THE BOEING COMPANY 2018 ENVIRONMENT REPORT BUILD SOMETHING CLEANER 1 TABLE OF CONTENTS Cover photo: The 737 MAX 7—12 percent more energy efficient than the airplanes it replaces—is the newest member of the 737 MAX family. It began flight testing in 2018. Photo above: Flowers and wind turbines sprout from the Wild Horse Wind and Solar Facility in central Washington State. The Puget Sound Energy facility generates a portion of the electricity that powers Boeing’s 737 factory in Renton, Washington. Renewable energy sources generate 100 percent of the electricity used at the 737 factory and the 787 Dreamliner factory in North Charleston, South Carolina. ABOUT US The commitment is seen in products This report also shares the stories Boeing is the world’s largest and services that deliver market of employees and partners whose leading energy efficiency. In 2017, leadership, creativity and dedication aerospace company. Every Boeing delivered 933 commercial are making a difference in Boeing’s day, through innovation and and military aircraft to customers aspiration to be the best in aerospace across the globe, products that set and an enduring global industrial commitment, the work of more the standard for reductions in fuel champion. use, emissions and community noise. With pride in our accomplishments to than 140,000 employees across The operations of our factories, date and commitment to accelerate the United States and in offices and other facilities in 2017 the progress, Boeing’s goals and surpassed targets for resource strategy will help strengthen the 65 countries is helping build conservation, further improving company’s global environmental our environmental performance leadership and enhance lives and a more sustainable future for and footprint. As we continue communities where we live and work the research, development and around the world. our industry and our planet. testing of advanced technology with the potential for far-reaching environmental benefits, we pursue new sources of innovation through targeted venture capital investments. TABLE OF CONTENTS Leadership Message 2 Ten Years of Progress 14 Forward-Looking Statements 4 Partner Profile: Mike Stevens 24 Boeing Profile: John Blazey 5 2012 – 2017 Performance 25 Prioritization 6 Environment Strategy 26 Operating Environment 8 2025 Environmental Targets 29 Partner Profile: Boeing Profile: Stephen Thor Johnson 9 Pradeep Fernandes 30 Clean Technology Leaders 10 Sustainable Building Strategies 31 Industry Analysis 11 Boeing Profile: Beth Gilbertson 32 Partner Profile: Norimasa Takagi 12 Boeing Profile: Mike Bunker 33 Partner Profile: Governance 34 Ashley Demosthenes 13 Endnotes 35 1 LEADERSHIP MESSAGE TABLE OF CONTENTS Ursula English Dennis Muilenburg Vice President, Chairman, President Environment, Health & Safety and Chief Executive Officer This focus is important as we percent while growing our business At Boeing, we’re committed to aspire to be a top performer in all and increasing aircraft deliveries innovation — in the products areas of our business — including by 71 percent. Our twin-aisle the environment. 787 Dreamliner and new single-aisle 737 MAX commercial airplanes are and services we create, the Over the past five years, we’ve setting higher standards for fuel- exceeded our goals for reduced processes and technologies we efficiency and emissions. greenhouse gases, water use, develop, and the ways in which hazardous waste and solid waste Looking ahead, we have a bold sent to landfill. new environment strategy to guide we work together. our business through 2025, which From 2007 to 2017, we reduced you’ll learn more about in this report. greenhouse gas emissions 29 2 LEADERSHIP MESSAGE TABLE OF CONTENTS Our new strategy advances our use transformative manufacturing This is an exciting time in our commitment to invest in cleaner methods and technologies, including industry — with arguably more technologies, such as hybrid-electric advanced batteries and alternative- innovation underway than ever propulsion, biofuel and chemical propulsion aircraft. before. By continuing to innovate Dennis Muilenburg alternatives, which we continue whenever and wherever possible, Chairman, President and We’ll make progress as well by to test with our ecoDemonstrator and through the dedication of our Chief Executive Officer continuing to partner with research program. people who volunteer their time institutions, customers, nonprofits and talent in our communities, Additionally, through our Boeing and governments to develop new Boeing is helping to create a HorizonX innovation cell, we’re technologies, solve challenges, and brighter, more sustainable future Ursula English building on our momentum by educate and inspire communities for generations to come. Vice President investing in promising startups that about the importance of environ- Environment, Health & Safety mental responsibility. 3 FORWARD-LOOKING STATEMENTS TABLE OF CONTENTS This report contains “forward-looking Additional information concerning statements” within the meaning these and other factors can be found of the Private Securities Litigation in our filings with the Securities and Reform Act of 1995. Words such as Exchange Commission, including “may,” “should,” “expects,” “intends,” our most recent Annual Report “projects,” “plans,” “believes,” on Form 10-K, Quarterly Reports on “estimates,” “targets,” “anticipates” Form 10-Q and Current Reports and similar expressions are used on Form 8-K. to identify these forward-looking Any forward-looking statement statements. speaks only as of the date on which Examples of forward-looking it is made, and we assume no statements include those relating obligation to update or revise any to our future financial condition and forward-looking statement, whether operating results, as well as any as a result of new information, future other statement that does not directly events or otherwise, except as relate to any historical or current required by law. fact. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Wetlands are a part of stormwater management at Boeing’s Everett, Washington, site. 4 DRIVING POSITIVE COMMUNITY CHANGE TABLE OF CONTENTS John Blazey John Blazey sees Through direct grants, community partnerships and employees’ the human face of volunteer time and energy, Boeing Boeing’s strategy supports projects that protect stormwater, restore habitat, and to build a more promote sustainable use of resources sustainable future. in 16 countries around the globe. Boeing’s commitment to a healthy As leader of Boeing Global environment and more sustainable Engagement, Blazey helps guide future, combined with employees’ company resources, including “seemingly endless capacity to give,” charitable giving and employees’ create a powerful force for positive donated time and skills, to projects change, Blazey said. that make a difference in the lives of people and communities around “We all have a new perspective of the world. our world, our place in it and our obligation to honor its beauty and “Each one of us has an obligation importance to human life.” to help create and sustain healthy communities, both where we work and outside of the walls of our factories and offices,” Blazey said. Our Homes: Boeing and Over the past 10 years, lead with passion and employee-driven giving the Environment Boeing and The Boeing commitment. Each year, programs. Over the At Boeing, we believe Charitable Trust have thousands of Boeing past 10 years, their our place in the world contributed a combined employees, retirees, total financial support is here, right now. We $57 million in charitable family members and reached $8.6 million, invest, innovate and invest giving to environment- friends gather to support enabling countless critical again in efforts that build, related organizations— environment-related projects in our local enhance and contribute this includes more than projects around the globe communities. In addition, to the social fabric of $4.7 million in matching by contributing their time, the Boeing family went our world. Through contributions for money and skills. beyond financial support our charitable giving employee cash donations and turned values into and hours volunteered. In 2017, Boeing action by volunteering efforts, Boeing has a employees and retirees long and proud history of together during Earth Day, Our Employees: contributed nearly World Environment Day supporting environmental Enhancing Our Impact $900,000 to environment- initiatives in communities and at other personally Boeing employees related organizations meaningful activities. all across the globe. through the company’s 5 PRIORITIZATION TABLE OF CONTENTS Boeing’s environmental strategy is guided by a comprehensive review and assessment of the most significant environmental challenges and risks facing the company. The analysis included direct environmental risks by level of priority in our operations and managing scarcity, rapid urbanization, regional input and perspectives from as identified by Boeing and its chemicals in aircraft production — as collaboration on environmental diverse stakeholders —such as external stakeholders. The risks relate well as opportunities like pursuing regulations