Build Something Cleaner

The Company 2016 Environment Report OUR APPROACH DESIGN AND DEVELOPMENT AND OPERATIONS IN SERVICE END OF SERVICE APPENDIX

About The Boeing Company

Total revenue in For five straight Currently holds 2015: $96.1 billion years, has been 15,600 active named a top global patents around Employs 160,000 innovator among the world people across the aerospace and United States and in defense companies Has customers in more than 65 other 150 countries countries Established 11 research and For more than a 21,500 suppliers development centers, decade, has been and partners 17 consortia and the No.1 exporter around the world 72 joint global in the United States research centers OUR APPROACH DESIGN AND DEVELOPMENT MANUFACTURING AND OPERATIONS IN SERVICE END OF SERVICE APPENDIX

At Boeing, we aspire to be the strongest, best and best-integrated aerospace-based company in the world— and a global industrial champion—for today and tomorrow.

CONTENTS Our Approach 2 Design and Development 18 Manufacturing and Operations 28 In Service 38 End of Service 46

Jonathon Jorgenson, left, and Cesar Viray adjust drilling equipment on the 737 MAX robotic cell pulse line at Boeing’s fab- rication plant in Auburn, Washington. Automated production is helping improve the efficiency of aircraft manufacturing. (Boeing photo)

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As Boeing celebrates Our Approach its first century, we are looking forward to the innovations of the next 100 years.

We are working to be the most environmentally progressive aero- space company and an enduring global industrial champion. We can get there, despite the very real challenges we face. Increases in carbon dioxide concentration are expected to lead to rising global temperatures and climate changes. is a global challenge. Aviation is a global industry, accounting for about 2 percent of total manmade carbon dioxide emissions, and therefore global action is required to meet the challenge. We work with stakeholders around the world to inspire global collaboration and create industrywide solutions The Boeing throughout the aviation life cycle. ecoDemonstrator Program plays a key role in the These solutions start in the heart company’s environmental of our operations, where we work strategy by using flight to find solutions every day. testing to accelerate new technologies that can Join us as we build something reduce emissions and better, cleaner and more efficient. noise, improve ’ -to-gate efficiency and help meet other environmental goals. (Boeing photo)

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Dennis Muilenburg Chairman, President and Chief Executive Officer Ursula English Vice President, Environment, Health & Safety

Leadership Message In 2016—a year when Boeing marks its centennial—we proudly reflect on and celebrate our company’s role in connecting people around the world, protecting nations and promoting global stability, exploring the universe and inspiring the next generation of innovators.

We look forward with great excite- with global partners and support ment to our next century and the international efforts to reduce aviation innovations yet to come—including emissions, all of which contribute to important work to improve our creating healthier communities where environmental performance as we live and work. described in this year’s report. True environmental leadership Strong environmental performance requires constant improvement. is necessary to ensuring a healthy Accordingly, we continue to improve planet and our long-term business efficiency and reduce environmental success. That’s why we aim for impact as we design, build, deliver nothing less than to be the most and support commercial aircraft and environmentally progressive defense and space products. The aerospace company and a leader , for example, among a broader group of our is the most fuel-efficient airplane in its industrial peers. In the past year we class, reducing fuel use and carbon continued to improve the efficiency dioxide emissions by 20 to 25 percent of our products and services, reduce compared to airplanes it replaces. waste within our operations and Since entry into service in 2011, manufacturing facilities, collaborate those efficiencies have resulted in

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more than 7.7 billion pounds (3.5 bil- is critical to meeting the aviation lion kilograms) of fuel saved. And last industry’s aggressive environmental year, the Boeing-built 702SP became goals for carbon dioxide emissions the world’s first operational all-electric and other standards, which our propulsion satellite, using non- newest commercial airplanes are hazardous elements to extend overall designed to meet and even exceed. service life for our customers. With a passion for progress and In our factories and offices, we are achievement inspired by our founders focused on continuing to reduce 100 years ago, Boeing and its 160,000 emissions, hazardous employees around the world are com- waste generation, solid waste to mitted to investing in technologies, landfill and water intake. We reduced partnerships and ideas that advance each measure between 6 and 11 per- human development, improve environ- cent between 2012 and 2015, while mental performance and inspire the increasing our airplane production world in our second century. rates and growing our operations. For these and other efforts, this year we received the ENERGY STAR Partner of the Year–Sustained Excellence Award from the U.S. Environmental Protection Agency. Chairman, President and Chief Executive Officer Additionally, since this opportunity is bigger than any one company, we seek to inspire the global collaboration needed to solve complex environmental challenges. Ursula English For instance, we are working with Vice President, our customers, industry partners, Environment, Health & Safety governments, research institutions, engine manufacturers and others to develop and one day commercialize sustainable aviation fuel. This effort

An artist’s rendering of an ABS-3A all-electric propulsion satellite on-orbit and operating in space. (Boeing image)

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Major assembly of the first 787-10 Dreamliner is underway; it’s the latest major milestone in the development of the newest member of the super-efficient 787 family. (Boeing photo)

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Forward-Looking statements are not guarantees and are subject to risks, uncertainties and Statements changes in circumstances that are This report contains “forward-looking difficult to predict. Many factors could statements” within the meaning cause actual results to differ materially of the Private Securities Litigation and adversely from these forward- Reform Act of 1995. Words such as looking statements. “may,” “should,” “expects,” “intends,” Additional information concerning “projects,” “plans,” “believes,” these and other factors can be found “estimates,” “targets,” “anticipates” in our filings with the Securities and similar expressions are used and Exchange Commission, including to identify these forward-looking our most recent Annual Report statements. on Form 10-K, Quarterly Reports on Examples of forward-looking Form 10-Q and Current Reports statements include statements on Form 8-K. Any forward-looking relating to our future financial statement speaks only as of the date condition and operating results, as on which it is made, and we assume well as any other statement that does no obligation to update or revise any not directly relate to any historical forward-looking statement, whether or current fact. Forward-looking as a result of new information, future statements are based on our current events or otherwise, except as expectations and assumptions, which required by law. may not prove to be accurate. These

Boeing employees and their families participated in 178 events across 15 countries as part of Earth Day and World Environment Day in 2015. (Boeing photo)

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Our Governance Reviews by the EHS Policy Council organization comprises functions Engineers Nalaka and a functional review with the focused on workplace safety and Kahawatte, left, and Our company’s environmental chairman, president and chief health, environmental performance Ngoc Huynh use innovative design strategies and strategy and policies are guided by executive officer are conducted and regulatory compliance. The team the Environment, Health & Safety tools to help improve the twice a year. Progress and status also works with our business unit efficiency and environ- (EHS) Policy Council, composed of are reported through each of these and operational leaders to drive an mental performance of Boeing’s Executive Council and venues in addition to other internal integrated, enterprisewide strategy Boeing aircraft. led by the chairman, president and executive reviews across the that includes our products, services, (Boeing photo) chief executive officer. company. One Policy Council meeting processes and operations. each year is focused on setting The Policy Council ensures that This highly integrated and targets that are aligned with corporate strategy and performance targets coordinated approach has driven long-range business planning; the are set and monitored. A team of continuous improvement in the other is focused on detailed planning 20 cross-functional executives environmental performance of our and reviewing our performance. meets twice a month to advance products and operations around our strategy and plan. Environmental initiatives are em- the world. bedded into every organization and function within Boeing. The EHS

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A community garden with a pollinator habitat replaced a former chemical processing facility in Olathe, Kansas, as part of a remediation strategy that is setting new standards for environmental stewardship. (Boeing photo)

Boeing’s Operating rates are predicted to increase even Increasing global stakeholder faster, with the United Nations estimat- expectations: A new generation Environment ing that by 2050, world consumption of workers expect a new level of Boeing cannot succeed without a rates will triple to 140 billion tons environmental responsibility from sustainable global economy, which (127 billion metric tons) of material employers. National and local depends on a healthy natural environ- consumed per year. governments are responding with regulatory and legislative efforts ment. Around the world, ecosystems Resource constraints and on many fronts, including carbon are in a period of change—including vulnerable ecosystems: With growing emission reduction frameworks; reductions in and natural economic activity and population controls; product chemical resources and a changing climate. levels, the demand and competition composition inventory and chemical Watch: Flying toward a cleaner future The following are several key external for raw materials and other natural bans; water, waste and drivers affecting the global economy resources, such as food, land, fresh policies; and producer responsibility and ecosystems. water and energy, have increased. In requirements. Increased demand many areas, natural resource scarcity Population and consumption growth: from governments, nongovernmental and ecosystem vulnerability have put The United Nations Population organizations and individuals extreme pressure on ecosystems Division estimates the global population is encouraging businesses to and intensified regional political surpassed the 7 billion mark in 2011. provide new levels of responsibility, instability. Current levels of growth in It is projected to grow to approxi- transparency and reporting of consumption and population cannot be mately 9.3 billion by 2050, with environmental performance and sustained given the realities of finite the majority of growth occurring in product composition. developing countries. Consumption resources and vulnerable habitats.

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The MAX 8 took to the skies for the first time in January 2016. Seen here is an air-to-air picture. (Boeing photo)

Aerospace Industry Population growth and degradation, political instability and emissions to 50 percent of what : Growing population social tensions —conditions that can they were in 2005 by 2050. For Analysis and urbanization will further boost enable terrorist activity and other more on the goals and how the Environmental challenges demand for transportation globally. forms of violence.” aviation industry will meet them, While this benefits the aviation visit www.atag.org. resulting from population growth, Climate change and carbon industry, it also presents challenges consumption, resource constraints, dioxide emissions: According to Customer requirements: such as increased emissions and vulnerable ecosystems and increasing the Intergovernmental Panel on Commercial and government aviation community noise as flights increase. global stakeholder expectations Climate Change, the air transport customers increasingly require that will have a significant effect on the Global security: In 2014, the industry accounts for about 2 percent Boeing’s products and services aviation industry. Quadrennial Defense Review released of total manmade carbon dioxide. include environmentally progressive According to the Air Transport Action by the U.S. Department of Defense That is why in 2008, the airlines and technologies to help them address Group, the aviation industry supports noted, “The pressures caused by manufacturers came to an agreement environmental concerns and resource an estimated 58 million jobs and will climate change will influence resource on three ambitious goals: realizing constraints, without sacrificing per- contribute $1 trillion to the global competition while placing additional 1.5 percent average annual fuel formance or increasing life cycle costs. gross domestic product (GDP) by burdens on economies, societies and efficiency improvements from 2009 to 2026. Boeing recognizes pollution governance institutions around the 2020, stabilizing net aviation carbon and climate change are serious world. These effects are threat dioxide emissions at 2020 levels issues requiring credible actions and multipliers that will aggravate stressors through carbon-neutral growth and global solutions. such as poverty, environmental reducing aviation’s net carbon dioxide

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Boeing’s Environment Strategy Our products are at home in the skies, but they are built on the ground. Naturally, we have a deep commitment to using the technology and innovation we are known for to benefit the environment.

In addition to providing the most environmental footprint is in our advanced and efficient products and customers’ use of Boeing products. services for our customers, we also That’s why we pay special attention to aspire to be the most environmentally ensure the products Boeing designs progressive aerospace company. and builds incorporate leading- The following tenets comprise our edge, environmentally progressive environmental leadership strategy. technology and practices to reduce the environmental footprint and create Inspire global collaboration: market value for our customers. Aerospace is a complex global industry with equally complex Innovate for sustainable environmental challenges. Continued operations: Achieving world-class collaboration with key stakeholders, environmental performance year including customers, suppliers and after year is a journey. Our focus competitors, is required to effectively is on innovating for sustainable address the environmental impact of operations—to continuously look the aerospace industry. at technologies and processes that enable reduction of water use, waste, Design in environmental emissions and hazardous materials performance: The vast majority and increased use of environmentally of greenhouse gas emissions in progressive materials. Boeing’s the product life cycle occur during remediation program is focused product use, and so the greatest on using innovative approaches in opportunity for reducing our cleanup efforts and relies on input from community members and Boeing, Etihad Airways, environmental groups. Masdar Institute of Science and Technology and the Abu Dhabi Oil Refining Company (TAKREER) are working in the United Arab Emirates using seawater on salt- tolerant plants that will be used to make sustainable 10 aviation fuel. (Boeing photo) OUR APPROACH DESIGN AND DEVELOPMENT MANUFACTURING AND OPERATIONS IN SERVICE END OF SERVICE APPENDIX

Craig Youngchild looks 2015 Goals and Progress for small cracks or flaws in airplane parts that At Boeing, we are committed to: are being prepared for corrosion-resistant Partnering with community, customers and primers and paints. Boeing is researching employees to make greater progress on environmentally responsible alternatives environmental goals. to chemicals that face possible restrictions Improving the environmental performance around the globe. of Boeing products to benefit our customers, (Boeing photo) our company, our employees and our planet. Reducing the environmental impact of Boeing operations and facilities to benefit local communities.

To meet these commitments, we organizations is helping communities have set a number of goals for our across the globe manage more company. Here’s a look at what they than 6.5 million acres (2.6 million are and how we’re meeting them. hectares) of land. Also in 2015, Boeing supported environmental Inspire Global Collaboration education programs that reached Goal: Invest in organizations and more than 250,000 students, and projects that will positively affect Boeing employees supported more the environment globally and in the than 200 community volunteer communities in which we operate. activities in 15 countries. Progress: In 2015, Boeing committed further resources to help The Nature Goal: Support the development Conservancy (TNC) scale the land and implementation of a global management community work they industrywide approach under are doing in Indonesia to Brazil ICAO for aviation carbon dioxide and Mexico. In addition, Boeing is emissions. partnered with TNC on domestic Progress: In February 2016, the projects in Washington, Montana and aviation industry reached a major South Carolina to help communities milestone with agreement by the develop plans and models to improve ICAO Committee on Aviation the health of their water resources. Environmental Protection (CAEP) The support from Boeing and other on a challenging new standard for 11 OUR APPROACH DESIGN AND DEVELOPMENT MANUFACTURING AND OPERATIONS IN SERVICE END OF SERVICE APPENDIX

airplane carbon dioxide emissions to Boeing products. An example third major airplane platform in 2015, Progress: Over the past five years, performance. Separately, progress includes the Registration, Evaluation, advancing a portfolio of environmental we have continued to reduce the continues toward agreement on a Authorisation and Restriction of and innovation technologies for number of remediation sites we are global carbon offset mechanism Chemicals (REACH) regulations in implementation on airplanes in the actively working, including closing for international aviation that will the European Union (EU). We are future. Technologies such as the four sites in 2015. We expect to ensure that our industry meets its coordinating with our research and MAX winglet validated on the close three sites in 2016. In 2015, commitment for carbon-neutral technology organization and across ecoDemonstrator will result in an we completed the sediment and growth from 2020. Boeing continues our supply chain for alternatives to additional 1.8 percent fuel efficiency. shoreline cleanup and restoration to actively participate in both of substances targeted for restrictions or project along the Lower Duwamish these efforts. bans. Where alternatives do not exist, Goal: Deliver operational efficiency Waterway near Seattle, at the site of we are communicating with regulatory improvements across Boeing Boeing's former Plant 2. This included Goal: Catalyze the industry agencies or applying for authorization products and services. cleanup of a one-mile (1.6 kilometer) toward sustainable aviation fuel for continued use until alternatives long stretch of the sediments and Progress: We continue to make commercialization. can be identified and implemented. shoreline along the river, restoration progress in lowering both emissions Additionally, more than 90 percent of of the shoreline, and construction of Progress: Boeing continues to be and noise through better flight first-tier EU suppliers have provided a five-acre (2 hectare) salmon habitat. a leader in the aviation industry for operations. Boeing is involved in details on their uses of chromates In Dallas, we used an innovative in developing and commercializing several countries in Europe and Asia in manufacturing and in their supply situ oxidation groundwater treatment sustainable aviation fuels. Substantial with implementing new arrival chains. Where known, suppliers at the former site training facility at the progress has been made on a and departure procedures that have declared whether they plan Dallas Fort Worth number of collaborative projects reduce miles flown and emissions. to obtain authorization to continue (DFW). This technology allowed us to around the world with near- and long- Boeing worked with an industry team using chromates, implement remediate the training facility without term potential to deliver sustainable of air navigation service providers and substitutes for chromates, or extensive building demolition. aviation fuel to customers. airport operators to publish a discontinue or move operations. A notable highlight is in the United guideline for methods to reduce Goal: Maintain 2012 levels for Arab Emirates, where the Sustainable airport noise. Teams are working with Goal: Reduce the environmental greenhouse gas emissions, water Bioenergy Research Consortium the 777, 777X and 737 MAX footprint of Boeing products intake, solid waste to landfill and completed the construction of a programs to design and implement throughout the product life cycle. hazardous waste. pilot facility that will use desert land product improvements specific to irrigated by seawater to grow plants Progress: Development of new, more minimizing engine use during taxi, Progress: We continue to perform for sustainable fuel. environmentally efficient Boeing avoiding turbulence and implementing better than plan against our goal of airplanes continues on schedule. technology to enable GPS landing zero growth to the 2012 baseline for Design in Environmental The 737 MAX completed its first flight approaches that further improve all of the metrics we track, even as Performance in January 2016; the 787-10 is on efficiency. These technologies and we increase commercial airplane Goal: Work with aviation stake- track for first delivery in 2018; and the procedures can enable fuel savings production. (Note: Hazardous waste holders to ensure that all is on track to begin production of 1 to 2 percent. generation targets are on a revenue- products comply with chemical in 2017, with first delivery in 2020. adjusted basis.) Innovate for Sustainable restrictions and bans. Each of these airplanes is expected to be at least 15 percent more fuel Operations Progress: We are continuing to efficient than the airplanes it replaces. Goal: Reduce our remediation foot- monitor and assess global chemical In addition, the ecoDemonstrator print in a manner protective of both regulations for potential impact Program completed testing on its human health and the environment.

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2015 Environmental Performance 2015 Operational Performance Data Representative of the Majority of Boeing Facilities (Percent Performance to 2012 Baseline) In 2015, Boeing continued progress toward 105 its commitment to reduce the environmental

100 impact of Boeing operations and facilities from a 2012 baseline. 95

90 The year saw reductions of between Additionally, Boeing submits 6 and 11 percent in all areas: green- environmental data to various 85 house gas emissions, solid waste to regulatory agencies and voluntary 2012 2013 2014 2015 2016 2017 landfill, water intake and hazardous disclosure organizations, including waste generation. Australia’s National Greenhouse Since 2012, Boeing has reduced: and Energy Reporting Scheme, the Hazardous Waste Generation* 10.7% 2017 Target: 0% absolute growth— The graphs and charts on this page United Kingdom’s Carbon Reduction GHG Emissions 7.8% water, greenhouse gas emissions and are labeled with information rounded solid waste; 0% revenue-adjusted Commitment Energy Efficiency Solid Waste to Land ll 6.5% to the nearest decimal place and Water Intake 9.5% growth—hazardous waste Scheme, the U.S. EPA Toxics Release reflect the environmental performance *Normalized to revenue Inventory and Canada’s National of the majority of Boeing facilities, Pollutant Release Inventory. Summary of Environmental and Business Performance in 2015 calculated from a baseline of 2012 values. (Note: Hazardous waste 2012 2013 2014 2015 % change* generation targets are on a revenue- Revenue adjusted basis.) (U.S. dollars in millions) 81,698 86,623 90,762 96,114 17.6% Deliveries 745 812 902 948 27.2% Greenhouse Gas Greenhouse Gas Employment Corporate Inventory Scope 1 Emission Sources (year-end) 174,429 168,421 165,529 161,368 -7.5% Greenhouse Gas Emissions Boeing reports our (in millions of metric tons) 1.18 1.18 1.14 1.09 -7.8% corporate greenhouse Hazardous Waste gas emissions to the (in hundreds of U.S. pounds/$U.S. millions) 2.09 2.12 1.93 1.87 -10.7% CDP (formerly Carbon Disclosure Project) Water Intake annually. These emission (in billions of U.S. gallons) 1.88 1.79 1.75 1.70 -9.5% calculations fall into three Solid Waste to Landfill categories—Scope 1, (in millions of U.S. pounds) 45.60 45.48 45.35 42.64 -6.5% Scope 2 (purchased Environmental Fines electricity only) and (U.S. dollars in thousands) 78.50 6.55 40.65 51.13 Scope 3 (business *Percent change since 2012 values is reported as absolute with the exception of Hazardous Waste, only)—and go beyond which is reported as revenue adjusted. Scope 1 Emissions 33% Natural Gas 53% Scope 2 Emissions 50% 25% our operational targets. Scope 3 Emissions 17% Fugitive Emissions 18% Scope 2 emissions are See Appendix for footnotes regarding: Performance Summary, GHG Emissions, #2 Diesel 3% the largest segment of Water Intake, Solid Waste to Landfill, Hazardous Waste Generation, Global Reporting, Other Fossil Fuels 1% our emissions. Greenhouse Gas Corporate Inventory and Global Reporting site listings.

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Awards Boeing’s environmental leadership has earned awards and recognition from nonprofit and government organizations at every level.

Awards for 2016 and 2015 include: 2015 Utah Recycler of the Year from the Coalition of Utah. 2016 ENERGY STAR Partner of The group recognized Boeing’s Salt the Year—Sustained Excellence Lake City site for its outstanding Award from the U.S. EPA for the recycling efforts. company’s continued leadership in protecting the environment through 2015 Excellence in Restoration superior energy efficiency. This award from the National Oceanic and is the sixth consecutive year the Atmospheric Administration (NOAA) company has received an ENERGY for Boeing’s habitat restoration at STAR award. “Boeing demonstrates the site of its former Plant 2 along a strong commitment to energy the Lower Duwamish Waterway efficiency and to preserving a healthy near Seattle. The award honors planet for future generations,” said leaders in coastal restoration who are EPA administrator Gina McCarthy. focused on ecological value and the importance of effective collaboration The EPA also singled out Boeing’s with project partners. Chicago headquarters building for a 2015 ENERGY STAR award for NOAA and the Natural Resource using 35 percent less energy than Trustees, made up of government typical office buildings. The 37-story agencies and local tribes, oversaw structure is certified to the Leadership the habitat project’s design. in Energy and Environmental Design 2015 Best Workplaces for Waste (LEED) Gold standard. Ursula English, vice Prevention and Recycling award president of the Boeing 2016 Rain Catcher Award from the from King County, in Washington state. Environment, Health & U.S. EPA’s Region Four, recognizing The award recognizes “exceptional Safety group, accepts (BSC) for commitment” to recycling and the 2015 Excellence in Restoration award from excellence in the implementation reducing the amount of waste sent to Will Stelle, regional of stormwater green infrastructure a landfill, showing action that helps administrator, National practices. BSC reuses stormwater reduce the effects of climate change Oceanic and Atmospheric from site retention ponds to irrigate and feeding recycled materials back Administration. site landscaping. into the economy. (Boeing photo)

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LEADERSHIP PROFILE Elizabeth Lund “The aerospace industry is about bringing the world together, and we only have one world we all share. We want to leave a cleaner, more sustainable world for future generations.”

From her office above the 777 produc- The Everett site is home to approxi- tion line in the Everett, Washington, mately 40,000 employees and factory, it’s easy for Elizabeth Lund to production of Boeing’s widebody see the progress—and challenges— commercial airplanes and the military’s in improving the environmental KC-46 aerial refueling tanker. The performance of Boeing’s largest factory is the world’s largest building manufacturing site. by volume. “I can look at the factory and The site's operations are guided by remember the bins full of unsorted tenets that list areas for improvement, trash headed for a landfill. But we including: worked hard to improve our recycling Reducing solid waste and and waste reduction,” said Lund, vice hazardous waste. president and general manager of Conserving energy and water. the 747, 767 and 777 programs and leader of the Everett site. “We’ve made Increasing recycling and remarkable progress, but there is still a composting. lot of work ahead of us.” Improving alternative commuting options. The company’s environmental leaders credit Lund and her team Expanding employee involvement for the vision and leadership that are in environmental activity. making a difference in reducing waste, Increasing communication and conserving resources and engaging awareness. employees across the huge facility.

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The biofiltration syste at Boeing’s Plant 2 in Nearly 30,000 Boeing Seattle, Washington, treats employees, about 20% of an average of illion gallons o storater our workforce, save money annually. while cutting emissions by choosing alternative The fastest-selling airplane in Boeing’s history, the commuting methods daily. 737 MAX has a 40 % smaller noise footprint than today’s single-aisle airplanes. With Boeing’s support, The 77 nter Friends of the continental National Parks provides 1 Foundation has uel eficiency Boeing provided more than reforested 1,026 acres iproveents of national park and wildlife $2.5 million in grants over the airplane conservation in Central it replaces. to support 20 organizations Kalimantan on the island based in Puget Sound, of Borneo. most of them focusing on stormwater management. To date, the Boeing

Since 2012, Boeing’s ecoDemonstrator reduction in green- Program has tested more house gas emissions at the majority of facilities than 50 technologies, is equal to taking 28,000 cars off the using a 737-800, 787 and road for one year. 757 as flying testbeds.

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Electric power from Boeing Boeing’s remediation team reoved 265,000 cubic subsidiary ’s high yards o sedient enough to fill ,000 rail eficiency solar panels cars from the Lower ionizes xenon using magnetic Duwamish Waterway in Seattle and brought in fields, firing tiny particles out 170,000 native plants to of the 702SP satellite’s thrusters provide ood and reuge at about 60,000 ph. or fish and ildlie.

Boeing has developed a With 12% lower fuel Sustainable aviation fuel reversible that consumption than com- reduces carbon dioxide can produce up to 50 petitor airplanes, the 777X emissions by 50 to 80% kilowatts, enough to light will have the world’s on a life cycle basis 500 100-watt bulbs. largest composite wing. compared to fossil fuel.

New floor insulation In 2015, Boeing supported under ovens that help the environment and other create 787 components causes with $76 million in reduced carbon charitable donations. dioxide emissions by 148.3 tons, the The 787 Dreamliner family emissions equivalent iproves uel eficiency of an average and reduces carbon passenger dioxide eissions by vehicle driving 20 to 25 compared to 320,000 miles. airplanes it replaces.

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The first step in the Design and production process is design and develop- ment. This is when Development our team of talented employees explores fresh ideas to build environmental improve- ments into the process.

We also consistently engage with organizations around the world to understand and support industry standards, restrictions, bans and opportunities. We believe in an industrywide, global approach to aviation regulations, and design our products accordingly. The ecoDemonstrator Program is a flying testbed that allows our engineers to take innovative ideas and apply them to accelerate testing and development. We actively pursue innovative tech- nology and developments that provide environmentally progressive solutions.

Boeing engineer Meagan Haugo explores the detailed parts of the 777X folding wingtip in a 3D design lab, looking for opportunities to create a simpler and more efficient design. (Boeing photo)

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Designing for the of reduced part count and easier In 2015, Boeing tested EMPLOYEE PROFILE assembly. the addition of recycled Environment carbon fiber in the additive Michelle Woods The aisle stand, located between manufacturing production Reducing the environmental footprint the pilot’s and ’s seats, of components for the As a chemist in Boeing’s research of our airplane products means showcased two innovations in part flight deck. and technology group, Michelle (Boeing photo) designing them with environmental design. In addition to using selective Woods often finds herself on the impact in mind and using sustainable laser sintering to manufacture the front lines of ensuring the products production methods. In 2015, stand itself, detailed parts within and material used in manufacturing Boeing tested production of parts the assembly were created using Boeing aircraft meet the highest reinforced with recycled carbon recycled carbon fiber material, standards of quality, safety and fiber from factory operations using eliminating waste and the need to use environmental performance. additive manufacturing to produce energy and other chemicals to create components for the flight deck. new materials. This demonstrated Additive manufacturing—using another step in Boeing’s strategy for selective laser sintering technology— more environmentally progressive enabled creation of complex ducts manufacturing processes and other that demonstrated significant noise aerospace applications. improvement over current designs, Both of these parts were tested resulting in a quieter flight deck and aboard the 2015 ecoDemonstrator more comfort for the crew. Similar 757, proving that these methods 777X ducts were then made in the could be used for future Boeing same fashion, with the added benefits airplanes. 19 OUR APPROACH DESIGN AND DEVELOPMENT MANUFACTURING AND OPERATIONS IN SERVICE END OF SERVICE APPENDIX

The ecoDemonstrator 757 tested more than 15 technologies in 2015. (Boeing photo)

Boeing’s Two technologies tested were under research will be publicly available to contract with NASA’s Environmentally benefit the industry. ecoDemonstrator Responsible Aviation (ERA) project. The ecoDemonstrator Program On the vertical tail, NASA and Boeing Program plays a key role in the company’s tested active flow control to improve environmental strategy by using In March 2015, the Boeing airflow over the rudder and maximize testing to accelerate technologies ecoDemonstrator 757 took to the aerodynamic efficiency. Based on that can reduce fuel use, carbon skies to evaluate more than 15 new NASA wind-tunnel testing, active flow dioxide emissions and noise. Proven technologies to improve commercial control could improve the rudder’s technologies and processes may be aviation’s efficiency and reduce efficiency by about 17 percent and applied to models in development, in noise and carbon emissions. may allow for a smaller vertical tail Watch: Engineering comes to life production or in service. Boeing collaborated with European design in the future. customer TUI Group and NASA To date, the program has tested more On the 757’s right wing, NASA and on flight tests for the 757, the third than 50 technologies, using a 737-800 Boeing tested “bug phobic” coatings ecoDemonstrator airplane. (2012), 787 (2014) and 757 (2015) as that can reduce aerodynamic drag flying testbeds. This year, Boeing On the 757’s left wing, Boeing tested from insect residue, enabling more and Brazilian airplane manufacturer technologies to increase aerodynamic laminar flow by smoothing the airflow Embraer will test ecoDemonstrator efficiency by reducing environmental on the surface of the wing. Except for technologies on an Embraer airplane. effects on natural laminar flow, Boeing proprietary technology, NASA including a Krueger shield to protect knowledge gained in collaboration the leading edge from insects. with Boeing from ecoDemonstrator

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Boeing Supports ICAO Standards Boeing’s support for the global commercial airplane carbon dioxide emissions standards announced this year by the United Nations is part of its collaboration across the aerospace industry to find global solutions for complex environmental challenges. The new global standards were developed by the United Nation’s International Organization (ICAO). They stem from more than six years of work by international experts from ICAO member states, industry and nongovernmental organizations. Boeing is committed to meeting used by manufacturers and parts Installer Dany Rath lays the new global standard, which Industry Collaboration down a strip of gel gasket suppliers throughout aviation. The represents real progress beyond the Through IAEG list is a critical step in identifying and on the cargo compartment floor of a Next-Generation substantial industry achievements Promoting environmental citizenship finding environmentally responsible 737 at the Renton, already made to reduce aviation in the aerospace supply chain is a replacements for chemicals and Washington, factory. The emissions, with more steps ahead. central goal of Boeing’s close work substances of concern used gasket was selected for with the International Aerospace throughout the industry. its natural water-repellent This is an important part of the basket properties, and it does not Environmental Group (IAEG). of measures that the aviation industry Also last year, IAEG created a plat- contain hazardous is pursuing to meet ambitious, self- chemicals typically found Boeing is a founding member of form for collaborative research and imposed environmental targets. development, provided an industry- in other forms of corrosion- IAEG, a trade association that prevention materials. represents the industry’s largest wide glossary of terms to ensure (Boeing photo) aerospace manufacturers and organizations around the world suppliers. The group helps develop use the same language and piloted voluntary consensus standards that an environmental sustainability promote environmentally responsible questionnaire as a research tool. design, operations and practices. Boeing believes its close collaboration For example, in 2015, the IAEG with groups such as ICAO and the released the industry’s first IAEG is a key to building a more “declarable substance” list, which sustainable future for the aerospace identifies chemicals commonly industry.

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Chemicals in Aviation A key focus of Boeing’s environ- mental work is to accelerate The use of chemicals in Boeing the implementation of viable, products—commercial and military environmentally responsible aircraft, satellites and even unmanned alternatives for chemicals subject to underwater vehicles—faces growing restrictions or bans around the world. restrictions around the globe over concern about environmental and Boeing works across the industry— human-health effects of target with groups such as the IAEG—to substances. Boeing and the aero- meet requirements for greater space industry have developed disclosure of the chemical makeup strategies to ensure compliance with of delivered aircraft. The collaboration a changing regulatory landscape will help ensure an industrywide and ongoing research into innovative approach to developing new chemical solutions. standards for effective and efficient chemical reporting. A variety of chemicals have a critical role in keeping airplane passengers The rapid change in chemicals safe and ensuring efficient aircraft management is being driven in large operations. For example, fire- part by compliance with new regula- retardant chemicals are used to tions being implemented around provide effective fire resistance to the globe, such as the European materials throughout the passenger Union’s (EU) Registration, Evaluation, cabin, and substances such as Authorisation and Restriction of halon are key components in fire- Chemicals (REACH) regulation. suppression systems. Chromium and While we work to develop and other chemicals also protect aircraft implement more environmentally parts and structure from corrosion. responsible replacements, we are collaborating with Boeing suppliers, customers, industry associations and regulatory agencies to ensure Parts inspector Michael that safety is not compromised and S. Grady checks for we retain uninterrupted access to cracks and other flaws chemicals necessary in production by immersing the parts in and maintenance and throughout the a solution that clings to and helps highlight small product’s life cycle. cracks or flaws in the metal (top). The parts are washed (center), defective pieces discarded, and the non-defective pieces sent to painting (bottom) where Deryl Roberts applies a corrosion-resistant primer. 22 (Boeing photos) 22 OUR APPROACH DESIGN AND DEVELOPMENT MANUFACTURING AND OPERATIONS IN SERVICE END OF SERVICE APPENDIX

Since 1993, has been Special measuring equipment was first sampling air in the upper atmosphere introduced on its fleet of during long-haul flights to help airplanes and subsequently expanded researchers better understand the to its 777s. This initiative, known as the mechanism by which greenhouse gases, Comprehensive Observation Network in particular carbon dioxide, circulate for Trace Gases by (CONTRAIL) around the globe. The idea is to use project, was also included in the 2014 the data to accurately predict future 787 ecoDemonstrator program. weather patterns and help formulate Having retired its last 747 in 2011, an effective strategy against the Japan Airlines is now carrying out consequences of global warming. studies with Boeing regarding the feasibility of having the new backbone of its international fleet—the 787— carry on the work. (JAL photo) 23 OUR APPROACH DESIGN AND DEVELOPMENT MANUFACTURING AND OPERATIONS IN SERVICE END OF SERVICE APPENDIX

LEADERSHIP PROFILE Perry Moore “We have to think differently about everything we do to be successful in the future; that includes how we manage our effect on the environment.”

As Perry Moore walks through the composite materials for high- Composite Wing Center at Boeing’s performance aircraft parts and other Everett, Washington, site, he is nontraditional uses is underway. confident the same creative thinking Moore said product development that designed the 777X will also teams at Boeing are putting a lot of generate new ideas that will drive effort into finding new ways to recycle environmental progress throughout or reuse composite materials. “We the program. have to think differently about every- “I challenge my team to go beyond thing we do to be successful in the traditional approaches to solving future; that includes how we manage problems, just like using carbon our effect on the environment.” fiber composite wings is an Moore’s team also is looking at ways innovative way to improve airplane to bring down the cost and expand performance,” said Moore, leader of the use of rotable, or reusable, the 777X Wing program. shipping containers, which could help The 777X composite wings will be reduce waste. fabricated inside the new Composite Before leading the 777X Wing team Wing Center, built to meet or in Everett, Moore led Boeing’s site in exceed a LEED Silver standard with Portland, Oregon, which included improved energy and water efficiency, an innovative, environmentally reduced emissions and better overall responsible chemical processing environmental quality than found in center. Moore’s team developed a standard construction. 30-year environmental vision to Moore said that reducing and guide the site’s operation. eliminating the amount of composite “The Boeing brand is recognized materials sent to a landfill when around the world. Our employees, the 777X is in production will be a customers and global communities challenge. Recycling options for expect us to demonstrate environ- composites are currently limited mental leadership,” Moore said. mostly to small markets for consumer products. Testing on using recycled

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Agnis aut aut vitae rest Employee Engagement voluptatem consecus The commitment, fresh ideas and Minis et que pore optintur, active engagement of employees ut laut aliquam, non nonse are a key part of Boeing’s work to consenda nusaped ut alibust verovid qui acia di improve environmental performance. none post acea The company’s environmental engagement program focuses on supplying employees with tools and resources to save energy and water, reduce waste and implement sustainable solutions in the product life cycle. Resources are centrally available through a website that includes tools such as: A social networking site that allows employees to ask questions, submit suggestions and connect with other employees around environmental topics. Doing so requires unique approaches EMPLOYEE PROFILE Waste hunts that help employees at different sites and with different Natalie Smith understand and reduce the groups of employees. environmental impacts of their Natalie Smith doesn’t hesitate to daily work. Employee Engagement in Korea Corporate citizenship is a key ask a lot of questions and push An environmental learning program component of Boeing’s business back when the answer she gets is a that helps employees understand strategy. variation of “That’s how we always company environmental goals have done it.” Her willingness to look and how to identify environmental Every year, about 30 Boeing Korea for new ideas and solutions is one project opportunities. employees in Seoul head to Noeul of the reasons behind a substantial Environmental tips and best Park to plant trees and maintain the Top: George Maffeo, reduction in hazardous waste  former president of practices that share good ideas outdoor space. This event has generated at Boeing’s fabrication been held to coincide with Earth Day Boeing Japan, celebrates across the company. with employees from All facilities in Auburn, Washington. since 2013. A calendar that spotlights Nippon Airways during a The environment is a key focus area Global Month of Service learning events and volunteering event in 2015. opportunities. for Boeing in Korea. Employees care (Boeing photo) deeply about working together and Company leaders recognize the creating beneficial living situations Bottom: Boeing Korea employees plant trees in challenge of growing and inspiring globally and locally. sustainable behaviors in an ex- Seoul’s Noeul Park. (Boeing photo) pansive, complex and geographically diverse business and workforce.

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Professional Learning advance careers. Company leaders have identified these certifications as Opportunities strategic to the Boeing business. Boeing provides an array of Options include tuition assistance opportunities for employees toward degrees and professional to enhance their professional certifications that specifically development as they strive to reach advance Boeing’s goal to be the their individual career goals. most environmentally progressive The Learning Together Program is aerospace company. Employees one of many career development can pursue degree programs tools and resources available to in environmental engineering and Boeing employees. Since the environmental studies at more than program launched in 1998, Boeing 100 colleges and universities in the has invested more than $1 billion in United States and around the globe. tuition, books and fees for degree and Employees are also encouraged to professional certificate programs achieve professional certifications and individual courses. such as certified environmental auditor, certified water efficiency Boeing pays for select professional professional, certified energy and technical certifications to enable manager and LEED-accredited employees to broaden and deepen professional. their capabilities, which can improve individual and team performance, drive functional excellence and

Boeing provides tuition assistance toward environment-related degree programs and professional certifications. (Stock image)

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Enrique Rosario displays material used in the fabrication of solar cells at Spectrolab, in Sylmar, California. Spectrolab, a wholly owned Boeing subsidiary, is the world’s largest producer of space solar cells and solar panels. Spectrolab products have provided solar electric power to more than 600 satellites, the International Space Station and the Mars rover Opportunity. (Boeing photo)

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Manufacturing and Manufacturing operations refer to products that we build—and how we and Operations build them.

In 2007, when we set our first goals for our operational environmental footprint, we found that we could maintain or reduce our environmental footprint while growing our business. We exceeded those first goals and are on our way to meeting our second set. We continue to advance recycling, work with our supply chain, find new ways to use materials and strive to benefit the communities where we live and work.

Advanced engines for the Next-Generation 737 are being prepared for installation in the Renton, Washington, factory. The Renton plant uses 100 percent renewable electricity from a combination of hydroelectricity and renewable energy credits from wind energy. 28 (Boeing photo) OUR APPROACH DESIGN AND DEVELOPMENT MANUFACTURING AND OPERATIONS IN SERVICE END OF SERVICE APPENDIX

LEADERSHIP PROFILE Larry Coughlin “All of our efficiency improvements and new technology will conserve resources and cut costs; they’re good for the environment and our balance sheet. We can do both.”

Larry Coughlin can look at the Coughlin said helping employees see mountain ranges in the distance a link between their personal actions from Boeing Salt Lake in Utah and and the local community helps see a direct connection between the motivate involvement in site programs site’s environmental performance to reduce waste and conserve and the surrounding community. resources. The site is continually improving recycling programs. “The Salt Lake Valley can have serious air pollution caused by “Recycling more material means we cold weather inversions that trap send less waste to an incinerator, pollutants. Everyone who lives and which will help improve local air works here has a role to play in our quality,” Coughlin said. local environment. Our efforts to The waste reduction efforts earned reduce emissions from this site can the site the 2015 Utah Recycler of the help make a difference in air quality Year award from the Recycling in a way that everyone can see,” Coalition of Utah. said Coughlin, Boeing Salt Lake site leader. The site’s state-of-the-art paint hangar was designed to meet Boeing Salt Lake’s approximately ambitious energy and resource 750 employees fabricate composite efficiency standards and includes and metal parts for all commercial a rooftop solar thermal system airplane models. that uses sunlight to help heat the facility’s water. Other new buildings use energy-saving LED lighting technology.

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Enhanced Recycling Enhanced Recycling, Boeing’s expanded employee recycling program, is rolling out across the company. Employees now have more opportunities to separate their discarded waste into new color- coded bins at Mixed Recyclables, Compostables, and Waste to Landfill stations available in their workplace. (Note: Some Boeing sites send waste that isn’t compostable or recyclable to incinerators for energy recovery.) Instead of a desk-side waste can, employees receive small desktop containers to temporarily hold waste items until they can be emptied into the larger bins. Wherever local composters allow, compostable serviceware items such as plates, “The Enhanced Recycling program New recycling bins are EMPLOYEE PROFILE is a great step for environmental available at select Boeing bowls and utensils are available in sites. (Boeing photo) Mike Ramos Boeing cafeterias. stewardship,” said Dean Gallinger, senior manager of Shared Services Longtime employee Mike Ramos has Sites in Auburn, Washington; Group’s Environment and Utilities the sharp eye of a design engineer Huntington Beach, California; St. Services organization. “While we build and can spot waste in everything Charles, Missouri; Charleston, South great aerospace products, reducing from a complex work process to Carolina; and Winnipeg, Canada, waste to landfill is one of the many trash recycling. are using the new waste-disposal ways we try to make our world a method, and implementation is under better place to live.” “My goal is to bring together my way in St. Louis, Missouri, and Everett focus on designing more efficient and Renton in Washington. The factory processes and my desire to overall project plan is to implement create the most efficient possible this change at several more sites reuse and recycling of our trash and across the enterprise. solid waste,” Ramos said.

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Russian Employees UBM currently performs rough By changing the lighting machining of titanium forgings for in its factory, Ural Boeing Identify Conservation Boeing 737, 777 and 787 programs. Manufacturing (UBM), a joint venture of Boeing Opportunities Based on employee feedback, UBM and VSMPO-AVISMA replaced standard factory lighting Corporation, created a Ural Boeing Manufacturing (UBM), with LED lights. As a result, the light- safer work environment a joint venture of Boeing and ing intensity increased 60 percent, while reducing energy VSMPO-AVISMA Corporation, the creating a safer work area while consumption. (Boeing photo) world’s largest titanium manufacturer reducing energy consumption. in Russia’s Sverdlovsk region, is actively striving for culture Additionally, UBM installed coolant improvement and employee mist collectors on numerical control involvement in environmental and machines to reduce the coolant that safety improvement processes. becomes airborne during the milling operations, reducing the amount of airborne coolant mist by 40 percent.

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Tracking Boeing’s Solid waste to landfill: In 2015, Boeing had four zero-waste-to- Operational Footprint landfill sites: El Segundo, California; One of Boeing’s environmental Charleston, South Carolina; commitments is to reduce the Huntsville, Alabama; and Philadelphia, environmental impact of Boeing Pennsylvania. operations and facilities. We do this Hazardous waste generation: by “innovating to zero”: ensuring that To meet our commitment of zero several operational metrics remain at revenue-adjusted growth by the end 2012 baseline levels—or below—on of 2017, we are implementing many an absolute basis. (Note: Hazardous projects throughout the company waste generation targets are on a to reduce the amount of hazardous revenue-adjusted basis.) waste that we generate. Greenhouse gas emissions: We Measuring these metrics allows measure greenhouse gas emissions Boeing to evaluate how a site is based on electricity, natural gas and performing to plan in these areas fuel oil used at our sites. All of the and provides a conduit for Lean electricity at our Washington 737 and Energy Assessments. South Carolina 787 factories comes from renewable sources. Water intake: We continue to make progress with water-reduction efforts through alternative production methods, treatment technologies, water-recycling solutions and employee awareness training on water management.

The EPA singled out Boeing’s Chicago headquarters building, pictured here, for a 2015 ENERGY STAR award for using 35 percent less energy than typical office buildings. The 37-story structure is certified to the Leadership in Energy and Environmental Design (LEED) Gold standard. (Boeing photo)

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ISO Certification in continually improve environmental With significant effort EMPLOYEE PROFILE performance, going above and and collaboration with Luke Peterson Australia beyond other compliance measures. customers in Australia, Boeing continues to Component Repairs The revised 2015 standards build an environmentally Luke Peterson doesn’t let the small (BACR) in Melbourne, Australia, require even more stringent responsible workplace, size of Boeing’s Helena, Montana, became the first global Boeing management controls and improved thanks to ongoing site—150 employees—limit his operation certified in the revised communications. internal and external vision and planning for ways to stakeholder engagement, Environmental and Quality Manage- Through the ISO 9001:2015 and continual improvement, improve the facility’s environmental ment standard ISO 14001:2015 ISO 14001:2015 certification, BACR innovation and employee performance. and ISO 9001:2015. Both updated commitment to the assures all of its stakeholders that “We may not have the same standards were released in environmental strategy. BACR maintains a Quality and infrastructure for recycling and September 2015. (Boeing photo) Environmental Management System reusing material as larger Boeing While organizations have a three- that conforms to the new standards. sites, but I see a lot of opportunity year period to transition to the BACR has operated in Melbourne for the kind of projects and activity new standards, BACR achieved its since 1990 and maintains, repairs, that will support our facility and certifications within just two months overhauls, modifies and manages employees,” he said. of the release of the standards. a range of composite, bonded Industries across the world value and conventional metal aircraft ISO certifications because they structures for both commercial and provide a common approach to military operations. help companies such as Boeing

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Small Changes savings each year on electricity and a significant reduction in carbon Make a Big Impact dioxide emissions: 148.3 tons (134.5 To support future 787 production metric tons), the equivalent of the rate increases, Boeing employees emissions of an average passenger in Australia developed an innovative vehicle driving 320,000 miles (515,000 insulation technology. kilometers). Employees from Boeing Aerostructures “Through teamwork and innovative Australia (BAA) and Boeing Research thinking of the lab and factory, we & Technology–Australia teamed up will save nearly $30,000 per year to improve the performance of four on our new ovens,” said Jo Staines, new ovens that support the resin- general manager of BAA Business infusion process used to fabricate 787 Operations. “The work has also movable trailing-edge components. realized safety and flow benefits, as the insulation allows the concrete slab The savings were achieved by temperature to cool down quicker, installing new floor insulation under enabling employees to access the the ovens that led to a faster oven tools and parts in the ovens sooner.” cooldown, thousands of dollars of

Boeing employees Christoph Bitterlin (left) and Lauren Burns showcase a panel of the new insulation for the curing ovens used by Boeing Aerostructures Australia as part of an energy- and cost-saving initiative. (Boeing photo)

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LEADERSHIP PROFILE Tom Hubble “It’s not just the right thing to do for the environment; we’re investing in a better future for the company, our customers and the community, too.”

It may be one of the company’s Site infrastructure includes 85 heating, smaller sites, but the Boeing ventilation and air-conditioning Guidance Repair Center in Heath, (HVAC) air-handling units, with many Ohio, has a unique mission that mechanical systems running 24/7 presents Tom Hubble and his team to meet the customers’ production a special challenge in trying to save requirements. energy and conserve resources. While keeping in step with customer “Our work requires more energy schedules, Hubble and his team use per square foot—a greater have upgraded equipment, improved energy intensity—than almost any system and process efficiencies other Boeing facility, all carried out throughout the facility and built in a building that dates back to the partnerships with local utilities. Over 1950s,” said Hubble, leader of the the past three years, the strategy Heath Facilities team. and energy-reduction plan have saved almost 5 million kilowatt-hours The Heath site is the country’s (18,000 gigajoules) of electricity— exclusive repair shop for guidance enough energy to power 450 homes systems on board the U.S. Air Force’s for a year. Minuteman III intercontinental ballistic missiles. It’s a mission vital to the The upgrades will continue through nation’s defense and requires unique 2016, with additional investments in support, such as environmentally digital controls associated with HVAC controlled cleanrooms where some systems and energy-efficient lighting. temperature spans are controlled Hubble is proud of what his team and within one half of a degree of a the site have accomplished. “It’s not set point. just the right thing to do for the environ- ment; we’re investing in a better future for the company and our customers, which means a better future for the community, too,” he said.

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Supply Chain Alternative Commuting Boeing actively promotes sustainable Boeing’s Commuter Services business practices, environmental organization connects employees awareness and close collaboration with alternative commuting methods throughout its global network of including carpool, vanpool, public suppliers. transit, cycling and walking to reduce Jeff Power sorts through traffic congestion and carbon As part of its procurement process, incoming packages emissions. Boeing requires its suppliers to have containing supplier an environmental management parts at the Renton, Employees who choose alternative Washington, factory. system appropriate for their business Boeing requires its commuting methods instead of driving that considers the impacts of materials, suppliers to have to work alone may receive benefits water and energy use, emissions, an environmental such as pretax payroll deductions and solid and hazardous waste. management system that and ride-matching tools. Nearly considers the impacts 30,000 Boeing employees, about 20 As cofounder of the International of materials, water and percent of our workforce, save money Aerospace Environmental Group, energy use, emissions, while cutting emissions by choosing Boeing promotes sustainable and solid and hazardous waste. (Boeing photo) alternative commuting methods daily. business practices at the industry level. This group includes aerospace By collaborating with transit agencies manufacturers and suppliers in communities where Boeing working together to develop employees live and work, Commuter common approaches to complex Services offers best-in-class . commuter programs and services. In 2015, Commuter Services partnered Boeing also integrates its procure- with Community Transit in Snohomish ment processes into the company’s County, Washington, to launch “Going environmental strategy and product to Boeing”—a valuable resource development to promote sustainable outlining bicycle routes and transit business practices throughout the service information specifically for life cycle of commercial and military employees commuting to the Everett aircraft. The same attention to site. In January 2016, Pierce County environmental stewardship extends Transit in Washington recognized to Boeing services and Boeing Commuter Services for its work production and business facilities. establishing a guaranteed ride home The Sounder train, program for alternative commuters. operated by Sound Transit, is a popular Commuter Services is expanding alternative commuting outreach to establish commuter method for Boeing programs for Boeing employees employees in the in Oklahoma City, Oklahoma; Puget Sound region. (Sound Transit photo) Philadelphia, Pennsylvania; St. Louis, Missouri; and Chantilly, Virginia.

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Managing Stormwater Rainwater that cannot soak into the soil but flows over rooftops, roads, parking lots and other paved surfaces picks up pollutants that can affect water quality for humans and wildlife alike. That’s why Boeing is committed to managing and improving the quality of stormwater runoff from its facilities for the benefit of employees, our communities and Plants, shrubs and other the environment. natural vegetation are part of a bioswale that Boeing’s leadership in stormwater helps filter and clean management includes collaborating stormwater runoff at with numerous research and Boeing’s former Plant 2 site near Seattle, nonprofit groups such as the Washington. Washington Stormwater Center (Boeing photo) (WSC), Los Angeles Conservation Corps, Washington State University (WSU), the University of Alabama fiber in the porous asphalt is likely EMPLOYEE PROFILE and the University of California, able to capture toxic chemicals in Lori Blair Los Angeles, on technology and stormwater. green infrastructure solutions that Boeing also provides funding to Along with becoming an expert on can mitigate stormwater pollution. The Nature Conservancy and the science and technology of Our latest collaboration with WSU Trust for Public Lands on a series remediation and stormwater and WSC shows great potential of green infrastructure summits in management, Lori Blair also has in the development of stronger California and Washington that bring honed other critical skills: patience, permeable pavement. This porous academics, non-profits, municipalities and the art of being a good listener. paving material allows stormwater to and businesses together to help Watch: Concrete solutions “I have sometimes found myself in percolate through the surface into the advance environmentally progressive contentious discussions over storm- soil below where the water is naturally stormwater technology, infrastructure water permits that might involve filtered and pollutants removed. and policy. several government agencies and a Scientists are testing if carbon fiber Locally, Boeing supports water panel of experts,” said Blair, engineer recycled from Boeing’s aircraft quality and conservation efforts in and Boeing’s stormwater program production can strengthen permeable Washington, Missouri, California and leader. “The challenge is getting pavement and expand its potential South Carolina through organizations people with very different viewpoints applications. Early results are positive. like Stewardship Partners, TNC, Low to work together and succeed as a Researchers report that in addition Country Land Trust and others who team.” to strengthening the material, carbon seek to protect natural landscapes and marine habitat.

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Aerospace is an In Service essential part of modern life. It helps drive economic growth and prosperity, and it brings the people of the world closer together.

Our products connect people, protect nations, explore space and sea, and inspire the world. We work hard to ensure that our new- generation products are efficient and have environmental measures in their designs. We’re looking at the routes our products take through the skies and how to increase efficiency there, as well. Additionally, our leadership in global efforts to develop sustainable aviation fuel is about finding new ways to power our airplanes and reduce emissions. Our talented employees are also innovating in the realm of fuel-cell technologies to create entirely new ways to capture renewable energy and store it for later use.

Boeing is on track to deliver the 777X—the largest and most efficient twin-engine jet in the world—in 2020. (Boeing photo)

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737 MAX First Flight The 737 MAX will deliver unprece- The Boeing 737 MAX 8 dented fuel efficiency in the single- took to the skies for the Thousands of employees were on aisle market, reducing fuel use first time in 2016. The airplane is seen here hand in January 2016 to watch the and carbon dioxide emissions by first flight of the 737 MAX in Renton, taking off from Renton, 20 percent compared to the original Washington. Washington, near the factory where Next-Generation 737. The 737 MAX (Boeing photo) the airplane is assembled. A few also is the fastest-selling airplane in hours later, the first 737 MAX set Boeing’s history, winning more than Boeing employees line up down at in Seattle to 3,000 orders from more than 60 cus- begin additional flight tests. to watch the first flight tomers (as of May 2016). With first of the Boeing 737 MAX 8. delivery planned in mid-2017, the (Boeing photo) 737 MAX also has a 40 percent smaller noise footprint than today’s single-aisle airplanes.

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Boeing Commercial Airplanes Product Footprint Boeing is investing billions of dollars to design and build a new generation of more fuel-efficient and quieter airplanes and increase efficiency for in-production airplanes. These environmental gains are aligned with the business needs of Boeing and our customers, as cutting fuel use supports airline profitability and reduces carbon dioxide emissions.

The 747-8 offers airlines the Boeing is on track to deliver the factories in Washington state and The 747-8 creates a unique lowest operating costs and best 777X—the largest and most efficient South Carolina, saving millions of opportunity to maximize economics of any large passenger twin-engine jet in the world—in gallons of fuel and tons of carbon the bottom-line potential of any high-volume route, or freighter airplane in its class, while 2020. With 12 percent lower fuel dioxide. thanks to more than providing enhanced environmental consumption than competitor Boeing began final assembly of the 400 seats available and performance. Today’s 747-8 airplanes, the 777X will have the 18 percent fuel efficiency 787-10, the largest model, in March provides 18 percent fuel efficiency world’s largest composite wing, improvements over the 2016. Delivering 25 percent greater improvements over the airplane it aerodynamic improvements and an airplane it replaces. fuel efficiency and lower carbon (Boeing photo) replaces. This includes a 2 percent efficient GE9X engine contributing dioxide emissions than airplanes it efficiency gain in recent years from to the airplane’s environmental replaces, the 787-10 environmental better engine performance, weight performance. performance will be at least 10 per- reduction and other improvements. In 2015, the 777-9, the first member cent better than anything offered by The 777 makes extensive use of of the family to be developed, the competition. lightweight, cost-effective structural reached firm configuration. In 2016, materials that lessen airplane weight Boeing completed construction of and contribute to fuel efficiency and the 777X Composite Wing Center in environmental performance. In recent Everett, Washington. years, Boeing further improved The revolutionary 787 Dreamliner 777 fuel efficiency by an additional family improves fuel efficiency and 2 percent, including greater efficiency reduces carbon dioxide emissions from the 777’s GE90 engine and by 20 to 25 percent compared to aerodynamic gains that further shave airplanes it replaces. As of April 2016, fuel use and emissions. Boeing had delivered 403 787s from

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Collaboration All efforts supported by The Port of Seattle, Boeing use principles established Alaska Airlines and on Sustainable by the Roundtable on Sustainable Boeing are partnering to move toward a significant Aviation Fuel , addressing the three pillars environmental goal: of sustainability: social, environmental powering all flights by Boeing continues to lead global and economic. all airlines at Seattle- efforts to develop and commercialize Tacoma International sustainable aviation fuel, helping Sustainable aviation fuel reduces Airport with sustainable to reduce aviation’s reliance on carbon dioxide emissions by 50 to aviation fuel. petroleum fuel and supporting our 80 percent on a life cycle basis (Alaska Airlines photo) Watch: Super plants industry and customers to reduce compared to fossil fuel. This is carbon dioxide emissions. Boeing is because a biofuel feedstock, or participating in fuel projects on six source material, absorbs carbon continents, which include locations dioxide during its growth cycle in the United States, Canada, China, (e.g., photosynthesis). Approved Europe, Japan, Mexico, Middle East, fuel performs as well as or better South Africa and Southeast Asia— than petroleum jet fuel while also working closely with airlines, research cutting sulfur emissions, soot and institutions, governments and others. .

Watch: Preparing for

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Global Sustainable Aviation policies that encourage sustainable Fuel Initiatives aviation fuel development. Boeing’s Boeing works aggressively with custom- intent is not to predict winners in ers, governments, research institutions feedstocks or fuel types, but to identify and other stakeholders to research and biomass sources that can be grown, develop sustainable feedstocks, harvested and processed sustainably approve fuel pathways to expand supply and at a price point that’s competitive globally and regionally, and advocate for with fossil-based fuels.

Click on the blue icons to read more about our biofuel initiatives in each country.

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A 787 comes in for a landing. The Operational Efficiency team within the Commercial Airplanes Product Development organization is working with several airlines, airport authorities and regulators to implement new arrival procedures that will reduce fuel use. (Boeing photo)

Operational Efficiency arrival, which adds up to thousands of tons of emissions reduction annually Services at each airport. The Operational Efficiency team In addition to emissions reduction, within the Boeing Commercial this group is working with airlines and Airplanes Product Development operators to develop new takeoff and organization is actively helping the landing procedures that also reduce aviation community operate airplanes community noise. as efficiently as possible. Slightly higher descent angles (on the It works with key aviation stake- order of one half of one degree)— holders such as airplane operators, also known as two-segment air navigation service providers and descents—or slightly displaced national regulators to institute new landing thresholds can reduce procedures that take advantage of community noise by one to three existing airplane technologies to decibels while also saving an reduce fuel use during all phases of additional 20 to 40 pounds (9 to 18 flight, from takeoff to landing. kilograms) of fuel. For example, this group is working Boeing also worked with the Civil with several airlines, airport authorities Air Navigation Services Organisation and regulators to implement new and the Council International arrival procedures at various airports to publish “Managing the Impacts that will reduce fuel use by 400 to of Aviation Noise.” This international A frame from Google 600 pounds (180 to 270 kilograms) for guide for airport operators and air- Earth shows a flight every arrival. This equates to cutting space controllers addresses ways the path into Seattle-Tacoma International Airport carbon dioxide emissions by up to aviation community can reduce noise. 1,900 pounds (863 kilograms) per using more efficient flight path procedures known as “Greener Skies Over Seattle.” (Boeing image)

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The first SWISS -300ER takes off from Geneva Cointrin International Airport. SWISS Maintenance (SWISS photo) Cleaner Satellites Optimization In the past, most satellites were the size of small school buses and used In February 2016, Boeing and Swiss liquid chemical propellants. Ground International Air Lines (SWISS) signed fueling required careful handling agreements to increase efficiency and operations. streamline maintenance performance tasks across the airline’s global Today’s satellites have more features, operations. require less space and are more fuel efficient. Boeing’s 702SP (small The tools from Boeing—Airplane platform) all-electric propulsion Health Management, Maintenance satellites shed the liquid propellant Performance Toolbox and Loadable and associated plumbing system in Software Airplane Part Services— favor of clean, electric propulsion. leverage real-time information to optimize SWISS airplane maintenance Currently there are two all-electric performance operations. SWISS will satellites in orbit powered by implement these Boeing fleet and xenon and sunlight. From a weight maintenance tools with its new fleet and density standpoint, xenon of Boeing 777 airplanes. was an obvious fuel choice. It’s nonhazardous, lightweight and clean. Boeing Airplane Health Management Propulsion is generated using electric services improve operational perfor- power from high-efficiency solar mance by using airplane data to advise panels, which ionizes the xenon using maintenance staff and engineers on magnetic fields. The xenon ions are actionable solutions that can reduce fired out of the thrusters at about delays, cancellations and diversions 60,000 mph (97,000 kph). Xenon through better decision making. propulsion is 10 times more efficient, The Maintenance Performance requiring only hundreds of pounds of Toolbox modules chosen by SWISS inert gas as opposed to thousands of will reduce the time needed to access pounds of traditional liquid propellant. aircraft-specific technical information Last year, Boeing built and SpaceX and establish digital maintenance boosted the world’s first pair of record keeping, eliminating paper- all-electric satellites into orbit in a based materials. The toolbox piggyback configuration. In addition to solutions also establish a searchable reducing emissions from what would library of fleetwide maintenance data, otherwise be two separate launches, including customized maintenance Holly Murphy, SES-15 the dual launch was a cost saver. documents created by SWISS, to program manager, holds meet their specific operational needs. a model of the 702SP all-electric satellite. (Boeing photo)

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F/A-18 Super Hornet Renewable-Energy When engineers working on the Storage System F/A-18 Super Hornet heard about a Boeing asked the question, “How do thermoplastic material being used you store renewable energy when the elsewhere at Boeing, they saw an sun goes down or the wind stops?” opportunity to develop a stronger, less expensive part that would be just A team from Boeing’s Electronic & as effective at helping the fighter jet Information Solutions division in be less visible to radar as the old one. Huntington Beach, California, invented a way to catch sunlight using a rever- They succeeded on all fronts by sible fuel cell. The result was a self- developing a new blade seal using contained shipping-container–sized organic material. The seal, which unit that can take the H out of H O. bridges the gap between the nose 2 landing gear doors and the aircraft’s “Not only do we make jets, satellites adjacent skin, helps reduce the and unmanned vehicles, but we also plane’s radar cross section. do good things for the environment,” said Mark Kosko, who manages the The new part is more flexible, more program for Boeing. “We are helping durable and less toxic than a previous the U.S. Navy explore solar- and one manufactured by a Boeing wind-power systems as part of its supplier. It also doesn’t require any ‘Go Green’ initiative.” time in a giant oven, or autoclave, resulting in energy savings. Boeing’s first-of-its-kind technology uses electrolysis to produce and Reducing the Super Hornet’s store clean-burning hydrogen. An impact on the environment began electrical current running through more than 20 years ago, an effort seawater breaks the seawater down acknowledged with a string of awards into hydrogen and oxygen gas, which for environmental excellence from the is compressed and stored as energy U.S. Navy. during the day. At night, the system The next step for the powerful fuel cell Top: The F/A-18 Super Hornet is a twin-engine, reverses itself and uses the stored is in situ testing at a remote location. The fuel cell will be connected to supersonic, all weather gas to produce electricity. The only multirole fighter jet that is byproduct is water. a solar-energy supply and allowed capable of landing on and to run autonomously for a year, taking off from an aircraft The unit can produce up to 50 kilo- providing constant, clean power. carrier. (Boeing photo) watts, enough to light up 500 Bottom: Boeing's 100-watt bulbs. One unit won’t Producing alternative power and fresh water is one of the ways this exciting reversible solid oxide change the world, but imagine if fuel-cell system in we built something bigger. Twenty new technology gives our customers operation in Huntington fuel cells could provide a megawatt the reliability and flexibility they need Beach, California. of power. Two hundred units could to address their most complex (Boeing photo) produce 10 megawatts, enough to challenges.

help power a small city. 45 OUR APPROACH DESIGN AND DEVELOPMENT MANUFACTURING AND OPERATIONS IN SERVICE END OF SERVICE APPENDIX

At the far end of the End of Service product life cycle is end of service. What happens to products at the end of use is an important part of our environmental footprint.

We’re looking at ways that entire aircraft can be dismantled and the parts reused or recycled at the end of service. It’s a big job, so we’re working with organizations such as the Aircraft Fleet Recycling Association (AFRA) to understand it better. We value the communities, regions and countries in which we operate, as well, and have programs designed to promote environmental protection, education and more. We have a robust remediation and restoration program that works to restore and bring back to public use lands that have been production, test, operation or waste sites. We’re proud of our work. In Young trees, shrubs and 2015, the National Oceanic and other vegetation are part Atmospheric Administration (NOAA) of Boeing’s project to recognized us for these efforts at restore habitat near its one of our sites. former Plant 2 site along a stretch of the Lower Duwamish Waterway near Seattle. (Boeing photo)

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Restoration Recognized in Seattle “Boeing has chosen to step up and lean in to the restoration of the lower Duwamish here. And it didn’t need to make that choice,” said Will Stelle, regional administrator for NOAA Fisheries. “Reflecting good business sense and good environmental stewardship, Boeing decided not only not to avoid it, but to embrace it and get it done.”

On June 19, 2015, NOAA honored Boeing, and included a three-step Boeing with its national Excellence restoration model of cleanup, site in Restoration award in recognition development and habitat creation. for Boeing’s work on demolishing, The remediation team began by dredging and restoring a one-mile Boeing remediation leader tearing down the former Boeing (1.6 kilometer) stretch of waterway Brian Anderson inspects Plant 2 facility, home to the B-17 a portion of the habitat next to the company’s Plant 2 site during World War II. The team then restoration project along along the Lower Duwamish cleaned up the waterway by removing the Lower Duwamish Waterway in Seattle. Waterway close to the 265,000 cubic yards (203,000 cubic former Plant 2 site near The award is given annually to meters) of sediment— enough to fill Seattle, Washington. recognize leaders in coastal restora- 4,000 rail cars—and replenishing (Boeing photo) tion who are not only focused on the bed with clean sand. Finally, they ecological value, but the importance carved out intertidal wetlands and of effective collaboration with brought in 170,000 native plants to Watch: Swimming with salmon project partners. provide food and refuge for fish and wildlife, improving the Puget Sound The massive three-year project was salmon runs and creating a valuable undertaken as part of the Lower wildlife habitat. Duwamish Waterway Group, a partnership among the City of Seattle, King County, Port of Seattle and

Watch: Turning the tide

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Field Testing at The other study used In Situ Chemical Oxidation (ISCO) remediation tech- Santa Susana nology, a technique that can be In 2015, Boeing Associate Technical used to destroy targeted chemical Fellow Mike Bower led the conclusion contaminants in groundwater. of two three-year studies for the “It’s a world-class feat in environ- Department of Toxic Substance mental engineering,” Bower said. Control (DTSC)—one testing seeps and springs at and around the Santa The team of environmental engineers Susana site, and the other testing identified an area with high ground- a state-of-the-art application for a water concentrations of TCE and technology designed to remediate installed six new monitoring wells. subsurface contaminants. One of the wells was used to inject potassium permanganate at a rate The goals of the seeps and spring of at least two gallons per minute study were to inventory where seeps for five consecutive days. Seven of and springs are located across and these injection events took place over surrounding the site, to understand about 10 months, adding up to a total how long the water had been in of 37,000 gallons (140,000 liters) of the ground and to see if the water potassium permanganate injected contained mobile contaminants like over the duration of the study. trichloroethylene (TCE). The team was testing to see if the The effort covered the entire potassium permanganate would 2,850 acres (1,150 hectares) of the combine with the TCE to oxidize mountainous Santa Susana site, it into harmless byproducts. surrounding hillsides and difficult- Results indicate that this treatment to-access land, including areas technology did not significantly in neighborhoods off the site. No lower the levels of contaminants in groundwater contaminates were groundwater because of the unique found, affirming the safety of the characteristics of the fractured rock. public and nearby residents. “The results of this study will be used to evaluate the potential effectiveness of treating contaminants in fractured rock at Santa Susana as well as other Mike Bower tests a well on the property of the Santa sites around the world,” Bower said. Susana Field Laboratory in Simi Valley, California. The testing is part of identifying and planning appropriate remediation for contaminants at the site. (Boeing photo)

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Environmental Boeing and other supporters are helping these partnerships preserve Protection, Preservation more than 6.5 million acres (2.6 million and Education hectares) of land worldwide. Boeing partners with communities Education is vital to change behavior, and organizations around the globe and Boeing helps train and equip to help them advance environmental teachers to integrate environmental protection, preservation and sustainability principles into their education. These partnerships curricula. In Los Angeles, the focus on sustainable aviation fuel Environmental Charter School’s development, water and energy Green Ambassador Institute has conservation, habitat preservation trained more than 230 educators in and restoration, green infrastructure 70 public schools, transforming their and water quality. instructional practices to foster a shared commitment to protecting Boeing has a longstanding relation- the environment. ship with The Nature Conservancy (TNC) and other organizations that Boeing invests in the South Carolina– support projects that revitalize and based Sustainability Institute and its protect forests and wetlands—and Energy Conservation Corps Program. strengthen communities that depend The program provides workforce on these resources. development training to at-risk youth and veterans in energy-efficiency In Missouri, for example, TNC is services while providing energy-saving working to protect and restore the retrofits to income-qualified families Meramec River basin, which is a in the Charleston region. After one critical natural resource for the state year of training, participating Corps and serves as the water source for members will obtain two professional more than 75,000 St. Louis–area certifications, graduate from on-the- Photo, top: Forest Park Photo, bottom: Students households. In South Carolina, we job training and secure employment Forever’s Nature Works in Italy participate in are working with TNC and the Low while more than 30 houses will be program in St. Louis Svitati per l’Ambiente Country Land Trust to protect and energy assessed and retrofitted — is engaging students, (Crazy for the Environ- restore acres of wetlands. In Puget producing a minimum energy cost teachers and community ment), a program that Sound, Boeing focuses support on partners in educational guides their learning reduction of 25 percent per home. programs and conserva- through a global tour green infrastructure approaches to tion job development of good environmental improving water quality as well as Last year, Boeing contributed $76 mil- initiatives for youth. habits. (Boeing photo) land management practices to benefit lion in charitable donations to support (Boeing photo) wildlife, waterways and humans environmental and other causes, with marine spatial planning, a while employees channeled their science-based approach to ensuring passion and innovation to improve sustainable use of the ocean’s communities around the globe. resources.

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Boeing and the Earth Through its work with schools and Volunteers from Boeing EMPLOYEE PROFILE local organizations, the ERS has subsidiary CDG, based Isabel Aguirre Restoration Service planted 50,000 native trees and in Welwyn Garden City, U.K., pose for a group shot Since 2011, Boeing in the United wildflowers with Boeing’s support. at Panshanger Primary Residents of Mesa, Arizona, who Kingdom has supported the Earth The ERS is also Boeing’s long-term School where they planted enjoy visiting the recreation areas at Restoration Service (ERS), a British partner for an annual Earth Day native tree saplings in beautiful Canyon Lake have Isabel nonprofit organization that has a sustainability drive, enabling hundreds 2012 in partnership with Aguirre and a team of employee of employees to volunteer at local the Earth Restoration nationwide program of initiatives to Service. Employees volunteers from Boeing’s Mesa restore natural ecological habitats. schools to help with tree planting lifted the trees in March facility to thank. and educating young people about and replanted them in a Boeing has provided the ERS with ecology and the environment. national forest where they Aguirre leads the site’s Green grants totaling more than $300,000 can reach full maturity. Team —employees who volunteer to work with schools in England, Through these partnerships, Boeing On Earth Day, April 22, their time on environmental Scotland, Wales and Northern Ireland is able to make a positive, long-lasting the employees went back projects—which brings together to create tree nurseries in unused impact on the global communities to the school to plant a resources several times a year to where our teams live and work. wildflower meadow where spaces, growing native tree saplings the trees used to be, help maintain and clean up the to maturity and replanting them in completing the project’s lake’s public areas. degraded urban environments. cycle. (Boeing photo)

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Conservation at Airplane Recycling Tanjung Puting Boeing advanced research in airplane recycling this past year by National Park partnering on the disassembly of the Southeast Asia’s largest national ecoDemonstrator 757, a test airplane park, Tanjung Puting National Park that had reached end of service. in the heart of Central Kalimantan, Boeing teams monitored the two- Indonesia, is home to wildlife such month recycling process and final as orangutans, gibbons, sun bears disassembly to capture learning and hundreds of bird species. about better ways to reuse more Because of the impact of palm oil of Boeing airplanes in the future. plantations, logging and gold mining, During the recycling project, valuable has taken its toll on the components—including landing national park. gear and avionics—were overhauled, Friends of the National Parks recertified and returned to service. Foundation (FNPF), a local High-value metals and material parts nongovernmental organization, were also removed and sold on the and Boeing have been working secondary market. Only recyclable together to conserve the national aluminum and unusable material park since 2010. remained. Through Boeing’s support, FNPF The data gathered from this project has reforested 1,026 acres (415 gave Boeing valuable insight about hectares) of national park and wildlife using better materials to build the conservation in Central Kalimantan on airplane, with recycling in mind, or the island of Borneo. creating a better design that allows the airplane to be disassembled FNPF works closely with the local more easily. community, imparting expert advice on how to make a living through Photo, top: A volunteer Photo, bottom: The The remaining pieces of material ecotourism, agroforestry and organic with Friends of the ecoDemonstrator 757, (mostly aluminum) were sent to a farming. This includes the reforesta- National Parks Foundation shown here during company in Tacoma, Washington, tion of plant saplings along a corridor works to reforest Tanjung the recycling process, where they were sold for reuse in Puting National Park. provided information that is more than 18 miles (29 kilo- (Boeing photo) about building an airplane other regions of the world. meters) long that hugs the fringes with recycling in mind. Boeing is a founding member of the of Central Kalimantan. Additionally, (Boeing photo) Aircraft Fleet Recycling Association FNPF works closely with the local (AFRA), a trade organization made schools and education authorities up of more than 70 member to create awareness and spread companies. AFRA promotes the use the word on forest and wildlife of best management practices for conservation. environmentally responsible and safe aircraft dismantling. 51 OUR APPROACH DESIGN AND DEVELOPMENT MANUFACTURING AND OPERATIONS IN SERVICE END OF SERVICE APPENDIX

Appendix

The Phantom Eye is a long-endurance unmanned vehicle designed to stay airborne for up to four days powered by clean- burning hydrogen, which leaves only water in the atmosphere. The Phantom Eye is an example of Boeing’s enduring innova- tion that is creating a more sustainable future for aerospace and build- ing a better planet for generations yet to come. (Boeing photo)

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Footnotes for Performance • Site changes: Anaheim, California sites, Scope 1 emissions are calculated Footnotes for Global Reporting Summary Chart and Graph (closed in 2012; 2012 data only); using the emission factors provided in Bankstown, Australia (closed in 2013; the National Greenhouse and Energy Australia National Greenhouse and Energy “Environmental fines” represent total 2012 and 2013 data only); Wichita, Reporting (NGER) Scheme, and Scope 2 Reporting footnote: This comprehensive fines paid in 2012, 2013, 2014 and 2015, Kansas (reduced scope in 2015, now emissions are calculated using market- report must be completed by registered respectively. reports only hazardous waste). based method and the emission factors corporations that meet specified energy use and greenhouse gas emission thresholds. For Data reported in this chart for the green- provided in the National Greenhouse and the 2014–2015 reporting period, the Australian house gas emissions, hazardous waste, Footnotes for Greenhouse Gas Emissions Energy Reporting (NGER) Scheme, since residual mix is not available in Australia. government’s Clean Energy Regulator water intake and solid waste to landfill In addition to data from Boeing’s 37 Core Emissions calculated with location-based released data for companies emitting more reflect environmental performance at Metric Sites, data from Portland, Oregon method are: 1,280,000 tons (1,161,000 than 55,000 tons (about 50,000 metric tons) of the following sites from a baseline set on (PDX Paint Hangar), and the Phoenix, metric tons) CO e (2015). equivalent carbon dioxide (CO2e). 2012 values. These sites (known as Core Arizona, Data Center also included. 2 Metric Sites) represent the vast majority RECs were applied to the GHG calculation United Kingdom Carbon Reduction Commit- 1 metric ton = 2,204.62 pounds. of Boeing’s operations and are identified for the following locations: North ment footnote: Boeing U.K. operations consist by the city in which the Boeing operation of multiple units and subsidiaries. Boeing U.K. Carbon dioxide equivalent, or CO e, Charleston, South Carolina, and Renton, resides. For each metric, additional facilities 2 Training and Flight Services Ltd. operates means the number of metric tons of CO Washington. In 2015, these Boeing and office buildings also have been 2 flight simulators for training on Boeing aircraft emissions with the same global warming locations made arrangements to purchase included where information is available. at several locations throughout the U.K. potential as one metric ton of another RECs to offset around 80,000 tons (73,000 Boeing Defense U.K. Ltd. has employees • Alabama: Huntsville greenhouse gas (in accordance with EPA metric tons) of GHG emissions. located at multiple locations throughout the 40 CFR Part 98 Mandatory Greenhouse • Arizona: Mesa U.K., supporting Ministry of Defense and U.S. Gas Reporting). Footnotes for Water Intake • California: El Segundo, Torrance, military programs. Additionally, CO2 emissions Huntington Beach, Long Beach, Seal GHG emissions are calculated based on In addition to data from Boeing’s 37 Core from Boeing subsidiary U.K. Ltd. Beach, Palmdale consumption of electricity, natural gas and Metric Sites, data from Portland, Oregon and Aviall U.K. Inc. are included in the Boeing • Illinois: Chicago No. 6 fuel oil. (Our facility in Philadelphia is (PDX Paint Hangar), also included. U.K. CRC report. the only major U.S. site that uses fuel oil • Indiana: Gary 1 U.S. gallon = 3.79 liters. Sixteen sites report TRI and NPRI releases and for heating.) Consumption of other fuels is transfers: Auburn, Washington; Charleston, • Missouri: St. Charles, St. Louis not represented. Footnotes for Solid Waste South Carolina; El Paso, Texas; El Segundo, • Ohio: Heath 2012−2014 emission numbers are to Landfill California; Palmdale, California; Everett, • Oregon: Gresham Washington; Frederickson, Washington; recalculated based on new eGRID2012 Includes data from Boeing’s 37 Core • Pennsylvania: Ridley Park factors. Metric Sites. Seattle, Washington (North Boeing Field, • South Carolina: Charleston, Ladson Plant 2); Gresham, Oregon (Portland For U.S. sites, Scope 1 emissions from 1 U.S. ton = 2,000 pounds. Fabrication); Portland, Oregon (PDX Paint • Texas: Houston, San Antonio natural gas, fuel oil and on-site generated Hangar); Renton, Washington; St. Louis, • Utah: Salt Lake City, West Jordan electricity are calculated using the Solid waste numbers represent values Missouri; Sylmar, California; Wichita, Kansas; emission factors provided in U.S. EPA determined from scale-weighed containers and Winnipeg, Canada. • Washington: Auburn, Bellevue, Tukwila GHG Mandatory Reporting Rule. Scope 2 as well as calculated weights. (Developmental Center, Duwamish emissions from purchased electricity are 2015 data will be submitted to the U.S. and Towers), Everett, Frederickson, Kent calculated using the market-based method Footnote for Hazardous Waste Canadian governments after the publication of (Space Center), Seattle (North Boeing and eGRID2012 factors, since residual mix Generation this report. Field, Plant 2, Thompson, South Park), is not available in the U.S. For the Canada In addition to data from Boeing’s 37 Core Renton (737 Assembly, Longacres), site, Scope 1 emissions are calculated Metric Sites, data from Portland, Oregon SeaTac (Spares Distribution Center) using the emission factors provided in U.S. (PDX Paint Hangar); Jacksonville, Florida • Canada: Winnipeg EPA GHG Mandatory Reporting Rule; (Cecil Field); El Paso, Texas; Macon, Scope 2 emissions are calculated using the • Australia: Fishermans Bend Georgia; Wichita, Kansas; and Sylmar, market-based method and the supplier- California, are included. specific emission factor. For the Australia

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Footnotes for Greenhouse Gas Corporate Scope 2 emissions are calculated using Site Listing Footnotes for Corporate GHG Inventory the market-based method. Location-based Inventory Chart method calculated emissions are 1,079,000 The greenhouse gas (GHG) emissions tons (979,000 metric tons) CO e. Residual Country State/City (Site) Country State/City (Site) reported represent 1,681 buildings in 43 2 mix is only available in E.U. countries; countries where Boeing has operational Australia Australian Capital Canada Québec therefore, other grid average emissions control. Refer to the Site Listing Footnotes Territory Boisbriand factors are used in all other countries. In for Corporate GHG Inventory Chart for Canberra Montréal the market-based methodology, RECs cities included. were applied to the GHG calculation for New South Wales China Beijing Scope 3 emissions only include emissions the following locations: North Charleston, Bankstown Hong Kong from business travel. South Carolina, and Renton, Washington. Sydney Shanghai In 2015, these Boeing locations made Yerriyong Scope 1 “Other gas types” include CH4, Denmark Copenhagen arrangements to purchase RECs to offset Northern Territory N2O, NF3 and PFCs emissions. around 80,000 tons (73,000 metric tons) of Gladesville Egypt Cairo GHG emissions. Scope 1 “Other fossil fuels” include No. 6 Queensland France Blagnac fuel oil, gasoline, aviation gasoline, propane Other calculation factors: Data source of Alderley Paris and LPG. global warming potentials (GWP) is U.S. Archerfield Germany Berlin 1 metric ton = 2,204.62 pounds. 40 CFR Part 98 subpart A, table A-1. For Brisbane GHG inventory in North America, emission Cairns Hesse Carbon dioxide equivalent, or CO2e, factors for combustion sources come Coominya Neu-Isenberg means the number of metric tons of CO2 from U.S. 40 CFR Part 98, subpart C, Victoria North Rhine-Westphalia emissions with the same global warming table C-1. For GHG inventory in the U.K., Malvern Cologne potential as one metric ton of another emission factors from the CRC Energy Melbourne greenhouse gas. (In accordance with EPA Efficiency Scheme are used. For GHG Greece N. Smirni Mentone 40 CFR Part 98 Mandatory Greenhouse inventory in Australia, emission factors Tullamarine Hungary Papa Gas Reporting.) from the National Greenhouse and Energy Reporting Act are used. For GHG inventory Western Australia India Andhra Pradesh Accounting protocol: This GHG inventory is in locations where energy data are not Jandakot Hyderabad prepared using the following protocols: accessible, 2012 CBECS factors are used National Capital – The Greenhouse Gas Protocol: A Bahrain Manama to estimate the energy consumption and New Delhi Corporate Accounting and Reporting emission factors from the International Belgium Brussels Karnataka Standard (Revised Edition) Energy Agency’s CO Emissions From 2 Brazil Distrito Federal Bangalore – The Scope 2 Guidance Fuel Combustion Highlights 2013 and Brasília Maharashtra – GHG Reporting Guidance for the 2006 IPCC Guidelines for National São Paulo Navi Mumbai Aerospace Industry (IAEG) Greenhouse Gas Inventories are used to Sao José dos Campos calculate the emissions. Tamil Nadu – The Australia National Greenhouse and São Paulo Energy Reporting Act Chennai Canada Alberta – The United Kingdom’s CRC Energy West Bengal Calgary Efficiency Scheme Calcutta British Columbia Ireland Leinster Richmond Banbridge Manitoba Dublin Winnipeg Israel Tel Aviv Nova Scotia Enfield Italy Massa Rome Ontario Mississauga Ottawa

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Site Listing Footnotes for Corporate GHG Inventory Chart (cont.)

Country State/City (Site) Country State/City (Site) Country State/City (Site) Country State/City (Site) Japan Chubu Taiwan Taipei United States California (cont.) United States Hawaii Long Beach Honolulu Nagoya Thailand Bangkok Tokoname Mountain View Kihei Turkey Ankara Palmdale Tokyo Illinois Istanbul Pleasanton Tokyo Chicago Rancho Cucamonga Fairview Heights Kanto Ukraine Kiev Sacramento Mascoutah Yokohama United Arab Abu Dhabi San Diego Rolling Meadows Kazakhstan Almaty Emirates Dubai San Jose Schaumburg San Luis Obispo United England St. Charles Kenya Nairobi San Mateo Kingdom Bristol Swansea Korea Seoul Santa Susana Camberley Indiana Santee Corsham Crown Point Kuwait Kuwait City Seal Beach Crawley Gary Sylmar Luxemburg Luxemburg Farnborough Taft Kansas Feltham Malaysia Kuala Lumpur Torrance Kansas City Gatwick Van Nuys Wichita Mexico Mexico City Gosport Ventura Louisiana Netherlands Amsterdam Knaresborough Victorville Bossier City Nieuw Vennep London Lafayette Schiphol-Oost, Noord-Holland Milton Keynes Colorado Newbury Aurora Maine New Zealand Auckland Oxford Centennial Bangor Colorado Springs Norway Egersund Salisbury Maryland Stockport Englewood Oman Muscat Aberdeen Proving Ground Welwyn Garden City Connecticut Annapolis Junction Poland Gda ´nsk Yeovil East Windsor California Warsaw Scotland Florida Germantown Qatar Doha Perth Cape Canaveral Patuxent River Fort Walton Beach Massachusetts Russia Moscow United States Alabama Ft. Lauderdale Lexington St. Petersburg Daleville Huntsville Jacksonville Mashpee Tyumen Kennedy Space Center Madison Michigan Miami Saudi Arabia Riyadh Waterford Alaska Orlando Singapore Singapore Anchorage Osprey Minnesota South Africa Johannesburg Arizona Shalimar Eagan Mesa Tampa Missouri Spain Madrid Phoenix Titusville Berkeley Villacarrillo California Georgia Bridgeton Sweden Göteborg Alameda Atlanta Florissant Stockholm El Segundo College Park Hazelwood Huntington Beach Macon Maryland Heights Irvine Warner Robins Portage Des Sioux 55 OUR APPROACH DESIGN AND DEVELOPMENT MANUFACTURING AND OPERATIONS IN SERVICE END OF SERVICE APPENDIX

Site Listing Footnotes for Corporate GHG Inventory Chart (cont.)

Country State/City (Site) Country State/City (Site) Country State/City (Site) United States Missouri (cont.) United States Pennsylvania (cont.) United States Washington (cont.) St. Charles Pittsburgh Everett St. Louis Ridley Park Issaquah Smithfield Kent Montana Moses Lake Glasgow South Carolina Mukilteo Helena Charleston Ladson Olympia Nebraska North Charleston Puyallup Omaha Quincy Tennessee Nevada Renton Memphis Las Vegas SeaTac Texas New Jersey Seattle Austin Berkeley Heights Tukwila Dallas Millville Vancouver Dyess AFB Parsippany White Salmon El Paso New Mexico Houston Albuquerque Irving New York Richardson New York San Antonio North Carolina Universal City Fayetteville Utah Havelock Layton Morrisville Salt Lake City Ohio West Jordan Brookpark Virginia Cincinnati Arlington Fairborn Chantilly Heath Fairfax Oklahoma Herndon Oklahoma City Leesburg Newington Oregon Newport News Arlington Reston Boardman Springfield Gresham Virginia Beach Hood River Yorktown Portland Wilsonville Washington Anacortes Pennsylvania Auburn Doylestown Bellevue Eddystone Bingen Langhorne Bothell Lemont Furnace Enumclaw

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Visit us at boeing. Visit us at boeing. com/investorrela- com/community to tions to view our view our Corporate annual reports and Citizenship Report to find additional and other infor- information about mation about how our financial Boeing is working performance and to improve commu- Boeing business nities worldwide. practices.

Image: We completed firm Visit us at boeing. Visit us at boeing. configuration for the first com/boeing100 com/environment 777X, the largest, most to join us as we to view our current efficient twin-engine jet in celebrate not only Environment Report and infor- the world, with 12 percent our first century of mation on how the lower fuel consumption innovation but also the people and people of Boeing and 10 percent lower moments that are developing operating costs than the inspire us to “build ways to protect the competition. something better.” planet and create a better tomorrow.

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