Build a Better Planet Innovation and Technology Are at the Heart of What We Do at Boeing, and They Are Fundamental to Improving Environmental Performance

The Boeing Company 2014 Summary Environment Report

Build a Better Planet Innovation and technology are at the heart of what we do at Boeing, and they are fundamental to improving environmental performance. As a company, we under- stand that environmental responsibility is crucial to our

ENVIRONMENTAL POLICY long-term success and second century in business. AND STRATEGY We are committed to responsible environmental leadership as we serve our customers and as our business and industry grows. Our strategy to achieve this is made up of three tenets: Designing the Future, Innovating to Zero and Inspiring Global Collaboration. We are continually researching new, innovative technologies to improve our company’s and our industry’s environmental performance.

Innovation and technology are at the heart of what we do at Boeing, and they are fundamental to improving environmental performance. OUR APPROACH: LEADERSHIP MESSAGE

Jim McNerney, chairman and chief executive officer, The Boeing Company and Ursula English, vice president, Boeing Environment, Health & Safety (Boeing photo)

We are building a Every day, Boeing employees find new earlier this year earned its experimental and innovative ways to serve our global status—a major milestone in bringing bigger and better customers, and they are also committed this capability to market. In developing Boeing across the to responsible environmental leadership— technology innovations that dramatically both in our products and in how we improve our products’ fuel efficiency, we breadth and depth manufacture, deliver and support them. have increased revenues and earnings by As we look forward to our second century, approximately 35 percent over the past four of our businesses we see continued business growth in years and secured a backlog of customer and our communities, markets we intend to lead. orders valued at nearly half a trillion dollars. and we are focused Last year, we expanded our modern and And within the walls of our factories and fuel-efficient family of commercial airplanes offices, we continue to accelerate improve- on helping build a with the launch of the 787-10 and the new ments in environmental performance. After better planet. 777X—airplanes that will fly passengers far- achieving our first five-year set of absolute- ther, in more comfort and with significantly reduction targets, we are committed to zero reduced emissions than the airplanes they growth in water consumption, greenhouse replace. We are also investing in a cleaner gas emissions, hazardous waste and solid future through our research into lightweight waste to landfill—even as our business materials, advanced aerodynamics, continues to grow. sustainable new fuel sources, and hybrid-, Every day, as Boeing employees are solar- and electric-powered aircraft, all exploring new ways to build a bigger, better delivering greater efficiency with reduced Boeing, we are also striving to build a better or no greenhouse gas emissions. planet—by improving the environmental For example, our Phantom Eye liquid performance of our company, our industry hydrogen–powered unmanned aircraft, and our communities worldwide. which produces only water as a byproduct,

To learn more, go to www.boeing.com/environment 1 DESIGNING THE FUTURE

The Boeing 787 Dreamliner is the most advanced and efficient commercial airplane in its class, setting new standards for environmental performance and passenger comfort. (Boeing image)

Boeing is developing Boeing builds and delivers the world’s most Boeing is building the world’s first all-electric modern and fuel-efficient fleet of airplanes. propulsion satellites. The all-electric propul- innovative solutions This brings enormous value for our com- sion design of the 702SP (small platform) mercial and defense customers by finding satellites gives customers new flexibility and and technologies to new opportunities for efficiencies that cut next-generation technology for increased meet environmental their fuel costs and reduce greenhouse gas performance, more affordable launch emissions while improving the environmental options and the ability to nearly double requirements for its performance of the aerospace industry. payload capacity. With the launch of the 777X and the 787-10 customers and the New Technology Boeing is accelerating in 2013, Boeing advances the world’s most the development and testing of new industry. efficient and flexible twin-aisle family. technologies bringing fuel efficiency and Cleaner Products Boeing builds and environmentally progressive advancement delivers the world’s most modern and for our customer and communities around fuel-efficient fleet of airplanes. the world. This year Boeing will begin using one of its own 787 airplanes to The Boeing 787 Dreamliner is the most install and test environmentally progressive advanced and efficient commercial airplane technologies as a part of the company’s in its class, setting new standards for ecoDemonstrator Program. environmental performance and passenger comfort. Composite materials, advanced We are also helping our customers and engines and a new innovative wing design communities around the world, such as all help the 787 reduce fuel consumption in Guam and Canada, expand their use and CO2 emissions. of renewable energy and are leading the industry in developing sustainable fuel Boeing’s newest family of single-aisle sources for aviation. airplanes—737 MAX 7, 737 MAX 8 and 737 MAX 9—will build on the Next- Future Flight Technology demonstration Generation 737’s popularity and reliability projects led by Boeing, such as the while delivering customers unsurpassed Phantom Eye, Subsonic Ultra-Green Aircraft fuel efficiency in the single-aisle market. Research (SUGAR), and Blended Wing With all-new composite wings and all-new Body, are showing promise of substantially GE9X engines, the new 777X will be the clearer, quieter and more efficient flight. Our largest and most efficient twin-engine jet in liquid hydrogen–fueled unmanned aircraft, the world. And the 747-8 is 16 percent more the Phantom Eye, which produces only fuel-efficient than its predecessor and water as a byproduct, received its experi- delivers more passengers, more cargo and mental aircraft status, a major milestone in more range with lower emissions and noise. bringing this capability to market.

2 2014 Summary Environment Report INNOVATING TO ZERO

The Boeing Delivery Center in Everett, Washington, was awarded LEED Gold certification by the U.S. Green Building Council, for its lower energy and water consumption and the use of recyclable and locally sourced materials. (Boeing Photo)

Boeing is acceler- Building on the demonstrated performance Twenty percent of the power that runs over the last five years, Boeing is committed Boeing facilities in Southern California ating improvements to maintaining 2012 levels for greenhouse comes from wind energy. gas emissions, water use and solid waste in the environmental through 2017, even as our business con- This year Boeing earned the 2014 ENERGY ® performance of the tinues to grow. We also are committed to STAR Partner of the Year Sustained our hazardous waste generation growing Excellence award from the EPA for lead- company’s opera- at a rate no more than the rate at which our ership in energy conservation. Boeing has tions, as business business is expanding. won the ENERGY STAR award every year since 2011. continues to grow. Increasingly, Boeing is seeking opportunities to incorporate energy conservation tech- Boeing designs all new construction and nologies and sustainable materials into new major renovation projects to meet a LEED building designs as well as to reduce the Silver rating or higher. More than 60 percent amount of water used and waste generated of all Boeing LEED-certified buildings have by our facilities. Currently, received Gold-level certification. And more than 50 sites around the world, including all Boeing relies on carbon-free hydro- major manufacturing facilities, are certified electric and renewable energy sources to ISO 14001 standards. for nearly half our total electricity consumption. Carbon-free hydroelectric energy supplies more than 80 percent of the power for Boeing’s Everett and Seattle facilities in Washington. The North Charleston, South Carolina, site is powered by 100 percent renewable energy, sourced from 10 acres (4.05 hectares) of solar panels on the roof of the final assembly building, and coupled with renewable energy credits purchased from the local utility.

To learn more, go to www.boeing.com/environment 3 Canada European Union The Netherlands Russia Renewable Energy Air Trafc Efciency Biofuel Airline Efciency Digital Aviation Services Air Trafc Efciency

United States United Kingdom India China Biofuel Environmental Aircraft Coatings Biofuel Air Trafc Efciency Stewardship Air Trafc Efciency INSPIRING GLOBAL Renewable Energy Composites COLLABORATION Carbon Fiber Recycling Italy UAE Hong Kong Environmental Biofuel Improved Engine Education Performance

Spain Turkey Japan Air Trafc Efciency Advanced Air Biofuel Filtration

Brazil Saudi Arabia Malaysia Biofuel Solar Energy Biofuel Air Trafc Efciency

South Africa Indonesia Biofuel Environmental To learn more about how Boeing is Conservation engaging the industry around the world, Guam Australia visit the interactive map online. Solar Energy Biofuel

Boeing is leading global collaboration, finding solutions for complex environmental challenges for the aerospace industry and our communities around the world.

Boeing is leading Boeing works with organizations, institutions, requests about the use of chemicals and customers and governments around hazardous materials contained in its products global collaboration, the world to drive environmental improve- or use in production processes. Additionally, ments throughout our industry and across Boeing employees and executives work with finding solutions for the globe. local, national and international environmental organizations in a number of voluntary and complex environ- Sustainable Aviation Biofuel As part of professional capacities. mental challenges. our core commitment to protect the environment and support the long-term sustainable Employee Engagement Boeing employees growth of aviation, Boeing is the industry are constantly improving the way we design leader in global efforts to develop and and build our products, including making commercialize sustainable aviation biofuel. A them more efficient and cleaner. Every day, new sustainable jet fuel is essential to reduce employees come up with innovative ideas for commercial aviation’s carbon emissions, how to improve environmental performance reduce our industry’s reliance on fossil fuel, of our products, supply chain and operations. and reach our industry’s goal of carbon- Through thousands of employee teams, as neutral growth from 2020. well as dozens of volunteer-based Green Teams, Boeing employees are finding Boeing is focused on “drop-in” sustainable ways to reduce energy, water use, and the biofuel, which can be blended directly with generation of solid and hazardous waste. the traditional petroleum jet fuel supply with Boeing employees also take seriously their no changes to airplanes, engines or fueling stewardship role in the community, to make infrastructure. Boeing’s goal is that by 2016, the places where we live and work cleaner sustainable biofuel will address 1 percent and better for all. In 2013, more than 20,000 of global jet fuel demand, equivalent to Boeing employees took part in Earth Day 600 million gallons (2,271.25 million liters) events at 65 Boeing sites in 14 countries. of jet fuel. In early 2014, Boeing announced that it had identified a significant new supply Building Better Communities Worldwide of price-competitive biofuel for jets: “green As a committed, responsible environmental diesel,” a renewable fuel that today is used leader focused on healthy global growth, for truck transport. Boeing is now working we collaborate with research institutions, with the U.S. Federal Aviation Administration customers, universities and governments and other stakeholders to gain approval to to solve problems and partner with local use green diesel in commercial aviation. communities about the importance of environmental protection and preservation. In Engaging the Industry Our work includes 2013 Boeing supported almost 100 projects improving the operational efficiency of around the world focused on environmental commercial aviation, advocating for a global education, energy efficiency and conserva- emissions framework for aviation that can tion efforts. To learn more about how Boeing best be achieved through the International is building better communities worldwide, Civil Aviation Organization (ICAO), and helping read our Global Corporate Citizenship report. the aerospace industry meet the growing and expanding requirements and information

4 2014 Summary Environment Report Summary of Environmental and Business Performance 2013

6 2013 PERFORMANCE 4

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Business Performance Environmental Percent Performance to Target Percent Change 2012–2013

Revenues 6.0% Hazardous Waste* 1.4% Environmental Target: Deliveries 9.0% GHG Emissions 0.0% 0 absolute growth for water, greenhouse Employees –3.5% Solid Waste –0.2% gas and solid waste; Water Intake –5.3% 0 revenue-adjusted growth for hazardous *Revenue adjusted waste by 2017

While our business Boeing continues to accelerate improve- and solid waste to landfills will remain the ments in the environmental performance of same by the end of 2017, as they were at the continues to grow, the company’s operations. Building on the end of 2012. Additionally, we are committed demonstrated performance of the first set of to limiting our hazardous waste generation we are committed to five-year targets, and as business contin- to no more than the rate at which our zero growth for our ues to grow, Boeing is committed that our business is growing. environmental targets. greenhouse gas emissions, water intake

All charts on this page Corporate Inventory Scope 1 reflect the 2013 environ- Greenhouse Gas Emissions mental performance Emissions of the majority of Boeing Our reported Scope 1 facilities. Each chart is Our corporate green- emissions include represented by its own house gas inventory our consumption of data set that is described emissions represents electricity, natural gas, in accompanying footnotes our Scope 1, 2 and fuel oil and the jet fuel available in the full 2014 3 emissions submit- used in our ﬂight-test Environment Report. ted to CDP. Scope 2 programs. Other fossil emissions comprise fuels include #5 and Scope 1 Emissions 32% the largest segment #6 fuel oil, gasoline, Natural Gas 55% Scope 2 Emissions 53% Jet Fuel 25% of our greenhouse aviation gasoline, Scope 3 Emissions 15% Fugitive Emission 15% gas emissions, propane and liquid #2 Diesel 3% followed by the petroleum gas. Other Fossil Fuels 2% direct emissions of our facilities (Scope 1) and then our business travel (Scope 3).

Electricity Generation Energy Sources Sources Improving energy Boeing uses carbon- efﬁciency across free hydroelectric and Boeing continues renewable energy to be a key focus sources for nearly half for the company. of our total electricity About half our energy consumption. is derived from electricity, the other half by natural gas. Natural Gas 12% Natural Gas 45% Biomass, Wind, 13% Electricity 55% Solar Nuclear 13% Coal 23% Hydro 39% To learn more, go to www.boeing.com/environment 5 Boeing is a responsible partner, neighbor and citizen to the diverse communities and customers we serve. We Selected Programs, Products and Services The Boeing Company are building a better future with innovative 100 North Riverside products that are cleaner, more efficient Chicago, Illinois 60606 www.boeing.com/environment and set a new standard for performance. Boeing follows responsible business practices and promotes positive changes in the lives of people around the world while growing shareholder and customer value in a competitive global marketplace.

Visit us at boeing.com Visit us at boeing.com/ Photo above: to learn more about investorrelations to With all-new engines Boeing and how ex- view our annual and composite wings, traordinary innovations reports and to find the 777X will be the in our products and additional information largest, most efficient services are helping about our financial twin-engine jet in the solve the world’s performance and world. toughest problems. Boeing business practices.

Visit us at boeing.com/ Visit us at boeing.com/ environment to view community to view our the complete 2014 Corporate Citizenship Environment Report Report and other and information on information about how how the people of Boeing is working to Boeing are developing improve communities ways to build a better worldwide. planet and create a better tomorrow.