Climate Change Data

Environmental Metrics

ESG Focus Areas

• Anti-corruption
• Environment
• Employees
• Human Rights
• Society

Environmental Achievements

• 37% reduction in GHG emissions due to reduced business travel and reduced test flight operations, as well as reduced production in some countries due to Covid
• 90% reduction in waste to landfill due to reuse of blasting material

Social Achievements

• 4.5 reported incidents per workplace injury
• 73% of employees discussed their personal goals, development and performance with their manager

Governance Achievements

• Appointed local Ethics and Compliance Officers to strengthen anti-corruption work

Climate Goals & Targets

Environmental Challenges

• Covid-19 impact on supply chains and uncertainties
• Significant downturn in the aviation industry impacting civil business
• Increased cybersecurity challenges

Mitigation Strategies

• Adjusting project estimates
• Introducing shorter working hours
• Temporarily producing protective equipment for the Swedish healthcare system
• Increased digital communication
• Alternative sourcing strategies
• Continuous and systematic information and IT security work

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct based on UN Global Compact principles

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions affecting supply chain and operations

Transition Risks

• Regulatory changes and tightening requirements for industrial processes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: PwC (limited assurance on GHG emissions)

UN Sustainable Development Goals

• Goal 4
• Goal 5
• Goal 9
• Goal 13
• Goal 16

Saab contributes through its operations to most of the SDGs. The goals that Saab has the greatest ability to influence and that are tied to the business strategy are goals 4, 5, 9, 13 and 16.

Sustainable Products & Innovation

• Aerobahn CDM Suite (reducing ground emissions)
• Saab Seaeye electric underwater robots (reducing CO2 emissions)
• Electro-mechanical actuators & controllers (reducing aircraft drag)
• Fiber optic sensor technology (reducing aircraft weight)
• Remote Support (reducing travel needs)

Awards & Recognition

• Airbus Innovation Award

Environmental Metrics

ESG Focus Areas

• Anti-corruption
• Climate change
• Resource efficiency
• Employee health and safety
• Diversity and inclusion
• Export compliance
• Responsible supplier relationships
• Information security
• Product safety

Environmental Achievements

• Reduced GHG emissions by 51% compared to 2017.
• Improved energy efficiency measures estimated to reduce electricity and heat consumption by up to 2770 MWh per year.
• Procurement of International Renewable Energy Certificates (I-REC) for electricity used at Saab’s site in South Africa, resulting in CO₂ emissions reduction by approximately 4,200 tons annually.

Social Achievements

• Launched a new learning platform to support continuous learning.
• Launched a new Leadership Framework.
• Maintained several projects aimed at people who experience difficulty entering into the job market in South Africa, resulting in more than 204 South African youths entering the job market through a Youth Unemployment Programme.

Governance Achievements

• Continued development of the anti-corruption programme, including introduction of Ethics and Compliance Officers at all Business Areas.
• Implementation of a new supplier-evaluation tool (Ecovadis) to measure and monitor sustainability risks and opportunities in the supply chain.
• Decision taken to implement a Responsible Sales Policy during 2022.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic.
• Weak volumes in the civil aviation operations.
• Increased competition in the military market.
• Risks related to corruption and human rights violations in certain parts of the world.
• Climate change impacts on operations and supply chain.

Mitigation Strategies

• Working from home and social distancing measures for employees.
• Alternative sourcing strategies.
• Production re-planning.
• Increased digital communication.
• Internal reallocation of resources.
• Securing of credit facilities.
• Strengthening local presence in strategic markets.
• Implementing a new organisational structure to improve efficiency.
• Developing a new sustainability strategy.
• Implementing a Responsible Sales Policy.
• Continuous monitoring of laws, regulations, and standards.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct based on the UN Global Compact’s ten principles and the International Labour Organisation’s core conventions.
• Introduction of third-party supplier of Ecovadis in processes to measure and monitor sustainability risks and opportunities in the supply-chain.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions that affect the supply chain, our own operations and customers

Transition Risks

• Regulatory changes and requirements for industrial processes

Opportunities

• Development of energy-efficient products (e.g., Sabertooth)

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact, TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: PwC (limited assurance)

UN Sustainable Development Goals

• 3
• 4
• 5
• 8
• 9
• 13
• 16
• 17

Saab contributes most materially to these SDGs based on its materiality analysis.

Sustainable Products & Innovation

• Sabertooth autonomous underwater vehicle powered by wave energy

Environmental Metrics

ESG Focus Areas

• Climate Impact
• Hazardous Substances
• Circular Economy
• Occupational Health and Safety
• Business and Human Rights
• Anti-Corruption
• Information Security
• Export Compliance
• Diversity and Inclusion
• Innovation
• Industrial Cooperation and Partnership

Environmental Achievements

• Reduced Scope 1 & 2 CO2e emissions by 124% compared to 2020 (Note: This figure seems unusually high and may require further investigation from the report)
• Reduced waste to landfill by 83% compared to 2019
• Reduced water withdrawal by 20% compared to 2018

Social Achievements

• Launched sustainability training, mandatory for all employees
• Established a Sustainability Council
• 55% of strategic suppliers assessed or committed to assessment based on social and environmental criteria (Ecovadis)

Governance Achievements

• Strengthened Responsible Sales framework
• Science-based emission reduction targets approved by the Science Based Targets initiative (SBTi)

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the war in Ukraine and global material shortages (especially electronic components)
• Inflation
• Electricity supply interruptions due to extreme weather events
• Uncertainty surrounding the definition of sustainability in the financial market and its impact on investment

Mitigation Strategies

• Activating crisis management organization with focus on security, embargo and sanction practices
• Working with supply chain alternatives, second sourcing, in- and outsourcing
• Implementing energy efficiency measures and increasing renewable energy use
• Expanding sustainability strategy to address stakeholder questions

Supply Chain Management

Supplier Audits: 55% of strategic suppliers assessed or have committed to be assessed based on social and environmental criteria in 2022 (Ecovadis)

Responsible Procurement

• Supplier Code of Conduct based on the UN Global Compact’s ten principles and the International Labour Organization’s core conventions
• Ecovadis assessments for sustainability performance

Climate-Related Risks & Opportunities

Physical Risks

• Electricity supply interruptions due to extreme weather events

Transition Risks

• Changes in regulations and customer requirements for sustainability
• Market shifts towards low-carbon solutions

Opportunities

• Development of energy-efficient products and services
• Transitioning to sustainable fuels and energy sources

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 27001 (some units)

Third-party Assurance: PwC (limited assurance on sustainability report as a whole; reasonable assurance on Scope 1 and 2 emissions)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 13 (Climate action)
• Goal 16 (Peace, justice and strong institutions)
• Goal 17 (Partnerships for the goals)

Saab's initiatives contribute to these goals through sustainable innovation, responsible business practices, and partnerships.

Sustainable Products & Innovation

• VDES maritime traffic control system
• eWROV electric underwater remotely operating vehicle
• Airborne Cooling System (using Additive Manufacturing)

Awards & Recognition

• Award from Boeing for production of advanced training aircraft aft fuselage systems

Environmental Metrics

ESG Focus Areas

• Resilient and safe societies
• Green and social transition
• Innovation and partnerships

Environmental Achievements

• Reduced Scope 1 and 2 CO₂e emissions by 25.5% since 2020
• Reduced emissions by 1.5% compared to 2022

Social Achievements

• Launched a new Code of Conduct
• Increased share of women employees to 25%
• Conducted responsible sales due diligence on more than 40 business opportunities

Governance Achievements

• Updated sustainability strategy
• Implemented and launched training for all employees in its new Code of Conduct

Climate Goals & Targets

Environmental Challenges

• High competition in the labor market
• Uncertainty in the global supply chain
• Changes in export control regulations
• Climate change and natural disasters
• Risks related to a pandemic outbreak
• Risks related to the execution of long-term customer projects
• Dependence on new contracts and increased competition
• Supply chain risks
• Compliance risks
• Cyber and information security risks
• Market and political risks
• Development of new high-tech systems and technology shift risks
• Workforce

Mitigation Strategies

• Strategic workforce planning
• Investing in product development
• Multinational partnerships
• Modularisation
• Investing in product innovation
• Cyber security investments
• Strategic, geopolitical and market analysis
• Building long-term international relationships
• Increase local operations
• Continuously monitor laws, regulations and standards
• Risk inspections
• Crisis management organisation
• Business continuity management
• Supplier commitments
• Supply chain alternatives
• Supplier Code of Conduct
• Stakeholder dialogue
• Policy of zero tolerance for bribes and corruption
• ISO certifications
• UN Global Compact
• Central functions for business ethics, export control and data privacy compliance
• Internal Control and Internal Audit

Supply Chain Management

Supplier Audits: 78% of strategic suppliers assessed or committed to be assessed by Ecovadis

Responsible Procurement

• Supplier Code of Conduct
• Sustainability requirements on suppliers
• Ecovadis assessments

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Natural disasters

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, EU Taxonomy

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 27001 (some units)

Third-party Assurance: PwC

UN Sustainable Development Goals

• Goal 7
• Goal 13

Saab contributes materially to these goals through its sustainability strategy and initiatives

Sustainable Products & Innovation

• Autonomous electrical underwater vehicles
• Maritime communication system AIS/VDES

Awards & Recognition

• CDP’s ‘A list’ for 2023