Climate Change Data

Environmental Metrics

ESG Focus Areas

• Business Ethics
• Product Safety
• Data Security
• Occupational Safety
• Health & Wellbeing
• Engagement & Involvement
• Diversity, Inclusion & Equity
• Energy Usage & Emissions
• Water & Wastewater
• Waste
• Ethical Business Conduct
• Risk Management
• Compliance, Anti-Corruption & Trade Regulation Programs
• Data Security & Privacy
• Supply Chain Responsibility

Environmental Achievements

• Implemented a data tool to collect and maintain a robust data set of environmental information, with 2020 as a baseline year.

Social Achievements

• Reduced recordable injuries by 24% and days away by 30% over a three-year period.
• Increased United Way giving by over 25% from 2020.
• Launched the “New Deal” initiative to enhance the value proposition of working for Triumph, focusing on personal development, flexibility, and high-performance teamwork.
• Extended outreach efforts resulting in robust and ongoing partnerships with five STEM organizations.

Governance Achievements

• Expanded the role of the Nominating and Corporate Governance Committee to include overall oversight of the Company’s sustainability efforts.
• Renamed the Nominating and Corporate Governance Committee as the Nominating, Governance, and Sustainability Committee.
• Expanded the role of the Compensation and Management Development Committee to include oversight of the Company’s human capital, diversity, and employee development efforts, and renamed the committee as the Human Capital and Compensation Committee.
• The Audit Committee more explicitly assumed oversight of the Company’s enterprise risk management and cybersecurity programs.

Climate Goals & Targets

Environmental Challenges

• Supply chain constraints and price increases
• COVID-19 pandemic

Mitigation Strategies

• Engagement and low-cost country sourcing
• Proactive communication, advanced forecasting, artificial intelligence-based risk management, innovative staffing approaches, along with dual sourcing and disciplined price management
• Following CDC recommendations and other regulatory requirements, encouraging employee vaccination.

Supply Chain Management

Supplier Audits: One-third of sites audited each year

Responsible Procurement

• Suppliers are committed to abide by Triumph’s Code of Conduct
• Supplier self-assessments and questionnaires address environmental and social factors

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards for the aerospace and defense industry

Certifications: ISO 14001 (5 facilities), ISO 9001 / AS 9100 (27 facilities)

Environmental Metrics

ESG Focus Areas

• Business Ethics
• Product Safety
• Data Security
• Product Quality & Safety
• Occupational Safety
• Health & Wellbeing
• Engagement & Involvement
• Diversity, Inclusion & Equity
• Environmental Stewardship
• Energy Usage & Emissions
• Water & Wastewater
• Waste
• Ethical Business Conduct
• Risk Management
• Compliance, Anti-Corruption & Trade Regulation Programs
• Data Security & Privacy
• Supply Chain Responsibility

Environmental Achievements

• Decreased VOCs from above 36 metric tons to below 30 metric tons between 2020 and 2022
• West Hartford site reduced energy consumption by 13% in FY2022 after a $400,000 investment in energy efficiency
• Macomb, Michigan site diverted 92% of its waste between 2020 and 2022
• Villeneuve le Roi site in France diverted over 82% of waste and sent zero waste to landfill between 2020 and 2022
• Decreased Scope 1 and Scope 2 greenhouse gas emissions by 5% in 2022

Social Achievements

• Launched two company-wide employee resource groups, one for women and one for veterans in 2022
• 33% decrease in the OSHA total recordable incident rate from CY2021 to CY2022 with 17 sites having no injuries in CY2023 year to date
• TRIUMPH employees donated over 20,000 hours of their time through our Wings volunteering program and other philanthropic events throughout the world
• The TRIUMPH Group Charitable Foundation made donations of over $400K in fiscal year 2023
• More than 77% of our employees have “flight plans” for their development on the job
• 85% of our employees participated in a TRIUMPH -sponsored wellness initiative

Governance Achievements

• Expanded the role of the Nominating and Corporate Governance Committee to include overall oversight of the Company’s sustainability efforts
• Renamed the Nominating and Corporate Governance Committee as the Nominating, Governance, and Sustainability Committee
• Expanded the role of the Compensation and Management Development Committee to include oversight of the Company’s human capital, diversity, and employee development efforts
• Renamed the Compensation and Management Development Committee as the Human Capital and Compensation Committee
• The Audit Committee more explicitly assumed oversight of the Company’s enterprise risk management and cybersecurity programs
• 100% employee completion of the Code of Conduct training

Climate Goals & Targets

Environmental Challenges

• Demand volatility and supply chain constraints contributed to heightened working capital use which was a headwind to free cash flow generation
• Interest carry and elevated leverage required further cost reductions and continued focus on operational execution
• Increased energy use at Park City and Mexicali sites in FY22
• Mexicali Bldg 1 site increased water consumption by 63% between 2020 and 2022

Mitigation Strategies

• Successful refinancing of long-term debt maturing in 2028
• Improved liquidity to $287 million of cash and availability
• Guidance for fiscal year 2024 reflects a year-over-year improvement of $120M in free cash flow
• Investment in energy efficiency at West Hartford site
• Investment in a water treatment facility at West Hartford site
• Strategic investment to reverse increased water usage trend

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Suppliers are committed to abiding by Triumph’s Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development and qualification of new, higher-efficiency fuel pumps compatible with sustainable aviation fuels and products for eVTOL and electric aircraft

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards for the aerospace and defense industry

Certifications: ISO 14001 (5 facilities), ISO 45001 (1 facility), ISO 9001 / AS 9100 (27 facilities)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Higher-efficiency fuel pumps compatible with sustainable aviation fuels
• Products for eVTOL and electric aircraft (gearboxes, landing gear, thermal applications, cabin insulation)
• Additively manufactured heat exchangers

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Business Ethics
• Product Safety
• Data Security
• Product Research, Development & Innovation
• Product Quality & Safety
• Occupational Safety
• Health & Wellbeing
• Engagement & Involvement
• Diversity, Inclusion & Equity
• Environmental Stewardship
• Energy Usage & Emissions
• Water & Wastewater
• Waste
• Ethical Business Conduct
• Risk Management
• Compliance, Anti-Corruption & Trade Regulation Programs
• Data Security & Privacy
• Supply Chain Responsibility

Environmental Achievements

• Reduced Cost of Poor Quality (CoPQ) by 20% year-over-year.
• 8 of 26 sites maintained a CoPQ under 1.0%.
• 27% decrease in Defects Per Million Opportunities.
• Four sites achieved zero Notifications of Escapes (NOEs).
• Windsor, CT site achieved 58% CoPQ reduction and 48% reduction in NOEs.
• Improved water reduction by 12% across all sites in 2023, focusing on water-stressed regions.
• 80% of TRIUMPH facilities reduced GHG emissions from the 2020 base year.
• West Hartford site activated its new wastewater pretreatment plant with a smaller carbon footprint.

Social Achievements

• 98% of TRIUMPH employees had personal flight plans (up from 77% the previous year).
• 95% of all TRIUMPH employees participated in wellness activities.
• 85% of TRIUMPH employees participated in community volunteering events.
• Over $345,000 in donations and over 27,500 volunteering hours.
• Reduced Total Recordable Incident Rate (TRIR) by 27% (0.82 vs. a goal of 1.0 and industry average of 1.7).
• More than 90% of sites implemented a Serious Injury and Fatality Prevention Program.

Governance Achievements

• Three of nine board members are women.
• One of nine board members is multicultural.
• Eight of nine board members are independent directors.
• 100% of employees received Code of Conduct training.
• Robust stock ownership guidelines for Board and senior management.
• Executive compensation is benchmarked annually and aligned with stakeholder interests.

Climate Goals & Targets

Environmental Challenges

• Instability in OEM demand and the supply chain.
• GHG intensity rose by 7% in 2023.
• Commercial production rates remained below prior forecasts.

Mitigation Strategies

• Sale of Product Support third-party MRO business to retire over $675 million in debt.
• Aggressive cost reductions, price increase cut-ins, reduced interest expense, and growing IP-based aftermarket.
• Focus on high-margin aftermarket and spares business to offset OEM demand softness.
• Accelerated debt reduction for financial flexibility.
• Methodical initiatives such as Kaizen workshops and standardized root cause corrective action (RCCA).
• Comprehensive supplier audits and quality assessments to drive quality improvements throughout the supply chain.
• Site-specific water reduction programs at all manufacturing sites in high-stress water regions.
• Implementation of Environmental Management Systems (EMS) and incorporation of sustainability into processes.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Suppliers commit to abide by TRIUMPH’s Code of Conduct.
• Supplier audit program consisting of self-assessments and questionnaires addressing environmental and social factors.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products
• Adapting fuel systems for sustainable aviation fuels
• Adapting thermal compressors to environmentally friendlier refrigerants

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards for the aerospace and defense industry

Certifications: ISO 14001 (5 facilities), ISO 45001 (1 facility), ISO 9001/AS 9100 (20 facilities)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Additively manufactured gearbox housings
• High-pressure fuel pumps for more efficient fuel burn
• Vapor cycle thermal compressor
• Modular controls solution (ACES)

Awards & Recognition

• Not disclosed