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 and rapid innovation in customers, environment-focused to products, operations and a variety innovations in alternative materials new technology. non-governmental organizations of other issues. Several risks and and environmentally progressive Environmental Leadership (NGO) and the company’s global opportunities were named highest buildings. leadership — as well as research priority by both Boeing and our The analysis concluded that Boeing External stakeholders added supply into industry best practices and external stakeholders: has in place the policies and chain practices and reporting and community requirements. governance to address the most • Products Greenhouse gas mitigating product noise as high significant environmental risks the This assessment helped Boeing (GHG) emissions; fuel efficiency, environmental priorities. company faces. Opportunities to identify and update our understanding operational efficiency, and The relative ranking of environmental strengthen our leadership include of current and emerging sustainability sustainable aviation fuel. risks helps shape priorities, but we improving the measurement and issues that are critical to the company • Operations GHG emissions; will address all identified issues in our reporting of progress made to and our stakeholders. It also informed energy conservation; water global environmental strategy. environmental goals, with increased our next-generation environmental management; solid waste transparency in communication to all strategy and targets. management/waste to landfill. Global Environmental Trends stakeholders. Work is underway in The assessment reported current these areas. Most Significant Environmental Boeing included additional and emerging global trends that Risks and Opportunities high-priority risks and opportunities — may affect Boeing’s business, The assessment analyzed such as managing hazardous including climate change, resource diverse viewpoints and organized materials over the product life cycle 6 PRIORITIZATION TABLE OF CONTENTS

Internal and external stakeholders help shape Boeing’s most significant environmental priorities. The results are shown below, in order of importance and influence on business strategy.

Results of Stakeholder Analysis Prioritization Study

• CO2 emissions in products – Fuel ef ciency – Operational ef ciency – Sustainable aviation fuel • Operations greenhouse gas emissions – Energy conservation • Climate adaptation • Operations water management • Operations solid waste management and land ll • Chemicals and hazardous material management • Materials innovation and sustainable building • Supply chain environmental standards, practices and reporting • Airplane community noise • Remediation and restoration • Transparency in reporting • Product end-of-service disassembly and disposal • Non-greenhouse gas emissions Small reusable plastic containers at an Everett, Wash. site facility will be shipped • Biodiversity back to a supplier instead of being sent as trash to a landfill. It’s one of the conservation • Impact of transportation infrastructure and waste reduction projects that are reducing Boeing’s environmental footprint.

7 OPERATING ENVIRONMENT TABLE OF CONTENTS

Global Environmental Landscape As the industry continues to grow, A growing population and Employees assemble the Aviation is an integral part of modern Boeing recognizes that pollution, urbanization will further boost global F/A-18 Super Hornet at natural resource scarcity and climate demand for transportation, with the Boeing’s St. Louis, Missouri life. It links people, communities, site. The Super Hornet in cultures and countries around the change are serious issues that industry being challenged to meet 2010 became the first U.S. globe. The air transport industry require credible actions and global the demand without a corresponding Navy aircraft to demonstrate today supports an estimated solutions. growth of emissions, community the use of a biofuel made noise or other potentially harmful from a 50/50 blend of 62.7 million jobs and $2.7 trillion The United Nations (U.N.) estimates environmental effects. camelina and JP-5 aviation in global gross domestic product that the world’s population hit 7.6 fuel. The Green Hornet, as it (GDP), according to the Air Transport billion in mid-2017 and adds another is known, has been honored Action Group. 83 million people every year. By 2030, three times with a Chief of Naval Operations environ- Aviation also affects the planet and the population will reach 8.6 billion, mental award. our shared global environment. and increase to nearly 10 billion people by 2050. 8 SECURING SANTA SUSANA’S OPEN SPACE TABLE OF CONTENTS Stephen Thor Johnson

“We are viability of animal species that depend on the ability to move experiencing the throughout large territories. The most rapid changes property also includes important cultural resources, including Native in our global American archaeological sites, which environment since are protected by the conservation easement. humans evolved In addition to Boeing’s ongoing as a species,” progress with cleanup and site said Stephen Thor restoration, the transformation of Santa Susana is well underway, with Johnson, president native plants and animals reclaiming of North American most of the previously developed areas of the field laboratory. Santa Land Trust. Susana is home to more than 16 plants and animals that are either “My colleagues and I are inspired endangered, rare or a special species and motivated to take meaningful of concern. The site includes unique steps to keep our environment plants such as the Braunton’s healthy and resilient, with projects milkvetch and the Santa Susana that can be models and inspiration Tarplant, which serve as critical for others to follow.” habitat for pollinators and other Through an agreement between animal species. Boeing and the North American “The opportunity to collaborate with Land Trust*, a national nonprofit Boeing to conserve such a significant land conservation organization, tract of wildlife habitat and cultural about 2,400 acres (971 hectares) and historic resources is a once-in-a- within the Southern California Santa lifetime opportunity. To do so within Susana Field Laboratory will be an hour’s drive of 20 million people forever protected from residential is simply extraordinary. The value of and agricultural development, this open space will be magnified regardless of future ownership. over the coming decades and be The property is home to a number remembered as a truly visionary act of sensitive species and serves like the creation of Central Park or the as a wildlife corridor ensuring the conservation of the Presidio.”

*See Endnotes 9 WORKING TOGETHER AS CLEAN TABLE OF CONTENTS TECHNOLOGY LEADERS

Numerous efforts at for industry-wide collaborations for a more sustainable future. Boeing have been In 2016, the first commercial flights historic “firsts,” using biofuel in Africa, with South helping move the African Airways and its sister airline, Mango, on Boeing 737s, proved aerospace industry that countries with developing toward a more economies can also lead in clean technology. Today, Boeing works sustainable future. with stakeholders on six continents to develop, commercialize and integrate Developing technologies like biofuel, biofuel into airports. which lower carbon emissions up to 80 percent, are essential in reducing Boeing’s ecoDemonstrator program, aviation greenhouse gas emissions. now in the fifth iteration, serves as a test bed to develop other technologies Boeing has been a leader in creating designed to enhance the safety, industry partnerships to promote efficiency and environmental the development and use of biofuel. sustainability of future airplanes. The Boeing helped organize the first 2018 ecoDemonstrator, a FedEx biofuel test flight in 2008 by Virgin Express Boeing 777, marked the Atlantic on a Boeing 747, using a first time a commercial aircraft flew biofuel blend, illustrating the potential 100 percent biofuel.

Fuel of the Future since Boeing, Virgin our partnership with diesel, a sustainable fuel Scientific studies show Atlantic and other Sunchem SA and SkyNRG, widely used in ground that biofuel—made partners first tested for example, farmers in transportation. We verified from waste cooking biofuel in 2008. Five South Africa are growing performance of the fuel, oil, purpose-grown production pathways nicotine-free tobacco called HEFA+ in aviation, sustainable crops that have been approved and that’s converted into on our 757 and 787 don’t compete with food airlines have flown more biofuel. We’re supporting ecoDemonstrator flight- and land resources, and than 120,000 passenger LanzaTech a company test airplanes. Annual other sources—reduces flights on a blend of that makes biofuel from production capacity life-cycle emissions up biofuel and regular steel mill waste industrial could meet more than to 80 percent compared to fossil fuel. gases. 2 percent of global fossil fuel. aviation demand at a price Boeing works on six We’re also working with that’s competitive with Development has continents to expand Boeing, Alaska Airlines and the Port of Seattle collaborate on several fuel producers to fossil-based fuel. progressed significantly development. Through the goal of powering all flights at Seattle-Tacoma International gain approval of renewable 10 Airport with sustainable aviation fuel. (Alaska Airlines photo) INDUSTRY ANALYSIS TABLE OF CONTENTS

Boeing is committed to a healthy Commercial Aviation Collaboration is key to meeting environment and more sustainable and Climate Change the aviation industry’s CO2 future as the aerospace industry Aviation contributes approximately adapts to changing market forces. 2 percent of global CO2 emissions, reduction goals. Environmental Regulation according to the U.N.’s Intergovern- mental Panel on Climate Change. The numbers of regulations and New global agreements reached in environmental concerns affecting the 2016 support achieving the industry- aerospace industry are increasing established goals and a global sectoral and include the following: approach to controlling emissions: 2010 2020 2050 • Greenhouse gas (GHG) emissions. 1.5% per year Carbon-neutral –50% CO2 • A fuel-efficiency performance fuel efficiency growth • Airplane community noise. standard for aircraft. • Local air-quality emissions for • A global market-based measure products and factory operations. system called Carbon-Offsetting and • Chemical restrictions in Reduction Scheme for International manufacturing operations and Aviation (CORSIA). product content. Working toward Implementation Half the net Implementation of these agreements • Water quality issues, such as carbon-neutral of global sector aviation CO2 into regulatory frameworks around the growth approach of 2005 stormwater. world is underway. • Hazardous waste. Customer Requirements Commercial Aviation Carbon Reduction Goals* • Energy consumption and the use The aviation industry’s business goals of renewable energy in operations. of providing safe, cost-efficient travel Chemicals and and environmental goals of reducing Regulatory Restrictions CO2 emissions are both achieved Global regulation of chemical by constantly improving airplane fuel substances continues to grow. To efficiency. Reducing emissions is illustrate, regulations expanded aligned to our customers’ strategic 50 percent per year from 2003 to desire to decrease fuel use, a major 2013—more than 50 times overall. cost and priority in their purchasing That trend continues as efforts to decisions. Our customers increasingly reduce chemical exposure from require that Boeing’s products and consumer products affect more services include environmentally industries, including aerospace. progressive attributes that will help them address environmental concerns without sacrificing performance or increasing life-cycle costs. *See Endnotes 11 SUPPLIERS AIMING FOR A TABLE OF CONTENTS SUSTAINABLE FUTURE Norimasa Takagi

“The environment As Boeing’s 2016 Supplier of the Year Environment Award winner, is a key policy for Nabtesco* has built a great partner- Nabtesco as a ship with Boeing by supporting flight control components and systems winning solution and hydraulic equipment for aircraft. that ensures Like Boeing, Nabtesco recognizes the importance of a sustainable future sustainable, long- and aims to improve environmental term growth of performance by focusing on CO2 reduction and zero emission of our company hazardous chemicals through overall and community,” business operations. The company recently enhanced its environmental said Norimasa performance by achieving a 50 Takagi, president percent reduction in CO2 emissions. of Aerospace “Whether developing or maintaining our products, we encourage Company, Nabtesco our employees to think about Corporation. the environment,” said Takagi. “We continually strive to have a positive impact on both people and the world around us and have committed ourselves to act socially responsible at all times.” Nabtesco also shares Boeing’s vision for engaging employees in voluntary activities to benefit the environment and has committed to actively promote initiatives for sustainable improvements and energy, resource and recycling efficiency.

*See Endnotes 12 PARTNERSHIPS FOR PRESERVATION TABLE OF CONTENTS Ashley Demosthenes

“I have always “I grew up in Charleston, which I consider one of the most beautiful had a personal cities on Earth,” said Ashley calling to protect Demosthenes. “Our partnership with Boeing resulted in one of the most the environment, successful conservation projects in particular the in our history as an organization,” she said. Lowcountry of After expanding into South Carolina, South Carolina,” Boeing worked with several state, said Ashley federal and local agencies, including the Lowcountry Land Trust*, to Demosthenes, preserve about 4,000 additional president and acres (1,619 hectares) of habitat, containing 2,000 acres (809 hectares) CEO of Lowcountry of wetlands and native plants at risk. Land Trust. Once wetland enhancement activities are complete, this land will go to the United States Forest Service and the South Carolina Department of Natural Resources, ensuring long- term public access. “Boeing has been an invaluable partner in the Lowcountry. Not only do they share our passion for the protection of special places and overall quality of life, they are committed to developing innovative solutions and growing partnerships that promote economic development and the protection of special places. We truly want the same things—and community collaborations help us find solutions to our most pressing issues,” Demosthenes said.

*See Endnotes 13 14 200 Accomplishments Milestones and Environmental Boeing’s PROGRESS OF YEARS TEN 8 –

2008 2018 carbon emissions. aspiration of halving the and growth neutral leaders commit to carbon- aerospace and Boeing

less fuel thanless the they airplanes replace. 20to 25 percent uses family 787 Dreamliner The Flying a747, Flying Virgin commercial aircraft. aviation fuel flight on a firstsustainable the makes Atlantic hydrogen fuel cells. by powered is that aircraft manned of a flight First reduction targets are set. conservation and waste five-year first Boeing’s management standard. ISO 14001 environmental meet to certified are sites manufacturing major All aviation’s four-pillar to strategy stop on travel focuses air sustainable toBoeing’s foster commitment alternative exists. transportation from flights forwhich no practical four-fifths of aviationemissions come of dioxide global carbon emissions; 2percent about for accounts Aviation rate. that half than at less carbon-dioxide increased emissions 2017 in to 4billion — — decade past the during percent 64 grew travelers of air number the While day. every world the in somewhere Chicago flies on commerciala airliner A population roughly to equal TABLE CONTENTS OF Fuel Users Group. Users Fuel AviationSustainable the of member a founding is Boeing

DRIVING BETTER FUEL EFFICIENCY TABLE OF CONTENTS

the growth of emissions by 2020 percent less fuel than the airplanes and halve them by 2050 compared it replaces—has enabled airlines to to 2005 levels. efficiently fly passengers on more than 170 new routes. Flying Farther on Less Fuel The foundation of sustainable air The 737 MAX uses 20 percent less travel begins with our highly efficient fuel than the airplanes it replaces and airplanes. Two new Boeing jetliner is as efficient as a hybrid electric car families have entered service in the (in terms of equivalent liters of fuel past decade and a third begins flight used per 100 passenger kilometers). testing next year. All three represent The MAX is part of the 737 family, step-change improvements in which is the best-selling commercial efficiency and capability over their jetliner in history and used on nearly predecessors. one-third of all airline flights. The 787 Dreamliner family — meeting The 777X, which enters service market demand for optimal range in 2020, will be the world’s most and capacity while using 20 to 25 efficient twin-engine jet. Boeing rolled out its 10,000th 737— a 737 MAX 8 —in March 2018. Guinness World Records recognized the 737 as the most- produced commercial jet airplane of all time.

Chromate-free paint 787 Dreamliner has its Boeing begins imple- Environmental primer is used on the first flight. menting LEED Silver requirements are Apache helicopter. or higher standard added to contracts for all new construction for Boeing suppliers. and major renovation projects in U.S. 2010 2009

Boeing, The Nature Conservancy and the College of Charleston mitigate environmental impacts of the final assembly and delivery center at Boeing South Carolina.

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Improving Efficiency in Direct Routes scans real-time Real Time operations to ensure optimization Building on the navigation services continues throughout the flight. we offer through our subsidiary Pilots receive advisories on more Jeppesen, Boeing acquired ETS efficient routings that arise because Aviation in 2014 to enhance our of changes in wind, air traffic and ability to improve airplane efficiency. other factors. Using data analytics and real-time Similarly, Wind Updates provides information, we help airlines optimize timely information to pilots to help flight operations based on weather, them take advantage of the most air traffic and other factors. efficient route or altitude. Fuel Dashboard analyzes information Maximizing Airspace Use from airline operations and simulates different scenarios to assess the We also equip our airplanes with amount of fuel required for a given technologies to take advantage flight— enabling airlines to identify of modernized air traffic control the most optimal ‘flight plan before systems, including satellite-based With composite wings and highly advanced takeoff. navigation. In collaboration with the engines, the 777X will reduce fuel use industry, we’re helping to bring those and emissions 12 percent over the airplanes it replaces.

Boeing pioneers Groundbreaking is Boeing begins project Boeing is a founding Boeing South Carolina chrome-free primers celebrated on new to restore fish habitat member of the (BSC) and Boeing and paints on military Portland metal- and shoreline along International Aerospace Philadelphia sites send and commercial treatment facility, Seattle’s Duwamish Environmental Group, zero waste to landfills; aircraft. which will significantly Waterway, part of an developing a standard BSC is powered entirely reduce cadmium use in EPA Superfund site. approach to supply- with renewable electricity, manufacturing. chain environmental including solar panels on issues and innovative final assembly building.

2011 solutions for the aerospace industry.

The new 747-8 and 787 Dreamliner enter service. Compared with the airplanes they replace, they are cleaner, quieter and more fuel efficient: the 747-8 has 16% better fuel efficiency, and the 787 uses 20–25% less fuel.

16 INNOVATING CAPABILITIES FOR A CLEANER FUTURE TABLE OF CONTENTS

systems into use on the FAA’s Next 2020 onward. Seventy-three member airplane situational awareness Generation Transportation System states have agreed to participate so and improve operational and (NextGen), Single European Sky and far, representing nearly 88 percent of environmental performance. other initiatives. international flights. Since 2012, the ecoDemonstrator Global, Collaborative, Sector- ICAO also adopted the world’s program has researched more than Wide Approach to Regulations first industry-specific, global 60 other technologies using a 737, 757, 787 and Embraer E170 as test The International Civil Aviation CO2 emissions standard for Organization (ICAO) took two historic aircraft certification. Boeing’s 787 platforms. Redesigned Advanced actions in 2016, representing the Dreamliner, 737 MAX and 777X were Technology winglets tested in 2012 world’s first sectoral commitment designed to meet the challenging are now used on the 737 MAX. to address climate change. The UN requirements and help fulfill the This year the program tested more agency’s work began 10 years ago standard’s goal to reduce emissions. than 30 technologies aboard a with technical support from Boeing 777 Freighter, including a Boeing- Accelerating Innovation and other stakeholders. designed and built compact thrust Boeing’s ecoDemonstrator flight- ICAO adopted a carbon-offsetting reverser that could enable a future test program plays a key role in for larger, more efficient engines. system that will help aviation stop our efforts to speed up technology the growth of CO2 emissions from development that will enhance A new compact nacelle—the housing for a jetliner’s engine—will help enable advanced engines that reduce fuel use and emissions. It’s being tested on the 2018 ecoDemonstrator 777 Freighter.

Boeing launches Hydrogen- and solar- Boeing receives major First ecoDemonstrator the 737 MAX, powered aircraft are EPA leadership award program begins, which flight which uses 20% developed to aid military for restoring the former tests technologies intended less fuel than and reconnaissance Chemical Commodities to improve aircraft efficiency, the airplanes it missions. Inc. Superfund site enhance safety and assess replaces. in Kansas, providing sustainable materials. valuable pollinator habitat. 2012

Boeing-led industry efforts win ASTM International approval for aviation biofuel. ASTM Boeing receives its first First flight of the sets global fuel standards EPA ENERGY STAR unmanned, high-altitude for commercial and Partner of the Year award Phantom Eye, powered by military aviation. for 2010 performance. clean-burning hydrogen.

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Beyond the Final Flight Owners retire about 600 commercial Boeing supports responsible airplane airplanes a year, and nearly 90 retirements as a key element in our percent of the content by weight life-cycle approach to environmental is reused or recycled. Boeing and performance. As a founding member the industry are now focused on of the Aircraft Fleet Recycling reducing waste from carbon-fiber Association (AFRA), we’ve worked composites, which are used in newer with AFRA and other stakeholders airplanes such as the 787 Dreamliner over the past decade to develop and 777X. best practices that have significantly improved end-of-life sustainability.

Nearly 90% of the content in retired aircraft is recycled, much of which includes reusable parts, which are resold to airplane operators under regulations enforced by the U.S. FAA and European Aviation Safety Agency.

Construction is Several Boeing sites Boeing launches the new Production begins on Largest habitat restoration completed on state-of- implement a program for 787-10 and 777X, which the 702SP, the world’s in Lower Duwamish the-art, award-winning employees to recharge are more fuel efficient first all-electric- Waterway is completed, storm-water treatment personal electric vehicles than the airplanes they propulsion satellite. transforming nearly one systems at the Santa while at work. replace. The 787-10 is mile (1.6 km) of former Susana Field Laboratory 20–25% more efficient industrial waterfront into site. and the 777X is 12% a wetland that improves more efficient. Puget Sound salmon runs. 2013

Boeing hits 5-year performance targets, saving enough energy to power 44,000 U.S. homes for a year and reducing greenhouse gas emissions enough to equal to El Segundo is the removing 87,000 cars from latest site to achieve the road for a year. zero waste to landfill.

18 IMPROVING ENVIRONMENTAL PERFORMANCE TABLE OF CONTENTS

Protecting People, Driving Green Hornet, as it was known, was Environmental Performance honored that year and two others with a Chief of Naval Operations The drive for constant improvement environmental award, one of many has underpinned Boeing’s defense U.S. Department of Defense honors and space products, and how they’re bestowed upon Boeing for its built, for the last decade. environmental stewardship and On Earth Day in 2010, an F/A-18 performance. Super Hornet took off from Naval Air In 2016, the KC-46A Pegasus was Station Patuxent River, Maryland, named the Department of Defense's to become the first U.S. Navy top large program in environmental aircraft to demonstrate the use of a excellence in weapon system biofuel made from a 50/50 blend of acquisition. The U.S. Navy honored camelina and JP-5 aviation fuel. The the P-8A Poseidon in the same

Boeing drives for constant performance improvement in all of its defense and space products, including the Chinook helicopter.

The second Thousands of roof-top The 737 factory in Renton, Enhanced recycling, airplane used in the solar tubes help heat Washington is powered including composting, ecoDemonstrator Boeing Salt Lake’s new by 100% renewable is introduced at major program, which tests LEED Silver-rated paint electricity, including U.S. sites; over 78% of emerging technologies, facility. wind energy. Boeing’s makes the world's first solid waste flights using green is diverted diesel, a renewable from fuel common in ground landfills. 2015 2014 transportation.

Boeing collaborates with America’s Cup winner Comprehensive ORACLE TEAM USA on wetlands mitigation recycling 7,000 pounds plan preserves 4,000 (about 3,175 kg) of carbon acres (1,600 hectares) fiber from the America’s of land near South Cup 2003 campaign. Carolina site.

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category a year before and in 2013. For example, Boeing helped Defense, Space & Security also Boeing’s efficient products extend Maricopa County meet an EPA has a number of employee groups from sea to space as well: from our air quality target by finding ways focused on the environment. In line of all-electric propulsion satellites to reduce dust kicked up by its 2016, when Boeing celebrated its to autonomous marine vehicles rotorcraft on the flight line of its centennial, two such groups were powered by the sun and waves. factory in Mesa, Arizona. At Boeing’s able to mark at least 100 completed satellite factory in El Segundo, projects. The Sustainables in Puget A number of Boeing Defense, California, we installed a system to Sound and Boeing Employees for Space & Security sites have also capture and filter stormwater hitting Environmental Protection (BEEP) been honored for improvements the parking lots before releasing it in St. Louis have been active over in operations. From California to into the ground, thereby replenishing the last decade cleaning creeks Alabama, multiple jurisdictions and the underground aquifer there. In St. and beaches, hosting recycling groups have noted Boeing’s efforts Charles, Missouri, Boeing is using events and educating employees on to reduce water consumption, energy solar panels to power water pumps, environmental topics. usage and solid and hazardous lights and rooftop exhaust fans. waste.

The F/A-18 Super Hornet has been honored three times with the U.S. Navy’s Chief of Naval Operations environmental award.

Boeing supports research Boeing supports Sediment and shoreline to help small-scale bio- environmental cleanup and restoration fuel feedstock producers and other causes along the Lower in Sub-Saharan Africa with $76 million Duwamish Waterway at meet economic and other in charitable former Plant 2 site near standards for bringing donations. Seattle is completed. their crops to the biofuel market. 2016

Research collaboration Employees and their 30,000 employees, shows high potential for families take part in about 20% of the permeable pavement, a 178 events across 15 workforce, save porous paving material countries as part of money while cutting that enables the natural Earth Day and World emissions by choosing filtering of stormwater. Environment Day. alternative commuting methods.

20 ENVIRONMENTALLY PROGRESSIVE FACILITIES TABLE OF CONTENTS

Improving Environmental Annual airplane deliveries rose requirement. When it came online in Footprint of Facilities 71 percent. 2011, the South Carolina solar-energy system was one of the largest solar Boeing’s commitment to improving The U.S. Environmental Protection arrays in the nation and doubled the its environmental footprint can Agency has recognized Boeing’s state’s solar power generation. be seen at hundreds of factories, environmental performance with its offices and other facilities around the ENERGY STAR Partner of the Year Boeing has applied LEED building globe. Our employees have made award for eight consecutive years standards to all new construction conservation of energy and natural (2011 to 2018). and major renovation projects since resources a way of doing business 2008. Fourteen Boeing facilities are Two Boeing sites use 100 percent for decades. rated LEED Gold. renewable electricity: Renton, For example, the company’s energy Washington, home of the 737, and Boeing is a leader in advancing consumption in 2017 was essentially Boeing South Carolina, which uses green stormwater infrastructure; the same as it was in 2007, even 16,000 solar panels on the roof of its 25 systems have been installed in with the company’s growth from final assembly building to generate California and Washington to improve $66.4 billion in annual revenues to up to 2.6 megawatts of renewable stormwater quality. $93 billion— a 41 percent increase. energy — 20 percent of the site’s Elk share the terrain with wind turbines at the Wild Horse Wind and Solar Facility in Washington State. The Puget Sound Energy facility generates electricity that helps power Boeing’s 737 factory in Renton, Washington.

NASA recognizes ecoDemonstrator program 25 million gallons More than 50 Boeing sites Boeing’s collaboration tests 60 advanced (95 million litres) of water globally are certified to for the ecoDemonstrator technologies on four are saved at Huntington the high standards of the 757 testing of several airplanes in the past Beach, California, ISO 14001 environmental advanced technologies five years. campus by irrigating management system. and for improvements in with repurposed blended wing body and treated water. structures. 2017

Cleaner, quieter 737 MAX enters service.

21 TEN YEARS OF PROGRESS TABLE OF CONTENTS

Safer Processes for People Boeing Senior Technical Fellow Kay Boeing Research & Technology and Environment Blohowiak helped develop Boegel, (BR&T) is developing new, more which is water-based, does not environmentally progressive paints Boeing’s Chemical Technology team generate wastewater and maintains and coatings that speed up the finds innovative solutions that make durability over time. “Developing painting process. BR&T is studying airplane production processes safer more environmentally friendly the use of innovative technologies, for people and our environment. chemical processes helps improve such as laser ablation, that can One of these creative solutions, the the company’s environmental reduce hazardous chemical usage Boegel coating system, has reduced footprint, manufacturing safety and eliminate the ergonomic injuries the amount of Boeing’s paint-related and delivers a better, safer product associated with abrasive sanding wastewater by more than 400,000 overall,” Blohowiak said. Whenever of surfaces. gallons since 2011. the Boegel system is used, it also eliminates the use of hexavalent chromium in the conversion coating layer.

An employee inspects parts being prepared for corrosion-resistant paints. Boeing is researching environmentally responsible alternatives to chemicals that face possible restrictions around the globe.

The Santa Susana Field Boeing receives the BTP Halon replacement The 2018 ecoDemonstrator Laboratory site in Simi Valley, ENERGY STAR Partner for aircraft cabin fire airplane, a 777 Freighter, California, is secured as of the Year award for extinguishers is delivered will include the first 100% permanent open space. the eighth consecutive to first customer, SilkAir, biofuel-powered flight on a year (2011 to 2018). on 737 MAX. commercial jet. 2018

22 DRIVING EFFICIENCY, OPTIMIZING OPERATIONS TABLE OF CONTENTS

In July 2017, Boeing launched a third major business unit, Boeing Global Services, which combined the majority of services capabilities, including Boeing subsidiaries Aviall and Jeppesen, into one services- focused business. With a focus on innovative services in engineering, digital aviation and Tools such as Boeing’s Fuel analytics, supply chain logistics, and Dashboard improve the training support, Global Services operational efficiency of delivers solutions that can drive the in-service fleet. Boeing analyzes data from airline efficiency, optimize operations operations and simulates and improve our environmental scenarios to assess the performance. amount of fuel required for a given flight. The Boeing, through its subsidiary comparisons enable airlines Jeppesen, offers services that to identify and implement enhance airplane efficiency by opportunities for improve- using data analytics and real-time ment throughout their operations. information. Services such as Fuel Dashboard, Direct Routes and Wind Updates help airlines optimize routing based on weather, air traffic and One of Aviall’s locations in the waste and reusing packaging small or not suitable to reuse alone. other factors. Jeppesen works with Netherlands also has made materials in distribution centers. The packing pillow allowed the environmental performance a site to reuse more than 18,000 more than 120 airlines and corporate The Kent-Benaroya Distribution competitive advantage by obtaining pounds (8,164 kg) of packaging flight departments, reducing fuel use Center in Washington State has authorizations to safely and material in 2017. an average of 4.3 percent. developed several packaging compliantly provide critical aerospace reuse strategies that have reduced its Along with conservation efforts, Additionally, Jeppesen provides chemicals within the European environmental footprint and lowered the Spares Distribution Center in digital flight operations solutions to Union. Our Aviall team continues to business costs. In 2017, Washington State manages its airline representatives to improve work with suppliers and customers to this program saved more than Industrial Stormwater Permit with situational awareness on the ground support research and development 42,000 pounds (19,050 kg) of the assistance of a bioswale, which and in the air as well as increase of environmentally preferred materials waste, with the additional benefits slows and filters runoff from the fuel savings through the elimination and processes. of paper-based material weight. of conserving natural resources 27-acre (109,265 sq m) facility. It has Through these new services and Boeing Global Services supports and reducing life-cycle energy and assisted the facility in maintaining guidance from Jeppesen, our goal is sustainability activities in its operations packaging material waste. compliance with its stormwater across the globe. Examples include permit for the past seven years. to eliminate paper and transition to a One specific project created a implementing lighting controls to fully digital operating environment. “packing pillow” using packing conserve energy, enhancing the material that was considered too recycling program to reduce landfill

23 INCREASING PUGET SOUND’S TABLE OF CONTENTS GREEN INFRASTRUCTURE Mike Stevens

“I love connecting “Whether I'm talking with farmers, tribal members, community leaders, with people all over outdoor recreationalists, high-tech our state. I relish workers, parents or CEOs, the drive to innovate and find solutions to discovering our our biggest threats and toughest shared values and problems brings us together and creates an exciting and productive a vision of a world dialog,” Stevens said. Boeing where people and provided the seed funding for The Nature Conservancy* to launch its nature both thrive,” cities program in Puget Sound. The said Mike Stevens, program is focused on bringing increased green infrastructure into Washington State Puget Sound’s cities and towns in director of The ways that enable clean water and air to support human well-being. Nature Conservancy. Boeing’s commitment to advancing solutions for cleaner water in Puget Sound has encouraged the nonprofit, private, research and government sectors to come together around a common vision to use nature- based solutions for cleaner water and healthier communities. “I’m inspired by the idea that we can all make a difference. Small actions matter and so do big ones. Together we can solve problems that look insurmountable. I love knowing that the work I am doing matters to our future and our planet,” Stevens said.

*See Endnotes 24 2012–2017 PERFORMANCE TABLE OF CONTENTS

From 2012 to 2017, Boeing generated reduction of coal-derived electricity Boeing surpassed the fewer greenhouse gas emissions, under EPA’s Clean Power Plant used less water, sent less solid Program. To ensure data accuracy environmental performance waste to landfills and generated less and reflect reality, Boeing recalculate targets in the five-year hazardous waste—all reduced from the 2016 and 2017 data, which 14 to 26 percent. The significant caused a decrease of the emissions reporting period ending improvements came during a time previously calculated and reported of unparalleled growth in our for those years. We substantially in 2017. business, with record airplane exceeded all goals. deliveries. The people and projects Boeing’s environmental performance Environmental Performance driving Boeing’s environmental data is verified by an independent (Percent Performance to 2012 Baseline) progress are profiled and highlighted third party and reviewed by the CDP. throughout this report. 10 In 2017, Boeing earned a CDP rating As you will see in the next section, of A-minus. starting this year, Boeing has 0 The accompanying graph shows implemented new, more aggressive data rounded to the nearest decimal –10 environmental performance goals point and reflect the environmental through 2025, demonstrating performance of the majority of –20 an ongoing commitment Boeing facilities, calculated against to strengthening our global 2012 baseline values. (Hazardous –30 environmental leadership. 2012 2013 2014 2015 2016 2017 waste generation targets are revenue Some of the data in this year’s adjusted.) Boeing also submits Hazardous Waste* –25.8% Solid Waste –26.8% GHG Emissions –16.1% Water Intake –21.7% Environment Report reflect the environmental data to regulatory U.S. Environmental Protection agencies and voluntary disclosure *Normalized to revenue Agency’s (EPA) 2018 new release organizations, such as Australia’s of the national year 2016 eGRID National Greenhouse and Energy emissions factors, which represent Reporting Scheme, the United the emissions footprint of all electric Kingdom’s Carbon Reduction power sources. We apply the new Commitment Energy Efficiency factors to the previous two years. A Scheme, and the European Union’s significant decrease in the emissions Emissions Trading System. factor was identified for the whole nation. This was mainly caused by

25 TABLE OF CONTENTS

Boeing subsidiary Aurora Flight Sciences is developing an autonomous electric vertical-takeoff-and-landing (eVTOL) aircraft that will decrease emissions and noise while operating as a safe, on-demand urban air transportation vehicle—one example of Boeing’s efforts to shape the future of mobility.

26 THE FUTURE IS BUILT HERE TABLE OF CONTENTS Environment Strategy

Between now and 2025, a new environment strategy will guide Boeing’s aspirations to be the best in aerospace and an enduring global industrial champion.

This approach strengthens Boeing’s innovative solutions for local and 10 percent and hazardous waste environmental leadership as it global environmental needs. generation by five percent continues to The strategy outlines aggressive Looking ahead, the new approach • Provide innovative products and environmental goals and focuses on environmental services to improve environmental performance targets for guiding priorities and needs facing performance for our customers many aspects of the company’s Boeing. This means the strategy and aerospace industry. business through 2025: striving to is not about the next eight years, reduce greenhouse gas emissions but about Boeing shaping the • Strive for excellence in sustainability by 25 percent, aiming to lower water future for the kind of company it for our operations and supply base. consumption and solid waste sent needs to be and world it wants to • Inspire collaboration with partners to landfill by 20 percent, and aspiring build for future generations. around the world to advance to decrease energy consumption by

27 THE FUTURE IS BUILT HERE TABLE OF CONTENTS Environment Strategy

Boeing’s new environment strategy has three central focus areas:

Innovate for Through innovation in design, important for providing manufacturing innovations. Boeing’s acceleration of Performance manufacturing and operations, solutions including greater energy advanced technology and product Boeing aims to reduce the lifecycle efficiencies while working toward development, including investigating environmental footprint of its products. eliminating hazardous chemicals in small electric or hybrid electric Environmental requirements will be production processes. aircraft, continued support of large- designed in for cleaner products in scale biofuel usage, and proactive A focus on cultivating valuable each phase of product manufacturing management of chemical restrictions partnerships, like those developed and service life. Addressing our in the aerospace industry are only within Boeing’s HorizonX ventures, environmental footprint from the a few ways we plan to innovate for allow for advancement of science beginning to the end of service is performance. and environmentally progressive

Excellence in Boeing looks to improve the requirements. Our strategy includes Boeing’s long-standing commitment Sustainability environmental performance of its collaboration with the aerospace to excellence in cleaning and operations by setting aggressive supplier base to promote sustainable restoring at-risk sites affected by past targets for reducing greenhouse gas manufacturing and operations practices. By setting an example emissions, energy and water use, practices, and allow us to work as a global leader, we will grow our hazardous waste generation and together toward a common goal of commitment to protect human health solid waste sent to landfill. (See chart improving the aerospace industry’s and the environment while complying on the next page.) Boeing also environmental performance. with all relevant global environmental works with suppliers by setting rules and regulations. Achieving excellence in sustainability environmentally responsible through this new strategy builds upon

Inspire Global The new strategy embraces TreePeople and the Lowcountry Land work. Through purposeful strategic Collaboration and builds on Boeing’s strong Trust in South Carolina will inspire partnerships, employee engagement partnerships with community other partners and customers. A and community investment, this environment leaders ensuring that focus on valuable collaborations new strategy allows Boeing and its projects support economic, social helps Boeing deliver results. employees to increase support of and environmental progress. Building innovative environmental partnerships Boeing employees invest countless on previous efforts between Boeing and programs to create value and hours of their time and talent in the and organizations like The Nature build better communities worldwide. communities where they live and Conservancy, Southern California’s

28 THE FUTURE IS BUILT HERE TABLE OF CONTENTS 2025 Environment Targets

Over the next eight years, Boeing’s lead with courage and passion—from Bold, new environment goals strategic investments and partner- the largest site to individual factory ships will inspire a global approach to and office workers—to help Boeing illustrate Boeing's commitment achieving environmental standards. conserve natural resources. By reaching higher, embracing change to improving the company's The new strategy encourages and and uniting for a common goal, this supports employees in identifying strategy helps ensure a cleaner future operational footprint by 2025. projects and actions where they can is built here.

Boeing Reduction Targets

Greenhouse Water Solid Waste Energy Hazardous Gas Emissions Consumption to Landfill Consumption Waste

25% 20% 20% 10% 5%

29 THE FUTURE OF TECHNOLOGY TABLE OF CONTENTS Pradeep Fernandes

Pradeep Fernandes “My team evaluates segments of Boeing’s core businesses that are doesn’t mind ripe for disruption from emerging disrupting “business competitors; we need to disrupt ourselves before someone else does,” as usual,” especially Fernandes said. when it comes Fernandes is a leader of Boeing to thinking about HorizonX, the company’s pathfinder organization that is making targeted Boeing’s future. investments in new ventures and startups and exploring disruptive innovations and business strategies. Early investments include game- changing technology, such as advanced batteries and hybrid- electric propulsion aircraft. “Air traffic will continue to grow; we need to serve and lead the growth in an environmentally responsible way,” Fernandes said. “It means increasing efficiency and reducing emissions, not just on current products, but also products of the future and emerging forms of commercial and urban mobility.” Although we can’t see the future, “we can try to shape our future by deeply engaging in developing our technology and continuously adding new capabilities in our processes and products,” he said. “By helping to shape the innovation journey, we’re building a more sustainable future and supporting our continued success for another 100 years.”

30 THE FUTURE OF SUSTAINABLE TABLE OF CONTENTS BUILDING STRATEGIES

The 737 Completion & Delivery will install aircraft interiors on • Providing onsite electric vehicle • Using daylight to illuminate 75% Center in Zhoushan, China will be 737 MAX airplanes bound for charging of interior spaces a showcase of energy efficient and Boeing’s Chinese airline customers. • Retaining or evaporating 98% of • Securing LEED certification sustainable building strategies and The aircraft will be painted on site site stormwater a demonstration of Boeing’s global and transferred to customers at the Boeing also worked closely with local commitment to environmental adjoining delivery center. • Using collected rainwater for governments on the facility’s design leadership. 100% of landscaping irrigation and construction. The facility features state-of-the-art The completion center is a joint energy efficiency and resource • Recycling 75% of waste venture between Boeing and conservation strategies, including: • Conserving resources with use Commercial Aircraft Corp. of • Using recycled materials in the of features like high-efficiency China. When fully operational, it building’s frame and interiors water fixtures and HVAC systems and LED lighting

31 THE FUTURE OF ENERGY REDUCTION TABLE OF CONTENTS Beth Gilbertson

It’s hard to miss Gilbertson can bring together resources to support a wide range of Beth Gilbertson’s recycling and conservation projects, enthusiasm for her from implementing lighting upgrades and supporting maintenance teams’ work as a utilities conservation ideas to working with and conservation city utilities on finding water leaks. specialist at Her passion for the environment started early; her father was an Boeing’s 737 engineer and her mother a teacher. factory in Renton, “My father would share the challenges and solutions he faced in the energy Washington. industry; my mother instilled the values of being a life-long learner,” “Every day I have the opportunity to Gilbertson said. work with amazing teammates as we look for new ways to help Boeing The early inspiration still moves her reduce its energy and water use and today. “We all can take an action or reduce waste. I know we’re making a make a choice every day that will difference in helping Boeing shrink its conserve resources and move us to a carbon footprint and move toward a more sustainable future, at work and more sustainable future,” she said. at home, too.”

Conserving and (more than 83 million An innovative new Boeing also works Protecting a Valuable liters) of water annually— material that shows closely with community Natural Resource a nearly 90 percent great potential in groups such as The Boeing saves millions of reduction—thanks to improving the quality Nature Conservancy on gallons of water every a new water recycling of stormwater runoff stormwater mitigation year with new technology system at the Everett, is moving from the projects in Washington, and creative approaches Washington, Interiors laboratory to field tests California and other to reducing overall water Responsibility Center, in 2018. Permeable states. In the 2018 Battle of the use and waste. Innovative which manufactures pavement is a porous Buildings* (BoB), 47 sites materials also help aircraft interiors. Boeing paving material that in six countries helped manage and improve the Portland uses reverse- allows stormwater Boeing reduce energy quality of stormwater run- osmosis technology to to percolate through use. The format of friendly off from company sites. recycle and reuse 13 million the surface to the soil competitions among gallons of water a year. below where the water facilities will be used A few examples: Boeing is naturally filtered and in future conservation will save 22 million gallons pollutants removed. campaigns.

32 *See Endnotes THE FUTURE OF CLEANER FACILITIES TABLE OF CONTENTS Mike Bunker

As the leader of “It’s in simple steps, like eliminating disposable coffee cups to working Boeing’s largest with our local utilities on the possibility manufacturing site of installing solar panels to generate clean power on site,” he said. outside the U.S., Bunker leads Boeing Aerostructures Mike Bunker points Australia (BAA), in Melbourne, which with pride to the builds control surface parts, such as wing flaps and winglets, for most innovation of his Boeing aircraft models. Aussie teammates The site has completed soil and in setting the course groundwater remediation from operations that predate Boeing's for a cleaner, more ownership and stretch back to sustainable future. World War II. Bunker said BAA is following an aggressive strategy to reduce energy use and greenhouse gas emissions, conserve water, expand recycling and improve its manufacturing processes, while also continuing to grow and build more products. “I love being a part of building more environmentally friendly aircraft, in factories that produce less waste, use less energy and leave the site better than how we found it. It’s beautiful to me.”

33 GOVERNANCE TABLE OF CONTENTS

Our company’s environmental strategy and policies are guided by the Environment, Health & Safety (EHS) Policy Council, composed of Boeing’s Executive Council and led by the chairman, president and chief executive officer.

The Policy Council ensures that are reported through each of these Environmental initiatives are This highly integrated and strategy and performance targets venues in addition to other internal embedded into every organization coordinated approach drives are set and monitored. A team of executive reviews across the and function within Boeing. The EHS continuous improvement in the 20 executives across our businesses company. organization comprises functions environmental performance of our and product lines meets twice a focused on workplace safety and products and operations around One Policy Council meeting each month to advance our strategy health, environmental performance the world. year is focused on setting targets and plan. and regulatory compliance. The EHS that are aligned with corporate team also works with our business Reviews by the EHS Policy Council long-range business planning; unit and operational leaders to and a functional review with the another annual meeting focuses on drive an integrated, enterprisewide chairman, president and chief detailed planning and reviewing the strategy that addresses our products, executive officer are conducted company’s environmental and safety services, processes, operations, twice a year. Progress and status performance. contractors and employees.

34 ENDNOTES TABLE OF CONTENTS

Endnotes for General Text Data reported in this chart for the Endnotes for Greenhouse Gas Emissions using market-based method and the Page 9: North American Land Trust (NALT) greenhouse gas emissions, hazardous In addition to data from Boeing’s 37 Core emission factors provided in the National is a nonprofit land conservation organization waste, water intake and solid waste to Metric Sites, data from Portland, Oregon Greenhouse and Energy Reporting (NGER) that works throughout the United States. landfill reflect environmental performance (PDX Paint Hanger), and the Phoenix, Scheme, since residual mix is not available As of 2018, it has completed conservation at the following sites from a baseline set on Arizona, Data Center also included. in Australia. Emissions calculated with projects in 20 states totaling over 120,000 2012 values. These sites (known as Core location-based method are: 1,247,000 acres. NALT’s core competency is Metric Sites) represent the vast majority 1 metric ton = 2,204.62 pounds. tons (1,131,000 metric tons) CO2e (2017). Emissions calculated with Market-based balancing conservation of significant of Boeing’s operations and are identified Carbon dioxide equivalent, or CO -e,  2 method are: 988,000 tons (896,000 metric natural and cultural resources with limited, by the city in which the Boeing operation means the number of metric tons of CO 2 tons) CO2e (2017). compatible public and private uses. resides. For each metric, additional facilities emissions with the same global warming and office buildings also have been Page 11: Source: The Air Transport Action potential as one metric ton of another RECs were applied to the GHG included where information is available. Group greenhouse gas (in accordance with EPA calculation for the following locations: • Alabama: Huntsville 40CFR98 Mandatory Greenhouse Gas Page 12: Aerospace company Nabtesco North Charleston, South Carolina, and Corporation provides major aircraft • Arizona: Mesa Reporting). 6 Puget Sound locations in Washington. In 2017, these Boeing locations made manufacturers with a variety of quality • California: El Segundo, Torrance, GHG emissions are calculated based on arrangements to purchase RECs to offset aircraft equipment, and is a global leader of Huntington Beach, Long Beach, consumption of electricity, natural gas and around 125,000 tons (113,000 metric tons) flight control components and systems. Seal Beach, Palmdale fuel oil. (Our facility in Philadelphia is the of GHG emissions. Page 13: Lowcountry Land Trust is a • Illinois: Chicago only major U.S. site that uses No. 6 and 501(c)(3) nonprofit conservation other fuel oils for heating and curtailment • Indiana: Gary Endnotes for Water Intake organization focused on protecting backup.) Consumption of other fuels is not ecologically, agriculturally and historically • Missouri: St. Charles, St. Louis represented. In addition to data from Boeing’s 37 Core Metric Sites, data from Portland, Oregon significant Lowcountry lands along South • Ohio: Heath 2016 emission numbers are recalculated Carolina’s coast—and the way of life they  (PDX Paint Hangar), also included. • Oregon: Gresham based on new eGRID2016 factors. make possible. 1 U.S. gallon = 3.79 liters. • Pennsylvania: Ridley Park Page 24: The Nature Conservancy is the For U.S. sites, Scope 1 emissions from leading conservation organization working • South Carolina: Charleston, Ladson natural gas, fuel oil and on-site generated Endnotes for Solid Waste to Landfill around the world to protect ecologically • Texas: Houston, San Antonio electricity are calculated using the Includes data from Boeing’s 37 Core emission factors provided in U.S. EPA important lands and waters for nature and • Utah: Salt Lake City, West Jordan Metric Sites. people. Since 1951, TNC has protected GHG Mandatory Reporting Rule. Scope 2 • Washington: Auburn, Bellevue, Tukwila more than 119 million acres of land and emissions from purchased electricity are 1 U.S. ton = 2,000 pounds. (Developmental Center, Duwamish thousands of miles of rivers worldwide calculated using the market-based method Towers), Everett, Frederickson, Kent Solid waste numbers represent values impacting 72 countries addressing and eGRID sub-region factors, since (Space Center), Seattle (North Boeing determined from scale-weighed containers conservation threats involving climate residual mix is not available in the U.S. Field, Plant 2, Thompson, South Park), as well as calculated weights. change, access to clean water, ocean For the Canada site, Scope 1 emissions Renton (737 Assembly, Longacres), are calculated using the emission factors health and everything in between. Endnote for Hazardous Waste Generation SeaTac (Spares Distribution Center) provided in U.S. EPA GHG Mandatory Page 32: The Battle of the Buildings • Canada: Winnipeg Reporting Rule; Scope 2 emissions are In addition to data from Boeing’s 37 Core graphic is used with the permission of the calculated using the market-based method Metric Sites, data from Portland, Oregon U.S. Environmental Protection Agency. • Australia: Fishermans Bend and the supplier-specific emission factor. (PDX Paint Hangar); Jacksonville, Florida • Site changes: Anaheim, California (Cecil Field); El Paso, Texas; Macon, Endnotes for Performance Summary For the Australia sites, Scope 1 emissions (closed in 2012; 2012 data only); Georgia; Wichita, Kansas; and Sylmar, Chart and Graph are calculated using the emission factors Bankstown, Australia (closed in 2013; provided in the National Greenhouse California, are included. “Environmental fines” represent total fines 2012 and 2013 data only); Wichita, paid in 2012, 2013, 2014, 2015, 2016 and and Energy Reporting (NGER) Scheme, Kansas (reduced scope in 2015, now and Scope 2 emissions are calculated 2017, respectively. reports only hazardous waste).

35 ENDNOTES TABLE OF CONTENTS

Endnotes for Global Reporting Carbon dioxide equivalent, or CO2e, Efficiency Scheme are used. For GHG inven- Country State/City (Site) Australia National Greenhouse and Energy means the number of metric tons of CO2 tory in Australia, emission factors from the Canada Alberta Reporting endnote: This comprehensive report emissions with the same global warming National Greenhouse and Energy Reporting Calgary potential as one metric ton of another Act are used. For GHG inventory in locations must be completed by registered corporations British Columbia greenhouse gas. (In accordance with EPA where energy data are not accessible, 2012 that meet specified energy use and green- Richmond house gas emission thresholds. For the 40 CFR Part 98 Mandatory Greenhouse CBECS factors are used to estimate the Vancouver 2015 –2016 reporting period, the Australian Gas Reporting Accounting protocol.) energy consumption and emission factors government’s Clean Energy Regulator This GHG inventory is prepared using the from the International Energy Agency’s CO2 Manitoba released data for companies emitting more following protocols: Emissions From Fuel Combustion Highlights Winnipeg 2013 and 2006 IPCC Guidelines for National than 55,000 tons (about 50,000 metric tons) of • The Greenhouse Gas Protocol: Greenhouse Gas Inventories are used to Ontario equivalent carbon dioxide (CO2e). A Corporate Accounting and Reporting calculate the emissions. Mississauga Standard (Revised Edition) United Kingdom Carbon Reduction Ottawa Commitment endnote: Boeing U.K. operations • The Scope 2 Guidance Site Listing Endnotes for Corporate Quebec consist of multiple units and subsidiaries. • GHG Reporting Guidance for the GHG Inventory Chart Mirabel Boeing U.K. Training and Flight Services Ltd. Aerospace Industry (IAEG) Country State/City (Site) Montreal Operates flight simulators for training on • The Australian National Greenhouse Boeing aircraft at several locations throughout Australia Australian Capital China Beijing and Energy Reporting Act 2007 the U.K. Boeing Defense U.K. Ltd. has Territory Hong Kong employees located at multiple locations through- • The United Kingdom’s CRC Energy Canberra Shanghai Efficiency Scheme out the U.K., supporting Ministry of Defense New South Wales Denmark Copenhagen and U.S. military programs. Additionally, CO 2 Scope 2 emissions are calculated using Bankstown emissions from Boeing subsidiary Jeppesen Egypt Cairo the market-based method. Location-based Sydney U.K. Ltd. and Aviall U.K. Inc. are included in method calculated emissions are 988,000 Williamtown Ethiopia Addis Ababa the Boeing U.K. CRC report. tons (896,000 metric tons) CO2e. Residual Queensland France Blagnac mix is only available in EU countries; Alderley Endnotes for Greenhouse Gas Corporate Paris therefore, other grid average emissions Inventory Brisbane factors are used in all other countries. In Cairns Germany Berlin The greenhouse gas (GHG) emissions the market-based methodology, RECs Coominya Bavaria reported represent 1,696 buildings in 42 were applied to the GHG calculation for South Australia Munich countries where Boeing has operational the following locations: North Charleston, Adelaide control. Refer to the Site Listing Footnotes South Carolina and 6 Puget Sound loca- Hesse for Corporate GHG Inventory Chart for tions in Washington. In 2017, these Boeing Victoria Neu-Isenberg cities included. locations made arrangements to purchase Melbourne North Rhine-Westphalia RECs to offset around 125,000 tons Mentone Scope 3 emissions only include emissions Cologne (113,000 metric tons) of GHG emissions. Tullamarine from business travel. Greece N. Smirni Western Australia Other calculation factors: Data source of Scope 1 “other gas types” include CH4, Hungary Papa global warming potentials (GWP) is U.S. Jandakot N2O, NF3 and PFCs emissions. 40 CFR Part 98 subpart A, table A-1. For Belgium Brussels India Andhra Pradesh Scope 1 “other fossil fuels” include No. 6 GHG inventory in North America, emission Hyderabad fuel oil, gasoline, aviation gasoline, propane factors for combustion sources come from Brazil São Paulo National Capital and LPG. U.S. 40 CFR Part 98, subpart C, table C-1. Sao José dos Campos New Delhi For GHG inventory in the U.K., emission 1 metric ton = 2,204.62 pounds. factors from the CRC Energy

36 ENDNOTES TABLE OF CONTENTS

Site Listing Endnotes for Corporate Country State/City (Site) Country State/City (Site) Country State/City (Site) GHG Inventory Chart (cont.) Saudi Arabia Riyadh United States Arizona United States Florida Country State/City (Site) Mesa Orlando Singapore Singapore India Karnataka Phoenix Shalimar Bangalore South Africa Johannesburg California Tampa Titusville Tamil Nadu South Korea Seoul Costa Mesa Chennai Yeongcheon-si El Segundo Georgia Huntington Beach Atlanta Ireland Leinster Spain Madrid Long Beach College Park Belfast Sweden Göteborg Mountain View Peachtree Dublin Palmdale Warner Robins Taiwan Taipei Israel Tel Aviv Pleasanton Hawaii Turkey Ankara Rancho Cucamonga Honolulu Italy Rome Istanbul San Diego Kamuela Waimea Japan Chubu San Jose Kihei Ukraine Kiev San Luis Obispo Nagoya Illinois United Arab Abu Dhabi San Mateo Tokoname Chicago Emirates Dubai Santa Susana Tokyo Fairview Heights Santee Tokyo United England Mascoutah Seal Beach Kingdom Bristol Rolling Meadows Kanto Sunnyvale Camberley St. Charles Yokohama Sylmar Corsham Swansea Taft Kazakhstan Almaty Crawley Torrance Indiana Farnborough Kenya Nairobi Van Nuys Crown Point Feltham Ventura Gary Luxemburg Luxemburg Fleet Victorville Kansas Gosport Malaysia Kuala Lumpur Kansas City Knaresborough Colorado Wichita Mexico Mexico City London Aurora Centennial Netherlands Amsterdam Milton Keynes Louisiana Colorado Bossier City Nieuw Vennep United Oxford Colorado Springs Lafayette Schiphol-Oost, Noord-Holland Kingdom Welwyn Garden City Englewood Maryland New Zealand Auckland Yeovil Connecticut Aberdeen Proving Ground Scotland Oman Muscat East Windsor Annapolis Junction Perth California Poland Gda ´nsk Florida Germantown Warsaw United States Alabama Cape Canaveral Patuxent River Daleville Davie Qatar Doha Huntsville Fort Walton Beach Massachusetts Russia Moscow Madison Ft. Lauderdale Lexington Skolkovo Alaska Jacksonville Michigan Tyumen Anchorage Kennedy Space Center Waterford Miami

37 ENDNOTES TABLE OF CONTENTS

Site Listing Endnotes for Corporate Country State/City (Site) Country State/City (Site) GHG Inventory Chart (cont.) United States Oklahoma United States Virginia Country State/City (Site) Oklahoma City Fairfax United States Minnesota Oregon Herndon Eagan Arlington Leesburg Newington Mississippi Boardman Newport News Starkville Gresham Hood River Virginia Beach Missouri Portland Washington Berkeley The Dalles Auburn Bridgeton Wilsonville Bellevue Earth City Bingen Florissant Pennsylvania Bothell Fort Leonard Wood Eddystone Enumclaw Hazelwood Langhorne Everett Maryland Heights Lemont Furnace Issaquah Portage Des Sioux Pittsburgh Kent St. Charles Ridley Park Moses Lake St. Louis Smithfield Mukilteo South Carolina Montana Olympia Ladson Glasgow Puyallup North Charleston Helena Quincy Nevada Tennessee Renton Las Vegas Cordova SeaTac Memphis Seattle New Jersey Tukwila Berkeley Heights Texas Vancouver Parsippany Austin Dallas White Salmon New Mexico Dyess AFB Albuquerque El Paso New York Houston New York Irving North Carolina Richardson Fayetteville San Antonio Havelock Universal City Kings Mountain Utah Morrisville Hill AFB Ohio Layton Brookpark Salt Lake City Cincinnati West Jordan Fairborn Virginia Heath Arlington Chantilly

38 The Boeing Family of Reports TABLE OF CONTENTS Visit boeing.com/investors to view our Annual Report and to find additional information about our financial performance and Boeing business practices. Visit boeing.com/community to view our community investment information and other information about how Boeing is working to improve communities worldwide. Visit boeing.com/environment to view our current Environment Report and information on how the people of Boeing are developing ways to promote a more sustainable future.

A 787-9 Dreamliner is painted in a special blue livery that represents the Sustainable Development Goals adopted by the United Nations in September 2015. The United Nations General Assembly unanimously approved the 17 “Transforming our world: The 2030 Agenda for Sustainable Development” targets to be achieved over the next 12 years. Two Boeing sites use 100% renewable electricity: Renton, Washington, home 47 Boeing sites in of the 737, and Boeing six countries around South Carolina, which uses the world representing The Boeing Company 16,000 solar panels on the 93% of Boeing’s roof of its final energy use competed 100 North Riverside Plaza assembly Chicago, IL 60606-1596 in the 2018 Battle of building. the Buildings energy USA reduction competition. Since 2007, we reduced greenhouse gas emissions by 29 percent while growing our The Everett Interiors business and increasing product deliveries Responsibility Center, which by 71 percent. manufactures aircraft interiors, is constructing a new water recycling system that will save up to 22 million In 2016, Boeing and gallons of water its suppliers saved annually. an estimated $23 million by collecting and sending 15 million The Wildlife Habitat pounds of titanium scrap to mills to be Council has melted and recycled certified Boeing’s into usable forms, efforts to support The first 100% such as ingot, plate sustainable biofuel-powered and sheet. ecosystems at flight of a five sites. commercial jet was part of the 2018 ecoDemonstrator Renton, Washington program. office employees reduced energy use by 318,870 kWh— Boeing’s Santa Susana enough to power 350 Field Laboratory site in average U.S. homes Simi Valley, Calif., is for a month—during a secured as permanent single 90-day period open space habitat safe in 2016. The 737 MAX uses 20 percent Boeing received the E.P.A. ENERGY STAR for visitors, wildlife and Partner of the Year award in 2018 for the less fuel compared with the neighboring community eighth consecutive year. original Next Generation 737 right next door to Travel Smart! United Kingdom employees and is as efficient as a hybrid Los Angeles. reduced business More than 50 Boeing sites electric car. travel mileage by more globally are certified to the Our 2025 target to than 25% from 2016 high standards reduce energy use to 2017 by expanding of ISO 14001 by 10% will help use of video and virtual meetings, ride sharing environmental cut greenhouse and public and alternative management gas emissions transportation. system. by 25%.