THE COMPANY 2017 ENVIRONMENT REPORT

BUILD SOMETHING CLEANER

1 ABOUT US Boeing begins its second century of business with a firm commitment to lead the aerospace industry into an environmentally progressive and sustainable future.

Our centennial in 2016 marked 100 years of Meeting and other challenges innovation in products and services that helped head-on requires a global approach. Boeing transform and the world. The same works closely with government agencies, dedication is bringing ongoing innovation in more customers, stakeholders and research facilities efficient, cleaner products and operations for worldwide to develop solutions that help protect our employees, customers and communities the environment. around the globe. Our commitment to a cleaner, more sustainable Our strategy and actions reflect goals and future drives action at every level of the company. priorities that address the most critical environ- Every day, thousands of Boeing employees lead mental challenges facing our company, activities and projects that advance progress in customers and industry. Innovations that reducing emissions and conserving water and improve efficiency across our product lines resources. and throughout our operations drive reductions This report outlines the progress Boeing made in emissions and mitigate impacts on climate and challenges we encountered in 2016 toward change. our environmental goals and strategy. We’re reducing waste and water use in our In the face of rapidly changing business and facilities, even as we see our business growing. environmental landscapes, Boeing will pursue In addition, we’re finding alternatives to the innovation and leadership that will build a chemicals and hazardous materials in our brighter, more sustainable future for our products and operations, and we’re leading the employees, customers, communities and global development of sustainable aviation fuels. industry.

Leadership Message 1 IMPERATIVES TABLE OF Global Environmental Landscape 3 Airplane Technology and Emissions 19 Aerospace Industry Analysis 4 Operational Efficiency 21 Governance 5 Sustainable 23 CONTENTS Prioritization Study 6 Energy Conservation & Emissions 25 Boeing’s Environment Strategy 8 Water Management 27 2016 Goals & Progress 9 Solid Waste 29 2016 Performance 13 Awards & Recognition 14 Forward-Looking Statements 31 Leadership Profiles 15 Footnotes 32

2 LEADERSHIP “Our newest commercial airplanes such as the 737 MAX and MESSAGE 787 Dreamliner are 70 percent more fuel efficient and 90 percent quieter than the first jets that rolled out of our factories in the 1960s.”

Dennis Muilenburg At Boeing, we aspire to be not only the best and 90 percent quieter than the first jets that rolled Ursula English Chairman, President in aerospace, but to be an enduring global out of our factories in the 1960s. And last year, Vice President, and Chief Executive industrial champion—a top performer in each the U.S. Department of Defense recognized the Environment, Health & Safety Officer and every area of our business. That includes KC-46 aerial refueling tanker program for reducing an unwavering commitment to environmental hazardous waste from its painting process. innovation and performance in our products, And you can bet our airplanes of tomorrow will services and operations. feature even more environmental innovations. Since our company’s founding more than a We also have made tremendous progress over century ago, Boeing has made remarkable strides the past decade reducing emissions, waste and in product efficiency. For example, our newest water use in our operations while significantly commercial airplanes such as the 737 MAX and growing our business. Two of our busiest 787 Dreamliner are 70 percent more fuel efficient factories—the 737 plant in Renton, Washington,

1 and the 787 facility in North Charleston, South world about the importance of environmental Understanding that a native plants as pictured Carolina—are powered by electricity from 100 protection and preservation. For instance, together proposed expansion of above, that are at risk percent renewable sources. we are testing green infrastructure solutions to Boeing of development. Once would impact wetlands, wetlands enhancement mitigate from storm water runoff and Building on this momentum, last year we opened Boeing worked with activities are complete, improve overall water quality. the 777X Composite Wing Center in Everett, several state, federal this land will go to the and local agencies as Forest Washington, to fabricate the longest composite Moving forward, we remain focused on taking our well as conservation Service and the South wing Boeing has ever built. The lightweight wing environmental performance to new heights. When organizations—including Carolina Department will allow the 777X to reach unprecedented levels we do, our company, our customers and the global the U.S. Army Corps of of Natural Resources, of fuel efficiency for a wide-body commercial communities in which we live and work all benefit. Engineers, the South ensuring long-term public airplane. We invested $1 billion in innovative carbon Carolina Department of access. This new preserve Health and Environmental includes more than 10 fiber technology , housed in a facility Control, LowCountry times the acres of wetlands built to a Leadership in Energy and Environmental Land Trust, The Nature lost to construction and Design (LEED) Silver standard. Compared to Conservancy and Open has received national traditional construction, the center has improved Space Institute—to attention as a model energy and water efficiency, reduced emissions Chairman, President and develop a partnership process for partnership to preserve about 4,000 and preservation. and better overall environmental quality. Chief Executive Officer additional acres of (Lowcountry Land Trust Our environmental leadership extends beyond habitat, including 2,000 photo) acres of wetlands and our facilities and products; we collaborate with numerous research institutions, customers, universities, nonprofit organizations and Ursula English governments to develop technologies, solve Vice President problems and educate communities around the Environment, Health & Safety

2 GLOBAL Aviation brings together people, countries and cultures. The air ENVIRONMENTAL transport industry supports an LANDSCAPE estimated 63 million jobs and accounts for about 3.5 percent of global gross domestic product (GDP), according to the Air Transport Action Group.

As the industry grows, Boeing and introduced regional political recognizes that population growth, instability. Water resources, coastal natural resource scarcity and climate infrastructure, agriculture, ecosystems change are serious issues that require and human health are expected to credible actions and global solutions. be challenged in virtually every region worldwide. Population Growth and Climate Change The United Nations (U.N.) projects The U.N.’s Intergovernmental Panel that the world population will reach on Climate Change reports that 8.5 billion by 2030. projected increases in carbon dioxide (CO concentration will lead to Growing population and urbanization 2) rising global temperatures and more will further boost demand for extreme weather events. transportation globally, presenting the challenge to meet that demand In its 2014 Quadrennial Defense without the corresponding growth of Review, the U.S. Department of emissions and community noise. Defense notes, “The pressures caused by climate change will Natural Resource Constraints influence resource competition and Vulnerable Ecosystems while placing additional burdens on Growing economic activity and economies, societies and governance population levels increase demand institutions around the world. These and competition for raw materials effects are threat multipliers that will and other natural resources, such as aggravate stressors abroad, such as food, land, fresh water and energy. poverty, environmental degradation, In many areas, natural resource political instability and social scarcity and ecosystem vulnerability, tensions.” Wetlands are one part including lack of available water, have of Boeing's approach to put extreme pressure on ecosystems stormwater management at its Everett, Washington, facility. (Boeing photo)

3 AEROSPACE Boeing is committed to a healthy environment. The aerospace industry INDUSTRY continually adapts to dynamic and ANALYSIS changing market forces. Achieving our goals means collaborating as an industry on the issues that face us today—for a more sustainable future.

Environmental Regulation Boeing complies with all Global Aviation Commitments Aerospace in general, and applicable rules and regulations. in particular, We assess regulatory effects on is a highly regulated industry, and the environment as well as our 2010 2020 2050 environmental regulations are part of company and customers. As that. The number of regulations and a global business operating in 1.5% per year Carbon-neutral – 50% CO2 environmental concerns affecting our sectors with global operations, we fuel efficiency growth industry is increasing and includes seek global alignment in policies the following: and standards where reasonable, •  (GHG) emissions. practical and protective. Commercial Aviation & • Airplane community noise. Average 2.4%* CORSIA pilot Airplane technology, Climate Change • Local air-quality emissions for from 2009–2014 program to begin sustainable fuels, products and factory operations. According to the Intergovernmental in 2020 operational efficiency Panel on Climate Change, aviation • Water quality and issues such as contributes approximately 2 per- stormwater. *Air Transport Action Group cent of global CO2 emissions. • Hazardous waste. The industry has established • A global carbon offset program by constantly improving airplane fuel • Energy consumption and the use of a global sectoral approach to called Carbon Offset and efficiency. Reducing emissions is renewable energy in operations. controlling these emissions and Reduction Scheme in Aviation aligned to our customers’ strategic a set of goals aligned across the (CORSIA). desire to decrease fuel use, a major Chemical Restrictions & Bans industry (see chart at right). As Implementation of these agreements cost and priority in their purchasing Global regulation of chemical part of this strategy, two new decisions. Our customers increasingly substances continues to grow into regulatory frameworks around global agreements were adopted the world is underway. require that Boeing’s products and exponentially. To illustrate, regulations by the International services include environmentally expanded 50 percent per year from Organization (ICAO), a United Customer Requirements progressive attributes that will 2003 to 2013—more than 50 times Nations agency, in 2016 that The aviation industry’s business goals help them address environmental overall. That trend continues as support achieving these goals: of providing safe, cost-efficient concerns without sacrificing perfor- efforts to reduce chemical exposure and environmental goals of reducing mance or increasing life-cycle costs. from consumer products affect more • A new fuel-efficiency performance CO2 emissions are both achieved industries, including aerospace. standard for aircraft.

4 GOVERNANCE Boeing’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.

Boeing employees are The EHS Policy Council ensures that Environmental initiatives are increasingly invested in strategy and performance targets are embedded into every organization ideas and programs that set and monitored. and function within Boeing. The EHS benefit the environment. organization comprises functions Over the past year, there One EHS Policy Council meeting focused on workplace safety and has been a 72 percent each year is focused on setting increase in employee health, environmental performance targets that are aligned with corporate projects focused on the and regulatory compliance. The EHS long-range business planning; environment. (Boeing team also works with our business photo) another annual meeting focuses on unit and operational leaders to drive detailed planning and reviewing the an integrated, enterprisewide strategy company’s environmental and safety that includes our products, services, performance. processes, operations, contractors A team of cross-functional executives and employees. meets twice a month to advance This highly integrated and coordinated the strategy, plan and performance. approach drives continuous Progress and status are reported improvement in the environmental in each of these venues in addition performance of our products and to other internal reviews across the operations around the world. company.

5 PRIORITIZATION In 2016, Boeing completed a comprehensive third-party review STUDY and assessment of the company’s most significant environmental priorities.

The analysis included direct a variety of other issues. Several Results of 2016 Prioritization Study input and perspectives from topics were identified as highest diverse stakeholders—such as importance and largest influence on In September and October 2016, Boeing’s most significant customers, environment-focused business strategy by both Boeing and environmental priorities across its value chain were confirmed non-governmental organizations our external stakeholders and are by assessing internal and external stakeholder perspectives. (NGOs), and the company’s global explored at length later in this report. The results, in order of importance and influence on business strategy, are shown below: leadership—as well as research They include: into industrial best practices and • Products Greenhouse gas Product community requirements. (GHG) emissions: fuel efficiency, • Fuel Efficiency • Operational Efficiency One of the assessment’s main goals operational efficiency and • Sustainable Aviation Fuel was to help Boeing identify and sustainable aviation fuel. Operations Greenhouse Gas Emissions update its understanding of current • Operations GHG emissions: • Energy Conservation and emerging environmental topics energy conservation, water Climate Adaptation that are critical to the company management and solid waste Operations Water Management and its stakeholders. The analysis management/waste to landfill. Operations Solid Waste Management & Landfill supports a focused and dynamic global strategy to address the most Boeing named additional priorities— Chemicals and Hazardous Material Management important environmental priorities including managing hazardous Materials Innovation & Sustainable Building facing Boeing, its customers and materials in our operations and Supply Chain Environmental Standards, Practices & Reporting communities around the world. products and managing chemicals Product Noise in our aircraft and production—as Remediation & Restoration Most Significant Environmental well as opportunities, like pursuing Pressure to Increase Transparency in Reporting Priorities innovations in environmentally Product End of Service Disassembly & Disposal The assessment analyzed diverse progressive buildings. Non-Greenhouse Gas Emissions viewpoints and organized environmental priorities by order of External stakeholders added supply importance and influence on business chain practices and reporting and Product Water Use strategy, as identified by Boeing and product noise as high environmental Impact of Transportation Infrastructure its external stakeholders. The topics priorities. relate to products, operations and Text in green indicates topics explored in more detail in this report.

6 PRIORITIZATION STUDY

It's important to note that while Environmental Leadership Liquid Robotics, a Remote Craft (SHARC). topics are ranked, we are currently The analysis concluded that Boeing Boeing company, designs This graphic illustration addressing all identified priorities in and manufactures the represents the role the has in place the policies and Wave Glider—a solar- long-endurance auton- our global environmental strategy. governance to address the most and wave-powered omous vehicle plays in Global Environmental Concerns significant environmental priorities autonomous maritime a seabed-to-space data the company faces. Opportunities surface vehicle and and information network. The assessment reported current to strengthen our leadership include its variant, the Sensor (Liquid Robotics image) and emerging global trends that Hosting Autonomous improving the measurement and may affect Boeing’s business, reporting of progress made to including climate change, resource environmental goals with increased scarcity, rapid urbanization, regional transparency in communication to collaboration on environmental all stakeholders. Work has already regulations and rapid innovation in begun on these fronts. new technology.

7 BOEING’S Boeing’s commitment to environmental leadership and ENVIRONMENT building a more sustainable STRATEGY future drives a global strategy with three main areas of focus:

Environmental Opportunities EnvironmentalInspire Global Opportunities Collaboration Innovate for Sustainable in the Product Life Cycle in Boeingthe Product works Life closely Cycle with industry, Operations government agencies, NGOs and Improving the environmental footprint Design & Manufacturing & Designcustomers & to reduce aviation’sManufacturing of Boeing’s& factories, offices and Development Operations Developmentenvironmental footprint with Operationsa focus other facilities requires continually Environmental Environmental Environmentalon reducing emissions. We engageEnvironmental assessing and updating technologies Requirements Management Requirementsin policy initiatives, research andManagement and processes to reduce greenhouse Design for Environment Supply Chain Designdevelopment for Environment projects, collaborativeSupply Chain gas emissions, water intake, solid New & Derivative Product Management New & Derivative Product Management Development Operational Targets Developmenttechnology road-mapping andOperational more Targetswaste sent to landfills and the Environmentally to further progress on our companyEnvironmentally use of hazardous materials while Progressive Building and industry goals. Progressive Buildingincreasing the use of environmentally Standards Standards progressive materials. Additionally, we Site Remediation Design in Environmental Site Remediation are collaborating with experts outside Performance of Boeing to help guide innovative Most aviation emissions in an and effective solutions to stormwater End of Service In Service End of Service In Service aircraft’s life cycle occur during its management and water-quality use by the or government improvement. Boeing’s remediation Aircraft Dismantling Maintenance & Aircraftcustomer. Dismantling In addition to designingMaintenance & Operations Support Operations Supportprogram focuses on using Parts Reuse Partsand Reusebuilding increasingly fuel-efficient Fuel Efficiency Services Fuel Efficiency Servicesinnovative approaches to cleaning Materials Materialsproducts, Recycling Boeing uses innovative, Environmental Air Traffic Management Environmental Air Traffic Managementup affected sites while relying on Management Infrastructure Managementenvironmentally progressive Infrastructure close collaboration with community Modernization technology and manufacturingModernization Sustainable Aviation Fuel Sustainable Aviationmembers Fuel and environmental groups. practices to reduce the environmental footprint and create market value for In 2017, Boeing will complete its our customers. current cycle of environment-based targets, and is in the process of This chart represents the various ways Boeing considers developing new targets to run environmental improvements throughout the product life cycle. While the life cycle begins with design & development and ends through 2025. at the end of service, it's important to note that those end of service opportunities are considered at the beginning of the Environmentalcycle, forming a continuous Opportunities circle of improvement. Environmental Opportunities in the Product Life Cycle in the Product Life Cycle 8

Design & Manufacturing & Design & Manufacturing & Development Operations Development Operations

Environmental Environmental Environmental Environmental Requirements Management Requirements Management Design for Environment Supply Chain Design for Environment Supply Chain Management New & Derivative Product Management New & Derivative Product Development Operational Targets Development Operational Targets Environmentally Environmentally Progressive Building Progressive Building Standards Standards Site Remediation Site Remediation

End of Service In Service End of Service In Service

Aircraft Dismantling Maintenance & Aircraft Dismantling Maintenance & Operations Support Parts Reuse Operations Support Parts Reuse Fuel Efficiency Services Materials Recycling Fuel Efficiency Services Materials Recycling Air Traffic Management Environmental Air Traffic Management Environmental Infrastructure Management Infrastructure Management Modernization Modernization Sustainable Aviation Fuel Sustainable Aviation Fuel 2016 GOALS & Boeing’s commitment to global environmental leadership is PROGRESS focused on key goals and targets, which reflect the three tenets of our environmental strategy.

Inspire Global Collaboration, Design in Environmental Performance and Innovate for Sustainable Operations support our core beliefs: • Partnering with community, customers and employees to advance our environmental goals. • Improving the environmental performance of Boeing products to benefit our customers, our company, our employees and our planet. • Reducing the environmental impact of Boeing A GEnx-2B engine is operations and facilities to benefit local made ready for installa- tion on a Boeing 747-8 at communities. the Everett, Washington, factory. Continued innovation and new The next three pages provide a summary of engine technology have led to significant progress made to specific performance goals efficiency gains with reduced fuel consump- tion and emissions and targets. across Boeing product lines. (Boeing photo) 9 2016 GOALS & PROGRESS Inspire Global Collaboration

GOAL PROGRESS Work with customers and To speed up development of new LIDAR, which stands for light would also require less washing. technologies that enhance safety detection and ranging, can potentially industry groups on testing Lowering emissions—A 10 percent and reduce fuel use, emissions and save weight and and provide a and demonstrating advanced, blend made from Brazilian noise, Boeing has completed four backup source for pitot tubes. These sugar cane was used during all environmentally cleaner ecoDemonstrator flight-test programs tubes protrude from the fuselage test flights. Scientific studies have technologies. in the past five years. The programs and measure air speed, atmospheric shown that reduce life-cycle tested some 60 technologies using pressure, external temperature and emissions by 50 to 80 percent a 737 (2012), 787 Dreamliner (2014), other parameters. compared with fossil fuel. 757 (2015) and an Embraer E170 Reducing noise—A new design for (2016, and the first such Boeing is now planning for its 2018 leading-edge slats on the front of the collaboration between two airplane ecoDemonstrator program, which will airplane’s wings reduced unsteady manufacturers). use a 777 for flight testing focused airflows, which lowers the noise level on a new lightweight compact Boeing and Embraer tested several as the airplane is on approach. reverser and flight operations technologies, including: Ice-phobic paint—A new “ice- automation. Enhancing safety and efficiency— phobic” paint was shown to improve An optical air data system called the airplane’s ability to shed ice and

Support the development of Boeing continues to be a leader in around the world with near- and long- In the United States, Boeing sup- a viable sustainable aviation the aviation industry for developing term potential to deliver sustainable ported the Port of Seattle and Alaska fuel market. and commercializing sustainable aviation fuel to airline customers. For on a study that found the aviation fuels, which represent example, in South Africa, Boeing best initial solution to provide biofuel aviation’s greatest opportunity to partnered with South African Airways to every departure at Seattle-Tacoma reduce carbon emissions, meet and low-cost carrier Mango to fly International is a small, on-site the industry’s environmental goals Africa’s first flights powered by a 30 receiving and blending facility. and support long-term sustainable percent blend of biofuel produced In the coming years, we will growth. from solaris, a nicotine-free tobacco accelerate our investment in the plant grown by farmers in Limpopo Substantial progress has been made development of sustainable biofuels. Province, South Africa. on dozens of collaborative projects

Support a global industrywide Through collaboration with global over the next several years. Our new of the growth in emissions from approach for aviation carbon stakeholders over several years, commercial airplanes have been international aviation after 2020. dioxide emissions. Boeing supported development and designed to meet and exceed the Offset credits purchased through the adoption of two complementary challenging requirements. program, which will be assessed to global carbon emission–reduction ensure they meet stringent environ- Airlines flying between participating measures agreed to in 2016 by ICAO. mental integrity criteria, will finance nations will begin adopting a market- projects to reduce CO emissions, All new commercial aircraft types based carbon-offset program known 2 many in developing countries. will be required to meet ICAO’s fuel as CORSIA. So far, 65 nations have efficiency standards as they are committed to participate, which implemented by member nations represents more than 80 percent 10 2016 GOALS & PROGRESS Inspire Global Collaboration continued

GOAL PROGRESS Invest in organizations and Boeing has strong partnerships with conduct in Indonesia for Brazil and communities across the globe projects that will benefit the community environmental leaders Mexico. In addition, Boeing partners manage more than 6.5 million acres environment globally and in who help us ensure that projects with TNC on domestic projects in (2.6 million hectares) of land. support economic, social and Washington, Arizona, Missouri and Additionally, we are working with the communities in which environmental progress. South Carolina to help communities experts in Puget Sound to test green we operate. develop plans and models to improve In 2016, Boeing committed further infrastructure solutions to mitigate the health and security of their water resources to help The Nature pollution from storm water runoff and resources. The support from Boeing Conservancy (TNC) scale the land- improve overall water quality. and other organizations is helping management community work they

Design in Environmental Performance

GOAL PROGRESS Reduce the environmental Development of new, more efficient • The first 787-10 is in flight test. This footprint of Boeing products Boeing airplanes continues on airplane will achieve approximately throughout the product schedule: 25 percent better fuel efficiency than the airplanes it replaces. life cycle. • The 737 MAX entered service in 2017. The new aircraft, which • We opened the 777X Composite includes a new winglet tested on Wing Center and completed the the ecoDemonstrator, will be first wing panel prototype. The 20 percent more fuel efficient 777X will reduce fuel consumption and have a 40 percent smaller 18 percent compared to its closest noise footprint than the original competitor and significantly lower Next-Generation 737. its noise footprint.

Improve operational efficiency We continue to make progress in during multiple arrivals to San and landing capability at across Boeing products and reducing both emissions and noise Francisco Airport highlighting the use at lower cost, emissions and services. through better flight operations. of airplane technology, such as the noise levels. Boeing is implementing new airport Global Navigation Satellite System The success of this demonstration arrival and departure procedures (GNSS) landing system (GLS). enabled the airport to begin the in several European and Asian GLS integrates satellite and ground- process of installing the ground countries that reduce miles flown based navigation data to provide system for improved all-weather and emissions. the position information required for access to all runways and reduced In 2016, we conducted demonstra- approach and landing guidance. environmental impacts. tions with Delta and This system significantly improves

11 2016 GOALS & PROGRESS Design in Environmental Performance continued

Work with aviation stake- We are continuing to monitor and be identified, rigorously evaluated reporting. These resources enable holders to ensure that all assess global chemical regulations for for compliance with performance our suppliers to report chemical Boeing products comply with potential impact to Boeing products. and safety requirements, and content of supplier-designed parts An example is complying with implemented. more efficiently and help ensure our chemical restrictions and bans. Registration, Evaluation, Authorisation compliance with global chemical Boeing will continue to speed and Restriction of Chemicals regulations. development and implementation (REACH) regulations in the European of viable and environmentally Internally, Boeing is implementing Union. We are coordinating with our responsible chemical alternatives. tools and processes, such as the research and technology organization Chemical Hazard Assessment, to and across our supply chain for We also work with the aerospace enable engineers and technologists safe and sustainable alternatives to industry through the International to compare hazards between substances targeted for restrictions Aerospace Environmental Group alternative materials and select or bans. Where alternatives do (IAEG) to advance development environmentally preferred solutions not exist, we are continuing our of the Aerospace and Defense that meet design and performance research while communicating with Declarable Substance List (AD-DSL) requirements. regulatory agencies or applying for and the associated Materials and supporting authorization for Declaration Standard for Aerospace continued use until alternatives can and Defense (IPC-1754) for supplier

Innovate for Sustainable Operations

GOAL PROGRESS Protect human health and the We made significant progress in 2016 goals by renewing or initiating habitat In June 2016, Boeing and other environment by cleaning and on our inventory of 65 remediation certifications at four sites, including members of the Plant 2 Sediment restoring locations affected by sites, including advancing six the Santa Susana Field Laboratory Remediation and Urban Waterway projects—in Renton, Auburn and in California, Plant 2 in Washington, Restoration project team accepted past practices. Everett, Washington; Santa Susana and the Emery landfill and Chemical the World Organization of Dredging and Long Beach, California; and Commodities Inc. (CCI) projects in Associations’ Environmental Pools Prairie, Missouri—by achieving Kansas. Excellence Award for Environmental key regulatory milestones. In addition, Dredging for our Plant 2 dredging

we furthered our site restoration and habitat project.

Maintain 2012 levels for green- In 2016, we out-performed our plan Boeing continues to focus on continuing to expand our enhanced house gas emissions, water to be at or below the 2012 baseline reducing the waste it sends to recycling program. for all of the metrics we track, even landfills by improving production intake, solid waste to landfill We are currently developing our next as we increase commercial airplane processes to reduce the amount of set of targets for 2018 to 2025. and hazardous waste. production. (Note: Hazardous waste material used, researching waste generation targets are on a revenue- recycling methods and markets for adjusted basis.) excess carbon fiber, as well as 12 2016 Boeing is improving the environmental footprint of our diverse PERFORMANCE operations. We are on target to out- perform our goal of zero growth in our four key indicators from our 2012 baseline through 2017.

Boeing generated fewer greenhouse 2017 is the final year in Boeing’s E P gas emissions, used less water, five-year plan of environmental Data Representative of the Majority of Boeing Facilities sent less solid waste to landfills and performance goals and targets set in ercen erorance o aene 10 generated less hazardous waste— 2012. The company will implement all reduced from 4 to 19 percent in new performance goals in 2018 5 2016 compared to the baseline set that will demonstrate a continuing 0 in 2012—even with strong growth in commitment to strengthening our –5 production. global environmental leadership. –10 This year’s Environment Report The accompanying charts and –15 also reflects the U.S. Environmental graphs show data rounded to the –20 2012 2013 2014 2015 2016 2017 Protection Agency’s (EPA) 2016 nearest decimal point and reflect the recalculation of the National eGRID environmental performance of the Hazardous Waste* –17.4% 2017 Target: 0% absolute growth—water, GHG emissions factors, which represent majority of Boeing facilities, calculated GHG Emissions –4.9% and solid waste; 0% revenue-adjusted growth— Solid Waste –19.1% hazardous waste the emissions footprint of all electric against 2012 baseline values. (Note: Water Intake –17.6% power sources. The EPA biannually hazardous waste generation targets *Normalized to revenue recalculates the data and applies the are revenue adjusted.) results to the previous three years. A Greenhouse Gas Greenhouse Gas Boeing also submits environmental Corporate Inventory Scope 1 Emission Sources significant increase in the emissions data to regulatory agencies and factor was identified for the Northwest voluntary disclosure organizations, region. This was mainly caused by such as ’s National greater use of coal-derived electricity Greenhouse and Energy Reporting needed to meet the demands of Scheme, the ’s a growing region. This resulted in Carbon Reduction Commitment Boeing’s recalculation of 2014 and Energy Efficiency Scheme, the 2015 data, which caused an increase EPA’s Toxics Release Inventory, the of the emissions previously calculated European Union’s Emissions Trading and reported for those years. Despite System and ’s National this change, we remain on track to Scope 1 Emissions 33% Natural Gas 54% Pollutant Release Inventory. Scope 2 Emissions 53% 27% exceed all goals. Scope 3 Emissions 14% Fugitive Emissions 15% #2 Diesel 2% Other Fossil Fuels 2% 13 AWARDS & Boeing’s environmental leadership and actions have earned awards and RECOGNITION recognitions for factory and facility operations as well as for our products. Awards received in 2017 and 2016 include:

The 2017 ENERGY STAR Partner “Greener Cabin, Health, Safety and more than 4.5 million kWh (16,200 The 2016 Conservation Leader of of the Year—Sustained Excellence Environment” category recognized gigajoules) of verified energy savings the Year Award from the Snohomish Award from the U.S. Environmental Boeing's prototype lavatory that annually in 70 Boeing buildings, with County, Washington, Conservation Protection Agency (EPA) for the uses ultraviolet (UV) light to sanitize an additional 4 million kWh (14,400 District for initiatives to recycle unused company’s continued leadership in all lavatory surfaces without the use gigajoules) of potential savings carbon fiber, retrofit the Auburn, protecting the environment through of chemicals. identified and being implemented. Washington, site with a rain garden superior energy efficiency. This is and engage employees and local com- The 2016 Gold Award from King Membership in the Environmental the seventh consecutive year the munities around stormwater solutions. County for maintaining zero industrial Excellence Program with the company has received an ENERGY wastewater compliance violations South Carolina Department of The 2016 Environmental STAR award. at several facilities in Puget Sound. Health and Environmental Control Excellence Award from the The 2017 Pretreatment Excellence North Boeing Field in particular (renewed in 2016). The program’s World Organization of Dredging Award from Gresham, Oregon, for has received its fourth consecutive goal is to “promote and practice Associations for the restoration Boeing Portland’s achievement in Commitment to Compliance Award pollution prevention, energy and and remediation of the Duwamish reaching 100 percent compliance for earning a Gold Award for five other resource conservation, and to Waterway in Seattle, Washington. with the site’s Industrial Wastewater consecutive years. strive for continuous environmental The 2016 Secretary of Defense Discharge permit, the 15th consecu- improvement.” The 2016 ENERGY STAR Environmental Award for tive year of perfect compliance. National Building Competition: The 2016 Green Business Award Boeing’s KC-46 air refueling The 2017 Blue Marble Award BOOTCAMP! Award from the EPA from Utah Business magazine, tanker for the U.S. Air Force. The from NASA for collaboration on for a competition among several recognizing Boeing Salt Lake’s award recognizes “exceptional the Environmentally Responsible buildings at the Renton, Washington, programs and practices that promote environmental achievements Aviation (ERA) Program for studies site that significantly improved energy environmental . and innovative, cost-effective on /structures conservation. environmental practices.” The 2016 Resource Conservation and technologies tested on the The 2016 Energy Champion Award Management Award from Seattle- The 2015 Chief of Naval Operations 2015 ecoDemonstrator program’s from the California Energy Efficiency based utility Puget Sound Energy for Environmental Award (received 757 platform. Industry Council for “excellence reducing energy consumption with in 2016) for the P-8A Poseidon The 2016 Crystal Cabin Award in advancing energy efficiency.” low-cost conservation projects and maritime patrol aircraft. The award from the Crystal Cabin Award The award recognizes Boeing and recognizing the conservation efforts cites the aircraft’s compliance with Association for excellence in aircraft its consultant partner Nexant for of maintenance teams at the Renton, international, federal, state and local interior innovation. The award for implementing measures that achieved Washington, site. environmental laws and regulations. 14 As a supply chain leader for Boeing’s LEADERSHIP Defense, Space & Security business PROFILE unit, Dana Hullinger helps drive Dana Hullinger the effort to improve performance and use data analytics to gain new insights into Boeing’s complex and diverse network of suppliers.

conditions, and their sales are used to How does Boeing address these finance armed conflicts in the region. and other global environmental The minerals, including tin, tantalum, issues? tungsten and gold, are widely used in We require our suppliers to comply electronics and consumer products. with all global, national and local laws The U.S. and other nations have that protect human rights, guard regulations against the use of against human exploitation and products made with conflict raw protect the environment. Period. It’s materials. Boeing is a leader in in the terms and conditions of their working with government agencies contract and it is a basic requirement and industry groups on ensuring to do business with Boeing. That compliance throughout the supply means we need to be diligent to chain. ensure the supply chain remains aligned with our principles and our Other human rights issues involve practices, especially as we enter new human trafficking and the use of markets around the world. child labor in manufacturing in many Supplier performance metrics What are the main environmental parts of the world. Boeing trains its On key , Boeing include a wide range of environ- and sustainability issues in employees to be aware of conditions works closely with governments, mental issues. Dana discusses supply chain activity? or situations that could indicate a suppliers and partners on setting some of the sustainability They vary by region, but the issues fall lack of supplier compliance with laws industrywide standards. We are a challenges and opportunities into broad categories of social justice protecting human rights. founding member of the International throughout the supply chain. and environmental stewardship. One Aerospace Environmental Group For the environment, there is growing Can you describe Boeing’s of the most talked about global social and the Defense Industry Initiative on regulation of hazardous chemicals supply chain? justice issues is conflict minerals, Business Ethics and Conduct, which which refers to specific minerals and greenhouse gas emissions in More than 13,000 active suppliers promotes a culture of ethical conduct mined in the Democratic Republic of products and manufacturing in the account for more than $60 billion in throughout the military supply chain. Congo and its surrounding countries. European Union and other regions. goods and services to build Boeing The mining is done with coerced Energy and water conservation also products. We have suppliers in every labor under often harsh and unsafe are important sustainability issues. state in the U.S. and 48 countries.

15 Adi Singh leads Boeing’s LEADERSHIP Frederickson, Washington, site, one PROFILE of the company’s 12 major facilities Adi Singh that fabricate parts and structural components for Boeing commercial and military aircraft.

Adi’s team pursues a robust parts and components, we use some processes, and recycling oils strategy and vision for the chemicals to help detect flaws in equipment site’s environmental footprint, and prepare surfaces for painting. • Mitigating the risk of groundwater including striving for “net-zero Chemicals and paint add to the pollution with a stormwater energy” consumption. Adi site’s hazardous waste. How can we management system that has discusses some of the team’s reduce and even eliminate chemicals received the highest recognition successes and challenges. in our processes? available from the local county The Frederickson facility plays With composites, we use raw material, government for five consecutive a key role in the manufacture of such as carbon fiber, to manufacture years. the parts and components. Can we Boeing aircraft. What are the site’s • Switching to reusable containers use less raw material? Finding new major activities? for parts sent from local suppliers, ways to recycle and reuse excess Our manufacturing is organized reducing shipping waste and costs. and keep it out of around two main business units landfills is a big focus and opportunity • Reducing the amount of raw that focus on different materials: for innovation. material required and the waste composites, through the Composite generated in the manufacture of Manufacturing Center, and metal, Reducing the site’s energy use composite parts. through Skin and Spar. The site and overall carbon footprint also is produces composite horizontal a major part of our environmental • Expanding recycling of waste stabilizers and vertical fins—together strategy. streams at all levels to conserve known as the empennage at the resources and energy. aircraft’s tail—and metal wing What are some of the successes • Reducing waste by switching to components. and progress so far? filtered water stations in some Thanks to a very creative team, site- locations instead of bringing in large What are the challenges with each wide improvements include: material as you look for ways to bottles of water. • Significantly reducing hazardous reduce waste, conserve resources As we look to the future, new tech- waste by reducing the amount of and find alternatives to hazardous nology will take us to the next level. chemicals? paint used on parts, cutting back the frequency of replacing large They’re very different. With metal quantities of chemicals needed in 16 Boeing began the ecoDemonstrator LEADERSHIP program to speed up development of PROFILE new technologies that enhance safety Doug Christensen and reduce fuel use, emissions and Antonini Puppin-Macedo noise. The program has tested 60 Luiz Nerosky technologies in the past five years on a variety of aircraft.

A first-of-its-kind partnership “Roadmap for Sustainable Aviation What are the benefits of two in 2016 brought together Biofuels in Brazil” in 2014. airplane manufacturers Boeing and Brazilian aircraft working together on advanced Together we launched the Joint maker Embraer for a unique technologies to enhance safety Research Center for Sustainable ecoDemonstrator experience. and make flying more efficient? Aviation Biofuels, right next door to the The team included Boeing’s Doug Boeing Research & Technology (BR&T) Christensen: It’s a powerful approach Christensen (top) and Antonini Center in São José dos Campos, to bring together the best and brightest Puppin-Macedo (middle), and Brazil. This positive crescendo of engineers from both companies to Embraer’s Luiz Nerosky (bottom). collaborations on biofuels, a key en- accelerate advanced technologies. The three discussed the project’s vironmental element in aviation today, benefits and surprises. Puppin-Macedo: Together, we can paved the way for us to join forces on focus on benefits for the aviation What brought Boeing and the ecoDemonstrator program. industry and society as a whole and Embraer together for this unique BR&T-Brazil led research on two share different perspectives on global collaboration? technologies: biofuels and the slat issues, such as reducing our carbon Christensen: Boeing and Embraer cove noise reduction. By collaborating footprint and increasing the “global share the passion to accelerate safety on flight tests, we can speed up reach” of our collaborative actions. and environmental technologies. The getting these technologies ready for We can lead the industry, steer ecoDemonstrator program provides certification and implementation. advocacy and accelerate innovation. the stage to bring the companies Nerosky: Both companies share Nerosky: The ecoDemonstrator together to collaborate on advanced the industry’s commitment to collaboration expands a relationship technologies. reduce the environmental footprint that began in 2012 when Boeing Puppin-Macedo: Boeing and of aircraft transportation worldwide and Embraer signed a cooperation Embraer have a history of successful and aim for a sustainable industry by agreement to benefit their customers, collaboration. We began working applying new technologies in future companies and the global aviation together on sustainable aviation aircraft. Working with Boeing on the industry. fuel in 2012 through a series of ecoDemonstrator program in testing workshops that brought together all new technologies reinforces, once stakeholders in Brazil. This led to again, Embraer’s commitment in the publication of the comprehensive that sense. 17 Kim Smith is vice president of Attack LEADERSHIP Helicopter Programs and leads the PROFILE Boeing site in Mesa, Arizona, which Kim Smith produces the AH-64 Apache and AH-6i Little Bird helicopters for the U.S. Army and allied defense forces around the globe.

Boeing in Mesa also makes A key part of our strategy relies on a Partnerships and collaboration are electrical and composite fundamental feature of the culture, critical to environmental progress. We components for other which is the amazing passion of our share best practices with the U.S. commercial and military aircraft employees for environmental action. Environmental Protection Agency and supports developmental For example, since 2012, we reduced and work closely with state agencies flight testing for multiple our water use—one of the site’s key on a variety of pollution prevention programs. The site has a performance targets—by 35 percent. programs. robust record of improving Employee teams suggested some the environmental footprint of of the more innovative projects for What sort of environmental its operations and products. conserving water, such as slow- improvements have you seen Kim discusses Boeing Mesa’s closing irrigation valves that reduce with the site’s main product line, environmental progress, irrigation line breakage and leaks the Apache helicopter? challenges and opportunities for by minimizing hydraulic shock, and Our government customers are continuing improvement. a sand filter backwash collection interested in improving the efficiency and recovery system at the Central and the overall environmental impact Boeing in Mesa is a big and Cooling Plant that saves 12,500 of military platforms. The Apache complex manufacturing site. gallons (47,318 litres) of water a day. was among the first military aircraft to How would you describe its use a paint primer free of hexavalent environmental strategy? Our employees also come up with chromium, a hazardous chemical creative community projects, from Boeing in Mesa is fortunate because commonly used to resist corrosion. collecting rainwater at the Desert environmental stewardship has Boeing has made substantial Botanical Garden in Phoenix, to become fundamental to how we do investments in finding environmentally supporting sustainable gardens at business; it’s not a separate activity. cleaner alternatives to chrome and Sunshine Acres, a Mesa home for Site leaders continually look for other chemicals used on its aircraft. creative ways to conserve resources, children at risk. An Apache also was the first reduce waste, save energy and The leadership here in Mesa gets rotorcraft to fly on biofuel, by the strengthen community partnerships. behind and supports employee way, in a 2010 test flight conducted Over time, it’s become part of the involvement in finding new projects to by one of our customers, the Royal culture and our way of life. improve efficiency, reduce waste and Netherlands Air Force. expand recycling.

18 The 777X, which is on track to begin deliveries in 2020, will be the world’s largest and most efficient twin-engine jet. It features composite wings, new GE9X engines and other aerodynamic advancements. (Boeing photo)

AIRPLANE TECHNOLOGY AND EMISSIONS

Our products connect people, protect nations, explore space and sea and inspire the world. Boeing is committed to making the world’s best airplanes with the smallest environmental footprint and working with industry stakeholders on climate protection.

19 The 787-10, the largest of the Dreamliner family, rolled out in February 2017 and made its first flight on March 31. (Boeing photo)

Avianca took delivery of Boeing’s 500th 787 Dreamliner in December 2016. (Boeing photo)

Reducing the environmental impact of pounds (6.4 billion kilograms) of fuel ENVIRONMENTAL our products starts with good design. since it was introduced in 2011. We strive to use lightweight materials BENEFITS INCLUDE REDUCTIONS IN FUEL Technologies on the 787 also such as composites, which make up ensure that no sound louder than CONSUMPTION, CO2 AND NOISE LEVEL half of the 787 Dreamliner’s primary 85 decibels—about the level of loud structure, including the fuselage traffic heard from the side of the and wings. We integrate highly road—leaves the airport boundaries. efficient engines and incorporate The 500th Dreamliner was delivered in other engineering innovations on all 2016 and the first 787-10, the largest of our airplanes to achieve superior model, rolled out in February 2017. . The 777X, which is on track to Our talented employees design and begin deliveries in 2020, will be the build the world’s most fuel-efficient world’s largest and most efficient commercial aircraft. The 737 MAX twin-engine jet. With 12 percent lower reduces fuel use and carbon dioxide fuel consumption than competitor emissions by 20 percent compared airplanes, the 777X will have the with the original Next-Generation 737 world’s largest composite wing, and has a 40 percent smaller noise aerodynamic improvements and a footprint than today’s single-aisle highly efficient GE9X engine. airplanes. The fastest-selling airplane in Boeing’s history, the 737 MAX had To speed up development of new its first deliveries in the spring of 2017. technologies that enhance safety and reduce fuel use, emissions The revolutionary 787 Dreamliner and noise, Boeing has completed family improves fuel use 20 to 25 four ecoDemonstrator flight-test percent compared with the airplanes programs since 2012. Some 60 it replaces. The efficiencies are technologies have been tested, most due to new engines, lightweight recently in 2016 aboard an Embraer composite materials, more efficient E170 regional jet—the first such systems applications and modern collaboration between two airplane aerodynamics. The 787 Family has manufacturers (more details on saved airlines more than 14 billion page 17).

20 Software products such as Direct Routes and Wind Updates use real- time traffic and weather information to help pilots take advantage of the most efficient route or during their flight. (Boeing photo)

OPERATIONAL EFFICIENCY

To help airlines fly as efficiently as possible, Boeing offers a variety of products and services to improve the operational performance of our airplanes.

21 FUEL DASHBOARD AND AIR TRAFFIC MANAGEMENT SOLUTIONS LOWER FUEL CONSUMPTION AND CARBON EMISSIONS

The 737 MAX reduces fuel use and emissions by 20 percent compared with the original Next- Generation 737 and has a 40 percent smaller noise footprint than today’s single-aisle airplanes. (Boeing photo)

Boeing’s Fuel Dashboard To improve the operational efficiency accommodate the growth in . from new satellite-based navigation uses data analytics to of the in-service fleet, we offer We engage with airlines, airports technology on the airplane and on assess information from services including a tool called Fuel and air navigation service providers the ground, which allows for more operators and simulate different scenarios. More Dashboard, which is powered by around the world to integrate our precise, shorter approaches. In than two dozen airlines data analytics. Boeing analyzes data airplanes’ onboard capabilities, such addition to environmental benefits, the use Fuel Dashboard to from airline operations and simulates as satellite-based navigation, with technology allows for landing in low reduce fuel usage by an different scenarios to assess the ground technologies. Our efforts in visibility, which improves safety and average of 4.3 percent, amount of fuel required for a given the United States, , , airline reliability. which lowers CO2 emis- flight. These comparisons enable Panama and Turkey include analyzing sions. (Boeing photo) While flight planning systems identify airlines to identify and implement operational and environmental the most optimal route before take- opportunities for improvement benefits, developing new procedures, off, Direct Routes scans real-time throughout their operation, using and recommending airspace operations to ensure optimization descriptive and diagnostic analytics. redesigns that can better use our continues throughout the flight. Pilots More than two dozen airlines use Fuel airplanes’ capabilities. receive advisories on more efficient Dashboard and are reducing fuel use In 2016, Boeing collaborated with routings that arise because of changes by an average of 4.3 percent, which Delta and United Airlines to fly several in wind, air traffic and other factors. proportionately lowers carbon dioxide unique landing approaches into San emissions. Similarly, Wind Updates provides Francisco aimed timely information to pilots during the We also collaborate on air traffic at reducing flight delays, saving fuel flight to help them take advantage of management modernization efforts and lowering emissions and noise the most efficient route or altitude. to improve airspace efficiency and levels. The improvements come

22 These virtually nicotine- free tobacco plants grown by farmers in South Africa served as feedstock for Africa’s first flights powered by a blend of sustainable aviation fuel in 2016. (Boeing photo)

SUSTAINABLE AVIATION FUEL Boeing is an industry leader in fostering sustainable aviation fuel development around the world. Biofuel represents a significant, untapped opportunity to reduce aviation emissions, meet the industry’s environmental goals* and support long- term sustainable growth.

23 launched its pilot facility in Abu Dhabi. The SBRC produces biofuel feed- stock from salt-tolerant salicornia seeds and raises shrimp and fish that cleanse and nourish the plants and water. This work helps address the United Arab Emirates’ goals to trans- form coastal deserts into productive farmland. SBRC was founded by Boeing, Etihad Airways, the Masdar Institute and Honeywell UOP. Salicornia and sludge: Formed a partnership with Mexico’s government and AeroMexico to support a biofuel program involving 17 institutions that will consider jatropha, salicornia A variety of source materials, or Since 2009, the international on the Boeing ecoDemonstrator and sewage sludge as potential feedstocks, are used to produce standards body ASTM has approved program’s 787 Dreamliner and 757 feedstocks. This program results from sustainable aviation fuels. These five production methods, or path- flight-test airplanes. Mexico’s biofuel production roadmap feedstocks include waste cooking ways, for fuels that are “drop-in” Tobacco for fuel: Partnered with called Plan de Vuelo. oil and animal fat, farm and forest substitutes for petroleum fuels and South African Airways and Mango residuals, purpose-grown sustainable require no modification to airplanes Capturing waste for fuel: Partnered to fly Africa’s first biofuel flights. crops, and waste gases from or engines. Since approval of the with the United Kingdom’s Virgin The flights were powered by a industrial facilities. Scientific studies first fuel production pathway in Atlantic and U.S. fuel producer 30 percent blend of biofuel produced have shown that biofuels reduce life 2011, airlines have flown more than LanzaTech, which has produced from Solaris, a virtually nicotine-free cycle emissions by 50 to 80 percent 5,000 commercial flights worldwide 1,500 gallons (5,678 litres) of biofuel tobacco plant developed by SunChem compared with fossil fuel. Biofuels powered by a blend of biofuel and made from steel mill waste industrial SA and supplied by SkyNRG, grown have also been shown to perform as Jet A. In 2016, Los Angeles gases. Ethanol-based Lanzanol, sustainably by farmers in South well as or better than petroleum jet International Airport and ’s created through a fermentation Africa’s Limpopo Province. fuel while cutting sulfur emissions, Oslo Airport Gardermoen began process, is estimated to reduce soot and . regularly utilizing biofuel for every Biofuel in Brazil: Powered the carbon dioxide emissions by 65 departure—an historic first for ecoDemonstrator flight-test program percent compared with conventional Boeing works closely with airlines, commercial aviation. aboard an Embraer E170 on a biofuel fuel and could be produced globally. research institutions, nongovern- blend made from Brazilian sugar mental organizations, governments Our collaborations in 2016: Biofuel on every flight: Participated cane. This approved fuel pathway is and other stakeholders around with the Port of Seattle and Alaska Billion-gallon supply: Worked with a proof point for Boeing’s strategy the world to advance biofuel Airlines to complete a $250,000 fuel producers (including Neste and of supporting regional biofuel development (see map above). All feasibility study identifying short- Renewable Energy Group), the U.S. production around the world. Our of these efforts adhere to principles and long-term solutions to provide a Federal Aviation Administration and support in Brazil includes the established by the Roundtable on blend of biofuel on every departure other stakeholders to gain approval Boeing-Embraer Joint Research Sustainable Biomaterials, which from Seattle-Tacoma International for HEFA-Plus. Known as renewable Center for Aviation Biofuels in address sustainability’s three pillars: Airport. The study’s initial announce- diesel or green diesel when used São José dos Campos. social, environmental and economic ment and public discussion of its in ground transport, production performance. Salicornia and seawater: The results signaled further market exceeds one billion gallons (about Masdar Institute’s Sustainable interest in sustainable aviation fuels 4 billion litres) annually. The fuel’s Bioenergy Research Center (SBRC) to producers. performance was previously tested

24 Employees inspect and clean space solar panels at , a wholly owned Boeing subsidiary in Sylmar, California Spectrolab’s solar panels have provided clean electric power to more than 600 satellites and the International Space Station. (Boeing photo)

ENERGY CONSERVATION & EMISSIONS Boeing takes a life cycle approach to our environmental footprint, which means we look at more than the effects of our products on the planet. We also carefully review how our products are manufactured and the effects of our operations. Reducing factory and facility emissions is a core part of our strategy and focus of innovation.

25 ALTERNATIVE TECHNOLOGY PROVIDES SOLUTIONS FOR CLEANER PRODUCTS AND OPERATIONS

From partnering with the Department Boeing’s new Solid Oxide • Improved energy efficiency by of Energy in 1974 on pioneering wind- (SOFC) system, now operating in 13 percent since 2012. powered generators to developing Port Hueneme, California, is • In 2016, expanded the company innovative fuel-cell systems and demonstrating the sustainable value environmental engagement leading the world in photovoltaic of using solar power to generate platform to include more technology, Boeing has long been hydrogen gas from seawater. It then information on energy, water a leader in developing technology stores the hydrogen until it releases conservation and recycling efforts that reduces operational emissions the gas into a fuel cell stack to to inspire replication. and provides cleaner options for produce electricity, heat and water. manufacturing. • Also in 2016, commissioned a These marketplace solutions are new chiller plant at the Everett, Boeing research in energy hard at work at Boeing facilities. Washington, site to support the technologies and their application On-site solar systems provide world's largest building by volume, e sae aot illion has grown in sophistication since energy at Boeing plants in North gaining a 36 percent efficiency the 1970s. Our work raises the bar Charleston, South Carolina, and Salt gallons illion lites o improvement. on energy and resource efficiency Lake City, Utah; and Boeing is a ate at o ntington ea standards. major purchaser of green power at several of its other facilities. Internal alionia aps iigating For the past 60 years, Boeing’s conservation efforts have resulted in wholly owned subsidiary Spectrolab it epposed ate. significant accomplishments in 2016: Inc. has led the industry in solar-cell e eded o technology for both space- and • Over the past five years, as our asolte eneg Earth-based applications. Spectrolab commercial airplane production has is the largest continuously operating increased by nearly 25 percent, our onsption in solar company in the world and absolute energy use has decreased enog to poe the leading manufacturer of space- by 5.9 percent. qualified multi-junction solar cells aeage • Achieved absolute energy reduction and panels. in 2016 of 802,000 mmbtu (million .S. oes. British thermal units).

26 oaing pint tenolog at oeings neto pintes edes asted pape seets pe ea. Boeing’s leadership in Washington State stormwater management University, the University includes collaborating of Alabama and the with numerous research University of California, and nonprofit groups Los Angeles, on such as The Nature technology and green Conservancy, the infrastructure solutions Washington Stormwater that can mitigate storm- Center, Los Angeles water pollution. Conservation Corps,

WATER MANAGEMENT Boeing is a careful steward of one of the planet’s most precious natural resources: water. In our operations, we focus on innovative ways to protect and improve water quality for the benefit of the environment and the communities where we live and work.

27 Boeing applies a wide range of • Provide employee and community water-management strategies in engagement opportunities. OPPORTUNITIES keeping with our unique and long- • Leverage past projects, other FOR PARTNERING DRIVE standing legacy of applying innovative partnerships or both. technologies to water conservation. In CONTINUOUS INNOVATION the early 1970s, for example, Boeing Projects in 2016 include: was a pioneer in developing practical, • Continued the research with large-scale water purification systems Washington State University and that are still in use around the world the Washington Stormwater Center to supply clean water to some of the to strengthen permeable pavement most arid regions on the planet. with cured carbon fiber composite material. That tradition continues today, across Boeing supports protect- our enterprise. • Partnered with The Nature ing and improving water Conservancy by funding several quality for the benefit For instance, a Boeing team based in green infrastructure application of the community and Huntington Beach, California, recently projects in Puget Sound as well environment. We also took on the challenge of reusing share knowledge about as water-wise plant research at stormwater management, available water for site irrigation. The an outdoor laboratory in Southern source control and team found a way to use the filtered California. restoration for the better- and treated water from the site’s • Funded a rain barrel project for ment of the communities groundwater extraction and treatment the Snohomish Conservation where our employees system to irrigate the grounds. About live and work. District (SCD) in Snohomish 80 percent of the 188-acre (76 County, Washington, where the hectare) campus is now irrigated with Boeing Everett site is located. The this nonpotable, repurposed water. project to assemble rain barrels Boeing has also continued to develop encouraged water conservation many innovative technologies for throughout the region and also natural biofiltration of stormwater. created an environmentally focused We have considerable experience volunteer opportunity for Boeing in various types of water treatment, employees. ranging from advanced treatment Partnering with SCD has resulted in like reverse osmosis to sustainable direct improvement of stormwater green infrastructure such as biofilters. management at Boeing sites. For We also work with experts outside example, SCD shared its expertise of Boeing to help guide innovative in the design and construction of and effective solutions to stormwater a rain garden at Boeing’s Auburn management challenges and to facility. improve water quality. e sae aot illion SCD honored Boeing with the Boeing selects partnering opportu- 2016 Conservation Business gallons illion lites o nities that generate benefits in the of the Year award to recognize ate at o ntington ea following ways: Boeing’s leadership in stormwater • Advance the science and innovative management and the company’s alionia aps iigating permeable pavement research. it epposed ate. technology of green infrastructure. e eded o asolte eneg 28 onsption in enog to poe aeage .S. oes.

oaing pint tenolog at oeings neto pintes edes asted pape seets pe ea. Employees at Boeing’s South Carolina site use a one-for-one exchange program, which allows them to swap one consumable item, like batteries, headlamps or safety glasses, for a new one. The initiative has reduced consumption of consumables by 50 percent at the site. SOLID WASTE (Boeing photo)

Today’s major manufacturers can be measured by their commitment to optimal management and reduction of solid waste produced by their operations. Boeing is no exception.

29 e sae aot illion gallons illion lites o ate at o ntington ea alionia aps iigating it epposed ate. e eded o asolte eneg onsption in enog to poe aeage .S. oes.

Our goal is to stay at or below 2012 as well as reducing energy use and levels of waste sent to landfills while using fewer toner cartridges. continuing to grow our company. In Boeing Supplier Management is fact, even with revenues up more adding more stringent oversight to oaing pint tenolog than 15 percent since 2012, we have purchasing of nonproduction products reduced our absolute waste to landfills at oeings neto pintes and services. To date, this process by nearly 19 percent. change has resulted in a 35 percent edes asted pape The Boeing strategy places priority reduction in orders processed. seets pe ea. on reducing the use of resources As we use more carbon fiber to by designing processes to minimize develop lighter aircraft and reduce or reuse materials. When that is product emissions, we are finding not possible, we seek to recycle or ways to reduce excess material A large suspended tool compost those materials, or use them creation. We are calibrating our applies carbon fiber as an energy source. production processes to use less tape to fabricated air- craft parts at Boeing’s Boeing’s Enhanced Recycling material. We’re exploring and Composite Manufacturing program is an example of that strategy implementing ways to reuse or Center in Frederickson, in action. At each facility where it recycle the remaining material. Washington. The center has been implemented, Boeing has reduced waste by Currently, we sell uncured material on employees separate waste into using less composite our surplus sales website at below- material upfront. (Boeing color-coded bins labeled for mixed market cost. We’re also collaborating photo) recycling, composting, and waste to with business partners to test ways landfill (or incineration). The system is to recover and recycle fibers. (Cured designed to divert up to 80 percent of carbon fiber presents a greater waste from landfill or incineration. challenge because of manufacturing Enhanced Recycling is now being requirements and technology barriers.) used in locations that, added together, Boeing is also reducing materials house more than 45 percent of our through additive manufacturing. workforce. Plans are in place for This is a process of creating an extensive expansion of the program object by adding material, usually by the end of 2017. layer upon layer (like 3D printing), The first conservation priority, whereas subtractive manufacturing however, is to find ways to reduce methodologies cut material away, or reuse resources. Boeing has a resulting in greater waste. number of projects that work to make These processes significantly change at the source of waste. minimize volumes of excess materials. Boeing employs “roaming print” Robotic Automated Fiber Placement technology on 4,200 network office (AFP) and similar technologies enable printers (and growing). By only printing better use of material and more jobs when an employee actually goes efficient fabrication of large-scale to the printer to pick it up, Boeing has parts at higher production rates. reduced unnecessary printed paper INNOVATION IS USED TO REDUCE WASTE GENERATION AT THE SOURCE 30 FORWARD- LOOKING STATEMENTS

This report contains “forward-looking These statements are not guarantees Since 2009, the number statements” within the meaning and are subject to risks, uncertainties of annual events to of the Private Securities Litigation and changes in circumstances that celebrate Earth Day and World Environment Day Reform Act of 1995. Words such as are difficult to predict. Many factors increased by 345 percent. “may,” “should,” “expects,” “intends,” could cause actual results to differ In 2016, employees “projects,” “plans,” “believes,” materially and adversely from these participated in more than “estimates,” “targets,” “anticipates” forward-looking statements. 240 such events in 19 and similar expressions are used countries. (Boeing photo) to identify these forward-looking Additional information concerning statements. these and other factors can be found in our filings with the Securities and Examples of forward-looking Exchange Commission, including statements include those relating our most recent Annual Report to our future financial condition and on Form 10-K, Quarterly Reports on operating results, as well as any Form 10-Q and Current Reports other statement that does not directly on Form 8-K. relate to any historical or current fact. Forward-looking statements are Any forward-looking statement based on our current expectations speaks only as of the date on which and assumptions, which may not it is made, and we assume no prove to be accurate. obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

31 FOOTNOTES

Footnotes for Performance Summary • Utah: Salt Lake City, West Jordan GHG emissions are calculated based on RECs were applied to the GHG calcu- Chart and Graph • Washington: Auburn, Bellevue, Tukwila consumption of electricity, natural gas and lation for the following locations: North “Environmental fines” represent total fines (Developmental Center, Duwamish No. 6 fuel oil. (Our facility in Philadelphia is Charleston, South Carolina, and Renton, paid in 2012, 2013, 2014, 2015 and 2016, Towers), Everett, Frederickson, Kent the only major U.S. site that uses fuel oil for Washington. In 2016, these Boeing respectively. (Space Center), Seattle (North Boeing heating.) Consumption of other fuels is not locations made arrangements to purchase Field, Plant 2, Thompson, South Park), represented. RECs to offset around 147,000 tons Data reported in this chart for the green- Renton (737 Assembly, Longacres), (133,000 metric tons) of GHG emissions. 2014−2015 emission numbers are recalcu- house gas emissions, hazardous waste, SeaTac (Spares Distribution Center) water intake and solid waste to landfill lated based on new eGRID2014 factors. Footnotes for Water Intake reflect environmental performance at • Canada: Winnipeg For U.S. sites, Scope 1 emissions from In addition to data from Boeing’s 37 Core the following sites from a baseline set on • Australia: Fishermans Bend natural gas, fuel oil and on-site generated Metric Sites, data from Portland, Oregon 2012 values. These sites (known as Core • Site changes: Anaheim, California electricity are calculated using the (PDX Paint Hangar), also included. Metric Sites) represent the vast majority (closed in 2012; 2012 data only); emission factors provided in U.S. EPA of Boeing’s operations and are identified Bankstown, Australia (closed in 2013; GHG Mandatory Reporting Rule. Scope 2 1 U.S. gallon = 3.79 liters. by the city in which the Boeing operation 2012 and 2013 data only); Wichita, emissions from purchased electricity are resides. For each metric, additional facil- Footnotes for Solid Waste to Landfill Kansas (reduced scope in 2015, now calculated using the market-based method ities and office buildings also have been reports only hazardous waste). and eGRID sub-region factors, since Includes data from Boeing’s 37 Core included where information is available. residual mix is not available in the U.S. Metric Sites. • Alabama: Huntsville Footnotes for Greenhouse Gas Emissions For the Canada site, Scope 1 emissions 1 U.S. ton = 2,000 pounds. • Arizona: Mesa In addition to data from Boeing’s 37 Core are calculated using the emission factors provided in U.S. EPA GHG Mandatory Solid waste numbers represent values • California: El Segundo, Torrance, Metric Sites, data from Portland, Oregon  Reporting Rule; Scope 2 emissions are determined from scale-weighed containers Huntington Beach, Long Beach, Seal (PDX Paint Hangar), and Phoenix, Arizona calculated using the market-based method as well as calculated weights. Beach, Palmdale (Data Center), are included. and the supplier-specific emission factor. • Illinois: Chicago 1 metric ton = 2,204.62 pounds. For the Australia sites, Scope 1 emissions Footnote for Hazardous Waste Generation • Indiana: Gary Carbon dioxide equivalent, or CO2e, are calculated using the emission factors • Missouri: St. Charles, St. Louis means the number of metric tons of CO2 provided in the National Greenhouse In addition to data from Boeing’s 37 Core emissions with the same global warming and Energy Reporting (NGER) Scheme, Metric Sites, data from Portland, Oregon • Ohio: Heath potential as one metric ton of another and Scope 2 emissions are calculated (PDX Paint Hangar); Jacksonville, Florida • Oregon: Gresham greenhouse gas (in accordance with EPA using market-based method and the (Cecil Field); El Paso, Texas; Macon, • Pennsylvania: Ridley Park 40 CFR Part 98 Mandatory Greenhouse emission factors provided in the National Georgia; Wichita, Kansas; and Sylmar, Greenhouse and Energy Reporting (NGER) • South Carolina: Charleston, Ladson Gas Reporting). California, are included. Scheme, since residual mix is not available • Texas: Houston, San Antonio in Australia. Emissions calculated with location-based method are: 1,381,000 tons (1,252,000 metric tons) CO2e (2016).

32 Footnotes continued

Footnotes for Global Reporting Footnotes for Greenhouse Gas Corporate Scope 2 emissions are calculated using Site Listing Footnotes for Corporate GHG Australia National Greenhouse and Energy Inventory the market-based method. Location- Inventory Chart Reporting footnote: This comprehensive The greenhouse gas (GHG) emissions based method calculated emissions are Country State/City (Site) 1,183,000 tons (1,074,000 metric tons) report must be completed by registered reported represent 1,696 buildings in 42 Australia Australian Capital corporations that meet specified energy use countries where Boeing has operational CO2e. Residual mix is only available in Territory and greenhouse gas emission thresholds. For control. Refer to the Site Listing Footnotes E.U. countries; therefore, other grid Canberra the 2015–2016 reporting period, the Australian for Corporate GHG Inventory Chart for average emissions factors are used in government’s Clean Energy Regulator cities included. all other countries. In the market-based New South Wales released data for companies emitting more methodology, RECs were applied to the Bankstown than 55,000 tons (about 50,000 metric tons) of Scope 3 emissions only include emissions GHG calculation for the following locations: Sydney from business travel. carbon dioxide (CO2e). North Charleston, South Carolina, and Williamtown Renton, Washington. In 2016, these Boeing Yerriyong United Kingdom Carbon Reduction Commit- Scope 1 “other gas types” include CH4, locations made arrangements to purchase Northern Territory ment footnote: Boeing U.K. operations consist N2O, NF3 and PFCs emissions. RECs to offset around 146,000 tons Gladesville of multiple units and subsidiaries. Boeing U.K. Scope 1 “other fossil fuels” include No. 6 (132,000 metric tons) of GHG emissions. Training and Flight Services Ltd. operates flight fuel oil, gasoline, aviation gasoline, propane Queensland simulators for training on Boeing aircraft at and LPG. Other calculation factors: Data source of Alderley several locations throughout the U.K. Boeing global warming potentials (GWP) is U.S. Archerfield Defense U.K. Ltd. has employees located at 1 metric ton = 2,204.62 pounds. 40 CFR Part 98 subpart A, table A-1. For Brisbane GHG inventory in North America, emission multiple locations throughout the U.K. sup- Carbon dioxide equivalent, or CO e, Cairns  2 factors for combustion sources come porting Ministry of Defense and U.S. military means the number of metric tons of CO Coominya 2 from U.S. 40 CFR Part 98, subpart C, programs. Additionally, CO2 emissions from emissions with the same global warming South Australia table C-1. For GHG inventory in the U.K., Boeing subsidiary U.K. Ltd. and potential as one metric ton of another Adelaide emission factors from the CRC Energy Aviall U.K. Inc. are included in the Boeing U.K. greenhouse gas. (In accordance with EPA Efficiency Scheme are used. For GHG Victoria CRC report. 40 CFR Part 98 Mandatory Greenhouse inventory in Australia, emission factors Melbourne Gas Reporting Accounting protocol.) Fourteen sites report TRI and NPRI releases from the National Greenhouse and Energy Mentone This GHG inventory is prepared using the and transfers: Auburn, Washington; Reporting Act are used. For GHG inventory Tullamarine Charleston, South Carolina; El Paso, Texas; following protocols: in locations where energy data are not Western Australia El Segundo, California; Everett, Washington; • The Greenhouse Gas Protocol: accessible, 2012 CBECS factors are used Jandakot Frederickson, Washington; Seattle, A Corporate Accounting and Reporting to estimate the energy consumption and Washington (North Boeing Field, Plant 2); Standard (Revised Edition) emission factors from the International Bahrain Manama Gresham, Oregon (Portland Fabrication); • The Scope 2 Guidance Energy Agency’s CO2 Emissions From Belgium Brussels Portland, Oregon (PDX Paint Hangar); Renton, Fuel Combustion Highlights 2013 and • GHG Reporting Guidance for the Washington; St. Louis,Missouri; Sylmar, 2006 IPCC Guidelines for National Brazil Distrito Federal Aerospace Industry (IAEG) California; and Winnipeg, Canada. Greenhouse Gas Inventories are used to Brasília • The Australian National Greenhouse calculate the emissions. São Paulo 2016 data will be submitted to the U.S. and and Energy Reporting Act 2007 Canadian governments after the publication of Sao José dos Campos this report. • The United Kingdom’s CRC Energy São Paulo Efficiency Scheme Canada Alberta Calgary British Columbia Richmond Vancouver Manitoba Winnipeg

Ontario Mississauga Ottawa

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Site Listing Footnotes for Corporate GHG Inventory Chart (cont.) Country State/City (Site) Country State/City (Site) Country State/City (Site) Country State/City (Site) Canada Montréal Japan Tokyo United Arab Abu Dhabi United States California (cont.) Tokyo Emirates Dubai Santa Susana China Beijing Santee Hong Kong Kanto United England Seal Beach Shanghai Yokohama Kingdom Bristol Sylmar Camberley Copenhagen Kazakhstan Almaty Taft Corsham Torrance Egypt Cairo Kenya Nairobi Crawley Van Nuys Farnborough Ethiopia Addis Ababa Korea Seoul Ventura Feltham Yeongcheon-si Victorville France Blagnac Fleet Paris Luxemburg Luxemburg Gatwick Colorado Aurora Roissey-en-France Malaysia Kuala Lumpur Gosport Knaresborough Centennial Germany Berlin Mexico Mexico City London Colorado Springs Bavaria Englewood Netherlands Amsterdam Milton Keynes Munich Nieuw Vennep Oxford Connecticut Hesse Schiphol-Oost, Noord-Holland Stockport East Windsor Neu-Isenberg Welwyn Garden City New Zealand Auckland Florida North Rhine-Westphalia Yeovil Cape Canaveral Cologne Norway Egersund Scotland Fort Walton Beach Perth Ft. Lauderdale Greece N. Smirni Oman Muscat Jacksonville United States Alabama Hungary Papa Poland Gda ´nsk Kennedy Space Center Daleville Warsaw Miami India Andhra Pradesh Huntsville Orlando Hyderabad Doha Madison Shalimar National Capital Russia Moscow Alaska Tampa New Delhi Skolkovo Anchorage Titusville India Karnataka St. Petersburg Arizona Georgia Bangalore Tyumen Mesa Atlanta Phoenix Maharashtra Saudi Arabia Riyadh College Park Navi Mumbai California Macon Singapore Singapore Tamil Nadu Costa Mesa Peachtree Chennai South Africa Johannesburg El Segundo Warner Robins Huntington Beach Hawaii Ireland Leinster Spain Madrid Long Beach Honolulu Banbridge Villacarrillo Mountain View Kihei Dublin Göteborg Palmdale Pleasanton Illinois Israel Tel Aviv Stockholm Chicago Rancho Cucamonga Italy Massa Taiwan Taipei Sacramento Fairview Heights Rome Mascoutah Turkey Ankara San Diego Rolling Meadows Istanbul San Jose Japan Chubu Schaumburg Nagoya San Luis Obispo Ukraine Kiev San Mateo St. Charles Tokoname Swansea 34 Footnotes continued

Site Listing Footnotes for Corporate GHG Inventory Chart (cont.) Country State/City (Site) Country State/City (Site) Country State/City (Site) United States Indiana United States New Jersey United States Texas (cont.) Crown Point Berkeley Heights Dyess AFB Gary Parsippany El Paso Kansas New Mexico Houston Kansas City Albuquerque Irving Richardson Wichita New York San Antonio New York Louisiana Universal City Bossier City North Carolina Utah Lafayette Fayetteville Hill AFB Havelock Maine Layton Kings Mountain Bangor Salt Lake City Morrisville Maryland West Jordan Ohio Aberdeen Proving Ground Virginia Brookpark Annapolis Junction Arlington Cincinnati California Chantilly Fairborn Germantown Fairfax Heath Patuxent River Herndon Massachusetts Oklahoma Leesburg Lexington Oklahoma City Newington Michigan Oregon Newport News Waterford Arlington Virginia Beach Minnesota Boardman Washington Eagan Gresham Anacortes Hood River Auburn Mississippi Portland Bellevue Starkville The Dalles Bingen Missouri Wilsonville Bothell Berkeley Pennsylvania Enumclaw Bridgeton Eddystone Everett Earth City Langhorne Issaquah Florissant Lemont Furnace Kent Fort Leonard Wood Pittsburgh Moses Lake Hazelwood Ridley Park Mukilteo Maryland Heights Smithfield Olympia Portage Des Sioux Puyallup South Carolina St. Charles Quincy Charleston St. Louis Renton Ladson SeaTac Montana North Charleston Glasgow Seattle Helena Tennessee Tukwila Cordova Vancouver Nebraska Memphis Omaha White Salmon Texas Nevada Austin Las Vegas Dallas 35 The Boeing Company 100 North Riverside Plaza Chicago, IL 60606-1596 USA

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