 certifications
• Corporate and Site Crisis Management Plans to mitigate physical risks
• Emergency Operations Center for rapid response to critical incidents
• Investment in new technology to improve efficiency and reduce emissions
• Engagement with stakeholders to address concerns

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Conflict Minerals Policy
• REACH legislation compliance

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (e.g., hurricanes, wildfires)
• Flooding

Transition Risks

• Uncertainty in market signals
• Regulatory changes
• Increased stakeholder concern

Opportunities

• Increased energy efficiency
• Renewable energy investments
• Development of low-emission products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, AS 9100, ISO 9001, ISO 45001

Third-party Assurance: iCompli Sustainability, a division of BPA Worldwide, Inc.

UN Sustainable Development Goals

• Good Health and Well-being
• Gender Equality
• Clean Water and Sanitation
• Decent Work and Economic Growth
• Industry, Innovation and Infrastructure
• Climate Action

Spirit's sustainability strategy aims to support and align with these UN SDGs by 2030

Sustainable Products & Innovation

• IRIS™ technology
• Inflexion® technology

Awards & Recognition

• JEC Innovation Award Finalist (IRIS™ technology)
• Gold Water Treatment Award (Wichita facility)
• Henry Bellmon Award (Tulsa facility)

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity, Equity, and Inclusion
• Health, Safety, and Wellbeing
• Supply Chain Management
• Ethics and Compliance
• Community Engagement

Environmental Achievements

• Transitioned to 100% renewable electricity at Wichita headquarters and largest site
• Agreement with Malaysia National Power Grid to install solar panels at Subang facility, reducing annual energy consumption by over 2,000 MWh
• 26% reduction in absolute Scope 1 and 2 GHG emissions since 2019
• 63% reduction in non-methane VOC emissions since 2019

Social Achievements

• 24% female representation in leadership globally
• 13% ethnic minority representation in leadership across the U.S.
• Over 8,000 volunteer hours and approximately $4 million donated to global communities
• 7% decrease in lost workday case rate compared to 2020

Governance Achievements

• Established the National Defense Prototype Center
• Opened the Aerospace Innovation Centre in Prestwick, Scotland
• 100% of employees assigned annual Data Privacy, Cybersecurity, and Phishing training
• Zero counterfeit parts detected in 2021

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on business and operations
• Boeing 737 MAX grounding impact on production rates
• Increased stakeholder concern regarding climate change
• Increased severity and frequency of extreme weather events

Mitigation Strategies

• Developed Site Crisis Management Plans using ISO 22301, NIST SP 800-34, and NFPA 1600 standards
• Implemented energy efficiency measures at facilities globally
• Invested in renewable energy sources
• Strategic sourcing initiatives to mitigate supply chain disruptions

Supply Chain Management

Supplier Audits: Regular audits, including Quality System Audits

Responsible Procurement

• Supplier Code of Conduct
• Conflict Minerals Policy
• REACH compliance

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Supply chain disruptions

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Increased energy efficiency
• Renewable energy investments
• Development of low-emission products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 45001, ISO 9001/AS 9100, QMS

Third-party Assurance: ERM Certification and Verification Services, Inc.

UN Sustainable Development Goals

• Good Health and Well-being
• Gender Equality
• Clean Water and Sanitation
• Decent Work and Economic Growth
• Industry, Innovation, and Infrastructure
• Climate Action

Spirit's sustainability strategy aims to support and align with these UN SDGs.

Sustainable Products & Innovation

• Lighter composite passenger door surround structure
• Out of autoclave composite manufacturing process for Lower Wing Cover

Awards & Recognition

• DiversityInc Top Regional Company
• Sustainable Tulsa Platinum Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Corporate Governance
• Health and Safety
• Supply Chain Management
• Community Engagement
• Product Quality and Safety
• Resource Efficiency and Innovation
• Human Rights

Environmental Achievements

• Achieved a 54% reduction in absolute Scope 1 and 2 GHG emissions below 2019 levels.
• Wichita headquarters facility 100% powered by wind electricity.
• Recycled 959 million gallons of water and purchased 299 million gallons of gray water at Wichita facility.
• Reduced potable water use in Wichita operations by more than 85%.

Social Achievements

• Launched a new employee value proposition focusing on training, culture, physical spaces, flexibility, and total rewards.
• Launched Spirit’s first “Taking Flight” DE&I Leadership Symposium.
• Established a new employee business resource group for Hispanic/Latino workforce.
• Named to the Diversity Inc. Top Regional Company list.
• Contributed 12,000+ volunteer hours and ~$3.8 million in donations.

Governance Achievements

• Established a governance structure for DE&I goals, including executive, senior leadership, and site-level councils.
• Enhanced global trade compliance efforts focusing on Russia sanctions.
• Improved incident response plan for data exposure.

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption, GHG emissions, water consumption, and waste generation due to increased company activity.
• Supply chain disruptions (implied).

Mitigation Strategies

• Closely monitoring critical suppliers to circumvent potential disruptions.
• Implementing energy efficiency measures (LED lighting, cooling tower enhancements).
• Investing in renewable energy (wind power).
• Improving water monitoring and maintenance practices, increasing water efficiency and conservation measures.
• Establishing waste management programs for various waste types.

Supply Chain Management

Supplier Audits: Regular audits, including Quality System Audits and third-party ESG risk surveys.

Responsible Procurement

• Supplier Code of Conduct
• Conflict Minerals Policy
• REACH compliance

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 45001, QMS

Third-party Assurance: ERM Certification & Verification Services Incorporated

Sustainable Products & Innovation

• Composite passenger door surround structure (lighter than titanium)
• Thermoplastic production capability for over 1500 parts per aircraft

Awards & Recognition

• Member of the Dow Jones Sustainability™ World Index