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Build Something Cleaner The Boeing Company 2016 Environment Report OUR APPROACH DESIGN AND DEVELOPMENT MANUFACTURING 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) 1 OUR APPROACH DESIGN AND DEVELOPMENT MANUFACTURING AND OPERATIONS IN SERVICE END OF SERVICE APPENDIX 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. Climate change 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 airlines’ gate-to-gate efficiency and help meet other environmental goals. (Boeing photo) 2 OUR APPROACH DESIGN AND DEVELOPMENT MANUFACTURING AND OPERATIONS IN SERVICE END OF SERVICE APPENDIX 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 Boeing 787 Dreamliner, 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 3 OUR APPROACH DESIGN AND DEVELOPMENT MANUFACTURING AND OPERATIONS IN SERVICE END OF SERVICE APPENDIX 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 greenhouse gas 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 Dennis Muilenburg 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) 4 OUR APPROACH DESIGN AND DEVELOPMENT MANUFACTURING AND OPERATIONS IN SERVICE END OF SERVICE APPENDIX 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) 5 OUR APPROACH DESIGN AND DEVELOPMENT MANUFACTURING AND OPERATIONS IN SERVICE END OF SERVICE APPENDIX 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) 6 OUR APPROACH DESIGN AND DEVELOPMENT MANUFACTURING AND OPERATIONS IN SERVICE END OF SERVICE APPENDIX 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
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