AIRBUS GROUP – RESPONSIBILITY Corporate Responsibility & Sustainability Report Sustainability & Responsibility Corporate MADE BY AIRBUS GROUP CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2013 2013 CONTENTS HOW TO READ THIS REPORT Corporate Responsibility & Sustainability (CR&S) GOVERNANCE at Airbus Group is about the long-term creation of value 01AND MANAGEMENT for the benefit of our shareholders and other stakeholders. Each Group programme – from new aircraft, to satellites, 02 Chief Executive Officer’s letter helicopters and security equipment – brings together 04 Straightforward approach strengths built over many years. In order to make 06 Vision, mission and materiality its programmes successful, Airbus needs the right 07 Our main CR&S challenges technologies in place to sustain innovation, the appropriate 09 Stakeholders competencies for multi-skilled teams and a robust, 10 Strengthening governance well-resourced supply chain. Above all, the Group and its programmes are built on good AIRBUS CR&S GROUP REPORT - 2013 corporate governance. As a result, the Group has a duty RESPONSIBILITY to manage wisely three assets: (1) its innovation portfolio, 02 BY AIRBUS GROUP (2) its competencies and (3) its supply chain. Describing how the Group manages these assets and other CR&S 18 Fostering innovation activities forms the cornerstone of this report. The report 34 Developing and engaging people explains each of these areas in turn, reporting key 44 Building supplier partnerships performance indicators, with a particular focus on 2013. 50 Active corporate citizenship 54 Our data 56 Indicators and appendices 01 — CHIEF EXECUTIVE OFFICER’S LETTER CHIEF Dear shareholders, employees, customers and suppliers, EXECUTIVE OFFICER’S LETTER 2013 was a pivotal year. With the backing of its shareholders, the Group overhauled its governance and shareholding structure, paving the way for today’s performance-driven company. This means Airbus Group is fully focused on serving its customers and delivering profitable growth, which ultimately benefits AIRBUS CR&S GROUP REPORT - 2013 all stakeholders. Following the in-depth strategic review conducted in 2013, we defined new objectives that reflect changing market dynamics. We recognised that our core strength is in aeronautics and embraced the strong growth momentum in the commercial aviation business. At the same time, we decided to consolidate our defence and space activities in a new division, enhancing our competitiveness within the more constrained governmental sectors. GROUP PRIORITIES FOR 2014 1. Shape our Future, 2. Internationalisation 3. Make Airbus Group 4. People Stay Innovative Integrate all our businesses under (“Team Airbus”) a Success Support people through Group — Combine technology roadmaps the “One-Roof Principle” in our Shape defence and space for restructuring and treat them into a Group-wide R&T Strategy key countries, such as the United competitiveness, from its “in decently and fairly throughout the supporting our short and long- States, China, India, Brazil and formation” phase to its maturity in critical phase. Invest in mastery of term product portfolio, maximising Australia. Increase our international the second half of the year. critical skills and behaviours for our eco-efficiency and minimising reach and leverage ou presence (in Stabilise the helicopter business and future. Reward entrepreneurship, our environmental footprint. Unite particular defence and space). Fully strengthen it for the future. creativity, teamwork, mobility and our Group-wide know-how of embrace benefits offered by cultural Manage the execution challenges of diversity management, developing autonomous systems. Leverage our diversity and further strengthen our the commercial aircraft business, behaviours that build a unified top experts to exploit breakthrough local citizenship. most notably for the A350 XWB and Airbus Group culture. Develop all technologies in a lean and A320neo. Focus corporate functions management levels in accordance pragmatic way. on supporting operations efficiently with the leadership model to grow and fulfilling responsibilities to all future and current leaders who stakeholders effectively. foster high performance through employee engagement. 02 CHIEF EXECUTIVE OFFICER’S LETTER — “In the years ahead, we will strive to improve our performance in all areas related to corporate responsibility. This will drive profitable growth and will help us remain a strong employer, provider of aeronautics and space related products and partner to our suppliers.” — GOVERNANCE AND MANAGEMENT AND GOVERNANCE — The Group’s renaming is a logical consequence of this strategy. In the area of innovation and eco-efficiency, Airbus’ new generation It gathers the Divisions under a strong brand that stands of aircraft – the A380, A350XWB and A320 neo– are setting new for internationalisation, innovation and integration. It reinforces standards, enabling aviation to continue as a powerful driver the message: “We Make it Fly”. of socio-economic development. Furthermore, the Group is a leading player in the EU’s Clean Sky Joint Technology Initiative, 2013’s transformation also shows how corporate responsibility developing tomorrow’s clean aircraft technologies. With 37,000 inspires long-term performance: the change in governance enabled patents worldwide, Airbus Group is rightly judged one of the leading the change in strategy. Airbus Group must have strong foundations global innovators. to achieve its goals, and in terms of corporate responsibility, it strives for world class. As we look forward to a new era at the Group, From an operational perspective, the Group is pioneering new ways we acknowledge our duty as a world leader in aerospace and to integrate the supply chain for large industrial projects. defence, and have a clear vision about our approach to corporate With external sourcing equivalent to about 70 percent of Group AIRBUS CR&S GROUP REPORT - 2013 responsibility. revenues, strong supplier relationships are critical to the successful ramp up of product programmes. In order to mitigate supply chain Take the workforce. As an employer of more than 144,000 people risk, the Group’s ‘Extended Enterprise’ philosophy fosters at the end of 2013, Airbus Group is one of Europe’s largest risk-sharing partnerships with major suppliers. But the Group employers, and dynamically prepares the competencies needed is also introducing measures such as improved procurement for the future. We plan strategically years in advance, recruiting operations and active support for Europe’s SME engineering firms. and developing people in anticipation. We also take steps to In some cases the results are remarkably successful. maximise engagement, leadership and inclusivity. The fruits of our vision are evident in the ramp up of our programmes, Every day we learn and realise how much corporate responsibility for example the A350 XWB aircraft programme, which will be one helps to drive performance. In fact, seven of the Group’s eight stated of 2014’s biggest operational challenges. priorities for 2014 relate to corporate responsibility. In the years AIRBUS CR&S GROUP REPORT - 2013 ahead, we will strive to improve our performance in all areas related Responsible management of the workforce also presents to corporate responsibility. This will drive profitable growth and will challenges. 2014 will see Airbus Group working closely with help us remain a strong employer, provider of aeronautics and space employees’ representatives to merge a number of defence and related products and partner to our suppliers. space industrial sites to restore competitiveness at a time of shrinking defence budgets and new industry competitors. But the Group’s distinctive approach to social dialogue means we are striving to offer people with valuable skills the opportunity to move Tom Enders, to other parts of the Group and minimising compulsory layoffs. Chief Executive Officer 5. Strive for further 6. Drive our Performance 7. Ethics and Compliance 8. Cyber Security and Improvement of Customer Stick to Operative Planning Live Our Integrity Principles on Protection of our Assets Satisfaction commitments and focus on a daily basis and speak up to Protect our intellectual property, profitability and cash management. improve our performance and Deliver our products and services industrial assets and products. Aim for a smooth delivery stream preserve our reputation. Align our on quality, on time and on cost. Further increase awareness on throughout the year allowing business conduct to best practices Tightly manage critical series cyber threats and proactively apply for operational stability and the within the Group to maintain our and development programmes, the relevant precaution measures well-being of our employees. Drive top-tier position in Ethics and and recover when necessary. to reduce the risks. Roll out and Business Excellence by adherence Compliance. Build on our robust Capture customer needs, implement the cyber security to quality (Quest initiative), applying anti-bribery programme to promote expectations and trends; adapt initiative across the entire Group. standard processes, eradicating integrity throughout our supply our products and services portfolio inefficiencies and fostering chain and keep our suppliers and accordingly. Nurture customer continuous improvement. Continue subcontractors engaged in the fight confidence, especially in times to strengthen our programme against corruption. of restructuring and increased management