2021 Spirit AeroSystems

SUSTAINABILITYREPORTINNOVATING TO NEW HEIGHTS

www.spiritaero.com

Table of Contents

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

Tableof Contents
Environment

PeopleGovernanceAppendices

A Message from Our President
and CEO

02

About Spirit AeroSystems

032021 ESG Industry Engagements

39

2021 Sustainability Highlights

05

Performance Tables

40

Global Reporting Initiative (GRI) Index 43

Innovating
at New Heights
Spirit’s Sustainability Strategy

06

Sustainability Targets

09

Resource Efficiency

12

Health, Safety, and Wellbeing

20

Board Oversight30

Leading Through Innovation

10

Energy and Emissions

14

Diversity, Equity, and Inclusion

22

Global Ethics and Compliance

32

Water

16

Training, Engagement, and Innovation

25

Risk Management

34

Waste

17

Community Engagement

27

Product Safety36

Supply Chain Management

37

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report

Sustainability Accounting Standards
Board (SASB) Disclosures

51

Task Force on Climate-Related
Financial Disclosures (TCFD) Report

53

Independent Assurance Statement

5901Table of Contents

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

A Message from
Our President and CEO
During another challenging year in aviation,
the Spirit AeroSystems team remained focusedon diversifying the business, meeting customer
commitments, and enhancing the safety andwellbeing of our employees, and communities.

Thomas C. Gentile III
President and Chief Executive Officer“I am proud of how Spirit
supports our communities
around the globe, especiallyin times of need.”

In September of 2021, I had the opportunity
to participate in a virtual summit hosted by the
Biden Administration on sustainable aviation.
As part of the Aerospace Industry Association,
during this summit, Spirit committed tosupporting the industry’s goal of achieving net
zero emissions by 2050. Throughout 2021,
leaders from Spirit participated in events andconferences that highlighted our efforts tocontribute to a sustainable aerospace industry.
Innovating Toward the Future
Innovation remains at the core of our business. Our
company’s innovation differentiates Spirit and helps make us
the partner of choice for original equipment manufacturers(OEMs) as we grow and diversify. In the past two years
alone, 72 of our inventors have filed for 35 patents, received
32 granted patents, and developed six trade secrets.

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Reportand processes. This investment will help to develop moresustainable aircraft. To further expand capabilities inthe Defense & Space market, we opened the National

more diverse, with 27% now coming from historicallyunderrepresented groups.

Defense Prototype Center, a joint project with Wichita State

Supporting Global Communities

University’s National Institute for Aviation Research, in the

I am proud of how Spirit supports our communities aroundthe globe, especially in times of need. In 2021, our teammembers in Subang, Malaysia supported colleagues byhelping to restore the homes of over 100 fellow employees
due to the impacts of torrential rains, while a team ofvolunteers in Casablanca, Morocco, provided donations andsupplies for a primary school refurbishment. Collectively,
Spirit and our employees provided $4 million, and morethan 8,000 volunteer hours to global communities andorganizations in 2021.

U.S. near our Wichita, Kansas, facility.

Advancing Climate Strategies
This past year, we transitioned to 100% renewable electricity
at our headquarters and largest site in Wichita, Kansas. This
conversion will yield a significant reduction in greenhousegas emissions. At our Subang, Malaysia facility, we enteredinto an agreement with the Malaysia National Power Grid toinstall a solar panel array on the roof of the main building,which will result in an annual reduction of over 2,000 MWh.
We also leverage research and technology investments toposition Spirit as the partner of choice for our customers andIn Spirit’s second annual Sustainability Report, we share
our progress toward our sustainability targets, along withthe programs and innovations that support the pursuit of asustainable aerospace industry.

meet the growing demands for newer, fuel-efficient aircraft.
These investments and partnerships support the expansion of
our business in a sustainable manner, while also achieving
significant emissions reductions in our operational andproduct footprints.

Diversity, Equity, and Inclusion
In 2021, we harnessed the power of diversity by attracting,retaining, and developing diverse talent, partnering withvendors from a diverse supplier base, and integrating

Last September, Spirit inaugurated our state-of-the-art

equitable and inclusive business practices and capabilities

Aerospace Innovation Centre in Prestwick, Scotland, which

into our company. This year, we achieved 24% female

supports collaboration with industry and academic partners

representation in leadership (senior manager level

on development of advanced materials, digital engineeringand above), globally. Our Board of Directors is also02

Table of Contents

About Spirit
AeroSystems

We design, engineer, and manufacture large, complex,
and highly engineered commercial aerostructures such as
fuselages, nacelles (including thrust reversers), struts/pylons,
wing structures, and flight control surfaces. In addition to
supplying commercial aircraft structures, we design, engineer,and manufacture structural components for military aircraftand other applications.

Introduction

Innovating at New Heights

Spirit is also an emerging center for integrated systems work,a hub for innovative research and development activity, anda trusted global source for maintenance and repairs.
We operate in three principal businesses: Commercial,
Defense & Space, and Aftermarket.

2021 Net Revenue by Business
COMMERCIAL

79%

As of Year-End 2021

$3.9b

20.4m

square feet of building space across
10 global facilities

15%
Wing structures

Our Customers
AFTERMARKET

6%

Flight control
surfaces

Fuselage

Struts/pylons

Business

We are the largest independent supplier of aerostructures
to Boeing and manufacture aerostructures for every Boeing
commercial aircraft currently in production. Our second
largest customer, Airbus, also represents a substantial portionof revenues in our company’s Commercial segment. Our othercustomers include Lockheed Martin, Northrop Grumman,
Bombardier, and Rolls-Royce.

Our Operations
Our physical assets consist of 20.4 million square feet of building space located on 1,472 acres in 10 facilities. The company’s
headquarters are in Wichita, Kansas, with manufacturing and assembly facilities in Biddeford, Maine; Dallas, Texas; Kinston,North Carolina; Tulsa, Oklahoma; Belfast, Northern Ireland; Casablanca, Morocco; Prestwick, Scotland; Saint-Nazaire, France;
and Subang, Malaysia.

2021 Spirit AeroSystems Sustainability Report

Appendicesemployees

DEFENSE & SPACEINNOVATING TO NEW HEIGHTS

Governance

16,575

Spirit's Core
(including thrust reversers)

Spirit AeroSystems is one of the world’s
largest manufacturers of aerostructures forcommercial airplanes, defense platforms,
and business/regional jets. With
expertise in aluminum and advanced
composite manufacturing solutions,the company’s core products include
fuselages, integrated wings and wing
components, pylons, and nacelles.

Peoplenet revenues

NacellesSpirit AeroSystems Holdings, Inc. and its subsidiaries,
including Spirit AeroSystems, Inc., are referredto herein as “the company,” “Spirit,” “Spirit
AeroSystems,” “we,” “us,” and “our.”EnvironmentL earn more about how Spirit’s products and solutions
are responsible for driving aerostructures leadershipfor both commercial and defense customers.

03

Table of Contents

About This Report
Unless otherwise stated, this Sustainability Report covers Spirit’s
environmental, social, and economic performance for calendar
year 2021. All other data presented in this Report includes
acquired companies in each noted calendar year. Please note,the effects of the COVID-19 pandemic and Boeing 737 MAX
grounding have had, and are expected to continue to have, asignificant negative impact on aviation demand, our business,and our industry. Data and information within this Reportreflects these impacts which may continue to evolve or change.

Cautionary Statement Regarding ForwardLooking Statements
This Sustainability Report contains “forward-looking statements”
that may involve many risks and uncertainties. Forward-looking
statements generally can be identified by the use of forwardlooking terminology such as “aim,” “anticipate,” “believe,”“continue,” “could,” “estimate,” “expect,” “goal,” “forecast,”“intend,” “may,” “might,” “model,” “objective,” “outlook,”“plan,” “potential,” “predict,” “project,” “seek,” “should,”“strive,” “target,” “will,” “would,” and other similar words orphrases, or the negative thereof, unless the context requires
otherwise. These statements are based on circumstances as ofthe date on which the statements are made, and they reflect
management’s current views with respect to future eventsand are subject to risks and uncertainties, both known andunknown. Our actual results may vary materially from thoseanticipated in forward-looking statements. We caution investors
not to place undue reliance on any forward-looking statements.
Important factors that could cause actual results to differ
materially from those reflected in such forward-looking
statements and that should be considered in evaluating ouroutlook include, but are not limited to, the following:
V the impact of the COVID-19 pandemic on our businessand operations, including on the demand for our and ourcustomers’ products and services, on trade and transport
restrictions, on the global aerospace supply chain, on
our ability to retain the skilled work force necessary for
production and development, and generally on our ability toeffectively manage the impacts of the COVID-19 pandemic
on our business operations;

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report

Introduction

Innovating at New Heights

V demand for our products and services and the general effect

V competitive conditions in the markets in which we operate,of economic or geopolitical conditions, or other events, suchincluding in-sourcing by commercial aerospace original
equipment manufacturers;

as pandemics, in the industries and markets in which we
operate in the U.S. and globally;
V the timing and conditions surrounding the full worldwide

return to service (including receiving the remaining
regulatory approvals) of the B737 MAX, future demand forthe aircraft, and any residual impacts of the B737 MAX
grounding on production rates for the aircraft;
V our reliance on The Boeing Company (“Boeing”) and Airbus

Group SE and its affiliates (collectively, “Airbus”) for asignificant portion of our revenues;
V the business condition and liquidity of our customers andtheir ability to satisfy their contractual obligations tothe company;
V the certainty of our backlog, including the ability ofcustomers to cancel or delay orders prior to shipment on
short notice;
V our ability to accurately estimate and manage performance,

cost, margins, and revenue under our contracts, and thepotential for additional forward losses on new andmaturing programs;
V our accounting estimates for revenue and costs for ourcontracts and potential changes to those estimates;
V our ability to continue to grow and diversify our business,

V our ability to successfully negotiate, or re-negotiate, future

pricing under our supply agreements with Boeing, Airbus,
and other customers;
V our ability to effectively integrate the acquisition of selectassets of Bombardier along with other acquisitions that
we pursue, and generate synergies and other cost savings
therefrom, while avoiding unexpected costs, charges,
expenses, and adverse changes to business relationships
and business disruptions;
V the possibility that our cash flows may not be adequate forour additional capital needs;
V any reduction in our credit ratings;
V our ability to access the capital markets to fund our liquidity

needs, and the costs and terms of any additional financing;
V our ability to avoid or recover from cyber or other security

attacks and other operations disruptions;
V legislative or regulatory actions, both domestic and foreign,

employees, including our ability to successfully negotiate
new agreements, and avoid labor disputes and work
stoppages with respect to our union employees;

and the impact settlement of such claims may have on ourV spending by the U.S. and other governments on defense;

accounting assumptions;

V pension plan assumptions and future contributions;availability of raw materials and purchased components;
V our ability and our suppliers’ ability to meet stringent

delivery (including quality and timeliness) standards
and accommodate changes in the build rates of aircraft,including the ability to staff appropriately for anticipatedproduction volume increases;
V our ability to maintain continuing, uninterrupted production

at our manufacturing facilities and our suppliers’ facilities;

Appendices

V the risks of doing business internationally, including

fluctuations in foreign currency exchange rates, impositionsof tariffs or embargoes, trade restrictions, compliance withforeign laws, and domestic and foreign government policies.
These factors are not exhaustive, and it is not possible for
us to predict all factors that could cause actual results todiffer materially from those reflected in our forward-looking
statements. These factors speak only as of the date hereof,
and new factors may emerge or changes to the foregoing
factors may occur that could impact our business. As withany projection or forecast, these statements are inherently
susceptible to uncertainty and changes in circumstances.
Except to the extent required by law, we undertake no
obligation to, and expressly disclaim any obligation to,
publicly update or revise any forward-looking statements,
whether as a result of new information, future events, orotherwise. You should review carefully the section captioned“Risk Factors” in the company’s Annual Report on Form 10-K
and the company’s Quarterly Reports on Form 10-Q for a more
complete discussion of these and other factors that may affectour business.

skilled employees;

programs, including our ability to enter into profitable

V our dependence on our suppliers, as well as the cost andGovernance

V our ability to recruit and retain a critical mass of highly

V our relationships with the unions representing many of our

V the outcome of product warranty or defective product claims

Peopleimpacting our operations, including the effect of changes
in tax laws and rates and our ability to accurately calculate
and estimate the effect of such changes;

execute our growth strategy, and secure replacement
supply arrangements with additional customers;

Environment

V the effectiveness of our internal control overfinancial reporting;
V the outcome or impact of ongoing or future litigation,

arbitration, claims, and regulatory actions or investigations,
including our exposure to potential product liability andwarranty claims;
V adequacy of our insurance coverage;
V our ability to continue selling certain receivables through our

supplier financing programs; and04

Table of Contents

2021
Sustainability
Highlights

INNOVATING TO NEW HEIGHTS

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

Spirit’s facilities in Wichita,
Kansas; Tulsa, Oklahoma;
and Prestwick, Scotland
are powered by
100% renewableelectricity

Spirit and our employees
contributed over 8,000
volunteer hours anddonated approximately$4 million through corporate
grants, in-kind contributions,and employee donations

Participated in Fly Zero(zero-carbon emission research
project) in the UK

Recognized in the Top 15%of the Aerospace andDefense Industry for
Sustainability by the S&P
Global Corporate Sustainability
Assessment (CSA)

Opened the first of its kind
National Defense
Prototype Centerto improve research anddevelopment efforts ofadvanced materials and expand
production efficiencies

Received the Sustainable Tulsa
Platinum Awardfor sustainability efforts at
our Tulsa, Oklahoma, facility

Decreased Spirit’s lost workday
case rate by 7%
compared to our previous
all-time low rate in 2020

Recognized byDiversityInc as a
Top Regional
Company2021 Spirit AeroSystems Sustainability Report05

Table of Contents

Innovating
at New
Heights

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

Propelling Innovation & Sustainability
Spirit’s Core Values
We operate according to our three core values—Transparency, Collaboration, and Inspiration—that enable our company to meet stakeholder commitments.
During our sustainability journey, innovation remains a key component of our success.

Transparency
Being open, honest, and respectfulwith communication; sharing ideas and building
trust by making intentions clear

Collaboration
Aligning actions with others
working together to achieve
the best outcomes.

Inspiration
Encouraging the best from others;
leading by example to support innovation
as a component of success.

Spirit’s Business and Customers

Spirit’s
Sustainability
Strategy
At Spirit, innovation drives everything
we do. It is embedded in our company’s
core values, enabling us to meet customer
commitments and driving our sustainability
actions to support the aviation industry
and broader environmental, social, andgovernance goals.

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report

As one of the largest independent non-original equipment manufacturer (OEM) commercial aerostructures designers and manufacturers, Spirit’s team is continuallyenhancing processes, improving quality, and advancing technologies.
We actively develop new concepts, designs, and solutions to help build next-generation and next-next generation aircraft. Our team has identified seven areasof distinctive capability, representing major technological advances and innovation, to define the aircraft of tomorrow—all being developed to address customer
needs and anticipate challenges for future commercial and defense programs.

The Aviation Industry’s Bold Commitments
The aviation industry has mobilized to address sustainability challenges with a focus toward mitigating climate change, including setting
an ambitious industry goal to achieve net zero carbon emissions by 2050. Our sustainability strategy incorporates innovation to advance industry priorities,
including carbon reduction initiatives, air quality improvements, noise reduction, and resource efficiency. Spirit is also partnering with experts to help
support a pathway to a zero-carbon-emissions commercial flight.

The United Nations Sustainable Development Goals (UN SDGs)
Inspired by the global call to action of the UN SDGs, Spirit’s sustainability strategy is aimed at creating, implementing, and executing on sustainable solutions.
We aim to support the needs of our stakeholders, including shareholders, employees, customers, suppliers, and communities through our long-term sustainability
goals and objectives.

06

Table of Contents

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendicesMateriality

UN SDGs

Our report describes topics related to environment, social, and governance (ESG) that Spirit considers most important based on engagement withshareholders, employees, customers, suppliers, and government officials from communities where we operate. Some of the priorities which emerged fromthese engagements include:

Through our company’s sustainability strategy, Spirit aims
to support and align with the UN SDGs, a set of 17 goals
which are an urgent call for action in a global partnershipby the year 2030.

Environment

SocialGovernance

We have identified the following UN SDGs to prioritize within
our company’s sustainability strategy:

Good Health and Well-Being  Aircraft Noise Global infrastructure needs

 Data Privacy and Security

  Air quality

  Human rights

 Advocacy and reasonable lobbying  Conflict minerals

 Diversity, Equity, and inclusion

 Taxes and contributions to communities

Our Aim: Focus on the safety and quality of our products,
while promoting the health, safety, and well-being of
employees and surrounding communities.

  Biodiversity

 Social and economic value of products Supply chain responsibility

Gender Equality

  Energy consumption

  Community engagement

 Ethics and compliance

Our Aim: Accelerate diversity, inclusion, and genderequality within our organization.

  Waste Military and veteran engagement

  Corporate governance  Resource efficiency

 Employee wages and benefits

 Cost and availability of raw materials

  Water consumption

 Product safety and quality

 Climate risk and opportunity Worker health and safetyDecent Work and Economic Growth  Employee engagement
 Human capital development

Our Aim: Protect the rights of our employees and makesignificant professional, personal, and financial investments
in support of our workforce of today and tomorrow.

  STEM education

Industry, Innovation, and Infrastructure

management  Product innovation

Clean Water and Sanitation
Our Aim: Reduce water usage and increase efficiencies
through integrating systems and adopting best practices.

Our Aim: Continuously improve our business andoperations through innovation to continue to better serve
our customers around the globe.

Climate Action
Our Aim: Reduce our emissions and implement efficiency
measures and risk management procedures to increase
our resiliency to climate-related impacts.

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report07

Table of Contents

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

Stakeholder Engagement
Practicing transparency, collaboration, and inspiration—individually and collectively—is in Spirit’s DNA. By adopting and incorporating Spirit’s values into day-to-day tasks
and activities, including our sustainability strategy, we are able to remain a trusted partner.
Engaging with our key stakeholder groups supports our efforts to meet our commitments, address their priorities, and report on important issues.

1

2

3

Spirit is committed to cultivating a workplace focusedon our people. We aim to sustain and expand ourhigh-performing team and culture of responsibility andachievement that supports our employees’ engagement,
growth, and development.

We meet our operational commitments and work alongside
our customers to develop innovative solutions to theirchallenges. We invest in new technologies to improve
quality, lower costs, and increase production capabilities,
leading to increased customer satisfaction.

Spirit works with our suppliers to support ownership,commitment, and collaboration for implementing andpromoting the use of common industry standards andpractices. Spirit has long-standing relationships withhundreds of suppliers. We work with them to promote
and implement common industry standards and practices.
Our suppliers are expected to adhere to Spirit’s Supplier
Code of Conduct, and follow the guidelines outlined in our
Conflict Minerals Policy and REACH compliance webpage.

5

7

1

GOVERNMENTENTITIES

4

Our management and investor relations team regularly
field calls from our shareholders to answer questions anddiscuss investor priorities and other matters of importanceto our stockholders.

6

6

2

INDUSTRYASSOCIATIONSCOMMUNITIES

2021 Spirit AeroSystems Sustainability Report

Spirit is also a member of the International Aerospace
Environmental Group and currently supports working
groups on Replacement Technologies, Greenhouse Gas
Management and Reporting, REACH Authorization, andImpact Analysis of Global Environmental and Chemical
Regulations, Policies, and Standards.

3

4

SUPPLIERS

Spirit AeroSystems maintains memberships in tradeassociations that represent the interests of the aerospaceand defense industry, as well as general business interests
relevant to our company.
This includes the Aerospace Industries Association in
the U.S. and the Aerospace, Defence, Security & Space(ADS) Group in the UK. Among the missions for theseorganizations is a focus on the sustainability of theaviation industry.

CUSTOMERSSHAREHOLDERSINNOVATING TO NEW HEIGHTS

We engage with communities where our facilities arelocated to promote local employment opportunities.

EMPLOYEES

5

We serve by helping, growing, and connecting ourcommunities. Each year, Spirit employees and ourcompany donate funds through corporate grants
and our employee-led Good Neighbor Fund, as wellas contributing service hours through our Team Spirit
employee volunteerism program.

7

Our operations and facilities are subject to environment,
health, and safety laws and regulations, promulgatedby federal, state, local, and foreign government entities.
As such, we continually monitor our operations andfacilities to support compliance with applicable laws
and regulations.

08

Table of Contents

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendicesSustainability
Targets
Spirit’s sustainability targets are representativeof our company’s sustainability strategy,
as we aim to achieve progress throughout
the next decade.

Target3
 0% absolute reduction in Scope 1 and 2 emissions2 6% reduction in absolute Scope 1

from 2019 baseline

and 2 emissions achieved2
 0% ethnic minority leadership representation
across the U.S. (senior manager, executive,
and Board level)3 0% female leadership representation globally(senior manager, executive, and Board level)1 00% of Spirit’s employees to be covered underthe ISO 45001 certification* In 2021, Spirit’s waste generation increased due to acquisitions of the company’s
Belfast, Casablanca, and Dallas facilities.

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report

2021 Target Progress5
 % reduction in the weight of industrial bulk solid
hazardous waste generated per production unit1
 3% ethnic minority leadershiprepresentation across the U.S. achieved

24% female leadershiprepresentation achieved9 3% of Spirit’s employees are

Target Year
2030

2025

2025

at sites with current ISO 45001
certification20232
 9% increase per production unit*

Annual09

Table of Contents

Leading
ThroughInnovation

Introduction

Innovating at New Heights

Workforce of the Future
Spirit’s team of engineers is a key differentiator that enables
our company’s large, global footprint. Our expertise allows
Spirit to move from design through production more efficiently,
while continuing to meet our commitments to customers.

The company’s integrated product teams (IPTs) unite
employees from different areas of the business, helping to
optimize design and create more efficient processes.

Cultivating Innovation at Spirit’s Facilities

Environment

PeopleGovernanceAppendices“Innovation is the key
component in achieving truly
distinctive capabilities, andwe’re committed to leveraging
that innovation to enable afuture in sustainable aviation.”

Cindy Hoover
Vice President, Defense & Space Engineering,Research & Technology and Core Engineering

Spirit AeroSystems believes that a worldclass research and development focus
helps maintain our position as a valued
partner to our OEM customers’ newproduct development teams, and expand
our position in emerging markets.

National Defense Prototype Center

Aerospace Innovation Centre

Global Digital Logistics Center

In an effort to build partnerships thatreach across generations and strengthencommunities, while continuing to expand
our capabilities and production efficiencies
in the Defense & Space business, Spirit hasestablished the National Defense Prototype
Center (NDPC).

As part of Spirit’s commitment totechnological advancement and innovation
globally, the company officially opened its
state-of-the-art Aerospace Innovation Centre(AIC) in Prestwick, Scotland, in 2021.

In Wichita, the company’s Global Logistics
Center is the largest and most advanced
aviation supply warehouse in the world.
This has helped Spirit create a leaner,more technically driven manufacturing
process, while freeing up manufacturing
capacity.

We continue to advance aerospace innovation

The NDPC is a joint project with Wichita
State University’s National Institute for
Aviation Research that merges innovation
with opportunity.

through increased focus on industry collaborations andpartnerships, continued development of our company’s
distinctive capabilities, and inventor recognition
through patents and trade secrets. In 2021, ourapproach included investing over $53 million
in research and development.

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report

The AIC is a center of excellence for the
research and development of advanced
materials and digital manufacturing
technologies and processes. Spirit’s
European subsidiary (Spirit AeroSystems(Europe) Limited) will collaborate withindustry and academic partners toinnovate, train, and develop skills fortoday and tomorrow.

Following its opening, the facility
achieved a 99.97% delivery accuracy.

L earn more about how Spirit’s products andsolutions are responsible for driving aerostructures
leadership for both commercial and defense
customers.

10

Table of Contents

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

ENVIRONMENT
Spirit’s approach to sustainability reaches far beyond the company’s own
operations, as we aim to reduce environmental impacts at our facilities andfrom our products, while supporting the efficiency goals of our customers
and the aviation industry.

CONTENT
Resource Efficiency

12

Energy and Emissions

14

Water

16

Waste

17

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report11Table of Contents

Spirit Research and Technology
Seven Distinctive Capabilities

Resource
Efficiency
As a recognized industry
leader in advanced composite
manufacturing, Spirit is committed tosupporting the aerospace industry’s
decarbonization strategy.
Our commitment to innovation and industry
partnerships has led Spirit to the forefront of advanced
manufacturing technologies. We aim to drive
efficiencies through our focus on factory automationand invest in new and upgraded technology,
including robotics and other automated manufacturing
processes. These new machines provide greater
precision and consistency for components delivered to
the world’s leading commercial aircraft programs.

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

Spirit Research and Technology
Seven Distinctive Capabilities
Spirit’s capabilities shape the future of aircraft through our focus on technological advancement and efficiencies.
Spirit’s Distinctive Capabilities

Performance
Architectures

Material
Optimization

Product
Development
Tools

Lean
Metallic
Structures

Next genaircraft configs,
Performance
topology
optimized,
Architectures
additive

Material
industrialization,
Material
CMC’s,
thermoplastics
Optimization

Compositeanalysistools,
Product
Engineering
Development
automation

Automated skinquality,sealant
Leantech, alternate
Metallic
coolants

Tools

Structures

Ultracompetitive
Composites

Competitive
Tooling
Solutions

Infusion,thermoplastic,
Ultracompetitivehigh temp
materials, NDI,
Composites
next gen. AFP

tooling,
Competitive
Improved
Toolingmaintenance
Solutions

Right-lifed

Accelerate
Learning
CurvesDigital thread,

flexible
Accelerate
automation,
Learning
multi-sensor
CurvesCMM

PromoteNet Material
Zero Emissions
through
Sustainable
MaterialsRight-lifed
and Structures
Next genComposite
Automated skin
Infusion,
Digital thread,aircraft configs,
topology
optimized,
additiveindustrialization,
CMC’s,
thermoplastics

analysis tools,
Engineering
automation

quality, sealanttech, alternate
coolants

thermoplastic,high temp
materials, NDI,
next gen. AFP

tooling,
Improved
maintenance

FlyZero: Achieving Industry Climate Ambitions

flexible
automation,
multi-sensor
CMM

Promote Net Zero Emissions through Sustainable Materials and Structures

In 2021, Spirit began participating in FlyZero, a zero-carbon emissions research project funded by the UK government. FlyZero
SPIRITto
PROPRIETARY
gathered a team of experts from across the UK aviation industry
support the development of a pathway to a zero carbon
emissions commercial flight. Spirit loaned eight employees to the FlyZero project. When the employees return in 2022, they will
utilize their learning and experience on the FlyZero project to expand Spirit’s focus on hydrogen storage and systems integration,
as well as executing net zero/zero emission research and development and demonstrator projects.

FlyZero Concepts
Creating
zero-carbon
emissions aircraft
concepts

Analyzing
the market
opportunityand economics

1

SPIRIT PROPRIETARY

Assessing
the sustainabilityof potential zerocarbon emission
aircraft

Assessing
the advanced
technologies
of tomorrow1

Developing
UK technology &industrialization
roadmaps

Shaping
airports &airspace ofthe future

As a result of the FlyZero project, the industry found aviation could achieve its 2050 net zero-carbon target by investing in greenhydrogen research and technology. In 2022, FlyZero will continue to evolve with the goal of executing technology roadmaps,
including ground and flight tests.

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report12Table of Contents

Improving Our Products
and Processes
We integrate our unique intellectual property and technology
to improve customers’ products and exceed expectations.
These proprietary processes and technologies result in energy,
water, and cost savings, while also reducing industrial waste.
As an example, our team developed a new composite
passenger door surround structure that is lighter than the
traditional titanium structure for a weight savings of 40 kg(per airplane). This development and transition to composite
structure reduces fuel consumption and reliance on titanium.
The Research and Technology team demonstrated an “out of
autoclave” composite manufacturing process for the Lower
Wing Cover (LWC) which is a 17-meter composite part to be
integrated into the complete wing box structure as part of astatic test demonstrator. The LWC manufacturing process is
unique as the product development process does not utilize
an autoclave or an oven; instead, the tool itself becomes
the heating mechanism. The heat transfer efficiency is far
superior to conventional oven and autoclave processing,and substantially reduces the amount of energy required to
produce a wing cover.
In 2021, Spirit fully implemented its Genesis Non-Destructive
Inspection (NDI) Filter System, CO2 Drilling and Machining,
and Advanced Sealant—Equal Pressurization Method (EPM).
We expanded the Joule Form™ technology to Titanium
Sheet and other Alloys, which is expected to reduce energy
consumption needed to form titanium sheet parts by 50–60%.
We also utilized 3D printing technology to custom build
drill guides for use with new drilling technologies, thereby
reducing ergonomic risk to personnel by 71%.

Advanced Sealant—
EPM-

Reduces 2 tonsof hazardous industrial
waste annually

Alloys-Combines the weight andcost benefits of aluminumwith the temperature resistancefound in more expensive materials
like titanium

Inflexion®

IRIS™

-

-

Allows Spirit to build
large, complex composite
aerostructures in one

Enables a 20% carbon
composite aircraft, and reduces

continuous piece, resulting in

manufacturing processing times

products that are lighter, moreby 20% and operating costs

affordable, and more efficientby nearly 30%

emissions reduction with

NDI
Mix-On-Demand& Automated Sealing-

Enables the inspection of-complex, monolithic structures

Reduces 5 tons

accurately; this allows integratedof hazardous waste annuallydesigns which are more weight
and aerodynamically efficient

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report

Introduction

Innovating at New Heights

CO2 Drillingand Machining-

Reduces industrial
coolant usage by

3% annually

Joule Form™
-

Environment

PeopleGovernanceAppendices

Genesis NDI Filter
System
-Improves water quality
and reduces consumablefilter media usage

by 98%

Metals Advanced
Manufacturing

Reduces hard scrap metal waste-

by up to 75%, uses 80% to

90% less energy to produce,

Reduces
12 million pounds

and increases capacity by usingof CO2 in fuel burn

50% less machine time

per life of aircraft

Resin Transfer
Infusion

Spirit Exact®

-

Results in significant material

Eliminates the needfor part-locating tools,

savings and delivers

thereby increasing quality

reduced cycle times

and reducing costs-

1315.91

18.67
7,787

7,730

5,778

2021

2019

15.91

18.67

26.07
2020

197,260

2019

6,297

6,770

7,061

294,0532021

214,9312020

313,791

129,643

111,0942019

GLOBAL GHG EMISSIONS1

421,268

440,308

Global GHG Emissions

Environment

PeopleGovernanceAppendices

26.07

Innovating at New Heights

197,260

214,931

294,053

129,643

111,094

Introduction

As part of our low carbon transition plan, Spirit aims to reduce our greenhouse gas (GHG) emissions, as well as other significant
air emissions. We invest in renewable energy and energy efficiency measures, including equipment upgrades and operational
2020
2021
2019
2020from2021
2019
2020
2021 Spirit
improvements2019
at our facilities
globally to reduce energy consumption
non-renewable energy sources.
For
example,converted our headquarters in Wichita,
Kansas, toSCOPE
100% wind-generated
Seven of our facilities, including our
REGIONAL
1 AND SCOPE electricity.
2 GHG EMISSIONS
headquarters, are ISO 14001 certified.

139,807

2020

2021

As part of sustainability strategy, we also aim to reduce other significant air emissions, including oxides ofnitrogen not including N2O (NOx), oxides of sulfur (SOx), and non-methane volatile organic compounds (VOCs).
20192019,
2020we have2021 reduced non-methane20192021by 63%, and NO by
2019
Since
VOC2020emissions
17%.2020 2021
x
Our SOx emissions continue to remain consistently low.

 021 Progress
2
and Actions

26%

reduction in absolute Scope 1
and 2 GHG emissions
since 201963%

reduction in non-methane
VOC emissions since 2019REGIONAL SCOPE 1 AND SCOPE 2 GHG EMISSIONS

275
2019

2020

2021

2019

2021

2020

2019

2021

2020

2021

2019

277

745
7,787
2020

5,778

7,730
2019

10

6,297

9

11

6,770

GLOBAL SIGNIFICANT AIR EMISSIONS2

7,061

2020

123

2019

313,791

421,268

Global Significant Air Emissions*

106

Spirit’s President and CEO guides ourcompany’s approach to reducing ouremissions, and our Senior Director ofCompliance and Sustainability oversees
and advances our low-carbon strategy.
Dedicated environment, health, andsafety (EHS) professionals at each of
Spirit’s facilities also play a key role,
applying our strategy to drive efficiencies
and reduce carbon emissions acrossour business. This includes managing
and reporting on our operational
environmental footprint and associatedrisks and opportunities.

Investing in a Low Carbon Future

440,308
123

Energy andEmissions

139,807

Table of Contents
1
GLOBAL GHG EMISSIONS

2021

2020

2021

As part of sustainability strategy, we also aim to reduce other significant air emissions, including oxides of* In 2021,
NOx, SOx,
VOC),emissions
to theacquisitionsof the company’s
Belfast,Casablanca,
and Dallas
facilities.
nitrogen
notSpirit’s
including
N2Oand(NOoxidesincreasedof sulfurdue(SO), andnon-methane
volatileorganic
compounds(VOCs).
xx** Market-Based.
Since
2019, we have reduced non-methane VOC emissions by 63%, and NOx by 17%.
Our SOx emissions continue to remain consistently low.

10

9

11

123

745

277

2021 Spirit AeroSystems Sustainability Report275

INNOVATING TO NEW HEIGHTS

106

123

GLOBAL SIGNIFICANT AIR EMISSIONS2

14

Table of Contents

48%

709,450

766,779

581,838

609,533
504,4282020

2021● Electricity (MWh) ● Fuel (MWh)(kWh per sq.ft.)

2021

of global electricity consumption is renewable

39%

83.22
2019

NORTH AMERICA(U.S.)

62.83

2020

● Electricity (MWh) ● Fuel (MWh)

2020

2021

Since 2020, Spirit saw a decrease in total energy consumption caused by the low
manufacturing production rates from the contraction of global commercial airline travel.

Expanding Renewable
Energy Investments
As part of our strategy to reduce our reliance on non-renewableenergy sources and reduce GHG emissions, we invest in

decrease in global energy intensity(per square foot) since 2019

renewable energy both on- and off-site.
At our company’s headquarters in Wichita, we transitioned
to 100% wind-generated electricity. Spirit Wichita’s wind3

power is generated from 62 wind turbines that are part of
the Flat Ridge 3 wind farm in Kingman County, Kansas,
which is owned and operated by a subsidiary of American

Spirit facilities operate on 100% renewable electricity

Electric Power. Spirit then has an agreement with Evergy, anelectric services company, which enables Spirit to purchase

INNOVATING TO NEW HEIGHTS

2020
2021
Regional2019
Renewable
Electricity
Consumption(MWh)

Energy Intensity

63.78

581,8382019

504,428

618,413

 021 Progress
2
and Actions
Approximately

2019

At Spirit’s Subang facility, the company entered into anagreement with the Malaysia National Power Grid to installa solar panel array on the roof of the main building. This
project is expected to reduce the Subang facility’s demandon the Malaysian power grid by 20%, resulting in an annual
reduction of approximately 2,100 MWh.

1,291,288
709,450

1,113,961
609,533

766,779

1,385,192

618,413

We develop manufacturing process efficiencies through our
integrated teams, quality assurance programs, and rapid
response operations. Across Spirit’s facilities, we also aim to
identify energy efficiency opportunities, including LED lighting
retrofits, enhancements to cooling towers, and behavioral
change initiatives. For example, at Spirit’s Tulsa facility, we
implemented Trane’s TRACER
systems
and economizers
in
GLOBALENERGYCONSUMPTION
four buildings. These systems help Spirit(MWh)better monitor thebuildings’ HVAC systems, to reduce energy consumption.

1,291,288

1,113,961

62.83

1,385,192

Spirit improves efficiencies through innovation, partnerships,
and evaluates opportunities to reduce ouroperational footprint.

Innovating at New Heights

clean electricity at a competitive cost via a long-term contract,significantly increasing
the operational efficiency of its largest
Energy Intensity
global site. (kWh per sq.ft.)

63.78

GLOBAL ENERGY CONSUMPTION

Global Energy Consumption
(MWh)

83.22

Maximizing Efficiencies
at Our Facilities

Introduction

2021 Spirit AeroSystems Sustainability Report

EUROPE

ASIA

2021

232,439 (47%)

47,527 (64%)

558 (5%)

2020

116,682 (24%)

10,813 (89%)

442 (5%)

2019131,125 (22%)

11,832 (90%)

676 (6%)

Environment

PeopleGovernanceAppendiceswater, waste, and emissions performance, and identify andexecute on projects to reduce our operational environmental
footprint. To manage and respond to physical climate risks(including extreme weather events), Spirit has developed Site
Crisis Management Plans using ISO 22301, NIST SP 80034, and NFPA 1600 standards for business continuity anddisaster recovery.

Protecting Biodiversity &Local Habitats
Spirit’s employees continue to help promote biodiversity
through local engagement activities in the cities where we
operate. At Spirit’s Belfast facility, employees participated ina cleanup day at Victoria Park, helping preserve and improvegreen space in their city. Additionally, team members at our
Tulsa facility created two monarch butterfly waystations to
attract butterflies and other pollinators, improving the health of
the surrounding ecosystem. Tulsa employees also participatedin two Adopt-a-Stream events, helping to clean the green
spaces surrounding local waterways.

In 2021, Spirit had a decrease in percentage renewable electricity consumption due
to the acquisitions of the company’s Belfast, Casablanca, and Dallas facilities.

Climate Resilience
Spirit’s process for identifying, assessing, and responding toclimate-related risks is integrated into our company-wide risk
management process. In an effort to mitigate risks, we actively
track our company’s performance, engage with customers
and suppliers, and participate in industry initiatives to address
key issues facing the aerospace and defense industry.
At each of our facilities, Spirit has dedicated EHS andfacilities management professionals to monitor our energy,

15

Table of Contents

Water

PeopleGovernanceAppendices(gal per sq.ft.)

28.55

30.44

52.35

334
292

244

2020

2021

Potable Water Intensity*(gal per sq.ft.)

30.44

2019

2020

2021

Spirit aims to reduce its dependency● Municipal
Water Withdrawals (million gallons)on freshwater resources,
andPotablein 2021,● Municipal
Waterand
Withdrawals (million gallons) In 2021, Spirit’s total water consumption and intensity increased due to therecycled 827 million
gallons Greyof wateracquisitions of the company’s Belfast, Casablanca, and Dallas facilities.
purchased 334 million gallons of grey
water at our Wichita facility—dramaticallyreducing our potable water usage from local
treatment plants.

2021 Spirit AeroSystems Sustainability Report

2019● Municipal Potable Water Withdrawals (million gallons)● Municipal Grey Water Withdrawals (million gallons)

28.55

2021

2021

52.35

334

2020

292

254
244

254

564
2019

307

2020

626
498

In 2021, Spirit’s headquarters in Wichita continued its
agreement with the city to use non-potable grey waterin our industrial processes
where ENERGY
possible. CONSUMPTION
Through
GLOBAL
this “purple pipe” system, Spirit uses approximately(MWh)
250 to 350 million gallons of non-potable grey water871
annually. Working in conjunction with the reverse
osmosis system, which treats and recycles more than626
2 million gallons every day, both systems reduce498
potable water demand at Spirit’s Wichita facility bymore than 85%.
564

Environment

Potable Water Intensity*

307

Spirit’s water efficiency strategy is
influenced by climate-related water risks
at our global facilities. We consider
opportunities to improve water monitoringand maintenance practices and reduce
our overall water footprint.

INNOVATING TO NEW HEIGHTS

Innovating at New Heights

GLOBAL ENERGY CONSUMPTION

Global Water Consumption
(MWh)
871

2019

Introduction

Water filtration in Wichita, Kansas.

16

Table of Contents

Innovating at New Heights

Environment

PeopleGovernanceAppendices

GLOBAL ENERGY CONSUMPTION(MWh)

Waste Intensity

Global Waste Generation

2021

2.6
2.0

3,250

2020

2019

2020

2021

● Non-hazardous Waste (tons) ● Hazardous Waste (tons)
Waste Intensity

1.9

2.0

2.6

(tons waste generated
per production unit)

2019

2020

3,250

2,936

1,718 2,406

2019

During the transport of waste from collection sites to
GLOBALENERGYCONSUMPTION
our waste storage areas, Spirit
employees
perform(MWh)inspections at each collection site for compliance withenvironmental regulations. Each year, a full program
audit is also performed, focused on compliance with
monitoring, recordkeeping, and reporting requirements.

1,718 2,406

2,936

4,808
2,895

Through Spirit’s waste management
programs, we aim to minimize waste
production, reduce waste sent tolandfill, and responsibly manage
hazardous waste.

4,808(tons waste generated
per production unit)

1.9

Waste

2,895

Introduction

In 2021, Spirit partnered with the Kansas State
Pollution Prevention Institute to evaluate solvent
waste and related bulk
2019solid waste streams,
2020
2021
and create and implement strategies to reduce● Non-hazardous Waste (tons) ● Hazardous Waste (tons)
these waste streams on-site.
The project supports the development oftraining and employee outreach materials andwill be shared with the Aerospace Industries
Association and the International Aerospace
Environmental Group.

2021

In 2021, Spirit’s waste generation increased due to acquisitions of the company’s
Belfast, Casablanca, and Dallas facilities.

Over

50,000pounds of waste collected at the 2021 Household
Hazardous Waste Collection Day in Wichita, Kansas, USA

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report17

Table of Contents

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

Spirit’s Waste Management Programs
 usiness Waste
B
Management Program onsumer Waste
C
Recycling Program--

Spirit manages and recycles office-related waste, including electronic waste,
printer cartridges, cardboard, and paper.

The program recycles the waste that is produced directly by our employees.

~90% of aluminum beverage cans are recycled~98% of electronic equipment is recycled through bid sales and reuse~65% of plastic beverage bottles are recycled~98% of printer cartridges are recycled through a recycling and refilling program~75% of cardboard and paper waste is recycled

 ackaging Waste
PManagement Program roduction Waste
PManagement Program--

The program manages metal chips, scrap parts, and floor sweepings from our manufacturing
facilities, and sends these materials to specialized aerospace recyclers.

The program reduces and recycles waste from packaging materials,
including wood crates, pallets, paper packaging materials, and drums.

~95% of metal chips and scrap parts are recycled~75% of floor sweepings and metal materials,

100% of wood packaging is reused or recycled
65% of wood packaging is recycled as chips

including drill shavings and dropped fasteners, are recycled~35% of wood crates and pallets are returned to vendors for reuse hemical Waste
CManagement Program-

The program manages chemical waste, including process water, degreasing and maskant solvents, and used oil.

70% of process water is reused through the industrial wastewater planand reverse osmosis at our Wichita facility

87% of maskant solvent is captured using a carbon adsorption system
and returned to the maskant vendor for treatment and reuse

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report~80% of used oil is recycled from facility equipment and fleet vehicles~70% of degreaser solvent is recycled through closed-loop degreasers
Over 720,000 pounds of aluminum hydroxide recycled in 2021

18

Table of Contents

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

PEOPLE
Our people are our greatest asset. Spirit has created a culture of
responsibility and achievement through our values of Transparency,
Inspiration, and Collaboration. We are committed to this culture, which isessential to attract, motivate, empower, and retain the skilled and diverse
team needed for success.

CONTENT
Health, Safety, and Wellbeing

20

Diversity, Equity, and Inclusion

22

Training, Engagement, and Innovation

25

Community Engagement

27

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report19

Table of Contents

Health, Safety,
and Wellbeing
Spirit is committed to strong health andsafety practices. Through our Safety
Management Systems, we strive to havea clear understanding of the needs andexpectations of all interested parties
including our customers, the communities
where we operate, suppliers, vendors,
contractors, emergency responders,regulatory agencies, employee unions,and other employees (regardlessof representation).

Spirit complies with applicable legal and regulatory requirements
related to preventing pollution, injury, and ill health, and employs
industry-leading control mechanisms, processes, and procedures.
Spirit’s Chief Technology and Quality Officer chairs our
Executive Safety Council that meets bi-monthly to review safety
metrics, strategic safety plans, and events, and to share bestpractices. Additionally, the company’s Global Director of Healthand Safety is a member of the Global Compliance Council,
which meets monthly to review key compliance metrics acrossmultiple functions.

Introduction

The health and safety of our employees is a top priority for Spirit.
We seek to minimize hazards and risks to employee health andsafety and strive for zero injuries and accidents in the workplace.
To promote these goals, Spirit implements training, audits,hazard identification, continuous improvement, management
accountability, and targeted programs to promote a culture ofsafety. When incidents do occur, we have a robust root cause
corrective action process to avoid repeat actions.

Risk
Reduction

InjuryPrevention

Safety Culture
Development

Environment

Employee Safety Metrics

PeopleGovernanceAppendices 021 Progress
2
and Activities

RECORDABLE
Recordable
Injury RateINJURY RATE
3.54

RECORDABLE INJURY RATE
3.54
1.57

1.57

Employee Health and Safety
Program Elements

Innovating at New Heights

1.78

1.78

2019

2020

2021

2019
1.05

2020

2021

Lost Time Incident Rate
1.05

0.56 0.52

0.56 0.52
2019

2019

2020

2020

2021

2021

In 2021, Spirit continued to grow our Safety Culture as we
emerged from the dual global threats of the COVID-19 pandemic
and the lingering effects of the Boeing 737 Max grounding.
While factory activity increased significantly compared to 2020,
Spirit maintained its safety gains made in 2020, as measured in
our injury rates, with our Lost Workday Case Rate dropping by
7% compared to our previous all-time low rate in 2020.

93%of Spirit’s employees
covered by ISO 45001
standards

7%

decrease in lost workday
case rate

0.41

occupational
illness frequency rate0

employeeor contractor fatalities

100%of Spirit’s employees (including
part-time) and contractors receive
ongoing safety training

Kinston, North Carolina, employee.

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report20

Table of Contents

Health and Safety Training
Spirit employees, including part-time employees andcontractors, receive ongoing training to properly
understand compliance with Spirit’s environment,
health, and safety (EHS) standards. General healthand safety trainings include: New Employee
Safety Orientation, Personal Protective Equipment(PPE) Awareness, Hazard Communications, andUnderstanding the Disposal and Management ofHazardous Waste. We also provide role-specifictraining for equipment and hazardous operations.

Safety Due Diligence Processes
and Procedures
As part of our health and safety due diligence procedures,
we perform health and safety audits to identify areas where
we can improve performance. These audits are deployedboth internally and externally.
Spirit’s internal audits include:
V Daily PPE and face covering compliance
V Annual EHS program reviews
V Continuous Safety Training status audits
V Routine Safety Gembas: Gembas are on-the-floor, ad hoc

audits lead by Operational and Safety Leadership (senior
manager and above) to review general compliance andequipment status
Spirit’s third-party audits include:
V Annual Safety Management System audits to ISO 45001
V Annual physical site inspections and audits
V Regular electrical systems audits and inspections

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report

COVID-19 Support
In 2021, we continued to provide our employees with
COVID-19-related resources. Following the start of thepandemic, we established a dedicated phone system toallow employees to escalate concerns, resulting in over
20,000 calls to and from this hotline. Spirit also administeredor coordinated over 23,000 COVID-19 tests and hosted
15 vaccination clinics at our facilities, which provided
nearly 3,000 COVID-19 vaccines and booster shots to ouremployees.

Employee Benefits andWellness Programs

Introduction

Innovating at New Heights

In addition to health-related benefits, U.S. employees areprovided savings and retirement options, and financial
planning support, as well as short-term and long-term
disability benefits. Our U.S. salary workforce and hourly
employees outside of Wichita have access to childcare
support services, including backup family care thoughcare.com, a service that helps our employees find caregivers
for children, parents, grandparents, and pets. U.S. employees
are eligible for tuition reimbursement, and active or reserve
military personnel may also qualify for military leave.
At Spirit’s non-U.S. facilities, employees can personalize
their healthcare benefit structure to meet both their own andtheir immediate family’s personal needs through voluntary

Environment

PeopleGovernanceAppendicesor subsidized private medical care. Select international sites
operate Occupational Health Facility/Employee Assistance
Programs to further support employees’ mental health andwellbeing. Beyond medical care, Spirit employees at non-U.S
facilities are offered a pension and/or retirement benefits.
In the U.S., Spirit employees are also provided with a fully
paid online second opinion program through the Cleveland
Clinic.
Due to Spirit’s efforts to offer mothers the time and space
to nurse and/or pump, Spirit received the Gold Level“Breastfeeding Employees Support Award” from theKansas Breastfeeding Coalition and its Business Case forBreastfeeding program.

Spirit supports our employees by providing benefits andwellness programs emphasizing the importance of physical,
financial, and mental health. Spirit’s Total Rewards benefits
program offers coverage, resources, and support to help our
employees live better, more rewarding lives.
In the United States, employees receive comprehensive
medical and dental coverage with the option to invest in
flexible spending accounts and health savings accounts.
Other health-related programs and resources include onsite flu and COVID-19 shots, direct primary care, andfitness center subsidies at select facilities. In Kansas andOklahoma, our employees and their dependents haveaccess to concierge/direct primary care services through ourpartnerships with Ascension Medical Group and SolidaritUS
Health. This includes personalized and comprehensive
healthcare, and enhanced physician and patient
relationships, with 24x7 access.
Spirit provides U.S. employees with assistance programs,
including access to practitioners and experienced, licensed
counselors, as well as online content. Safety Specialists,
Ergonomists, and Certified Early Intervention Specialists
work with U.S. employees to provide hazard assessments,
ergonomic risk factor identification, early intervention, custom
designed mobility programs (stretching), and mitigation strategies.

Subang, Malaysia, employee.

21

Table of Contents

Introduction

Innovating at New Heights

Diversity,
Equity, andInclusion

V 30% female representation in leadership (senior

manager level and above) globally
V 20% ethnic minority representation inleadership (senior manager level and above)
across the U.S.

2021 Spirit AeroSystems Sustainability Report

Appendices24%

female representation in leadership(senior manager level and above) globally

13%

Spirit Wichita employees and families at the annual Pride parade.

Diversity, Equity, and Inclusion Leadership
Spirit’s DE&I strategy engages leaders across the company to create a trusting, equitable, and inclusive work environment bybuilding accountability and providing additional resources for development. The following structures have been implemented toprovide accountability, alignment, and open communication lines:

To guide our company-wide approach, Spirit’s President & CEO and COO co-chair and lead the Executive DE&I Council.
The Council meets quarterly and sets the organization’s overarching global strategic goals and objectives.
Spirit also launched a DE&I dashboard and quarterly scorecard to drive accountability further and spark action.

EXECUTIVE DE&I CHAMPION COUNCIL
This group of leaders supports the Executive DE&I Council to create tangible action plans to support our DE&I targets to increase
the representation of women and ethnic minorities in leadership positions and create an equitable and inclusive work environment.
Each business unit and functional support organization within Spirit has identified an Executive DE&I Champion to lead the strategy
for their function, and to drive specific, localized action plans in partnership with the Office of Diversity, Equity & Inclusion.

DE&I COUNCILSEach of Spirit’s global facilities has a local DE&I Council co-chaired by the Site Operations Leader to help drive initiatives
and programs. Additionally, an internal DE&I leadership development program is conducted annually for multiple levelsof leaders across all Spirit locations and support targeted leadership development opportunities for underrepresented
populations through local programs and training across the globe.

INNOVATING TO NEW HEIGHTS

GovernanceLaunched Action Plans andScorecards to support DE&I targets

EXECUTIVE DE&I COUNCIL
Each of Spirit’s facilities has developed a
specific localized action plan in partnershipwith Spirit’s corporate DE&I leadership teamto drive progress against our targets andgoals, including achieving:

People2021 Progress

Cultivating a culture of diversity, equity,and inclusion (DE&I) is a reflection of
Spirit’s core values and supports achieving
our business strategy and enhancing
overall business performance.
Spirit is committed to creating a world-classcompany—one that is actively working to build an
equitable and inclusive culture, where employees’ diverse
backgrounds, skills, and talents are valued. Our approach
includes integrating it into our day-to-day businessactivity through the company’s core values, people andtalent processes, and targeted plans, as well as building
leadership competency and accountability.

Environment

ethnic minority representation in leadership(senior manager level and above) across the U.S.

14%

Women in STEM positions

Conducted a Gender Pay Gap Analysis
at Prestwick, Scotland facility

100%of employees are assigned
Unconscious Bias training, annually

16.9%

of Spirit’s U.S. supply base iscomprised of diverse suppliers

22Table of Contents

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

To further advance DE&I, engage employees, promote personal
and professional development, and increase networking, Spirit
established employee-led Employee Business Resource Groups(EBRGs), which align with our company’s mission, values,
goals, and objectives. Spirit has the following three executivesponsored employee-led EBRGs:

SWEPT (Spirit Women in Engineering Professions
and Technology): Focused on attracting,engaging, and developing women specifically inthe fields of Engineering and Technology. SWEPT
provides support and networking opportunities
to its members while promoting professional
development, leadership opportunities, andtechnical education with chapters at multiple
Spirit locations globally.
RISE (Retain and Inspire Spirit Employees): Serves
as a resource for the business by fostering adiverse, equitable, and inclusive workplacealigned with the company’s mission, values,
goals, and objectives.

Subang, Malaysia, employee.

2021 Employee Diversity Metrics
Employee Gender Breakdown

Employee Race and Ethnicity Breakdown

Employee Age Breakdown

LEVEL

WOMEN

MEN

NOT
SPECIFIEDAll employees

16.8%

82.9%

0.3%

Management

19.1%

80.5%

0.4%

12.4%

43.0%

2.2%

2021 Spirit AeroSystems Sustainability Report

15.7%

24.8%

47.5%

All employees

Management

All employees

Management

44.6%

50.3%

48.6%

57.5%

● < 30 years old ● 31–50 years old ● 50+ years old

INNOVATING TO NEW HEIGHTS

26.8%

26.6%

SERVE (Spirit Employees, Reservists, and Veterans):
Focused on supporting the unique needs of thosecurrently serving and those who have served in
the U.S. military, as well as engaging friends
and family of the military community at Spirit.
SERVE provides resources and events focused on
supporting our valued military community, bothinternal and external of Spirit.

● Minority ● White ● Not specified

23

Table of Contents

Introduction

Diverse TalentInnovating at New Heights

Environment

PeopleGovernanceAppendices

Supplier Diversity

As part of Spirit’s hiring process, we work to develop diverse
candidate slates for senior manager and executive-level
positions. To build a diverse pipeline, specific representation
goals for women and ethnic minorities for the summer
intern program were created. Spirit also established a U.S.
Diversity Recruiting Steering Team focused on increasing therepresentation of diverse groups at all levels of the organization.

In addition to promoting veteran employment throughout
the U.S., Spirit participates in programs to support veteransand their families. For example, we engage with the
Manufacturing Institute’s Heroes Make America programand Mission Wichita, which introduces servicemen andservicewomen to available career opportunities as theytransition out of the military into the private sector.

Spirit is committed to a diverse supply base that reflects thedemographics and values of our company, customers, andthe communities where we operate. We develop small anddiverse suppliers, to bring innovation, flexibility, and strength
to our company’s supply base.
Spirit’s Inclusive Procurement Program generates economic
opportunity for disadvantaged communities, establishes goals
to achieve disadvantaged spend, and assists suppliers byproviding opportunities. These initiatives increase the poolof potential suppliers and promote competition in the supply
base, which can improve product quality and make our
supply chain more resilient and agile.
In 2021, we continued to drive inclusion and diversity within
our supply base by providing procurement opportunities forsmall, diverse, and historically underutilized zone businesses.

In 2021, Spirit procured materials or services from
317 diverse suppliers, representing over $121 millionin spend in the U.S..
Spirit identifies small business subcontracting opportunities
based on an analysis of the statement of work and the products
and/or services that support the successful performance ofeach federal contract or commercial purchase. The Master
Small Business Subcontracting Plan establishes the goal for theoverall usage of small business, veteran owned small business,
service-disabled veteran-owned small business, historicallyunderutilized business zone, small, disadvantaged business,
and women-owned small business concerns as suppliers.

Prestwick, Scotland, employees.

Partnering to Advance DE&I
To foster a diverse, equitable, and inclusive workplace, Spirit partners with several diversity-focused organizations. We also
work with traditional universities and colleges to support and recruit underrepresented student populations and are building
relationships with historically black colleges and universities.
In 2021, a few of the organizations Spirit partnered with that focus on underrepresented populations include: Black Engineerof the Year Award, Center Industries, Culture Association of India, DiversityInc, Envision, Founders Grove, the Gay, Lesbian& Straight Education Network, Greenwood Rising Black Wall St. History Center, Guide Dogs of America, Kansas Hispanic
Education Foundation, Heartspring, the Inclusive Employers Network in the UK, National Association of Asian American
Professionals, Passageways, Rainbows, Real Men Real Heroes, Rise Up for Youth, Special Olympics, The Coffee Bunker, The
Kansas African American Museum, Urban League, Urban Professionals, Wichita Asian Association, Wichita Chapter of Links,
Inc., and Wichita Pride.
To advance opportunities for women in leadership, Spirit has partnered with Catalyst, International Aviation Womens
Association, Know Your Worth Women’s Leadership Conference, Leading Ladies in Aviation and Defense conferences,
Manufacturing Institute’s STEP Ahead conference, Society of Women Engineers, the Women in Aviation and Aerospacecharter in the UK, and Women in Business in the UK.

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report

Kinston, North Carolina, employees.

24Table of Contents

Training,
Engagement,
and Innovation
In 2021, Spirit launched a new leadershipdevelopment program focused specifically on
the career development of underrepresented
talent, empowering participants to drive theirdevelopment and career advancement.

Taking Flight Development Program: Taking Flight ThroughSpirit’s training programs are one of the many avenues
for employees to achieve their professional and personal
development goals.

business units to help integrate Spirit’s global DE&I strategy.

Our production employees are required to attend andcomplete rigorous training prior to being assigned to the
manufacturing floor. This training includes both written andpractical assessments. The technical training team works
with site educational partners to provide supplemental andpre-hire training. These partnerships help to develop a more
knowledgeable and skilled workforce as our production rates
and personnel requirements increase.

Spirit offers various development programs for employees at
all levels, including:
Executive Development: Development assessments, coaching,tools, and resources are provided to executive-level employees
to further their growth, with individual plans and resources
tailored for the development purpose and business need.

2021 Spirit AeroSystems Sustainability ReportInnovating at New Heights

Development andTraining Programs

Spirit’s office employees share responsibility with our
production teams in delivering the highest quality products tothe aviation industry. Our Performance Development processestablishes objectives, assesses attainment of those objectives,and uses the assessment to improve performance andencourage employee development.

INNOVATING TO NEW HEIGHTS

Introduction

Environment

PeopleGovernanceAppendices 021 Progress
2
and Activities

People and Innovation is a DE&I leadership development
program that brings together high performers from all
While learning DE&I leadership skills, Taking Flightparticipants are challenged to put their skills into practice bysolving some of Spirit’s most demanding business challenges.
The Power of Choice: In 2021, Spirit launched a newleadership development program focused specifically on the
career development of underrepresented talent. The program
builds greater resilience and empowers participants to drive
their development and career advancement. The program

Over

2,000

personal and professional
development courses available
to employees

is based on a shared responsibility design principle, which
integrates behavioral and structural inclusion approaches.
Community Leadership Programs: Spirit partners withgovernment and community leadership programs to offer
employees opportunities to network, learn, and grow fromother leaders in the geographical area in which they work.
Mentor Alliance Program: The Spirit Mentor Alliance Programis open to salaried and management employees. Employees
can engage in the Mentor Alliance Program as a mentor
or a protégé and focus on career exploration, gaining
organizational knowledge, and developing specific skills.
Mandatory Technical and Safety Trainings: New Hire training

16.75 hours
average number of training and development
hours per employee

100%of salaried and management
employees are in the performancedevelopment programis provided to employees, and is specific to their job andManager Gaining Altitude: Offered to selectedsuccession candidates, including all new first level andsenior managers, the program covers technical skills tointerpersonal/leadership skills.

role within our company. Technical training is provided on

The First Level Manager (FLM) ONE-STOP: Spirit’s learning
website provides a comprehensive location where an
Operations FLM can quickly access the majority of theelectronic tools, resources, and websites needed to complete
FLM job duties.

Apprenticeships: Spirit partners with local colleges anda set basis for employees to maintain needed certifications
to perform work-related duties based on customer andLaunched Spirit’s
Employee Engagement Survey

regulatory requirements.

governments to provide a combination of classroom
and hands-on training. Once the apprenticeships arecompleted, participants have the opportunity to become
full-time employees.

25

Table of Contents

Internships and COOPS: Spirit conducts two primary summer
internship programs in the U.S.—one for college students
and the other for high school students. In 2021, Spirit hosted
over 120 interns from 20 different states at our three primary
U.S. sites. These programs serve the dual purpose of building
a talent pipeline and educating future employees about
Spirit, the aerospace industry, and working in a professionalor technical setting. College interns who exhibit strong
performance during the summer are offered co-ops (i.e.,
cooperative work arrangements) that allow them to work for
Spirit part-time as they complete their degree. These student
employees are also eligible for tuition reimbursement during
their co-op term.

Introduction

Innovating at New Heights

Employee Engagementbuild a world-class workplace. The survey provided key

In 2021, Spirit emphasized our One Team One Spirit initiative,
to establish a shared understanding of our corporate culture
and aspirations.

the employee feedback, Spirit is focused on strengthening

The company also launched a Culture Survey that drewa sizable response rate. The survey gave employees theopportunity to provide feedback on culture, ethics andcompliance, DE&I, safety, and quality in Spirit’s efforts toaccountability, and improving communication to employees.

insights and laid the groundwork for future work. Based on
our workplace culture by building trust throughout theorganization, reinforcing leadership behaviors, driving
Spirit’s Global Culture Journey Team will meet quarterly tosupport the organization in establishing and implementing

Environment

PeopleGovernanceAppendices

Employee Recognition Programs
Every day, our employees go above and beyond to deliver
positive results for the business and our customers. Spirit’s
Employee Recognition Program allows for those individuals tobe recognized for their work by awarding of points that canbe redeemed for items such as gift cards, unique experiences,and Spirit-branded merchandise.

company-wide action plans from these survey results.

Spirit President and CEO Tom Gentile at Pull a Plane for Education event in Wichita, Kansas.

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report26

Table of ContentsCommunity
Engagement

Introduction

Innovating at New Heights

Good Neighbor Fund
Spirit employees in the U.S. are empowered to give back locally through the Good Neighbor Fund, a nonprofit organization
funded through voluntary employee donations. The Fund is governed by an employee-elected board of directors for their local
markets, primarily focusing on health and human services organizations.

At Spirit, we take great pride in our
heritage, and take greater pride in how
we serve by helping, growing, andconnecting people in our communities.
We believe in the power of innovative
solutions, partnerships, and programs thatbring communities together.

Environment

PeopleGovernanceAppendices 021 Progress
2
and Activities

8,000+
volunteer hours globally$4m*

donated through cash andin-kind donations globally$34m+

Team Spirit volunteers participating in Habitat for Humanity event in Wichita, Kansas.

through the Good Neighbor Fundsince 2005

Team Spirit
Volunteerism is an integral part of Spirit’s company culture.
Spirit employees around the world give in a variety ofways, collectively and individually, lending their time andtalents to strengthen our communities. Spirit employees

Support workforce andeconomic development
through access to primaryand secondary education

volunteer both during working hours and on their own
time. In 2021, employees participated in a range ofvolunteer activities that equated to a more than $229,000
investment in the community.

Target programs aimed at meeting
basic needs of citizens, whileproviding long-term sustainable
solutions for self-sufficiency$15,000

Good Neighbor Fund Grant to
supply COVID-19 vaccines to the
Guadalupe Clinic in Wichita, Kansas

Support a variety of cultural,
entertainment, and recreational
events and activities that enhancequality of life in our communities* $3.82 million in cash donations and $176,000 in-kind giving
was donated in 2021.

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report27

Table of Contents

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

Responding to Global Needs
SCOTLANDFRANCE

Prestwick

St. Nazaire employees worked with Secours Populaire
Francais on several community projects, including donating
clothes and necessities to Afghan refugees in France whobrought their families to safety.

NORTHERNIRELAND
BelfastFRANCE

MALAYSIA

St. Nazaire

In December of 2021, torrential rains in Subang caused
flooding that affected an estimated 50,000 homes.
In response, more than 50 employee volunteers assembled
in Subang to help restore the homes of 103 fellow teammembers. Spirit employees volunteered approximately
800 hours to home restoration services and contributed
approximately $1,300 in donations.

KANSAS
Wichita

OKLAHOMA

Tulsa

MAINE

Biddeford

NORTH CAROLINA
Kinston

MOROCCO
Casablanca

MOROCCOMALAYSIA
SubangEmployees in Casablanca, helped refurbish the media
library at Bouzanine Primary School. More than 30
employees provided hands-on support for construction
and IT work that extended beyond the media library, whileother employees rallied donations of encyclopedias, books,
toys, and other supplies. Spirit also provided a corporate
grant of $11,000 for refurbished laptops and computers,renovation supplies, and furniture.
NORTHERN IRELAND
Spirit employees in Belfast raised funds throughout the year
to donate to mental health, children’s health, and cancer
organizations for their work in Northern Ireland.
During the holidays, employees across five sites in Belfast
also donated non-perishable food, cleaning supplies, andtoiletries in aid of hunger relief charity The Trussell Trust.
SCOTLAND
Prestwick employees participated in food collection
and delivery to support three local food banks andteamed up to walk 500 miles to raise funds for
the Kris Boyd Mental Health Charity.

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report

MAINE

OKLAHOMAKANSAS

Spirit employees in Biddeford, Maine participated in the Travis
Mills Plane Pull, an event that raised $116,000 to support 9/11
veterans and their families. Additionally, Maine employees
contributed to several donor campaigns, including Spirit of
the Harvest, where they were named the 2021 Stamping
Out Hunger Food Drive Champions for donating more than
1,600 pounds of food to the Biddeford Food Pantry.

Spirit employees in Tulsa participated in several events,
including marking the centennial of the Tulsa Race Massacre.
As part of the centennial events, employees visited the Ellis
Walker Woods Memorial and sponsored a float in his honor
in the parade. Spirit was also a sponsor of Greenwood
Rising, a flagship project of the Centennial Commission that
honors the icons of Black Wall Street, memorializes the victimsof the massacre, and examines the lessons of the past to
inspire meaningful, sustainable action in the present.

Spirit’s Wichita facility held various employee fundraisers
to support local nonprofits such as Kansas Big Brothers
Big Sisters, The Salvation Army, Heartspring, and more.
Employees also hosted the Tools for School Car Show
that raised more than $10,000 for school supplies forthe local community.

NORTH CAROLINA
Employees in Kinston raised nearly $5,000 to “adopt” 48
children during the holidays at the Kennedy Children’s Home, anonprofit that provides residential services for children in North
Carolina who are experiencing family crisis, abuse, or neglect.

28

Table of Contents

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

GOVERNANCE
Spirit is committed to high ethical standards and to complying withlaws and regulations applicable to the company’s business.

CONTENT
Board Oversight

30

Global Ethics and Compliance

32

Risk Management

34

Product Safety36

Supply Chain Management

37

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report29

Table of Contents

Introduction

Innovating at New Heights

Board
Oversight
Spirit AeroSystems’s Board of Directors
is responsible for overseeing thecompany’s strategy and performance andprotecting stockholder interests and value.
The Board carries out its responsibilities
in order to advance the long-term interestsof stockholders, while cognizant of theconcerns of other stakeholders andinterested parties, including employees,
customers, suppliers, government
agencies, and the public at large.

Environment

PeopleGovernanceAppendices

Stockholder Engagement

BOARD
COMPOSITION*

11 2
members

directors
are women

2

directors are
ethnically diverse

10

directors
are independent

9

directors have aviation operations
management or defense industry experience

Our Board recognizes the importance of remaining alignedwith our stockholders. The Board places a high priority on
stockholder engagement, which we believe contributes totransparency and accountability. Our stockholder outreachteam includes representatives from various functions including
Sustainability, Compensation, Human Resources, Investor
Relations, and the Corporate Secretary’s office. This teamengages proactively with our stockholders throughout
the year. Stockholder feedback is communicated to theBoard, and is instrumental in developing our governance,compensation, and sustainability policies and practices,
and in informing our business strategy. For more information
on how we engaged with our stockholders in 2021, what
feedback we received, and how we responded, please see
our 2022 Proxy Statement.

To execute on its responsibilities, the Board is guided by our Corporate Governance Guidelines, and delegates certain
responsibilities to four standing committees: the Audit Committee, the Compensation Committee, the Corporate Governanceand Nominating Committee, and the Risk Committee, which are each guided by a Committee Charter.

AUDIT COMMITTEECOMPENSATION COMMITTEE

Oversees Spirit’s quality and integrity of financial reporting;compliance with legal and regulatory requirements;
qualifications of independent auditor; and performance of thecompany’s internal audit function and independent auditor.

Reviews and approves CEO and executive officer
compensation; oversees compensation plans, policies, andprograms; and reports annually on executive compensation.

CORPORATE GOVERNANCE
AND NOMINATING COMMITTEERISK COMMITTEE

Identifies and recommends Board members; determines
the composition of the Board and its committees; develops,
recommends, and implements corporate governancepolicies; and oversees governance structure risks.

Provides oversight of management’s guidelines, policies, andprocesses for assessing, monitoring, and mitigating criticalenterprise risks; reviews and approves escalated bids andproposals based on our risk appetite; determines the risks
included in the Board’s agenda; and assists in the Board’s
oversight of Spirit’s management of key risks.

* Board of Directors composition metrics reflect data as of April 28, 2022.

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report30

Table of Contents

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendicesSustainability Governance
BOARD OF DIRECTORSCORPORATE GOVERNANCE AND NOMINATING COMMITTEE
Oversees the company’s sustainability practices and reporting; reports to the Board of Directors

PRESIDENT AND CHIEF EXECUTIVE OFFICER (CEO)Guides and approves Spirit’s sustainability strategy, including operational efficiency, strategic sourcing,and product innovation initiatives

SVP, CHIEF ADMINISTRATION AND COMPLIANCE OFFICER
Maintains overall responsibility for the company’ssustainability strategy and supports Board engagementon sustainability

SENIOR DIRECTOR OF COMPLIANCE
AND SUSTAINABILITY

VICE PRESIDENT OF SUPPLY CHAIN
MANAGEMENT

Oversees and executes on Spirit’s
corporate-wide sustainability strategies andreporting with regard to climate, water,
waste, and other broader environmental,social, and governance issues
Provides quarterly briefings, in addition
to real-time updates of progress toward
our goals and objectives to Spirit’s
President and CEO

Guides the company’s strategic
sourcing initiatives

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report

OTHER EXECUTIVE LEADERS
Provide oversight of specific sustainability
program elements

Spirit Board of Directors and Senior Leaders at the B-29 Doc Hangar.

31

Table of Contents

GlobalEthics andCompliance
Spirit’s commitment and responsibility to
our stockholders, employees, customers,
business partners, and communities isrepresented in our company’s core valuesof Transparency, Collaboration, andInspiration. As we innovate to design andbuild state-of-the-art aerostructures, we arededicated to upholding ethical standards
and adhering to applicable laws andregulations.

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendicesAnti-Corruption and Bribery

Spirit Executive Leadership Team participating in Investor Day in Wichita, Kansas.

To support effective operation of our ethics and compliancesystems and procedures, Spirit’s Ethics and Complianceprogram undergoes both internal and external risk
assessments and audits. In 2021, as part of Spirit’s aim forcontinuous improvement, we partnered with Ethisphere toevaluate Spirit’s Ethics & Compliance Program and identify
key performance indicators for future benchmarking.

Global Ethics and Compliance
Governance
BOARD OF DIRECTORS

AUDIT COMMITTEE
Oversees the company’s Global
Ethics & Compliance Program

GLOBAL COMPLIANCE COUNCIL
Chaired by the Chief Compliance Officer; comprisedof members from Spirit’s Executive Leadership Team
Meets monthly to review key metrics and functional areas
related to compliance

Our company built its reputation on the quality of our goods,
services, and people. We are committed to operating withintegrity and abide by international and domestic laws andregulations applicable to our business that forbid commercial
bribery and bribery of foreign officials and others, including
but not limited to the U.S. Foreign Corrupt Practices Act(FCPA) and the UK Bribery Act.
Spirit’s Code of Conduct outlines our responsibilities todeliver reliable, high-quality products that our customers
and the public have confidence using, promote processes
that are safe for Spirit employees and for our environmentand communities, and comply with applicable rules andregulations governing our work and products. Our Code of
Conduct applies to all Spirit personnel, including employees,
officers, directors, and affiliates.
Spirit’s CEO, CFO, Corporate Controller, and employeesof the finance organization hold an important and elevatedrole in corporate governance, as they aim to appropriatelybalance, protect, and preserve stakeholders’ interests. Spirit’s
Finance Code of Professional Conduct provides principles
that are expected to be adhered to and advocated, including
rules regarding individual and peer responsibilities, as well
as responsibilities to Spirit employees, the public, and otherstakeholders.

Reporting Concerns
Spirit’s employees are encouraged to report any concern
or violations of the company’s Code of Conduct, policies, orthe law without fear of retaliation. Reports can be submitted
via Spirit’s formal, anonymous whistleblower system hotline
by Spirit’s stakeholders, including employees, suppliers,
and customers.
Spirit’s retaliation protection policies are intended to facilitate
concerns reporting. This can include actual, potential, or
perceived wrongdoing as a violation of the Code of Conduct.
Any officer or employee of Spirit who in good faith reports anactual, perceived, or potential breach of law, regulation, or

the Code of Conduct is protected from harassment, retaliation,
discipline, or other adverse employment consequences as aresult of their report.

2021 Ethics andCompliance Reports

66 100% 80%
total cases

investigatedcases

unsubstantiatedcases

COMPLIANCE COMMITTEE
Staffed by functional management who own the operational
monitoring, controlling, and execution of tasks to adhere
to regulatory and legal requirements

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report32

Table of Contents

Introduction

Innovating at New Heights

Ethics and Compliance Training

Public Policy and Advocacy

Tax Strategy

Spirit employees are required to complete annual complianceand ethics training. This may include the following trainings:
Commitment to Quality and Personal Warranty, Counterfeit
Parts, Foreign Object Elimination Program, Insider Trading,
Code of Conduct, Global Anti-Bribery (FCPA, UK-AntiBribery), and Audit Awareness.

Spirit recognizes that government policies, regulations, andlegislation influence the success of our company and theaerospace and defense industry. Spirit participates in thepolitical process, and engages with officials at the federal,state, and local levels to advocate on behalf of the interests ofthe company, our employees, and our industry.

Taxes are a significant component of Spirit’s economic
contribution to the countries, states, and local communities
where we operate. Spirit’s global tax policies are appliedconsistently in all jurisdictions where we do business. Spirit’s
tax function is responsible for maintaining high compliancestandards, being transparent in our dealings with tax
authorities, and sustaining robust internal controls for risk
management. Organizations have an obligation to comply
with tax legislation and a responsibility to stakeholders to
implement ethical tax practices.

Code of Conduct Training*

100%

Any political or other public policy activities in which Spirit
engages are conducted in accordance with applicablelaws and regulations. Responsibility for managing andcoordinating the company’s political and public policy
initiatives is led by the Corporate Affairs function for
Spirit AeroSystems.

Spirit’s Political Action Committees (PACs)

of new hires are assigned andexpected to complete Code of
Conduct training

100%of subsidiaries are assigned Codeof Conduct training

The political expenditures by the Spirit AeroSystems, Inc.
PAC (Spirit PAC), a voluntary, nonpartisan PAC establishedby Spirit AeroSystems in accordance with federal law
are available here.

Spirit’s Senior Vice President and Chief Financial Officer has
overall responsibility for the company’s corporate tax strategy
and is supported by a team of global tax professionals.
Spirit’s tax process includes providing visibility and insight to
the Audit Committee of the Board of Directors.

Environment

PeopleGovernanceAppendices

From time to time, we receive economic benefits from various
national, state, and local governments in the form of grants
and tax incentives that align with our business, are consistent
with the statutory or regulatory framework, and drive
economic development and job creation in the communities inwhich we operate.
Spirit maintains an open, proactive relationship with tax
authorities in the jurisdictions where we operate. We actively
engage with federal, state, and local governments; tax
authorities; trade associations; and other business groups
to advocate for policies that align with our approach totax management.

The political expenditures by the Spirit AeroSystems Inc.
Kansas State PAC, a voluntary, nonpartisan political action
committee established by Spirit AeroSystems in accordancewith Kansas law are available here.
The Spirit PACs are governed by a Board of Directors
comprised of company executives and are funded solely
from the voluntary personal contributions received from
eligible employees.

* Metrics represent cumulative data from November 2020
through December 31, 2021.
A350 in Saint-Nazaire, France.

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report33

Table of Contents

Risk
Management
Spirit’s formal Enterprise Risk Management
Program is developed from industry
best practices and frameworks, and is
integrated into our business strategies
and across our value chain, including
our sustainability program and strategy.

Risk Management GovernanceIntroduction

Innovating at New Heights

Center, and related business continuity plans and procedures,
which includes Spirit’s Aviation Event Response Plan, Global
IT Disaster Recovery Plan, and Disaster Preparedness Plan.

BOARD OF DIRECTORS

Labor Management

RISK COMMITTEE

Globally, Spirit actively works to protect labor rights,

Oversees the company’s Enterprise Risk Management
Framework and assessment of material risks

including the right to participate in union activities. We
engage with unions in frequent and open discussions. We aim
to collaborate and comply with acts and regulations related

ENTERPRISE RISK MANAGEMENT COUNCIL (ERMC)(CEO AND SENIOR LEADERSHIP)

to employee rights applicable to our business. For example,

Annually surveys senior leadership to prioritize
and assess top-level risks
Annually reviews and updates Spirit’s risk appetite
to align with company strategy and threshold
Annually updates the Risk Committee Charter to alignwith the needs and responsibilities of Board members

Relations Department and Trade Union Registration toin Malaysia, we engage with relevant officers in the Industrial
promote adherence to applicable processes and regulations.
Additionally, our collective bargaining agreements entail

Supports the ERMC in identifying and prioritizing risks

Spirit managers are trained on the protection of workers’
rights engaged in union activities, and our Human Resourcesin union activities without repercussions. Prior to theimplementation of operational changes that may impact
employees, we comply with notice periods as defined

Emergency Preparedness
and Response
At Spirit, we prepare for crises that could impact our business,
including, but not limited to, geo-political issues, natural
disasters, public health emergencies, and other circumstancesthat require rapid response to keep our workforce andcommunities safe. We conduct risk assessments and manage
systems for effective emergency preparedness and response.
We consider exposure to extreme weather events to be asignificant, near-term risk to our people, plant, equipment,
and communities. As a result, we invest in the execution of our
Corporate Crisis Management Plans, Emergency Operations

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report

PeopleGovernanceAppendices

Human Rights
As good corporate citizens, we uphold human rights in thecommunities where we live and work, including compliancewith applicable employment and labor laws. Spirit firmly
believes in respecting others, and this means supporting
human rights.
Our company has zero tolerance for the use of child labor,
forced labor, or human trafficking practices. Spirit does
not knowingly employ or do business with subcontractors,
business partners, suppliers, or other third parties who violate
this policy. Spirit’s Executive Management team is responsible
for the implementation of our company’s Human Rights Policy.
Additionally, Spirit AeroSystems Europe publishes an annual
Limited Antislavery and Human Trafficking Statement.

expectations of partnership.

team engages with management to support engagement
FUNCTIONAL EXPERT LEADERS

Environment

in collective bargaining agreements or by local laws
or regulations.

2021 Human Rights Training

3,800+

employees completed Human
Trafficking Awareness training

2021 Labor Union Representation
Approximately 83% of Spirit’s U.S. employees wererepresented by five unions
Approximately 84% of Spirit’s Belfast employees arepart of the collective bargaining group represented bytrade unions
Approximately 92% of Spirit’s Prestwick employees arepart of the collective bargaining group represented by
one union

Tulsa, Oklahoma, employee.

34

Table of Contents

Global Trade Compliance

Data Privacy and Cybersecurity

Spirit’s Global Trade Compliance Policy and Procedure
outlines the company’s expectations to support compliancewith applicable export control regimes. Spirit utilizes a highlysophisticated global trade compliance software, embeddedwith regulatory and legal requirements, to support company
compliance with applicable export and import laws andregulations in the jurisdictions where Spirit conducts business.
In 2021, Spirit launched a new “Know Your Customer”
procedure that processes new business activity globally andgoes through a thorough due diligence process to supportcompliance with applicable export and sanctions laws andregulations. This process includes financial credit analysis toevaluate the creditworthiness of new business partners.

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices 021 Progress
2
and Activities

100%of Spirit’s employees are assigned
annual Data Privacy, Cybersecurity,
and Phishing training.

Tulsa, Oklahoma, employee.

Spirit maintains the confidentiality, integrity, andavailability of its information and digital resources throughcomprehensive and proactive Compliance, Privacy, andRisk programs developed from our industry’s best practices.
Spirit’s Statement of Security and Privacy Policy outlines ourcompany’s procedures.
Spirit’s Board of Directors, which includes members withcybersecurity expertise, oversees Spirit’s cybersecurityrelated risks. Spirit’s Chief Information Security Officer
and Privacy Officer maintains overall responsibility for thecompany’s Global Information Security and Risk Management
functions. Additionally, Spirit’s Global Information Security
team assesses third-party vendors and contracts to validate
compliance with Spirit security policies and controls, as well
as external data protection requirements.

Conducted a third-party
External Penetration Test
Participated in an Internal Audit
of Data Privacy and Security
Conducted an executive-Level Ransomware
and Data Breach Tabletop Exercise
facilitated by a third party
Engaged with the Wichita State University
NIAR to improve development, recruitment,
and retention of minority and rural
technology talent

Spirit recently created a combined IT and Information Security
Operations Center, operated by Spirit personnel as well as
contracted personnel from Wichita State University’s National
Institute for Aviation Research (NIAR) in order to build a moresustainable information security community here in Wichita.

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report35

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Product Safety
Spirit is focused on the production of highquality and safe products for our customers
and ultimately the end user. As a Tier-1
supplier, Spirit works closely with our
original equipment manufacturer customers
and regulatory authorities to address thequality and safety of the products we
support. We assess the quality risks that
could affect product integrity (product safety)
and integrate elements into our defined
work processes to manufacture our products.

Innovating at New Heights

Environment

PeopleGovernanceAppendices

Spirit’s Quality Management System’s policies, procedures,and other controlled documents address product safety
considerations, including nonconformances. The System’s
manual also provides overarching guidance to Spirit
employees regarding the priority of product safety. To
support continuous improvements in quality and safety,
Spirit has a dedicated Quality Department that uses avariety of assessment and audit tools.

Due Diligence Procedures
Spirit’s product safety risks are integrated into thecompany’s Enterprise Risk Management process.
Product risks are managed during both the design andmanufacturing processes. Spirit’s Aviation Event Response
Plan provides guidance on prompt and effective responses
to an incident involving parts manufactured or designed by
Spirit, including customer notification and the process forprompt disclosure of potential product safety concerns.
Daily audits are conducted internally, while independent
organizations review items that could negatively affectsafety and quality, including Foreign Object Debris,
Product Protection, Proper Tools (calibrated, inspected, andsafe to use), and conformance to Spirit’s standard work
instructions and regulatory requirements. These audits arecompleted in partnership with our customers to provide
real-time feedback.

100%of Spirit’s Facilities
are QMS Certified

Spirit requires annual quality compliance training for all
relevant employees, including Commitment to Quality andPersonal Warranty, Foreign Object Elimination Program,
Authority Acceptance Media Training, and Counterfeit
Parts. Additionally, new employees receive the appropriatetask-related training for their position, focusing on
compliance to requirements.

INNOVATING TO NEW HEIGHTS

Introduction

2021 Spirit AeroSystems Sustainability Report

Tulsa, Oklahoma, employee.

36

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Supply Chain
Management
Spirit proactively manages risks to promote
supply chain responsibility throughtransparency within all supplier contractual
agreements and purchasing documents.
Spirit’s Supplier Code of Conduct
outlines our company’s requirements andexpectations of our suppliers and otherbusiness partners to promote ethicalbehavior, human rights, and management ofsafety and environmental risks.

100%

of employees in Spirit’s purchasing
department are assigned training
on Anti-Bribery/Anti-Corruption,
Hazardous Waste, Trafficking in
Persons Awareness, Insider Trading,Spirit’s Code of Conduct, andCounterfeit Parts Prevention

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report

As part of Spirit’s risk management procedures, weregularly audit our supply base, ranging from simple
product audits to Quality System Audits. These audits allow
us to take an in-depth look at processes, procedures, andproducts. Based on results from these audits, we may also
implement Root Cause Corrective Action and additional
monitoring to evaluate the application of corrective
actions. Additionally, our suppliers are required tocomplete an annual survey, which includes potential ESG
risks. Based on survey results, Spirit may require additional
information or audits. ESG impacts are discretely assessed
and addressed each time Supplier Quality and Supplier
Development representatives visit supplier sites.

Monitoring Human Rights Risks
in the Supply Chain
As part of Spirit Europe’s efforts to monitor and reduce therisk of modern slavery and human trafficking in our supply
chains, we conduct on-site audits of our key suppliers
annually. In 2021, we conducted a survey to assess Spirit
Europe’s suppliers’ compliance with our zero-tolerance
policy for modern slavery and human trafficking. In
2022, we will expand to a global anti-human-trafficking
assessment with support from a third-party assessor.

Counterfeit Parts Prevention
Spirit’s Counterfeit Parts Prevention program includes a
two-prong approach to mitigate risks. Employees are madeaware of the potential risks, in addition to the company
establishing a robust procurement process to minimize therisk of counterfeit part procurement. If suspect counterfeit
parts are discovered, the appropriate regulatory agencies
are notified, and an alert is provided to the GovernmentIndustry Data Exchange Program.

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

REACH Compliance
We understand our responsibility to demonstrate thesafety of chemical substances and to manage the risks
that chemicals may pose to human health and theenvironment. We engage our supply chain through a third
party to provide information regarding materials used on
our products, as well as providing material declaration
information as required for REACH compliance. Spirit
supports the investigation and approval of alternative
materials to minimize risks of safety, health, andenvironmental impact, as well as obsolescence concerns.

Conflict Minerals
Spirit is committed to the responsible sourcing of minerals
throughout our global supply chain and complies with the
Dodd-Frank disclosure requirements, as disclosed in our
Conflict Minerals Policy. If Spirit’s suppliers are found tosource materials from Covered Countries, where minerals
and materials used in our supply chain are potentiallymined in conflict-affected and high-risk areas, our supply
chain management team engages with the identified
suppliers to implement remedial actions.
We encourage our suppliers to undertake reasonable
due diligence within their own supply chains to assurethat conflict minerals are sourced only from mines andsmelters/refiners outside of the Covered Countries, ormines and smelters/refiners who have been certified byan independent third party as “conflict free” if sourced
within the Covered Countries. If we determine that anyof our products or components contain conflict minerals
from a mine or facility in a Covered Country that is notconflict-free, we will work toward transitioning to products/
components that are conflict-free.

37

Table of Contents

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

Enhancing Our Supplier Environmental, Social, and Governance(ESG) Engagements
In 2021, Spirit continued to enhance and expand ESG requirements for our suppliers. We partnered with a third party to
begin surveying suppliers on their practices regarding human trafficking, sustainability, anti-bribery, and anti-corruption,
enabling the company to identify additional risks and work toward remedial actions.
Modules

2021
Oct

Data Workshop

Nov

2022
Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

◆

Supplier Data Upload
AD-DSL
Conflict Minerals
NIST
ESG—Climate Impact
ESG—Human Trafficking Survey
ESG—Diversity and Inclusion
ESG—Organizational Commitment
ESG—Resource Use
Information Security

Global Digital Logistics Center in Wichita, Kansas.

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2021 ESG
Industry
Engagements

Spirit continued to participate insustainability events and activities withindustry and community organizations on
innovations that will enhance our businessand contribute to sustainability.

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report

Introduction

Innovating at New Heights

Environment

PeopleENGAGEMENTDESCRIPTION

Defense Manufacturing Conference

Presented on the Advanced Manufacturing of an Oxide-Oxide Ceramic Matrix Composite and the Development of AFP and
Stamp Forming of a Thermoplastic Body Frame

Airbus Sustainability Forum

Participated on Moving to Green Clean Aviation: from Paper to Product panel

Wichita State University (WSU)
Energy Management Project

Partnered with WSU Engineering Students for Energy Management recommendations at the Wichita facility

Rolls Royce Working Group

Participated in the Rolls Royce Supplier Sustainability Forum

Strathclyde Innovation Workshop(University of Strathclyde, Scotland)Participated in the Strathclyde Innovation Workshop to help identify companies’ innovation capability and the innovation
capability of the aerospace supply chain in Scotland

Kansas Water Authority

Spirit’s Senior Director of Compliance and Sustainability served as one of the 13 voting members of the Kansas Water Authority

Boom Supersonic Net Good Summit

Participated in the Boom Supersonic Net Good Summit, which convened 50 industry leaders, sustainability experts, andcreative thinkers to drive action and innovation in sustainable travel

Sustainable Tulsa

Participated in Sustainable Tulsa, a nonprofit organization that provides education, tools, and resources to inform and engage
businesses and individuals in social responsibility, economic vitality, and environmental stewardship

Pre-COP 26 Summit

Participated on the Future Leaders Panel to highlight industry initiatives to develop new technologies and more sustainableaircraft products

CAMX Aerospace

Led the high-performance forum on the certification of aircraft and new materials for the AAM eVTOL market; provided panelists
for the Spirit AeroSystems Featured Panel: Ultracompetitive Composites

GovernanceAppendices39

Table of Contents

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

APPENDICES
Performance Tables

Environmental Global Energy Consumption

Economic and Governance Economic
Total Revenues (in millions)
Community Contributions (in millions)

2021

2020

2019

2018

$3,953$3,405$7,863$7,222

$4.0

$3.7

$5.26

N/A

2020**

2019***

2018****

Total Board of Directors Members

11

10

10

9

Independent Board Members

10

8

8

7

Women Board Members (%)

18%

20%

20%

22%

Men Board Members (%)

82%

80%

80%

78%

* Board of Directors’ composition metrics reflect data as of April 28, 2022.
** Board of Directors’ composition metrics reflect data as of April 28, 2021.
*** Board of Directors’ composition metrics reflect data as of April 22, 2020.
**** Board of Directors’ composition metrics reflect data as of April 24, 2019.

2020

2019

2018

Total Energy (MWh)

1,291,288

1,113,961

1,385,192

1,342,187

Purchased Electricity (MWh)581,838

504,428

618,413619,402

Fuel (MWh)709,450

609,533

766,779

722,786

62.83

63.78

83.22

83.12

2021

2020

2019

2018

494,238

483,159

593,062593,576

Energy Intensity (kWh per sq.ft.)

 Regional Energy Consumption

 Governance
2021*

2021

North America (U.S.) Electricity (MWh)North America (U.S.) Fuel (MWh)627,934

587,863744,281

701,533

Total North America (U.S.) Energy (MWh)1,122,173

1,071,023

1,337,344

1,295,109Europe Electricity (MWh)74,744

12,14013,194

13,920Europe Fuel (MWh)80,593

19,602

19,304

17,637

Total Europe Energy (MWh)155,337

31,74232,49731,557

Asia Electricity (MWh)11,516

9,129

12,157

11,906

890

2,067

3,194

3,616

12,406

11,196

15,351

15,522

Asia Fuel (MWh)Total Asia Energy (MWh) Regional Electricity Consumption
2021

2020

2019

2018

North America (U.S.) Non-Renewable Electricity (MWh) (%)

261,798 (53%)

366,406 (76%)

461,937 (78%)

478,939 (81%)

North America (U.S.) Renewable Electricity (MWh) (%)

232,439 (47%)

116,682 (24%)

131,125 (22%)

111,762 (19%)

Europe Non-Renewable Electricity (MWh) (%)

27,208 (36%)

1,327 (11%)

1,362 (10%)

1,404 (10%)

Europe Renewable Electricity (MWh) (%)

47,527 (64%)

10,813 (89%)

11,832 (90%)

12,516 (90%)

Asia Non-Renewable Electricity (MWh) (%)

10,968 (95%)

8,695 (95%)

11,481 (94%)

11,229 (94%)

558 (5%)442 (5%)676 (6%)678 (6%)

Asia Renewable Electricity (MWh) (%)

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Table of Contents

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

Performance Tables
Environmental (continued)
 Regional Waste Generation

 Global Greenhouse Gas Emissions
2021

2020

2019

2018

Total Scope 1 Emissions (MTCO2e)129,643

111,094

139,807

131,730

North America (U.S.) Non-Hazardous Waste (tons)

Total Scope 2 Emissions (MTCO2e)**197,260

217,545

297,670

324,053

North America (U.S.) Hazardous Waste (tons)

2,224

1,062

—

—

Europe Non-Hazardous Waste (tons)

Scope 3 Emissions: North American Business Travel (MTCO2e)
Scope 1 and Scope 2 GHG Emissions Intensity (kg per sq.ft.)

15.91

18.82

26.28

28.23

 Regional Greenhouse Gas Emissions
2021

2020

2019

2018

North America (U.S.) (MTCO2e)283,513319,162

425,973444,625

Europe (MTCO2e)

34,853

3,696

3,712

3,423

Asia (MTCO2e)

8,182

5,781

7,792

7,735

 Other Global Significant Air Emissions
NOx Emissions (excluding N2O) (MT)SOx Emissions (MT)Non-methane VOC Emissions (MT)

2021

2020

2019

2018

114

97

112

106

9

9

11

13

252

250

677

641

2020

2019

2018

859

1,103

1,833

1,828

2,511

2,197

4,613

4,464

2,376

615

1,062

1,195

Europe Hazardous Waste (tons)

355

142

112

208

Asia Non-Hazardous Waste (tons)

0

0

0

0

Asia Hazardous Waste (tons)

62

67

84

68

 Certifications
2021

2020

2019

2018

Facilities with ISO14001 Certification

7

7

6

6

Facilities with ISO 9001/AS 9100 Certification

10

8

6

6

Facilities with ISO 45001 Certification

7

7

6

6

Facilities with QMS Certification

10

8

6

6

Social Total Workforce Global Water Consumption
2021

2020

2019

2018

Municipal Potable Water Withdrawals (million gallons)

292

244

564

640

Municipal Grey Water Withdrawals (million gallons)

334

254

307

194

Total Water Consumed (million gallons)

626

498

871

834

30.44

28.55

52.35

51.63

Water Intensity (gal per sq.ft.)

2021

 Global Waste Generation
2021

2020

2019

2018

Non-Hazardous Waste (tons)

3,250

1,718

2,895

3,023

Hazardous Waste (tons)

2,936

2,406

4,808

4,741

2021

2020

2019

2018

Total Employees (including contractors)

16,575

14,49818,52017,361

Total New Employee Hires

3,219*

3,900

3,481

3,279

New Hires Women

617

541

641

565

2,562

3,359

2,840

2,714

New Hires < 30 Years Old

946

654

1,768

1,576

New Hires 31–50 Years Old

1,471

1,405

1,271

1,296

New Hires 50+ Years Old

802

1,841

442

407

Voluntary Turnover Rate (%)

4.5%

3.0%

7.0%

5.0%

Involuntary Turnover Rate (%)

4.2%

1.0%

2.0%

2.0%

New Hires Men* Includes (40) undisclosed gender.
** Market-Based.

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Table of Contents

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

Performance Tables
Social (continued)
 Permanent and Temporary Workforce

 Total Employee Diversity

2021

2020

2019

2018

Total Number of Permanent Employees (men)13,45912,026

14,87613,990Total Number of Permanent Employees (women)

2,738

2,386

3,300

3,080

2021

2020

2019

2018

Women (%)

16.8%

16.6%

18.2%

18.1%

Men (%)

82.9%

83.4%

81.8%

81.9%

Not Specified (%)

0.3%

0.0%

0.0%

0.0%

Total Number of Permanent Employees (unspecified)

10

2

3

0

285

256

159

196

< 30 Years Old (%)

12.4%

10.3%

18.5%

16.8%

Total Number of Temporary Employees (men)31–50 Years Old (%)

44.6%

47.8%

43.6%

43.2%

Total Number of Temporary Employees (women)

47

32

30

22

50+ Years Old (%)

43.0%

41.9%

37.8%

40.0%

Total Number of Temporary Employees (unspecified)

36

23

152

73

Minority (%)

24.8%

24.7%

30.0%

28.4%

White (%)

48.6%

74.8%

69.9%

71.5%

Not Specified (%)

26.6%

0.5%

0.1%

0.1%

 Gender-Specific Diversity

 Full-Time and Part-Time Workforce
2021

2020

2019

2018

Total Number of Full-Time Employees (men)13,73912,074

14,87013,985

Total Number of Full-Time Employees (women)

2,761

2,374

3,272

3,055

2021

Total Number of Full-Time Employees (unspecified)

46

3

3

-

% Women in Junior Management

15.6%

Total Number of Part-Time Employees (men)

5

4

22

12

% Women in Top Management

23.5%

Total Number of Part-Time Employees (women)

24

23

32

29

% Women in Revenue-Generating Management

1.9%% Women in STEM Positions

14.1%

 Health and Safety

 Management Level Employee Diversity

2021

2020

2019

2018

Total Recordable Injury Rate

1.78

1.57

3.54

3.81

2021

2020

2019

2018

Lost-Time Incident Rate

0.52

0.56

1.05

1.26

Women (%)

19.1%

19.5%

18.5%

18.2%

Occupational Illness Frequency Rate

0.41

0.43

1.09

1.17

Men (%)

80.5%

80.5%

81.5%

81.8%

Fatality Rate (Contractor and Employee)

0.00

0.00

0.00

0.00

Not Specified (%)

0.4%

—

—

—

< 30 Years Old (%)

2.2%

1.8%

2.9%

2.9%

31–50 Years Old (%)

50.3%

54.7%

55.5%

52.6%

50+ Years Old (%)

47.5%

43.2%

41.6%

44.6%

Minority (%)

15.7%

15.4%

16.6%

16.9%

White (%)

57.5%

83.9%

83.3%

83.1%

Not Specified (%)

26.8%

0.7%

0.1%

0.0%

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2021 Spirit AeroSystems Sustainability Report42

Table of Contents

GlobalReporting
Initiative(GRI) Index

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendicesGRI 2: General DisclosuresDISCLOSURE

DESCRIPTIONRESPONSE

The organization and its reporting practices
2-1

Organizational details

About Spirit AeroSystems, page 3
About Spirit AeroSystems
2021 Annual Report (“Our Company” and “Operating Segments and Products”), page 4

2-2

Entities included in the organization’s sustainability reporting

About Spirit AeroSystems, page 3This Report reflects all of Spirit AeroSystems’ operations, facilities, and employees, unless otherwise
stated.

2-3Reporting period, frequency, and contact point

Our reporting period is January 1, 2021, through December 31, 2021.
Spirit AeroSystems reports annually on the company’s sustainability performance.
investorrelations@spiritaero.com
Twitter
Facebook
LinkedIn
Instagram

Spirit’s Sustainability Report follows
the GRI disclosure framework, aninternationally recognized set of indicatorsfor economic, environmental, and social
topics of business performance.
This Index maps disclosures that are material forour business with the content in this Report andreferences external sources located on our corporatewebsite. We also provide direct answers for selectdisclosures in the Index.

2-4

Restatements of information

Past global and regional energy consumption, greenhouse gas (GHG) emissions, and fuel usage
data is restated due to improvements in internal monitoring and reporting processes, as well as
improved availability of market-based carbon intensity values.

2-5

External assurance

Independent Assurance Statement, page 59

Activities and workers
2-6

Activities, value chain, and other business relationships

About Spirit AeroSystems, page 3
Spirit’s Sustainability Strategy, page 6
Programs and Capabilities
2021 Annual Report (“Our Company”), page 4; (“Operating Segments and Products”), pages 4–5;(“Our Manufacturing, Engineering, and Support Services”), pages 5-6;(“Suppliers and Materials”), page 10
In 2021, Spirit sourced materials from 1,107 direct suppliers and 773 indirect suppliers,
representing more than $1.6 billion in spend.

2-7

Employees

Diversity, Equity, and Inclusion, page 222021 Annual Report (“Human Capital”), pages 11–12
Performance Tables, page 41

2-8

Workers who are not employees

Diversity, Equity, and Inclusion, page 22
Performance Tables, page 41
2021 Annual Report (“Human Capital”), pages 11–12

Governance
2-9

Governance structure and composition

Board Oversight, page 30
Officers and Directors
Committee Composition
Committee Charters
2022 Proxy Statement (“Corporate Governance”), pages 12−14 and 18–19

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Table of Contents

GRI Index
GRI 2: General Disclosures(continued)

Introduction

Innovating at New Heights

DISCLOSURE

DESCRIPTIONRESPONSE

2-10

Nomination and selection of the highest governance body

Corporate Governance Guidelines

Environment

PeopleGovernanceAppendices

Corporate Governance and Nominating Committee Charter
2022 Proxy Statement (“Corporate Governance”), pages 15–17
2-11

Chair of the highest governance body

Officers and Directors
2022 Proxy Statement (“Message From Our Chairman”)

2-12
2-13

Role of the highest governance body in overseeing
the management of impacts

Board Oversight, page 30

Delegation of responsibility for managing impacts

Board Oversight, page 30

2022 Proxy Statement (“Corporate Governance”), pages 18–21
Global Ethics and Compliance, page 32
Risk Management, page 34
2022 Proxy Statement (“Corporate Governance”), pages 18–21

2-14

Role of the highest governance body in sustainability reporting

Board Oversight, page 30
2022 Proxy Statement (“Corporate Governance”), pages 18, 21–22
Beginning in 2022, Spirit’s Board of Directors is responsible for reviewing the company’s Annual
Sustainability Report and CDP Climate Change Response.

2-15

Conflicts of interest

Global Ethics and Compliance, page 32
Corporate Governance Guidelines, page 2
Finance Code of Professional Conduct
2022 Proxy Statement (“Corporate Governance”), pages 12 and 21–22

2-16

Communication of critical concerns

Global Ethics and Compliance, page 32
2022 Proxy Statement (“Corporate Governance”), pages 21–22; (“General Information”), page 72
The number of critical concerns reported to the Board of Directors is not available during
this reporting period.

2-17

Collective knowledge of the highest governance body

Board Oversight, page 30
Officers and Directors
2022 Proxy Statement (“Election of Directors”), pages 6–11; (“Corporate Governance”), page 14

2-18

Evaluation of the performance of the highest governance bodyCompensation Committee Charter
2022 Proxy Statement (“Corporate Governance”), page 16

2-19

Remuneration policies

Compensation Committee Charter
2022 Proxy Statement (“Director Compensation”), pages 24–26; (“Compensation Discussion
and Analysis”), pages 30, 46–51

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report

2-20

Process to determine remuneration

2022 Proxy Statement (“Proxy Statement Summary”), page 5; (“Director Compensation”),
pages 24–26; (“Proposal 2”), page 29; (“Compensation Discussion and Analysis”), pages 30–40;(“Proposal 4”), pages 66–67

2-21

Annual total compensation ratio

2022 Proxy Statement (“2021 CEO Pay Ratio”), page 61

44

Table of Contents

GRI Index
GRI 2: General DisclosuresDISCLOSURE

DESCRIPTION

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

RESPONSE

Strategies, Policies, and Practices
2-22Statement on sustainable development strategy

Message from Our President and CEO, page 2

2-23

Policy commitments

Code of Conduct
Human Rights Policy(continued)

Modern Slavery Statement
Supplier Code of Conduct
2-24

Embedding policy commitments

Global Ethics and Compliance, page 32
Risk Management, page 34
Code of Conduct

2-25

Processes to remediate negative impacts

Global Ethics and Compliance, page 32
Risk Management, page 34
Ethics Overview

2-26

Mechanisms for seeking advice and raising concerns

Global Ethics and Compliance, page 32
Code of Conduct
Ethics Overview

2-27

Membership associations

Spirit’s Sustainability Strategy, page 8

2-28Compliance with laws and regulations

2021 Annual Report (“Regulatory Matters”), pages 10–11
Spirit has not paid any significant fines related to environmental or ecological issues in the past four
fiscal years.

2-29

Approach to stakeholder engagement

Spirit’s Sustainability Strategy, page 8

2-30

Collective bargaining agreements

Risk Management, page 34
2021 Annual Report (“Labor Relations and Collective Bargaining Agreements”), page 12

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GRI Index
GRI 3: Material Topics

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

GRI 3: Material Topics
DISCLOSURE

DESCRIPTIONRESPONSE

3-1

Process to determine material topics

Spirit’s Sustainability Strategy (“Materiality”), page 7

3-2

List of material topics

Spirit’s Sustainability Strategy (“Materiality”), page 7

Economic Performance

2021 Annual Report (“2021 Highlights”), page 1; (“Operating Segment and Products”),
pages 4–5; (“Financial Statements and Supplementary Data”), pages 52–110

Economic
3-3

Global Ethics and Compliance (”Tax Strategy”), page 33
2021 UK Tax Strategy
201-1

Direct economic value generated and distributed

Performance Tables, page 40
2021 Annual Report (“2021 Highlights”), page 1; (“Operating Segment and Products”),
pages 4–5; (“Financial Statements and Supplementary Data”), pages 52–110

201-2
201-3

Financial implications, and other risks and opportunities forthe organization’s activities due to climate change

Task Force on Climate-related Financial Disclosures Report, page 53

Coverage of the organization’s defined benefit plan obligations

Health, Safety, and Wellbeing (“Employee Benefits and Wellness Programs”), page 20

CDP Climate Change Response
2021 Annual Report (“Pension”), page 33; (“Pension and Other Post-Retirement Benefits”), page 77
2022 Proxy Statement (“Benefits and Perquisites”), pages 48–50

3-3

Indirect Economic Impacts

Community Engagement, page 27
Community
Corporate Grants
Good Neighbor Fund

203-1

Infrastructure investments and services supported

Performance Tables, page 40
Community Engagement, page 27
Community
Corporate Grants
Good Neighbor Fund

3-3

Anti-Corruption

Global Ethics and Compliance, page 32
Ethics Overview
Anti-Corruption and Bribery Policy
Code of Conduct

205-2

Communication and training about anti-corruption policies andprocedures

Global Ethics and Compliance, page 32
Ethics Overview
Anti-Corruption and Bribery Policy
Code of Conduct

205-3

Confirmed incidents of corruption and actions taken

Global Ethics and Compliance, page 32
Spirit did not have any losses from legal proceedings associated with bribery, corruption, andrelated incidents in 2021.

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Table of Contents

GRI Index
GRI 3: Material Topics (continued)

DISCLOSURE

DESCRIPTION

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

RESPONSE

Environmental
3-3EnergyResource Efficiency, page 12
Energy and Emissions, page 14
Environment, Health, and Safety Policy
CDP Climate Change Response

302-1

Energy consumption within the organization

Energy and Emissions, page 14
Performance Tables, page 40

302-3

Energy intensity

Energy and Emissions, page 14
Performance Tables, page 40

3-3

Water and EffluentsResource Efficiency, page 12
Water, page 16
Environment, Health, and Safety Policy

303-1

Interactions with water as a shared source

Water, page 16
Performance Tables, page 40
Environment, Health, and Safety Policy

303-3

Water withdrawal

Water, page 16
Performance Tables, page 40

303-5

Water consumption

Water, page 16
Performance Tables, page 40

3-3

Emissions

Resource Efficiency, page 12
Energy and Emissions, page 14
Environment, Health, and Safety Policy
2021 Annual Report (“Risk Factors”), page 18
CDP Climate Change Response

305-1
305-2
305-4

Direct (Scope 1) GHG emissions

Energy and Emissions, page 14

Assured by Third-Party Verifier

Performance Tables, page 40

Energy indirect (Scope 2) GHG emissions

Energy and Emissions, page 14

Assured by Third-Party Verifier

Performance Tables, page 40

GHG emissions intensity

Energy and Emissions, page 14
Performance Tables, page 40

305-5

Reduction of GHG emissions

Energy and Emissions, page 14
Performance Tables, page 40
CDP Climate Change Response

305-7

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2021 Spirit AeroSystems Sustainability Report

Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant
air emissions

Energy and Emissions, page 14
Performance Tables, page 40

47

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GRI Index
GRI 3: Material Topics (continued)

Introduction

DISCLOSURE

DESCRIPTIONRESPONSE

3-3

Waste

Resource Efficiency, page 12

Innovating at New Heights

Environment

PeopleGovernanceAppendices

Waste, page 17
Environment, Health, and Safety Policy
306-1

Management of waste-related impacts

Waste, page 17
Performance Tables, page 40

306-3

Waste generated

Waste, page 17
Performance Tables, page 40

3-3

Supplier Environmental Assessment

Supply Chain Management, page 37
Supplier Code of Conduct
REACH Compliance
Conflict Minerals Policy

308-1

New suppliers that were screened using environmental criteria

Supply Chain Management, page 37
Supplier Code of Conduct
REACH Compliance
Conflict Minerals Policy

Social3-3

Employment

Health, Safety, and Wellbeing (“Employee Benefits and Wellness Programs”), page 20
2021 Annual Report (“Human Capital”), pages 11–12
Careers Overview
Total Rewards
Success at Spirit

401-1

New employee hires and employee turnover

Performance Tables, page 40

401-2

Benefits provided to full-time employees that are not provided
to temporary or part-time employees

Health, Safety, and Wellbeing (“Employee Benefits and Wellness Programs”), page 20
2021 Annual Report (“Human Capital”), pages 11–12
Careers Overview
Total Rewards
Success at Spirit

401-3
3-3

Parental leave

Health, Safety, and Wellbeing (“Employee Benefits and Wellness Programs”), page 20

Labor/Management Relations

Risk Management (“Labor Relations”), page 32
2021 Annual Report (“Human Capital”), pages 11–12

402-1

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2021 Spirit AeroSystems Sustainability Report

Minimum notice periods regarding operational changes

Prior to the implementation of operational changes that may impact employees, we comply with
notice periods as defined in collective bargaining agreements or by local laws or regulations.

48

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GRI Index

Introduction

Innovating at New Heights

DISCLOSURE

DESCRIPTIONRESPONSE

3-3

Occupational Health and Safety

Health, Safety, and Wellbeing, page 20

Environment

PeopleGovernanceAppendices

Health and Safety

GRI 3: Material Topics (continued)

Environment, Health, and Safety Policy
2021 Annual Report (“Regulatory Matters”), pages 10–11
403-1

Occupational health and safety management system

Health, Safety, and Wellbeing, page 20
Health and Safety
Environment, Health, and Safety Policy

403-4

Worker participation, consultation, and communication
on occupational health and safety

Health, Safety, and Wellbeing, page 20

403-5

Worker training on occupational health and safety

Health, Safety, and Wellbeing, page 20

403-6

Promotion of worker health

Health, Safety, and Wellbeing, page 20

403-8

Workers covered by an occupational health and safety
management system

Health, Safety, and Wellbeing, page 20

403-9

Work-related injuries

Health, Safety, and Wellbeing, page 20
Performance Tables, page 40

3-3

Training and Education

Training, Engagement, and Innovation, page 25
2021 Annual Report (“Human Capital”), pages 11–12

404-2

Programs for upgrading employee skills and transition
assistance programs

Training, Engagement, and Innovation, page 25

404-3

Percentage of employees receiving regular performanceand career development reviews

Training, Engagement, and Innovation, page 25

Diversity and Equal Opportunity

Diversity, Equity, and Inclusion, page 22

3-3

Diversity, Equity, and Inclusion
Human Rights Policy
Discrimination and Harassment Policy
UK Gender Pay Gap Report
France Gender Professional Equality Report
2021 Annual Report (“Human Capital”), pages 11–12
405-1

Diversity of governance bodies and employees

Board Oversight, page 32
Performance Tables, page 40

3-3

Freedom of Association and Collective Bargaining

Risk Management (“Labor Management”), page 34
2021 Annual Report (“Human Capital”), pages 11–12

407-1

Operations and suppliers in which the right to freedomof association and collective bargaining may be at risk

Risk Management (“Labor Management”), page 34
Human Rights Policy
Supplier Code of Conduct
2021 Annual Report (“Human Capital”), pages 11–12

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GRI Index

Introduction

Innovating at New Heights

DISCLOSURE

DESCRIPTIONRESPONSE

3-3

Local Communities

Community Engagement, page 27

Environment

PeopleGovernanceAppendices

Community

GRI 3: Material Topics (continued)

Corporate Grants
Good Neighbor Fund
413-1

Operations with local community engagement,
impact assessments and development programs

Community Engagement, page 27
Community
Corporate Grants
Good Neighbor Fund

3-3

Supplier Social Assessment

Supply Chain Management, page 37
Supplier Code of Conduct
REACH Compliance
Conflict Minerals Policy

414-1

New suppliers that were screened using social criteria

Supply Chain Management, page 37
Supplier Code of Conduct

3-3
415-1

Public Policy

Global Ethics and Compliance (“Public Policy and Advocacy”), page 33

Political Contributions

Global Ethics and Compliance (“Public Policy and Advocacy”), page 33
In 2021, Spirit’s U.S. Chamber of Commerce dues were $150,000, and Aerospace Industries
Association (AIA) dues were $471,551.

3-3

Customer Health and Safety

Product Safety, page 36
2021 Annual Report (“Regulatory Matters”), pages 10–11

416-1
3-3

Assessment of the health and safety impacts of productand service categories

Product Safety, page 36

Customer Privacy

Risk Management (“Data Privacy and Cybersecurity”), page 35
Privacy Policy
Statement of Security

418-1

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2021 Spirit AeroSystems Sustainability Report

Substantiated complaints concerning breaches of customer
privacy and losses of customer data

Spirit had no material, substantiated complaints concerning breaches of customer privacy
and losses of customer data in 2021.

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Sustainability
AccountingStandards
Board (SASB)
Disclosures

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

Activity Metrics
SASB CODE

SASB METRICRESPONSE

RT-AE-000.A

Production by reportable segment

Aircraft components (shipset deliveries): 1,028

RT-AE-000.B

Number of employees

At December 31, 2021, Spirit had 16,575 employees.

Accounting Metrics
SASB CODE

SASB METRICRESPONSE

Energy Management
RT-AE-130a.1

Total energy consumed (% grid electricity and % renewable)

In 2021, Spirit’s energy consumption was 1,291,288 megawatt hours (MWhs). 45% of energy
consumed was from grid electricity, and 48% of electricity was from renewable sources.

Hazardous Waste Management
RT-AE-150a.1

Amount of hazardous waste generated (% recycled)

In 2021, 2,936 tons of hazardous waste was generated.
The percent of hazardous waste recycled is not available.

Number and aggregate quantity of reportable spills,
and quantity recovered

Spirit had no past spills needing long-term remediation at our facilities.

RT-AE-230a.1

Number of data breaches (% involving confidential information)

Spirit did not have any known data security breaches in 2021.

RT-AE-230a.2

Approach to identify and address data security risks at company
and product levels

As part of Spirit’s program, the company utilizes internal and external information security threat
intelligence sources to maintain real-time awareness of cyber risks world-wide. Relevant and emerging
vulnerabilities, as well as activities by relevant threat actors, are closely tracked by a full-time security
staff and third-party managed security service. Spirit utilizes internal and third-party resources tomitigate and recover from events that could interrupt vital business.

RT-AE-150a.2

SASB Standards enable businesses
around the world to identify, manage,
and communicate financially material
sustainability information to theirshareholders. The Standards aremaintained under the auspices of the Value
Reporting Foundation, a global nonprofit
organization that offers a comprehensive
suite of resources designed to help
businesses and shareholders develop ashared understanding of enterprise value.
We have included topics and metrics related to the
Aerospace and Defense Industry. For additional
information, please visit www.sasb.org.

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report

Data Security

Risk Management (“Data Privacy and Cybersecurity”), page 35
Privacy Policy
Statement of Security
Product Safety
RT-AE-250a.1

Number of recalls issued

As a supplier, we do not have authority for product recalls.
Spirit’s quality disclosure process resulted in one potential safety-related service bulletin issued by
the original equipment manufacturer in 2021.

RT-AE-250a.2

Number of counterfeit parts detected (% avoided)

Spirit detected zero counterfeit parts in 2021.

RT-AE-250a.3

Number of Airworthiness Directives received(# of total units affected)

This metric is not applicable to Spirit. As a supplier, Spirit does not receive Airworthiness Directives.

RT-AE-250a.4

Total amount of monetary losses as a result of legal proceedings
associated with product safety

This metric is not applicable during the reporting period.

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SASB
Disclosures

SASB CODE

SASB METRIC

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

RESPONSE

Fuel Economy & Emissions in Use-Phase
RT-AE-410a.1

Revenue from alternative energy-related productsThis metric is not currently applicable to our business model.

RT-AE-410a.2

Approach and strategy to reduce fuel economy and GHG
emissions from products

To support customer needs and industry goals, Spirit’s resource efficiency strategy considers thefull life cycle of our products, including sourcing, design, transportation, use, and end-of life, toincrease efficiencies and reduce GHG emissions.
We are focused on the efficient use of natural resources and raw materials, including titanium,
aluminum, steel, and carbon fiber, used in manufacturing.
Resource Efficiency, page 12

Materials Sourcing
RT-AE-440a.1

Management of risk associated with the use of critical materials

To manage risks associated with the use of critical materials, we are required to procure fromsuppliers controlled by OEM.
Our customers are under the same material restrictions and have incorporated those requirements
into their material specifications. As a result, most of our materials support customer-specificrequirements.
Risk Management, page 34

Business Ethics
RT-AE-510a.1

Total amount in monetary losses from legal proceedings associatedwith bribery, corruption, and related incidents

Spirit did not have any known losses from legal proceedings associated with bribery, corruption,and related incidents in 2021.

RT-AE-510a.2

Revenue from countries ranked in the “E” or “F” Band of
Transparency International’s Government Defense
Anti-Corruption Index

Revenue data from countries ranked in the “E” or “F” Band is unavailable, as the metrics arereported as inter-company revenue.

RT-AE-510a.3

Processes to manage business ethics risks throughout
the value chain

Spirit’s Code of Conduct and Supplier Code of Conduct aim to manage business ethics risks
throughout our value chain.
Global Ethics and Compliance, page 32
Risk Management, page 34
Code of Conduct
Supplier Code of Conduct

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Table of Contents

Task Forceon Climaterelated
Financial
Disclosures(TCFD) Report

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

GOVERNANCE
Disclose the organization’s governance around climate-related risks and opportunities.
DISCLOSURERESPONSE

Board’s oversight of climate-relatedrisks and opportunities

Spirit’s Board of Directors has director oversight of the company’s climate-related risks and opportunities through its Nominating andCorporate Governance Committee. This Committee is responsible for reviewing Spirit’s practices and reporting with respect to corporate
responsibility, environmental, and social factors that are of significance to the company and its stakeholders.
Additionally, Spirit’s Board of Director’s Risk Committee is responsible for overseeing and mitigating enterprise-level risks, including strategic,
operational, and climate-related risks. Our Risk Committee collaborates with Board’s Audit Committee to oversee financial-related risk
exposures—including, but not limited to, those which may be associated with climate change.
Board Oversight, page 30
Energy and Emissions, page 14
Corporate Governance and Nominating Committee Charter
Audit Committee Charter
Risk Committee Charter
CDP Climate Change Response

Spirit’s TCFD Report is aligned with thefour sections of the TCFD framework:(1) governance, (2) strategy, (3) risk
management, and (4) metrics and targets.
For more information on TCFD, please
visit https://www.fsb-tcfd.org.

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability ReportManagement’s role in assessing
and managing climate-related risks
and opportunities

Spirit’s President and Chief Executive Officer, who serves on our company’s Board of Directors is responsible for guiding and approving
Spirit’s climate-related strategy, which encompasses our operational efficiency, strategic sourcing, and product innovation initiatives.
Additional oversight of Spirit’s sustainability program and strategy is provided by Spirit’s executive leadership.
Spirit’s Senior Director of Compliance and Sustainability oversees and executes on the company’s corporate-wide sustainability strategies
and reporting.
Board Oversight, page 30
Energy and Emissions, page 14
CDP Climate Change Response53

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TCFD Report

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

STRATEGY
Disclose the actual and potential impacts of climate-related risks and opportunities
on the organization’s businesses, strategy, and financial planning.
DISCLOSURERESPONSE

Climate-related risks and opportunities
identified over short-term, mediumterm, and long-term horizon

Spirit uses the following time horizons for the company’s climate-related risks and opportunities: Short-term (1-2 years);
Medium-term (3-5 years); and Long-term (6-15 years).

 Short-term Climate-related Risks
Uncertainty in market signals: Our profitability is affected by the prices of components and raw materials, such as titanium, aluminum, steel,and carbon fiber, used in the manufacturing of our products. These prices may fluctuate based on a number of factors beyond our control.

 Medium-term Climate-related Risks
Mandates on and regulation of existing products and services: Our operations are subject to extensive regulation under environment, health,and safety laws and regulations in the U.S. and other countries in which we operate. We may be subject to potentially significant fines or
penalties, including criminal sanctions, if we fail to comply with these requirements.
Increased stakeholder concern or negative stakeholder feedback: Shareholders, customers, employees, and communities are increasinglyinterested in learning more about how companies like Spirit are addressing climate-related risks and opportunities. We have observedheightened awareness and attention from our shareholders and customers to better understand Spirit’s climate governance, strategy, risks,
metrics, and targets in alignment with the TCFD framework’s tenets.
Increased severity and frequency of extreme weather events: Our manufacturing facilities and our suppliers’ facilities may be damaged or
disrupted by extreme weather events, including hurricanes and wildfires, impacting our ability to meet client expectations.

 Medium-term Climate-related Opportunities
Use of more efficient production and distribution processes: By increasing the energy efficiency of our production and distribution processes,
we have the opportunity to reduce our annual spend on natural gas, diesel, propane, gasoline, and electricity. We also have the opportunity
to help reduce our customers’ Scope 3 emissions associated with the procurement of our fuselage, propulsion, and wing systems.
Participation in renewable energy programs and adoption of energy-efficiency measures: Our ability to utilize more renewable energy
and further increase energy efficiency could result in substantive cost savings. Additionally, investing in on-site renewable energy can increase
the resilience of our properties and the value and productivity of individual facilities.

 Long-term Climate-related Opportunities
Development and/or expansion of low-emission goods and services: As a Tier 1 supplier in the aerospace industry to both Airbus and Boeing,
Spirit plays a critical role in the supply chain for aircraft. Our innovation and development of composite structures each year positions us
to support industry decarbonization goals, thereby addressing the needs of our customers.
Resource Efficiency, page 12
Energy and Emissions, page 14
Risk Management, page 34
CDP Climate Change Response

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TCFD Report

Introduction

Innovating at New Heights

Environment

PeopleDISCLOSURERESPONSE

Impact on businesses, strategy,
and financial planning

We view the management of climate and broader sustainability as a power accelerator to support our values and strengthen our ability
to serve as a trusted partner.

GovernanceAppendices

To mitigate climate-related risks at Spirit’s facilities, we established and maintained Corporate and Site Crisis Management Plans. We also
develop strategic sourcing initiatives to help prevent disruption due to extreme weather events.

S TRATEGY

To capitalize on growth opportunities and mitigate climate risks, we invest in new technology to bring the most advanced techniques,manufacturing, and automation to our customers. We apply our extensive experience in advanced material systems, manufacturing
technologies, and prototyping to continually invent and patent new technologies that improve quality, lower costs, and increase
production capabilities.

(continued)

 Low-Carbon Transition Plan
Spirit’s climate-related risks and opportunities have influenced our company’s decision to implement a low-carbon transition plan across
our company, including the following elements:(1) Greenhouse Gas Emissions Reduction: We aim to reduce our absolute Scope 1 and Scope 2 GHG emissions by 30%
from 2019–2030.
(2) Renewable Energy: We aim to seek renewable energy opportunities through procurement or investments into on-site renewable energy.
(3) Innovation and Technology: Through our products, we aim to continuously invest in research and development and continuously evaluate
opportunities to decrease emissions and improve efficiencies.
Resource Efficiency, page 12
Energy and Emissions, page 14
Risk Management, page 34
CDP Climate Change Response
Impact of different scenarios
including a 2°C scenario

Spirit aims to reduce our absolute Scope 1 and 2 greenhouse gas emissions by 30% from 2019 – 2030. Our 2030 target is based ona decarbonization pathway in the excess of the 2.5% annual decreases expected for alignment with the 2-degree Celsius level of ambition
for science-based targets using the Science-Based Targets initiative’s absolute-based contraction approach.
Spirit’s scenario analysis has directly influenced our business objectives and strategy as we align our emissions reduction strategies
and investments in product innovation to support broader aviation industry’s targets.
Sustainability Targets, page 9
Energy and Emissions, page 14
CDP Climate Change Response

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Table of Contents

TCFD Report

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

RISK MANAGEMENT
Disclose the actual and potential impacts of climate-related risks and opportunities
on the organization’s businesses, strategy, and financial planning.
DISCLOSURERESPONSE

Process for identifying and assessing
climate-related risks

At the company level, our President and CEO and executive leadership team maintain day-to-day strategic oversight to identify and manage
risks related to climate change that may impact our company’s reputation, profitability, and access to capital. We actively track our company’ssustainability performance, engage with customers and suppliers, and participate in industry initiatives to address climate change and otherkey issues facing the aerospace and defense industry.
At the asset level, Spirit has dedicated environmental professionals at our manufacturing facilities. These professionals are tasked with
monitoring sustainability performance and identifying and executing on projects to reduce our operational environmental footprint.
The decision-making process with regard to mitigation, transfer, acceptance and/or control of potential climate change risks and opportunities
considers the following materiality-based factors:
V Greatest business impacts (e.g., those related to stakeholder interest and potential impacts to revenue, costs, and capital expenditures)
V Spirit’s degree of control
V The requirements, concerns, and key business drivers of our stakeholders

Board Oversight, pages 30–31
Risk Management, page 34
CDP Climate Change Response
Processes for managing
climate-related risks

 Processes for Managing Short-term Climate-related Risks
Uncertainty in Market Signals: To mitigate market risks, we use our strategic sourcing initiatives and are party to collective raw material
sourcing contracts arranged through certain customers. This allows Spirit to obtain raw materials at pre-negotiated rates and helps insulate us
from market volatility across the industry.

 Processes for Managing Medium-term Climate-related Risks
Mandates On and Regulation Of Existing Products and Services: Spirit continuously monitors and provides training throughout all of ouroperations and facilities to help drive compliance with all applicable laws and regulations. We developed and implemented strong systems
to comply with applicable legal, regulatory, and other requirements related to preventing pollution, injury, and ill health. We employ
industry-leading, technologically sound, and economically feasible control mechanisms, procedures, and processes.
Increased Stakeholder Concern or Negative Stakeholder Feedback: Spirit is committed to working as a responsible citizen in the communities
in which we live and work. To mitigate reputational risks, we continually aim to improve operations and reduce our environmental impact
through innovation.
Increased Severity and Frequency of Extreme Weather Events such as Cyclones and Floods: To mitigate physical risks, we maintain a
Corporate Crisis Management Plan, with each of our facilities also having supporting Site Crisis Management Plans. Spirit maintains an
Emergency Operations Center, which is a physical location to support a Site Crisis Management Team or Incident Commands response effort
during a critical incident or event.
Resource Efficiency, page 12
Energy and Emissions, page 14
Risk Management, page 34
CDP Climate Change Response

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Table of Contents

TCFD ReportR ISK MANAGEMENT(continued)

Introduction

Innovating at New Heights

Environment

PeopleDISCLOSURERESPONSE

Integration into overallrisk management

Spirit’s identification and mitigation of climate-related risks are integrated into our company’s risk management process. Spirit’s Board of
Director’s Risk Committee is responsible for overseeing and mitigating enterprise-level risks, including strategic and operational. This includes
risks associated with climate change. Additionally, Spirit’s Audit Committee collaborates with the Risk Committee to oversee financial-related
risk exposures.

GovernanceAppendices

Board Oversight, page 30
Risk Management, page 34
Audit Committee Charter
Risk Committee Charter
CDP Climate Change Response

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Table of Contents

TCFD Report

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

METRICS AND TARGETS
Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities.
DISCLOSURERESPONSE

Metrics used by the organization
to assess climate-related risks
and opportunities

Energy and Emissions, page 14

Scope 1, 2, and 3 greenhousegas emissions

Spirit’s 2020 GHG emissions performance:

Performance Tables, page 40
CDP Climate Change Response

2021 GHG Emissions

Metric tons of CO2e

Scope 1

129,643

Scope 2 (location-based)

250,603

Scope 2 (market-based)

197,260

Scope 3 (North American business travel)

2,224

Energy and Emissions, page 14
Performance Tables, page 40
Independent Assurance Statement, page 59
Targets used and performanceagainst targets

Spirit aims to reduce absolute Scope 1 and 2 emissions by 30% by 2030 (from 2019 base year).
Since 2019, we have achieved a 26% reduction in Scope 1 and 2 GHG emissions.
Energy and Emissions, page 14
CDP Climate Change Response

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Table of Contents

Independent
Assurance
Statement

Introduction

Innovating at New Heights

Environment

PeopleGovernanceAppendices

Independent Assurance Statement to Spirit AeroSystems Holdings, Inc.
ERM Certification and Verification Services, Inc. (ERM CVS) was engaged by Spirit AeroSystems Holdings, Inc.
(‘Spirit AeroSystems’) to provide assurance in relation to the information set out below and presented in the 2021
Spirit AeroSystems Sustainability Report (‘the Report’).

Scope of our
assuranceengagement

Engagement summary
Whether the 2021 information and data specified below are fairly presented, in all material
respects, with the reporting criteria.

Scope 1 greenhouse gas (GHG) Emissions (metric tons of CO2e)

Scope 2 greenhouse gas (GHG) Emissions location-based (metric tons of CO2e)

Scope 2 greenhouse gas (GHG) Emissions market-based (metric tons of CO2e)

Reporting criteria

WBCSD/WRI GHG Protocol (2004, as updated January 2015); and Spirit AeroSystems internalreporting criteria and definitions.

Reporting period

The data covered by the assurance relates to the calendar year (January 1, 2021 to 31st
December 2021).

Assurance
standard

ERM CVS’ assurance methodology, based on the International Standard on Assurance
Engagements ISAE 3000 (Revised).

Assurance level

Limited assurance.

Respective
responsibilities

Spirit AeroSystems is responsible for preparing the Report and for the collection and presentationof the information within it.
ERM CVS’s responsibility is to provide conclusions on the agreed scope based on the assurance
activities performed and exercising our professional judgement.

Our conclusions
Based on our activities, as described below, nothing has come to our attention to indicate that the 2021 data and information
for the disclosures listed under ‘Scope’ above are not fairly presented, in all material respects, with the reporting criteria.

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report

Our assurance activities
A multi-disciplinary team of sustainability and assurance specialists performed a range of assurance procedures which
varied across the disclosures covered by our assurance engagement, as follows:Interviews with management representatives responsible for managing the selected data;Interviews with relevant staff to understand and evaluate the management systems and processes (includinginternal review processes) used for collecting and reporting the selected data;An analytical review of the consolidated year end data for the selected disclosures which included testing thecompleteness and accuracy of corporate and site level data, including confirmation of conversion factors andassumptions used;
Virtual visit to two sites (Prestwick, UK and Wichita, KS, USA) to interview staff, test source documentation, review
local reporting processes and assess the consistency of reported data for each indicator;
A review at corporate level of qualitative and quantitative evidence supporting the reported information, including
recalculation of emissions data, review of reporting processes, and assessment of internal quality and assurance
processes; and,

Reviewing the presentation of information relevant to the scope of our work in the Report to ensure consistency
with our findings.
The limitations of our engagement
The reliability of the assured information is subject to inherent uncertainties, given the available methods for determining,calculating or estimating the underlying information. It is important to understand our assurance conclusions in this context.

59

Assurance level

Respective
responsibilities

Independent
Assurance
Statement

Limited assurance.
Spirit AeroSystems is responsible for preparing the Report and for the collection and presentation
Table of Contents
Introduction
Innovating at New Heights
Environmentof the information within it.

PeopleGovernanceAppendices

ERM CVS’s responsibility is to provide conclusions on the agreed scope based on the assurance
activities performed and exercising our professional judgement.

Our conclusions
Based on our activities, as described below, nothing has come to our attention to indicate that the 2021 data and information
for the disclosures listed under ‘Scope’ above are not fairly presented, in all material respects, with the reporting criteria.
Our assurance activities
A multi-disciplinary team of sustainability and assurance specialists performed a range of assurance procedures which
varied across the disclosures covered by our assurance engagement, as follows:Interviews with management representatives responsible for managing the selected data;Interviews with relevant staff to understand and evaluate the management systems and processes (includinginternal review processes) used for collecting and reporting the selected data;An analytical review of the consolidated year end data for the selected disclosures which included testing thecompleteness and accuracy of corporate and site level data, including confirmation of conversion factors andassumptions used;
Virtual visit to two sites (Prestwick, UK and Wichita, KS, USA) to interview staff, test source documentation, review
local reporting processes and assess the consistency of reported data for each indicator;
A review at corporate level of qualitative and quantitative evidence supporting the reported information, including
recalculation of emissions data, review of reporting processes, and assessment of internal quality and assurance
processes; and,

Reviewing the presentation of information relevant to the scope of our work in the Report to ensure consistency
with our findings.
The limitations of our engagement
The reliability of the assured information is subject to inherent uncertainties, given the available methods for determining,calculating or estimating the underlying information. It is important to understand our assurance conclusions in this context.
Due to COVID travel restrictions, we planned our assurance engagement to include virtual visits. While we believe thisapproach does not affect our limited assurance conclusion above, we draw attention to the possibility that if we had
undertaken in person visits we may have identified errors and omissions in the assured information.
Our independence
ERM CVS is a member of the ERM Group. The work that ERM CVS conducts for clients is solely related to independent
assurance activities and auditor training. Our processes are designed and implemented to ensure that the work weundertake with clients is free from bias and conflict of interest. ERM CVS and the staff that have undertaken work on thisassurance exercise provide no consultancy related services to Spirit AeroSystems in any respect.

Beth Wyke
Head of Corporate Assurance Services, Inc. Malvern, PA
13 June 2022
ERM Certification and Verification Services, Inc.
www.ermcvs.com Email: post@ermcvs.com

INNOVATING TO NEW HEIGHTS

2021 Spirit AeroSystems Sustainability Report60