Airbus SE / Report of theBoard of Directors 2022

Report of
the Boardof Directors(Issued as of 16 February 2023)

This document is an unaudited PDF format version of the Board
Report and is not the original report included in the audited
financial report pursuant to article 361 of Book 2 of the Dutch Civil
Code and as specified in the Regulatory Technical Standards on
ESEF (Delegated Regulation (EU) 2019/815).
The ESEF-compliant Annual Financial Report of Airbus SE, which
includes the Board Report, for the year ended 31 December 2022
has been filed with the AFM in XHTML format and is available on
the AFM’s website (https://www.afm.nl/en/professionals/registers/
meldingenregisters/financieleverslaggeving) as well as on Airbus
SE’s website (https://www.airbus.com/en/investors/financialresults-annual-reports).
In any case of discrepancies between this ‘PDF format’ and the‘XHTML format’, the XHTML format prevails.

Contents
General overview

4

2.

Summary 2022

5

3.

Share capital and stock price evolution

9

3.1

Shareholding and voting rights

9

3.2

Relationship with principal shareholders

14

3.3

Share price performance 2022

19

3.4

Dividend policy

20

4.

Corporate governance

21

4.1

Management and control

21

4.2

Conflict of interest

31

4.3

Dutch corporate governance code

31

4.4

Remuneration report

33

4.5

Enterprise risk management system

56

4.6

Risk factors

59

5.

Financial statements

87

5.1

IFRS consolidated financial statements

87

5.2

Information on Airbus SE auditors

95

6.

Non-financial Information and other

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1.

96

Non-financial information

96

6.2

Other corporate activities

178

7.

Airbus strategy

194

7.1

Commercial leadership, value creation

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corporate activities
6.1

194

7.2

Top Company objectives 2023

202

8.

Financial targets for 2023

205

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and profitability

Dear shareholders,This is the Report of the Board of Directors (the "Board Report") on the activities of Airbus SE (together
with its subsidiaries referred to as the "Company") during the 2022 financial year, prepared in accordancewith Dutch law.
For further information regarding the Company's business, finances, risk factors and corporate governance,
please refer to the Company's website: www.airbus.com.

Airbus SE/ Report of the Board of Directors 2022

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1. General overview
Airbus pioneers sustainable aerospace for a safe and united world. The Company constantly innovates toprovide efficient and technologically-advanced solutions in aerospace, defence, and connected services.
In commercial aircraft, Airbus offers modern and fuel-efficient airliners and associated services. Airbus isalso a European leader in defence and security and one of the world's leading space businesses. In
helicopters, Airbus provides the most efficient civil and military rotorcraft solutions and services worldwide.

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2. Summary 2022
In 2022, the Company focused on navigating an adverse operating environment while moving forward withpriorities that support its purpose. Important operational and commercial milestones were achieved,
including the first flight of the A321XLR and major contract wins in defence, while progress continued in thefield of sustainability.
A selection of key announcements follows (the full list of announcements is available at:https://www.airbus.com/en/newsroom.

2.1 Airbus
Airbus delivered 661 commercial aircraft to 84 customers in 2022. It recorded a total of 1,078 neworders (820 net orders) across all programmes and market segments, including several high-profile
commitments from some of the world’s leading carriers. The A220 won 127 firm gross new orders.
The A320neo Family won 888 gross new orders. In the widebody segment, Airbus won 63 grossnew orders including 19 A330s and 44 A350s of which 24 were for the newly launched A350F.
Airbus’ first A321XLR (Xtra Long Range) successfully accomplished its first flight in Hamburg.
During the flight, the crew tested the aircraft’s flight controls, engines and main systems, including
flight envelope protections, both at high and low speed. The A321XLR is the next evolutionary stepin the A320neo single aisle family of aircraft. By meeting market requirements for increased range
and payload, it creates more value for airlines by enabling economically viable services on longer
routes than any comparable aircraft model.
Airbus hosted its second Summit, bringing together journalists, influencers, business leaders,
partners, and industry experts, over two days, to exchange ideas and debate the challenges andopportunities around the theme “Gathering pace towards sustainable aerospace”. Major
partnerships were announced, notably with Neste on sustainable aviation fuel ("SAF"), with Renault
on electrification, with CERN on superconducting technologies, with ArianeGroup on liquidhydrogen technology, as well as with HyPort (a joint venture between ENGIE Solutions and theRegional Agency for Energy and Climate in Occitanie (AREC)) to develop one of the world’s first
low carbon hydrogen airport production and distribution stations in Toulouse-Blagnac.
The Qantas Group and Airbus will invest up to US$ 200 million to accelerate the establishment of
a SAF industry in Australia in a landmark agreement. Airbus and Qantas agreed to work together
on the sustainability initiative as part of the airline’s recently announced orders. These include theA350-1000 to operate ‘Project Sunrise’ non-stop flights from Australia to New York and London,
and the selection of the A220 and A321XLR under the carrier’s ‘Project Winton’ domestic fleet
renewal, as well as lower emission aircraft for its subsidiary Jetstar. The new fleet will offer asignificant reduction in fuel consumption and carbon emissions of up to 25% from day one, and isalready certified for operation using 50% SAF.
Airbus and Neste, a world-leading producer of renewable fuels, have signed a memorandum of
understanding to jointly advance the production and uptake of SAF. Both parties share a vision thatSAF is key to helping reduce the greenhouse gas emissions produced by air travel. This
collaboration aims to accelerate the aviation sector’s transition to SAF. Neste and Airbus recognizethat one of the biggest challenges in accelerating SAF use is the ramp-up of SAF production. They
will focus on the technical development of SAF, fuel approval and testing of current and future
production technologies, as well as investigating how "100% SAF" use can be enabled.
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Airbus has joined the world’s largest clean hydrogen infrastructure investment fund, managed byHy24. Hy24’s fund will provide financial capital to back credible, large-scale green hydrogen
infrastructure projects world-wide. Airbus' involvement assures its commitment to the scaling up ofa global hydrogen economy, a prerequisite for the successful entry-into-service of its hydrogenpowered commercial aircraft by 2035.
Airbus and Linde, a leading global industrial gases and engineering company, signed amemorandum of understanding to work on the development of hydrogen infrastructure at airports
worldwide. Both companies will define and launch pilot projects at several airports from early 2023
onwards. In addition, Airbus and Linde will analyse the potential of power-to-liquid fuels - a type of
SAF made from synthetically-produced liquid hydrocarbon through the conversion of renewableelectricity.
Airbus signed a partnership agreement with CFM International, a 50/50 joint company between GE
and Safran Aircraft Engines, to collaborate on a hydrogen demonstration programme that will takeflight around the middle of this decade. The programme’s objective is to ground and flight test a
direct combustion engine fuelled by hydrogen, in preparation for entry-into-service of a hydrogenpowered aircraft by 2035.
Airbus launched a new service to offer outsized freight transportation for customers worldwide. Key
to bringing this to reality is the unique capability of Airbus’ BelugaST ‘Super-Transporter’ aircraft,based on the A300-600 design. Airbus is also introducing six new-generation BelugaXLs – basedon the larger A330-200 platform – to support its aircraft production ramp-up.
Airbus Protect, a new Airbus subsidiary bringing together the Company’s expertise in cybersecurity,
safety and sustainability-related services, was officially established on 1 July 2022. The aim of thisnew entity is to provide a unique global service offering to protect Airbus company-wide and meetthe needs of external authorities and commercial customers, including in the field of criticalinfrastructures.

2.2 Airbus Helicopters
Airbus Helicopters logged 374 gross orders (362 net orders), highlighting the ongoing market
recovery with an impressive 216 light single-engine helicopters sold. Deliveries increased from 338
in 2021 to 344 in 2022, contributing to Airbus Helicopters’ preliminary 52% share of the civil andparapublic market. Airbus’ helicopter fleet flight hours are now back to pre-COVID 2019 levels.
An Airbus H225 performed the first ever helicopter flight with 100% SAF powering both of its Safran
Makila 2 engines. This flight, which followed the flight of an H225 with one SAF-powered Makila 2
engine in November 2021, is part of the flight campaign aimed at understanding the impact of SAF
use on the helicopter's systems. Tests are expected to continue on other types of helicopters using
different fuel and engine architectures, with a view to certify the use of 100% SAF by 2030.
OCCAR (Organisation for Joint Armament Cooperation), on behalf of the French and Spanish
Armament General Directorate, the DGA (Direction Générale de l’Armement) and the DGAM
(Dirección General de Armamento y Material) awarded a contract to Airbus Helicopters for thedevelopment, production, and initial in-service support of the Tiger MkIII attack helicopter upgrade
programme.

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Airbus signed a follow-on contractor logistics support (CLS) contract with the U.S. Army to provide
spare parts, material, and engineering support for the army’s entire UH-72A and UH-72 B Lakota
fleet of 482 utility and training helicopters. The contract includes a six-month base and four and ahalf option years, with a potential total value of more than $1.5 billion.
In September 2022, the French Navy took delivery of the first of six H160s that will perform searchand rescue (SAR) missions. The aircraft is part of the interim fleet that will be delivered by thepartnership formed between Airbus Helicopters, Babcock, and Safran Helicopter Engines.
The Brazilian armed forces, through the Combat Aircraft Programme Coordinating Committee,
acquired 27 single engine H125 helicopters to boost the training capacity of the Brazilian Navy andthe Air Force. The H125 will be produced in the H125 final assembly line located in Itajubá, Brazil
at Helibras’ factory, where the H225Ms for the Brazilian armed forces are also assembled.

2.3 Airbus Defence and Space
On behalf of the governments of France, Germany and Spain, the French General Directorate forArmament awarded to Dassault Aviation, Airbus, Indra, Eumet and their industrial partners thecontract for the demonstrator phase 1B of the Future Combat Air System (FCAS). This landmark
contract, amounting to €3.2 billion, will cover work on the FCAS demonstrator and its components
for about three and a half years.
In February 2022, Airbus and the Organisation for Joint Armament Co-operation (OCCAR) signed
the Eurodrone global contract, which includes the development and manufacturing of 20 systems
and five years of initial in-service support. Eurodrone, a major European defence programme, isthe result of collaborative work between the industry, OCCAR and its participating nations. It will
deliver the most advanced Unmanned Aerial System (UAS) in its segment, generate more than
7,000 high-tech jobs within the industry and will strengthen European industrial sovereignty, knowhow and collaboration between nations.
Airbus was awarded a €160 million contract for the European Space Agency’s FORUM satellite tomeasure heat emitted from the Earth into space. FORUM, short for Far-infrared Outgoing Radiation
Understanding and Monitoring, will be the first satellite to observe Earth in the far-infrared part ofthe spectrum, providing unique measurements of the Earth’s outgoing energy to help improveunderstanding of the climate system.
In December 2022, Nasa’s Artemis I mission was completed, with the Airbus-built European
Service Module having successfully brought NASA's Orion spacecraft safely around the Moon andback home. The mission, which was more than 10 years in the making, involved about 1.05 million
Airbus working-hours on the module to assemble the 22,000 parts, 33 thrusters and 12 km ofcables.
In July 2022, Airbus successfully tested a removable firefighting demonstrator kit on the A400M
military airlifter during a flight test campaign in Spain. The test campaign took place in daylight
conditions with a minimum operating height of 150ft, flight speeds as low as 125 knots and drops
involving up to 20 tons of water from the current tank in less than 10 seconds. The main objectiveof the campaign was to validate the drop water quantity and time as well as the ability of the A400M
to carry out this new role with the firefighting kit.

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The Airbus A330 MRTT became the world’s first tanker to be certified for automatic air-to-air
refuelling boom operations in daylight following a successful campaign in collaboration with theRepublic of Singapore Air Force. Certified by the Spanish National Institute for Aerospace
Technology, this capability is part of the new SMART MRTT developed by Airbus.
The Royal Air Force, Airbus and other industry partners carried out the world’s first 100% SAF flightusing an in-service military aircraft. It is also the first 100% SAF flight of any aircraft type carriedout in UK airspace. An RAF Voyager – the military variant of the Airbus A330 commercial jetliner –took to the skies above RAF Brize Norton in Oxfordshire, England, on 18 November 2022 powered
completely by 100% SAF on both engines, paving the way for a range of possibilities for the futureof flying military aircraft.
During the ILA Berlin Air Show in 2022, the NATO Eurofighter and Tornado Management Agency
signed a landmark contract for the acquisition of 20 latest generation Eurofighter jets for the
Spanish Air Force. Known as the Halcon programme, the order will cover the delivery of a fleet of
E-Scan (electronically scanned) radar equipped fighter aircraft consisting of 16 single-seaters andfour twin-seaters, to replace the F-18 fleet operated by the Spanish Air Force on the Canary Islands.

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3. Share capital and stock price evolution
3.1 Shareholding and voting rights
Issued share capital
As of 31 December 2022, Airbus SE's issued share capital amounted to €788,205,008 divided into
788,205,008 shares of a nominal value of €1 each. The issued share capital of Airbus SE as of such daterepresents 26.27% of the authorised share capital of €3 billion, comprising three billion shares. The holder
of one issued share has one vote and is entitled to profit in proportion to his/her participation in the issued
share capital1.
Modification of share capital or rights attached to shares
The shareholders' meeting has the power to authorise the issuance of shares. The shareholders' meeting
may also authorise the Board of Directors, for a period of no more than five years, to issue shares and to
determine the terms and conditions of share issuances.
Holders of shares have a pre-emptive right to subscribe for any newly issued shares in proportion to theaggregate nominal value of shares held by them, except for: (i) shares issued for consideration other thancash, (ii) shares issued to employees of the Company, and (iii) shares issued pursuant to a previously
granted right to subscribe for those shares. For the contractual position as to pre-emption rights, see "- 3.2:
Relationship with Principal Shareholders".
The shareholders' meeting also has the power to limit or to exclude pre-emption rights in connection withnew issuances of shares, and may authorise the Board of Directors, for a period of no more than five years,
to limit or to exclude pre-emption rights. All resolutions in this context must be approved by a two-thirds
majority of votes cast during the shareholders' meeting, in the case where less than half of the capital issued
is present or represented at said meeting.
However, the articles of association of Airbus SE ("Articles of Association") provide that the shareholders'meeting is not authorised to pass any shareholders' resolution to issue shares, or to grant rights to subscribe
for shares, if the aggregate issue price is in excess of €500 million, per share issuance, and no preferential
subscription rights exist in respect thereof (by virtue of Dutch law, or because they have been excluded by
the competent corporate body). The same limitation applies if the shareholders' meeting wishes todesignate the Board of Directors to have the authority to resolve on such share issuance or granting ofrights. These limitations in the Articles of Association can only be changed by the shareholders' meetingwith a 75% voting majority.
Pursuant to the shareholders' resolutions adopted at the Annual General Meeting ("AGM") held on 12 April
2022, the powers to issue shares and to grant rights to subscribe for shares and to limit or exclude
preferential subscription rights for existing shareholders, have been delegated to the Board of Directors forthe purpose of:
1. employee share ownership plans and share-related long-term incentive plans, provided that such
powers shall be limited to 0.14% of Airbus SE's authorised share capital; and1 Except for the shares held by Airbus SE itself and subject to certain other exceptions under Dutch law.
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2. funding Airbus SE and any of its subsidiaries, provided that such powers shall be limited to 0.3%
of Airbus SE's authorised share capital.
Such powers have been granted for a period expiring at the AGM to be held in 2023, and shall not extend
to issuing shares or granting rights to subscribe for shares if: (i) there is no preferential subscription right(by virtue of Dutch law, or because it has been excluded by means of a resolution of the competent
corporate body) and (ii) it concerns an aggregate issue price in excess of €500 million per share issuance.
At the AGM held on 12 April 2022, the Board of Directors was authorised for a period of 18 months fromthe date of such AGM to repurchase shares of Airbus SE, by any means, including derivative products, on
any stock exchange or otherwise, as long as, upon such repurchase, Airbus SE would not hold more than
10% of Airbus SE's issued share capital, and at a price per share not less than the nominal value, and not
more than the higher of the price of the independent trade and the highest current independent bid on the
trading venues of the regulated market of the country in which the purchase is carried out.
The shareholders' meeting may reduce the issued share capital by cancellation of shares or by reducing
the nominal value of the shares by means of an amendment to the Articles of Association. The cancellationof shares requires the approval of a two-thirds majority of the votes cast during the shareholders' meetingin the case where less than half of the capital issued is present or represented at the meeting; the reductionof nominal value by means of an amendment to the Articles of Association requires the approval of a twothirds majority of the votes cast during the shareholders' meeting (unless the amendment to the Articles of
Association also concerns an amendment which under the Articles of Association requires a 75% voting
majority).
At the AGM held on 12 April 2022, the Board of Directors and the Chief Executive Officer ("CEO") wereauthorised, with powers of substitution, to implement a cancellation of shares held or repurchased by Airbus
SE, including the authorisation to establish the exact number of the relevant shares thus repurchased to becancelled.
Securities granting access to Airbus SE's capital
There are no securities that give access, immediately or over time, to the share capital of Airbus SE (seesection “5.1 IFRS consolidated financial statements").
Changes in the issued share capital in 2022
In the course of 2022, a total number of 2,052,509 new shares were issued, all of which were issued in theframework of the 2022 Employee Share Ownership Plan ("ESOP").
Repurchases and cancellations of shares in 2022
During 2022 (i) Airbus SE repurchased 325,953 shares and (ii) none of the treasury shares were cancelled.
As of 31 December 2022, Airbus SE held 647,500 treasury shares.
Shareholding structure at the end of 2022
As of 31 December 2022, the French state held 10.89% of the outstanding Airbus SE shares through
Société de Gestion de Participations Aéronautiques ("Sogepa"), the German state held 10.87% throughGesellschaft zur Beteiligungsverwaltung GZBV mbH & Co. KG ("GZBV"), and the Spanish state held 4.10%
through Sociedad Estatal de Participaciones Industriales ("SEPI"). The public (including the Company's
employees) and Airbus SE held, respectively, 74.06% and 0.08% of Airbus SE's share capital.
The diagram below shows the ownership structure of Airbus SE as of 31 December 2022 (% of capitaland of voting rights (in parentheses) before exercise of the convertible bonds).

Airbus SE/ Report of the Board of Directors 202210

Shareholders may have disclosure obligations under Dutch law. These apply to any person or entity that
acquires, holds or disposes of an interest in Airbus SE's voting rights and/or capital. Disclosure is required
when the percentage of (actual or deemed) voting rights, capital interest or gross short position reaches,
exceeds or falls below: 3%, 5%, 10%, 15%, 20%, 25%, 30%, 40%, 50%, 60%, 75% or 95% (whether
because of an acquisition or disposal of shares or other instruments, or because of a change in the total
voting rights or capital issued). Disclosures must be made to the Netherlands Authority for the Financial
Markets ("AFM") immediately. Additional disclosure and/or publication obligations apply under European
regulations for net short positions in respect of Airbus SE.
In 2022, the below listed entities notified the AFM of their substantial interest in Airbus SE. For further
details, please refer to the website of the AFM at: www.afm.nl.
a) Notification made to the AFM because the capital interest exceeded the above-mentioned thresholds:- The Goldman Sachs Group, Inc. owns 3.27% and 3.28% voting rights (3.23% directly and 0.04%
indirectly);- TCI Fund Management Ltd. owns 3.02% and 3.02% voting rights (held directly);- BlackRock Inc. owns 3.60% and 4.43% voting rights (held indirectly).
b) Notification made to the AFM because the capital interest fell below the above-mentioned thresholds:- EuroPacific Growth Fund owns 2.96% and 2.97% voting rights (held directly).

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Right to attend shareholders' meetings
Each holder of one or more shares may attend shareholders' meetings, either in person or by written proxy,speak and vote according to the Articles of Association. However, under (and subject to the terms of) the
Articles of Association, these rights may be suspended under certain circumstances. A shareholder, or
another person who has the right to attend a shareholders' meeting, can be represented by more than one
proxy holder, provided that only one proxy holder can exercise the rights attached to each share.
The persons who have the right to attend and vote at shareholders' meetings are those who are on record
in a register designated for that purpose by the Board of Directors on the 28th day prior to the day of theshareholders' meeting (the "Registration Date"), irrespective of who may be entitled to the shares at thetime of that meeting.
As a prerequisite to attending the shareholders' meeting and to casting votes, Airbus SE, or alternatively
an entity or person so designated by Airbus SE, should be notified in writing by each holder of one or moreshares and those who derive the aforementioned rights from these shares, not earlier than the Registration
Date, of the intention to attend the meeting in accordance with the relevant convening notice.
Shareholders holding their Airbus SE shares through Euroclear France S.A. who wish to attend general
meetings will have to request from their financial intermediary or accountholder an admission card, and be
given a proxy to this effect from Euroclear France S.A. in accordance with the relevant convening notice.
For this purpose, a shareholder will also be able to request that its shares be registered directly (and not
through Euroclear France S.A.) in the register of Airbus SE. However, only shares registered in the nameof Euroclear France S.A. may be traded on stock exchanges.
In order to exercise their voting rights, the shareholders will also be able, by contacting their financial
intermediary or account holder, to give their voting instructions to Euroclear France or to any other person
designated for this purpose, as specified in the relevant convening notice.
Pursuant to its Articles of Association, Airbus SE may provide for electronic means of attendance, speaking
and voting at the shareholders' meetings in such circumstances, and subject to such conditions as
determined by the Board of Directors.
Notification requirements and mandatory disposal threshold restricting ownership to 15%
Under the Articles of Association, each shareholder must notify Airbus SE when it (or another party inrespect of its interest in Airbus SE) must make a notification to the AFM of a substantial interest or shortposition with respect to Airbus SE, when its interest (alone or with concert parties) reaches or crosses the
Mandatory Disposal Threshold or, subject to certain conditions and exemptions, when changes occur inthe composition, nature and/or size of any interest held by it or by its concert parties in excess of the
Mandatory Disposal Threshold (as defined below). Failure to comply with these obligations may, subject toa prior notification by Airbus SE, result in the suspension of voting and attendance rights until theshareholder has complied with its obligations.
The Articles of Association prohibit any shareholder from holding an interest of more than 15% of the sharecapital or voting rights of Airbus SE, acting alone or in concert with others (the "Mandatory Disposal
Threshold"). An interest ("Interest") includes not only shares and voting rights, but also other instrumentsthat cause shares or voting rights to be deemed to be at someone's disposal pursuant to the Dutch Financial
Supervision Act, and must be notified to the Dutch regulator, the AFM, if certain thresholds are reached or
crossed. Any shareholder having an interest of more than the Mandatory Disposal Threshold must reduce
its interest below the Mandatory Disposal Threshold, for instance by disposing of its Excess Shares, within
two weeks after such notification by Airbus SE. Upon receipt of such notification, the voting, attendanceand dividend rights attached to the Excess Shares shall be suspended. The same applies to concerts ofshareholders and other persons who together hold an interest exceeding the Mandatory Disposal
Threshold. Should such shareholder or concert not comply with not exceeding the 15% Mandatory Disposal
Threshold by the end of such two-week period, the voting, attendance and dividend rights attached to all
Airbus SE/ Report of the Board of Directors 202212

shares held by such shareholder or concert shall be suspended, and their Excess Shares would betransferred to a Dutch law foundation ("Stichting"), which can, and eventually must, dispose of them. The
suspension of shareholder rights described above shall be lifted once a shareholder or concert complies
with its obligations under the Articles of Association.
The Dutch law foundation would issue depositary receipts to the relevant shareholder in return for the
Excess Shares transferred to the foundation, which would entitle the relevant shareholder to the economic
rights, but not the voting rights, attached to such Airbus SE shares. The foundation's Articles of Associationand the terms of administration governing the relationship between the foundation and the depositary
receipt holders provide, inter alia, that:▶ the Board members of the foundation must be independent from Airbus SE, any grandfathered persons
and their affiliates (see "- 3.1: Exemptions from Mandatory Disposal Threshold") and any holder ofdepositary receipts and their affiliates (there is an agreement under which Airbus SE will, inter alia,
cover the foundation's expenses and indemnify the Board members against liability);▶ the Board members are appointed (except for the initial Board Members who were appointed atincorporation) and dismissed by the Management Board of the foundation (Airbus SE may, however,appoint one Board member in a situation where there are no foundation Board members);▶ the foundation has no discretion as to the exercise of voting rights attached to any of the Airbus SE
shares held by it and will, in a mechanical manner vote to reflect the outcome of the votes cast (or notcast) by the other shareholders, and the foundation will distribute any dividends or other distributions it
receives from Airbus SE to the holders of depositary receipts; and▶ no transfer of a depositary receipt can be made without the prior written approval of the foundation's
Board.

For any shareholder or concert, the term "Excess Shares", as used above, refers to such number of sharescomprised in the interest of such shareholder or concert exceeding the Mandatory Disposal Threshold,which is the lesser of: (i) the shares held by such shareholder or concert which represent a percentage of
the Company's issued share capital that is equal to the percentage with which the foregoing interest
exceeds the Mandatory Disposal Threshold; and (ii) all shares held by such person or concert.
This restriction is included in the Articles of Association to reflect Airbus SE's further normalised governancegoing forward, aiming at a substantial increase of the free float and to safeguard the interests of Airbus SE
and its stakeholders (including all its shareholders), by limiting the possibilities of influence above the levelof the Mandatory Disposal Threshold or takeovers, other than a public takeover offer resulting in a minimum
acceptance of 80% of the share capital referred to below.
Exemptions from mandatory disposal threshold
The restrictions pursuant to the Mandatory Disposal Threshold under the Articles of Association do not
apply to a person who has made a public offer with at least an 80% acceptance (including any Airbus SE
shares already held by such person). These restrictions also have certain grandfathering exemptions forthe benefit of shareholders and concerts holding interests exceeding the Mandatory Disposal Threshold on
2 April 2013 (the "Exemption Date"), which is the date of first implementation of the Mandatory Disposal
Threshold.
Different grandfathering regimes apply to such shareholders and concerts, depending on the interests andthe nature thereof held by each such shareholder or concert on the Exemption Date.
Airbus SE has confirmed that: (i) the specific exemption in article 16.1.b of the Articles of Association applies
to Sogepa, as it held more than 15% of the outstanding Airbus SE's voting rights and shares, including theAirbus SE/ Report of the Board of Directors 202213

legal and economic ownership thereof, on the Exemption Date; and (ii) the specific exemption in article
16.1.c of the Articles of Association applies to the concert among Sogepa, GZBV and SEPI, as they held
more than 15% of the outstanding Airbus SE voting rights and shares, including the legal and economic
ownership thereof, on the Exemption Date.
Mandatory public offer under Dutch law
In accordance with Dutch law, shareholders are required to make a public offer for all issued andoutstanding shares in Airbus SE's share capital if they – individually or acting in concert (as such terms aredefined under Dutch law summarised below), directly or indirectly – have 30% or more of the voting rights(significant control) in Airbus SE. In addition to the other available exemptions that are provided under Dutch
law, the requirement to make a public offer does not apply to persons, who at the time the takeoverprovisions under Dutch law came into force, already held – individually or acting in concert – 30% or moreof the voting rights in Airbus SE. In the case of such a concert, a new member of the concert can be
exempted if it satisfies certain conditions.
Amendments to the Articles of Association
According to the Articles of Association, resolutions to amend the Articles of Association require a twothirds majority of the votes validly cast at a general meeting of shareholders, unless they concern
amendments to a limited number of provisions thereof, in which case a 75% voting majority would be
required. The proposal containing the literal text of a proposed amendment must be available for inspection
by shareholders at Airbus SE's headquarters, from the day the meeting is convened until after the end of
the meeting.

3.2 Relationship with principal shareholders
In 2013, GZBV, a subsidiary of Kreditanstalt für Wiederaufbau ("KfW"), a public law institution serving thedomestic and international policy objectives of the government of the Federal Republic of Germany, Sogepa
and SEPI, entered into a shareholders' agreement (the "Shareholders' Agreement"). The Shareholders'
Agreement, further details of which are set out below, does not give the parties to it any rights to designate
members of the Board of Directors or management team or to participate in the governance of Airbus SE.
Airbus SE has also entered into state security agreements with each of the French state and German state,
which are also described in more detail below.
3.2.1 Corporate governance arrangements
The corporate governance arrangements of Airbus SE were substantially changed in 2013, resulting inchanges to the composition of the Board of Directors and its internal rules, as well as amendments to the
Articles of Association of Airbus SE. These changes were intended to further normalise and simplify Airbus
SE's corporate governance, reflecting an emphasis on best corporate governance practices and theabsence of a controlling shareholder group. Changes to Airbus SE's corporate governance arrangementsin the Articles of Association, included: (i) disclosure obligations for shareholders that apply when theirinterests in Airbus SE reach or cross certain thresholds and (ii) ownership restrictions prohibiting any
shareholder from holding an interest of more than 15% of the share capital or voting rights of Airbus SE,
acting alone or in concert with others (see "- 3.1: Exemptions from Mandatory Disposal Threshold").

3.2.2 Shareholder arrangements
Grandfathering agreement
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The French state, Sogepa, the German state, KfW and GZBV (all parties together the "Parties" and each,individually, as a "Party") entered into an agreement with respect to certain grandfathering rights under the
Articles of Association. Below is a summary of such agreement.
Individual grandfathering rights
A party that is individually grandfathered pursuant to Article 16.1.b of the Articles of Association (such Party
holding "Individual Grandfathering Rights") shall remain individually grandfathered in accordance with
the Articles of Association if the concert with respect to Airbus SE (the "Concert") is subsequently
terminated (for instance by terminating the Shareholders' Agreement) or if it exits the Concert.
Loss of individual grandfathering rights
A Party holding Individual Grandfathering Rights as well as any of its affiliates who are grandfatheredpursuant to Article 16.1.b in conjunction with Article 16.3 of the Articles of Association (such affiliates holding"Derived Grandfathering Rights", and the Individual Grandfathering Rights and the Derived
Grandfathering Rights, together, the "Grandfathering Rights") shall no longer be entitled to exercise their
Grandfathering Rights in the event:▶ the Concert is terminated as a result of it or any of its affiliates having actually or constructively
terminated such Concert; or▶ it or its relevant affiliate(s) exit(s) the Concert,and such termination or exit is not for good cause and is not based on material and ongoing violations of
the Concert arrangements, including, without limitation, of the Shareholders' Agreement, by the otherprincipal member of the Concert.
In the event that in the future the voting rights in the Company of the other principal member of the Concert,
together with those of its affiliates, would for an uninterrupted period of three months represent less than
3% of the outstanding aggregate voting rights of Airbus SE, the Grandfathering Rights of the Party, including
its affiliates which were no longer entitled to use their Grandfathering Rights, shall from then on revive andSogepa and GZBV shall jointly notify Airbus SE to that effect.
Notification to the Company
Airbus SE will not be required to take any of the actions provided for in Article 15 of the Articles of
Association pursuant to the post-Concert Grandfathering Agreement unless and until it receives: (i) a joint
written instruction from Sogepa and GZBV with respect to the taking of any of the actions provided for in
Article 15 of the Articles of Association pursuant to the post-Concert Grandfathering Agreement, or (ii) a
copy of a binding advice rendered by three independent, impartial and neutral Expert Adjudicators in order
to settle any dispute between the Parties arising out of, or in connection with, the post-Concert
Grandfathering Agreement.
Airbus SE will not incur any liability to any of the Parties by taking such actions following receipt of any suchjoint instruction or binding advice and the Company will not be required to interpret the post-Concert
Grandfathering Agreement or any such joint instruction or binding advice. Notwithstanding the description
under "Various provisions – Jurisdiction" below, the courts of the Netherlands will have exclusive jurisdiction
to resolve any dispute, controversy or claim affecting the rights or obligations of the Company under the
post-Concert Grandfathering Agreement.
Various provisions
Termination. The post-Concert Grandfathering Agreement terminates only if either the French state andits affiliates or the German state and its affiliates no longer hold shares in the Company.
Airbus SE/ Report of the Board of Directors 202215

Governing law. Laws of the Netherlands.
Jurisdiction. The courts of the Netherlands shall have exclusive jurisdiction. This is binding advice for any
dispute, controversy or claim arising out of, or in connection with, the post-Concert Grandfathering
Agreement, in accordance with the procedure set forth in the post-Concert Grandfathering Agreement;
provided, however, that application to the courts is permitted to resolve any such dispute controversy or
claim.
Governance of the Company
Below is a further description of the Shareholders' Agreement, based solely on a written summary of themain provisions of the Shareholders' Agreement that has been provided to Airbus SE by Sogepa, GZBVand SEPI (all parties together, the "Shareholders").
Appointment of the Directors: The Shareholders shall vote in favour of any draft resolution relating to theappointment of Directors submitted to the shareholders' meeting of Airbus SE in accordance with the terms
and conditions of the German State Security Agreement and the French State Security Agreement (asdescribed below). If, for whatever reason, any person to be appointed as a Director pursuant to the German
State Security Agreement or the French State Security Agreement is not nominated, the Shareholders shalluse their best endeavours so that such person is appointed as a Director. Sogepa and GZBV shall support
the appointment of one Spanish national that SEPI may present to them as a member of the Board of
Directors of Airbus SE, provided such person qualifies as an independent Director pursuant to theconditions set forth in the rules governing the internal affairs of the Board of Directors (the "Board Rules"),and shall vote as Shareholders in any Shareholders' meeting in favour of such appointment and against
the appointment of any other person for such position. If, for whatever reason, the French State Security
Agreement and/or the German State Security Agreement has/have been terminated, KfW or Sogepa, as
the case might be, shall propose two persons, and the Shareholders shall exercise their best endeavours
so that these persons are appointed as Directors. Directors can always be dismissed at the general
meeting.
Modification of the Articles of Association: Sogepa and GZBV shall consult each other on any draft
resolution intending to modify the Board Rules and/or the Articles of Association. Unless Sogepa and GZBV
agree to vote in favour together of such draft resolution, the Shareholders shall vote against such draft
resolution. If Sogepa and GZBV reach a mutual agreement on such draft resolution, the Shareholders shallvote in favour of such draft resolution.
Reserved matters: With respect to the matters requiring the approval of a qualified majority at the Board
level ("Reserved Matters"), all the Directors shall be free to express their own views. If the implementationof a Reserved Matter requires a decision of the shareholders' meeting of Airbus SE, then Sogepa and
GZBV shall consult each other with a view to reaching a common position. Should Sogepa and GZBV failto reach a common position, they shall remain free to exercise on a discretionary basis their votes.
Prior consultation: Sogepa and GZBV shall consult each other on any draft resolution submitted to theshareholders' meeting other than related to Reserved Matters and the Board Rules.
Balance of interests
The Shareholders agree to pursue their common objective to seek a balance between themselves and theirrespective interests in Airbus SE as follows:▶ to hold as closely as reasonably possible to 12% of the voting rights for Sogepa, together with any voting
rights attributable to Sogepa and/or to the French state, pursuant to Dutch takeover rules except for
voting rights attributable due to acting in concert with the other parties;▶ to hold as closely as reasonably possible to 12% of the voting rights for GZBV, together with any voting
Airbus SE/ Report of the Board of Directors 202216

rights attributable to GZBV and/or to the German state, pursuant to Dutch takeover rules except for
voting rights attributable due to acting in concert with the other parties; and▶ to hold as closely as reasonably possible to 4% of the voting rights for SEPI, together with any voting
rights attributable to SEPI and/or to the Spanish state, pursuant to Dutch takeover rules except for
voting rights attributable due to acting in concert with the other parties.

Mandatory takeover threshold
The total aggregate voting rights of the Shareholders shall always represent less than 30% of the voting
rights of the Company, or less than any other threshold the crossing of which would trigger for any
Shareholder a mandatory takeover obligation (the "MTO Threshold"). In the event that the total aggregate
voting rights of the Shareholders exceed the MTO Threshold, the Shareholders shall take all appropriate
actions as soon as reasonably practicable, but in any event within 30 days, to fall below the MTO Threshold.
Transfer of securities
Permitted transfer. Transfer of securities by any Shareholder to one of its affiliates.
Pre-emption right. Pro rata pre-emption rights of the Shareholders in the event any Shareholder intends
to transfer any of its securities to a third party directly or on the market.
Call option right. Call option right for the benefit of the Shareholders in the event that the share capital or
the voting rights of any Shareholders cease to be majority-owned, directly or indirectly, by the French state,
the German state or the Spanish state as applicable.
Tag-along right. Tag-along right for the benefit of SEPI in the event that Sogepa, the French state or anyof their affiliates and any French public entity, and GZBV, the German state or any of their affiliates andany public entity propose together to transfer all of their entire voting rights interests.
Various provisions
Termination. The Shareholders' Agreement may cease to apply in respect of one or more Shareholders
and/or their affiliates, subject to the occurrence of certain changes in its or their shareholding interest in
Airbus SE, or in its or their shareholders.
Governing law. Laws of the Netherlands.
Jurisdiction. Arbitration in accordance with the Rules of Arbitration of the International Chamber ofCommerce, with the seat of arbitration in The Hague (the Netherlands).
3.2.3 Undertakings with respect to interests of certain stakeholders
Airbus SE has made undertakings and entered into agreements in connection with interests of certain

stakeholders.
State security agreements and related undertakings
Airbus SE and the French state have entered into an amendment to the existing convention between them
relating to the Company's ballistic missiles business (as amended, the "French State Security
Agreement"). Under the French State Security Agreement, certain sensitive French military assets are heldby an Airbus SE subsidiary (the "French Defence Holding Company"). The French state has the right toapprove or disapprove of – but not to propose or appoint – three outside Directors on the Board of Directorsof the French Defence Holding Company (the "French Defence Outside Directors"), at least two of whommust qualify as Independent Directors under the Board Rules if they are members of the Board of Directors.
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Two of the French Defence Outside Directors are required also to be members of the Board of Directors of
Airbus SE. French Defence Outside Directors may neither (i) be employees, managers or corporate officers
of a company belonging to Airbus SE (although they may be members of the Board of Directors of AirbusSE) nor (ii) have material ongoing professional relationships with Airbus SE.
Airbus SE and the German state have entered into an agreement, and an amendment agreement, to theagreement relating to the protection of essential interests to the German state's security (the "German
State Security Agreement"). Under the German State Security Agreement, certain sensitive German
military activities are pursued directly or indirectly by an Airbus SE subsidiary (the "German Defence
Holding Company"). The German state has the right to approve or disapprove of – but not to propose or
appoint – three outside Directors to the Supervisory Board of the German Defence Holding Company (the"German Defence Outside Directors"), at least two of whom must qualify as Independent Directors underthe Board Rules if they are members of the Board of Directors. Two of the German Defence Outside
Directors are required also to be members of the Board of Directors. The qualifications to serve as a
German Defence Outside Director are comparable to those to serve as a French Defence Outside Director.
In February 2021, Airbus SE and the Spanish state entered into an agreement relating to the protection of
essential security interests to the Spanish state (the "Spanish State Security Agreement"). Under the
Spanish State Security Agreement, certain sensitive Spanish military assets are held by a Company's
subsidiary (the "Spanish Defence Holding Company"). Pursuant to the Spanish State Security
Agreement, Airbus SE granted the Spanish state a pre-emption right to acquire the sensitive assets as
defined under the Spanish State Security Agreement. The pre-emption right applies in case the Spanish
Defence Holding Company wishes to sell the sensitive assets to an entity outside Airbus or outside Spain's
territory. In such a case, the Spanish state has the right to acquire the sensitive assets.
Dassault Aviation
Airbus SE entered into an agreement with the French state pursuant to which Airbus SE:▶ grants the French state a right of first offer in case of the sale of all or part of its shareholding in Dassault
Aviation; and▶ commits to consult with the French state prior to making any decision at any shareholders' meeting ofDassault Aviation.
▶ Airbus SE holds 9.90% of Dassault Aviation's share capital and 6.14% of its voting rights.

Stock exchange listings
Airbus SE has undertaken to the parties to the Shareholders' Agreement that, for the duration of the
Shareholders' Agreement, Airbus SE's shares will remain listed exclusively in France, Germany and Spain.
Specific rights
French state: Pursuant to the "French State Security Agreement", Airbus SE has granted to the Frenchstate: (a) a veto right, and subsequently, a call option on the shares of Airbus SE performing the ballistic
missiles activity exercisable under certain circumstances, including if (i) a third party acquires, directly or
indirectly, either alone or in concert, more than 15% or any multiple thereof of the share capital or voting
rights of Airbus SE, or (ii) the sale of the shares of such companies carrying out such activity is considered,and (b) a right to oppose the transfer of any such shares.
German state: Pursuant to the "German State Security Agreement", Airbus SE and the German Defence
Holding Company have granted to the German state a pre-emption right to acquire the sensitive activities,
Airbus SE/ Report of the Board of Directors 202218

as defined under the German State Security Agreement. The pre-emption right applies in case the German
Defence Holding Company wishes to sell the sensitive activities to an entity outside Airbus SE, or outside
the German territory, or the shares of a controlled entity which hosts sensitive activities. In such a case, theGerman state may acquire the shares of such a controlled entity. Furthermore, the German state has theright to acquire the sensitive activities in case Airbus SE intends to allocate the sensitive activities outside
Germany or to give up the sensitive activities.

3.3 Share price performance 2022

In 2022, the Airbus SE share price was rather volatile and closed at € 111.02, down -1.2%.
After opening at € 113.60 in January, the Airbus SE share price started the year in positive territory,
supported by full year 2021 orders and deliveries performance.
Later in the quarter, Airbus SE’s share price - in line with global equity markets - suffered from overall supply
chain tensions, inflationary pressures and the COVID-19 resurgence in China. This was aggravated frommid-February by Russia's invasion of Ukraine, although defence stocks surged amid the announcement ofdefence budget increases, and as investors started to reconsider their stance towards the sector.
In the second quarter, while global equity markets were volatile in line with the aforementioned macro
environment, the Airbus SE’s announcement that it would increase the monthly production rate of the A320
Family to 75 in 2025 supported the share price, as did the solid financials for the first quarter. Later, theAirbus SE share price was impacted by lower-than-expected deliveries, suppliers’ comments on production
delays and concerns around the potential impact of energy shortages on Airbus production.
In the third quarter, equity markets partially recovered before retreating from mid-August due to inflationarypressures, central banks’ monetary policy decisions and growing fears of recession. Airbus SE’s shareprice has also been under pressure since the A320 Family production ramp-up adjustment announced in
the Company’s first half results, despite strong financial performance.
In the fourth quarter, besides following the upward trend of global markets, supported by signs of coolinginflation and slower tightening of interest rate policy, Airbus SE’s share price reacted positively to theCompany’s increased free cash flow guidance. This guidance raised investors’ expectations for higher
shareholder returns.
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Towards the end of the year, though, Airbus SE’s share price experienced turbulence after rumours about
delivery delays in 2023, and following the withdrawal of delivery guidance for the 2022 financial year,
alongside the ramp-up adjustment announcement.
With a stable performance throughout 2022 (-1%), Airbus SE shares outperformed the CAC40 index (-9%)
and the DAX40 index (-12%), but underperformed the aerospace and defence sector (MSCI World
Aerospace & Defence +11%).

3.4 Dividend policy
In December 2013, Airbus formalised a dividend policy demonstrating a strong commitment to shareholder
returns. This policy targets sustainable growth in the dividend within a pay-out ratio of 30%-40%.
The Board of Directors will propose to the Annual General Meeting the payment to shareholders on 27 April
2023 of a dividend of € 1.80 per share (FY 2021: € 1.50).
The solid 2022 financial performance and our confidence in the future underpin the dividend proposal.
The proposed dividend increases the pay-out ratio from 28% for 2021 to 33% for 2022 and demonstrates
our commitment to sustained dividend growth. The record date should be 26 April 2023.

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4. Corporate governance
4.1 Management and control
4.1.1 Board of Directors composition, powers and rules
Composition of the Board of Directors
Under the Articles of Association, the Board of Directors (the “Board of Directors”) consists of 12 Directors,
who each retire at the close of the AGM held three years following their appointment. Under the Board
Rules, at least a majority of the members of the Board of Directors (i.e., 7/12) must be European Union
nationals ("EU"; any reference in the Board Rules to the EU includes the United Kingdom ("UK") and its
constituent countries, notwithstanding a withdrawal of the UK from the EU), (including the Chairman of theBoard of Directors) and a majority of such majority (i.e., 4/7) must be both EU nationals and residents. No
Director may be an active civil servant. The Board of Directors has one Executive Director and 11 nonExecutive Directors. While the Board of Directors appoints the CEO, the CEO is required to be an Executive
Director and must be an EU national and resident; therefore it is anticipated that the Board of Directors will
appoint as CEO the person appointed by the shareholders as an Executive Director. At least nine of the
Non-Executive Directors must be "Independent Directors" (including the Chairman of the Board of
Directors).
Under the Board Rules, an "Independent Director" is a non-Executive Director who is independent within
the meaning of the Dutch Corporate Governance Code (the "Dutch Code") and meets additional
independence standards. Specifically, where the Dutch Code would determine non-independence, in part,by reference to a Director's relationships with shareholders who own at least 10% of the Company, theBoard Rules determine such Director's non-independence, in relevant part, by reference to such Director's
relationships with shareholders who own at least 5% of the Company. According to the criteria of the Dutch
Code and the Board Rules, all non-Executive Directors (including the Chairman) presently qualify as an"Independent Directors".
The Remuneration, Nomination and Governance Committee (the "RNGC") of the Board of Directors is
charged with recommending to the Board the names of candidates to succeed Board members after
consultation with the Chairman of the Board of Directors and the CEO.
The Board of Directors, deciding by a simple majority of the votes cast (a “Simple Majority”), proposes
individuals to the shareholders' meeting of the Company for appointment as Directors by the shareholders.
No shareholder or group of shareholders, or any other entity, has the right to propose, nominate or appoint
any Directors other than the rights available to all shareholders under general Dutch corporate law.
In addition to the membership and composition rules described above, the RNGC, in recommending
candidates for the Board of Directors, and the Board of Directors in its resolutions proposed to theshareholders' meeting regarding the renewal or appointment of Directors, are both required to apply thefollowing principles:▶ the preference for the best candidate for the position;▶ the preference for gender diversity between equal profiles;▶ the maintenance of an appropriate skills mix and geographical experience;▶ the maintenance, in respect of the number of members of the Board of Directors, of the observedbalance among the nationalities of the candidates in respect of the location of the main industrial
centres of the Company (in particular among the nationals of France, Germany, Spain and the United
Kingdom, where these main industrial centres are located); and▶ at least a majority of the members of the Board of Directors (i.e., 7/12) shall be EU nationals (including
Airbus SE/ Report of the Board of Directors 2022

21the Chairman), and a majority of such majority (i.e., 4/7) shall be both EU nationals and residents(including the UK and its constituent countries, notwithstanding a withdrawal of the UK from the EU).
In accordance with these principles, the Board of Directors shall continue to seek greater diversity withrespect to gender, age, geography, education, profession and background.
In 2022, Mrs Rummelhoff and Mr Wood joined the Board of Directors as non-Executive Directors replacing,respectively, Mr Tavares and Lord Drayson. Irene Rummelhoff has substantial experience in the energy
sector, notably in the field of energy transition and renewables. Antony Wood notably brings acomprehensive experience of the aerospace industry and defence sector. Both have the right competencies
and personal skills to fulfil their position in line with the Board of Directors’ expectations and the evolutionof the Company’s business.
At the end of 2022, the average age of the members of the Board of Directors was 60. The proportion of
female representation on the Board of Directors is one third. The Board of Directors composition shows abalanced mix of experience with, for example, seven members having aerospace industry skills, five having
manufacturing and production skills, six having sustainability skills, five having geopolitical skills, ninehaving finance skills and four having information or data management skills. More details about the diversityof the members of the Board of Directors are available in the table on page 254 (Airbus SE Board of Directors
until AGM 2023).
The Board of Directors is required to take into account, in the resolutions proposed in respect of the renewal
or nomination of Directors presented to the shareholders' meeting, the undertakings of the Company to the
French state, pursuant to the French State Security Agreement, and to the German state, pursuant to theGerman State Security Agreement, in each case as described more fully above. In practice, this meansthat at all times the Board of Directors needs to have: (i) two Directors who should also be French Defence
Outside Directors (as defined above) of the French Defence Holding Company (as defined above) who
have been proposed by the Company and consented to by the French state, and (ii) two Directors whoshould also be German Defence Outside Directors (as defined above) of the German Defence Holding
Company (as defined above) who have been proposed by the Company and consented to by the German
State.
The RNGC endeavours to avoid a complete replacement of outgoing Directors by new candidates, anddraws up an appointment and reappointment schedule for the Directors after consultation with the Chairman
and the CEO. In drawing up such a schedule, the RNGC considers the continuity of Company-specificknowledge and experience within the Board of Directors, also taking into account that Directors should at
the time of their appointment or re-appointment not be older than 75 years and ensuring that at least one
third of Directors' positions are either renewed or replaced every year for a term of three years. This is to
avoid large block replacements of Directors at a single AGM, with the corresponding loss of experience andintegration challenges, provided that exceptions to these rules may be agreed by the Board of Directors if
specific circumstances provide an appropriate justification for such exceptions.
Powers of the members of the Board of Directors
The Board Rules specify that in addition to the Board of Directors' responsibilities under applicable law and
the Articles of Association, the Board of Directors is responsible for certain enumerated categories ofdecisions. Under the Articles of Association, the Board of Directors is responsible for the management of
the Company. Under the Board Rules, the Board of Directors delegates the execution of the strategy as
approved by the Board of Directors and the day-to-day management of the Company to the CEO, who,
supported by the Executive Committee and its executive leadership team, makes decisions with respect tothe management of the Company. However, the CEO should not enter transactions that form part of the
key responsibilities of the Board of Directors, unless these transactions have been approved by the Boardof Directors.

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Matters that require Board of Directors' approval include among others, the following items (by Simple
Majority below unless otherwise noted):▶ approving any change in the nature and scope of the business of the Company;▶ debating and approving the overall strategy and the strategic plan of the Company;▶ approving the operational business plan of the Company (the "Business Plan") and the yearly budgetof the Company (the "Yearly Budget"), including the plans for Investment, Research and Development("R&D"), Employment, Finance and, as far as applicable, major programmes;▶ nominating, suspending or revoking the Chairman of the Board of Directors and the CEO (Qualified
Majority, as defined below);▶ approving of all the members of the Executive Committee as proposed by the CEO and their service
contracts and other contractual matters in relation to the Executive Committee, and deciding upon theappointment and removal of the Secretary to the Board of Directors on the basis of the recommendationof the RNGC;▶ approving the relocation of the headquarters of the principal companies of the Company and of theoperational headquarters of the Company (Qualified Majority as defined below);▶ approving decisions in connection with the location of new industrial sites material to the Company or
the change of the location of existing activities that are material to the Company;▶ approving decisions to invest and initiate programmes financed by the Company: acquisition, divestment
or sale decisions, in each case for an amount in excess of € 300 million;▶ approving decisions to invest and initiate programmes financed by the Company: acquisition, divestment
or sale decisions, in each case for an amount in excess of € 800 million (Qualified Majority, as defined
below);▶ approving decisions to enter into and terminate strategic alliances at the level of the Company or at thelevel of one of its principal subsidiaries (Qualified Majority as defined below);▶ approving matters of shareholder policy, major actions or major announcements to the capital markets;and▶ approving decisions in respect of other measures and business of fundamental significance for theCompany, or which involves an abnormal level of risk.

In addition, the Board Rules detail the rights and duties of the members of the Board of Directors and set
out the core principles which each member of the Board of Directors shall comply with and shall be boundby. These principles include acting in the best interests of the Company and its stakeholders, devoting
necessary time and attention to the carrying out of their duties, and avoiding any and all conflicts of interest.
Voting and quorum rules
Most Board of Directors' decisions can be made by a Simple Majority, but certain decisions must be madeby a two-thirds majority (i.e., eight favourable votes) of votes cast by the Directors regardless of whether
they are present or represented in respect of the decision (a "Qualified Majority"). In addition, amendments
to certain provisions of the Board Rules require the unanimous approval of the Board of Directors, with nomore than one Director not being present or represented (including provisions relating to nationality andresidence requirements with respect to members of the Board of Directors and the Executive Committee).
However, no individual Director or class of Directors has a veto right with respect to any Board of Directors'
decisions.
The Board of Directors must have a certain number of Directors present or represented at a meeting totake action. This quorum requirement depends on the action to be taken. For the Board of Directors tomake a decision on a Simple Majority matter, a majority of the Directors must be present or represented.
For the Board of Directors to make a decision on a Qualified Majority matter, at least ten of the Directors
must be present or represented. If the Board of Directors cannot act on a Qualified Majority Matter because
this quorum is not satisfied, the quorum would decrease to eight of the Directors at a new duly calledmeeting.
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The Board of Directors makes sure it has the required mix of experience, qualifications, skills and industrial
knowledge necessary to assist the Company in formulating and achieving its overall strategy, together withthe specific expertise required to fulfil the duties assigned to it and the Board of Directors' committees. The
Board of Directors also believes that a diverse composition among its members with respect to gender,
experience, national origin, etc. is valuable for the quality and efficiency of its work.

4.1.2 Operation of the Board of Directors in 2022
Board of Directors meetings
Thirteen Board meetings (including ad hoc calls) were held in 2022. The average attendance rate at thesemeetings was 96%. In addition, as it is the case every year, the Board of Directors was informed in duetime of any relevant developments through reports from the CEO in between meetings of the Board of
Directors. Regular non-executive sessions took place at the end of the meetings of the Board of Directors.
Throughout the year, the Board discussed all matters of importance for the Company’s activities and there
was a continual focus on geopolitical issues, including the Russian invasion of Ukraine and its impact on
the Company’s operating environment, as well as the situation in China and the US. Convened on an adhoc
basis early in April 2022, the Board dedicated a session to perform a comprehensive review of the potential
impacts of the Russian invasion of Ukraine on Company business and, more generally, on the aerospaceindustry. Regular updates on relevant developments in that regard were provided to the Board during theyear. The Board continued to review and discuss the operational and commercial status of programmes,
as well as the overall financial situation of the Company in a context where the COVID-19 situation
significantly improved but was followed by international sanctions and the energy crisis that aggravatedalready existing tensions on logistics, materials, components and skilled workforce.
During the year, the Board reviewed the Company's financial results and forecasts. After two consecutive
years without dividend payment, the Board decided to submit a dividend proposal to the 2022 AGM. The
Board maintained an emphasis on both Corporate Audit and Enterprise Risk Management and reinforced
its emphasis on internal controls.
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With regard to the Commercial Aircraft business, in May 2022 the Board reviewed and supported theevolution of the single aisle industrial footprint to a rate of 75, including the creation of a new single aisle
final assembly line in Mobile, Alabama (the US), and an A321 capability upgrade in Toulouse (France). The
Board received regular updates on the status of the production ramp-up of the different aircraft families andon supply chain issues, as well as on their impact on the number of deliveries. In that context, the Board
notably discussed and supported the revision of the Company’s 2022 target for commercial aircraft
deliveries in July and the decision to no longer maintain that target in December 2022 as recommended bymanagement. In addition, in-depth analyses on Commercial Aircraft sales contracts, approval processes
and relations with customers were presented to the Board and discussed.
In relation to Defence and Space, the Board regularly reviewed the financial situation of the Division, andthe status of key programmes, including the progress of the Future Combat Air System programme. There
were in-depth discussions about the Company’s strategy in Defence, Space Systems and ConnectedIntelligence, and on critical skills identification and management.
For Airbus Helicopters, the Board focused its review on the financial situation of the Division, competition,
progress made on major projects, including military programmes and next-generation rotorcraft.
The Board dedicated several sessions in 2022 to reviewing the strategic plan implementation status andkey aspects of the Company's strategy, including in Defence and Space as mentioned above. As it is thecase every year, the Board had a strategy off-site meeting. In 2022, this meeting took place in Airbus UK’s
Broughton premises where the Board met with the Company’s local teams and visited the industrial site.
There was a focus on Airbus’ single aisle operations, with a presentation of the wing assembly industrial
system. The Board also visited the Innovation Space facility where key initiatives on people andengagement were presented, as well as the single aisle pre-equipping flowline, where the progress ofAirbus’ safety journey was addressed. The Board also discovered the Advanced Manufacturing ResearchCentre that is the home of Airbus’ flagship Wing of Tomorrow programme, a crucial part of Airbus’ Research& Technology portfolio to develop the new technologies, materials and skills to enable the next generationof decarbonised aircraft.
In addition, the newly appointed Board members (Irene Rummelhoff and Antony Wood), joined by othermembers of the Board of Directors (in particular René Obermann, Stephan Gemkow and Mark Dunkerley),followed the Airbus induction programme aiming at providing relevant information to support them in their
non-Executive Director roles. Three meetings were organised in 2022 as part of this induction programme:in Manching (Germany) at Airbus Defence and Space, in Marignane (France) at Airbus Helicopters and in
Blagnac (France) at Airbus Commercial Aircraft. During those meetings, presentations on business strategy
and upcoming challenges were made by top Company executives. They were also an opportunity for Board
members to interact with talents (from top and middle management) and learn more about Company
activities such as:-Eurofighter Final Assembly Line (FAL), the FCAS lab, the Eurodrone plateau and the Intelligence
activities (OneAtlas and Pleiade Neo programme) for Airbus Defence and Space;-

The Racer, Disruptive lab and Flight lab, the H160 / H225 / H125 / H130 FALs for Airbus
Helicopters; and-Flight test operations activities and aircrafts and the Airspace customer showroom for Airbus
Commercial Aircraft.

Eager to engage with Airbus’ teams globally, in 2022 René Obermann also visited the sites of Getafe(Spain) and Hamburg (Germany).
Throughout 2022, the Board of Directors frequently addressed and discussed the Company’ strategy inrelation to its employees. This included critical skills and competences identification and management,
remuneration and retention schemes, employer attractiveness as well as inclusion and diversity (including
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26

gender diversity). In parallel, the Board performed regular talent reviews, including in-person meetings witha number of talents identified as part of the top management succession planning.
On the recommendation of the RNGC, the Board selected two new Board members who joined in 2022
(Irene Rummelhoff and Antony Wood) and continued to keep an active pipeline of talent for future changes
within the Board, with a focus on continuing improving (gender) diversity.
On the recommendation of the RNGC, the Board approved the increase in the CEO remuneration
implemented in 2022 in the context of his renewal and that of the non-Executive Directors for
implementation in 2023.
The Board also discussed several sustainability matters of major importance to the Company such as:- Safety: the Board performed a bi-annual review of product safety related issues, received regular
updates at quarterly meetings of the Board of Directors and ad hoc updates on relevant
developments in between meetings of the Board of Directors. In addition, the Board visited the
newly created Airbus safety promotion centre in Blagnac (France);- Climate: the Board also approved the Company's engagement with the Science-Based Targets
initiative ("SBTi") for the assessment of its Greenhouse Gas targets, including the establishmentof a science-based target for its scope 3.
In addition, an update on Airbus cybersecurity matters, including the cybersecurity governance model, waspresented to the Board and discussed.
Following the settlements reached with the French, UK and US authorities in January 2020 in relation to
the Serious Fraud Office / Parquet National Financier / US Department of Justice / US Department of State
investigations, the Board of Directors and its Ethics, Compliance and Sustainability Committee remained
fully committed and provided support throughout the year to the post-settlement activities. The Board
continued (and will continue) to pay close attention to the Company's active engagement with its
shareholders, so that Airbus’ approach to governance, compliance and sustainability is well understoodand reflects shareholders' expectations to the extent possible. In 2022, in addition to the formal general
meeting, the Chairman and the lead Independent Director, together with the Airbus team, sought regular
engagements with major shareholders in order to understand their views in particular on governance,
remuneration, key sustainability matters and performance against the Company’s strategy.
Board evaluation 2022
2022 was the second year of the three-year cycle that started in 2021. In November 2022, the Board of
Directors, therefore, carried out an internal evaluation based on a questionnaire issued by the GeneralCounsel and circulated to each Board Member. The questionnaire covered: Board composition, thefunctioning and contribution of the Board and its Committees, the topics covered at Board level, the dynamic
between the Board and management and further among Board members, Board decision-making
processes, Board and management succession planning, Board priorities and Board Secretary support.
In this internal evaluation, the Board confirmed its overall satisfaction with the progress made in theimplementation of the “Improvement Action Plan” that resulted from the formal evaluation conducted by athird-party expert, Korn Ferry, in 2021.
The Board members expressed their overall satisfaction regarding the Board dynamic and efficiency. The
Directors, notably, valued the diversity of expertise, the high level of engagement of fellow members, aswell as the constructive and open debates under the Chairman’s leadership. They welcomed theorganisation of awareness sessions on specific topics and, for those interested, the quality of the induction
program. They highlighted the necessity to continue further improving gender diversity and reinforcing theBoard’s defence and technological expertise.

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Following the last review, the Board has dedicated more time to in-depth strategic debates andsustainability issues. Discussions on other key topics such as supply chain management, innovation,
climate change and capital allocation will be further enhanced.
Finally, the outcome of the questionnaire notably emphasised the trustful and supportive equilibrium of
power between the Board and management. The Board highlighted that participation of management inmeetings of the Board of Directors has increased. The Directors emphasised that relationships with the
management team beyond the Executive Committee should be reinforced, notably to support the Board
and RNGC’s continuous work on the succession plan.

4.1.3 Board Committees
The Audit Committee
Pursuant to the Board Rules, the Audit Committee, which is required to meet at least four times a year,
makes recommendations to the Board of Directors on the approval of the annual financial statements andthe interim accounts (Q1, H1, Q3), as well as the appointment of external auditors and their remuneration.
Moreover, the Audit Committee has responsibility for verifying and making recommendations to the effectthat the internal and external audit activities are correctly directed, that internal controls are duly exercised
and that these matters are given due importance at meetings of the Board of Directors. Thus, it discusses
with the auditors their audit programme and the results of the audit of the financial statements, and it
monitors the adequacy of the Company's internal controls, accounting policies and financial reporting. It
also oversees the operation of the Company's enterprise risk management system and keeps a strong linkto the Ethics, Compliance and Sustainability Committee. For further details in this regard, see "- 4.5:
Enterprise Risk Management system". Please refer to Annex E of the Board Rules for a complete list of
responsibilities of the Audit Committee.
The Chairman of the Board of Directors and the CEO are invited to Audit Committee meetings. The CFO
and the Head of Accounting Record to Report are requested to attend meetings to present management
proposals and to answer questions. Furthermore, the Head of Corporate Audit & Forensic and the Chief
Ethics & Compliance Officer report to the Audit Committee on a regular basis.
In 2022, this Committee met five times with an attendance rate of 100%. It fully performed all its duties anddiscussed all the items described above. In particular, it performed reviews of internal controls, corporate
audit (including major findings and audit plan for 2022), accounts (i.e. 2021 full year accounts, 2022 Q1,
H1 and Q3 accounts, specific provisions and accounting items, operative planning and forecasts), tax
related issues and independence of external auditors. In addition, [the Committee reviewed Airbus Bank
activities and] regular enterprise risk management, legal and compliance updates were presented anddiscussed in meetings.
The Ethics, Compliance and Sustainability Committee
Pursuant to the Board Rules, the Ethics, Compliance and Sustainability Committee (ECSC) which is
required to meet at least four times a year, assists the Board of Directors in overseeing the Company's
culture and commitment to ethical business, integrity and sustainability. The ECSC is empowered to monitor
the Company's Ethics & Compliance programme, organisation and framework to make sure that theCompany's Ethics & Compliance governance is effective (including all associated internal policies,
procedures and controls). This includes the areas of money laundering and terrorist financing, fraud, bribery
and corruption, trade sanctions and export control, data privacy, procurement and supply chain complianceand anti-competitive practices. The ECSC is also empowered to oversee the Company's sustainability
strategy and effective governance and ensure that sustainability related topics are taken into account in the
Company's objectives and strategy.
The ECSC makes recommendations to the Board of Directors and its Committees on all ethics, complianceor sustainability-related matters, including on climate-related disclosures, and is responsible for providing
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to the Audit Committee any necessary disclosures on issues or alleged ethical and compliance breaches
that are financial and accounting-related. The ECSC maintains a reporting line with the Chief Ethics &Compliance Officer, who attends every ECSC meeting and is requested to provide quarterly reports on its
activities.
The Chairman of the Audit Committee and the Chairman of the RNGC are members of the ECSC. Unlessotherwise decided by the ECSC, the CEO and the Chairman of the Board of Directors are invited to attend
the meetings. From time to time, independent external experts are also invited to attend ECSC meetings.
In 2022, the ECSC met four times with an average attendance rate of 95%. All of the above-described items
were discussed during the meetings and the ECSC fully performed all its duties. Following the settlements
reached with the French, UK and US authorities in January 2020 in relation to the Serious Fraud Office /Parquet National Financier / US Department of Justice / US Department of State investigations, theCommittee maintained a sharp focus on post-settlement activities (including compliance and export control
reviews). The Committee was notably provided with regular updates on the status of the monitoring of the
Agence Française Anti-Corruption (AFA) and on the activities of the ITAR Special Compliance Officer,
appointed under the Consent Agreement with the US State Department. Airbus’ competition law practice
was presented to the EC&S Committee and discussed.
Half of the Committee work was dedicated to Sustainability topics. In particular, the ECSC discussed theCompany’s scope 1 & 2 decarbonisation target acceleration (from a well below 2°C trajectory to a 1.5°C
one by 2030). It also discussed the establishment of science-based target for the Company’s scope 3, andits consistency compared to the Air Transport Action Group's (ATAG - an international sectoral body) and(later in 2022) ICAO’s long-term aspirational goal of the aviation sector achieving net-zero carbon emissions
by 2050; It discussed the Company's engagement with the SBTi for the assessment of these scope 1, 2 &3 targets; and the Airbus’ human rights policy. The Committee reviewed the sustainability roadmaps(including towards a sustainable supply chain), 2022 key priorities, dashboard and key performanceindicators. In addition, the ECSC reviewed stakeholders’ expectations on sustainability issues including in
relation to how environmental, social and governance matters affect defence.
The Remuneration, Nomination and Governance Committee
Pursuant to the Board rules, besides its role described in section 4.1.1 above, the Remuneration,
Nomination and Governance Committee (RNGC) consults with the Chairman and the CEO with respect toproposals for the appointment of the members of the Executive Committee, and makes recommendations
to the Board of Directors regarding the appointment of the Secretary to the Board of Directors. The RNGC
also makes recommendations to the Board of Directors regarding succession planning (at Board of
Directors, Executive Committee and senior management levels), remuneration strategies and long-term
remuneration plans. Furthermore, the RNGC oversees contractual matters in relation to the members of
the Board and the Executive Committee, including the terms and conditions of the relevant contracts, andthe preparation of the remuneration policy for approval by the Board. The rules and responsibilities of the
RNGC have been set out in the Board Rules.
In addition, the RNGC reviews the Company's top talent, discusses measures to improve engagement andto promote diversity, as well as reviewing the remuneration of the Executive Committee members, the LongTerm Incentive Plans ("LTIP"), and the variable pay for the previous year.
Finally, the RNGC performs regular evaluations of the Company's corporate governance and makes
proposals for changes to the Board Rules or the Articles of Association.
Unless otherwise decided, the Chairman of the Board of Directors and the CEO are invited to attend
meetings of the RNGC. The Chief Human Resources Officer ("CHRO") is requested to attend meetings topresent management proposals and to answer questions. The CEO leaves the meetings when the RNGC
discusses his remuneration or personal situation.

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Pursuant to the Board Rules, the Chair of the RNGC automatically fulfils the function of "Lead Independent
Director". In this role, the Chair of the RNGC is responsible for (i) replacing the Chairman if unable to attend
meetings of the Board of Directors, (ii) organising the annual appraisal of the Chairman's performance by
the Board of Directors and (iii) acting as an intermediary for, and between, the other Directors whennecessary.
The RNGC is required to meet at least four times a year. In 2022, it met five times with an attendance rateof 95%. It discussed all of the above-described items during the meetings and it fully performed all its duties.
In particular, the Committee worked on the Board of Directors’ succession plan, with a strong focus ondiversity (including gender diversity and skills mix). The RNGC’s work notably led to the appointment of two
new Board members in 2022, including one female. The Company constituted an active pipeline of talent
for future changes within the Board.
The RNGC work also included reviewing the membership of the Board Committees. Changes to thecomposition of the ECSC and RNGC were implemented in 2022.
Assisted by a specialised firm, the Committee carried out the search process for a successor for the positionof Chief Financial Officer following the announcement of Dominik Asam’s decision to resign, evaluating
both internal and external candidates. The RNGC also held regular discussions on the Executive
Committee succession roadmap, on talent management (development, engagement and retention) anddiversity at top management levels. In light of benchmarks performed by third-party experts, the RNGC
further discussed the structure and level of the CEO remuneration in the context of his renewal in 2022,
and reviewed the remuneration of the non-Executive Directors.

4.1.4 Executive Committee nomination and composition
The CEO proposes all the members of the Executive Committee of the Company (the "Executive
Committee") for approval by the Board of Directors, after consultation with (i) the Chairman of the RNGC
and (ii) the Chairman of the Board of Directors, applying the following principles:▶ the preference for the best candidate for the position;▶ the maintenance, in respect of the number of members of the Executive Committee, of the observedbalance among the nationalities of the candidates in respect of the location of the main industrial
centres of the Company (in particular among the nationals of France, Germany, Spain and the United
Kingdom, where these main industrial centres are located); and▶ at least two-thirds of the members of the Executive Committee, including the CEO and the CFO, being
EU nationals and residents.

Role of CEO and Executive Committee
The CEO is responsible for executing the strategy, as approved by the Board of Directors, and for managing
the day-to-day operations of the Company's business with the support of the Executive Committee ("EC")and its executive leadership team through Executive Leadership Meetings ("ELM") in which the EC
members participate. The CEO shall be accountable for the proper execution of the day-to-day operationsof the Company's business.
ELMs are held on a regular basis and aim at advising the CEO on his day-to-day role, as well as ensuringthat EC members report back on business progress, updates and concerns, addressing Company-wide
topics including corporate matters, approving all vacancies and promotions above certain levels.
The EC further supports the CEO in performing these tasks. Under the leadership of the CEO, the EC is
responsible for business strategy as well as organisational matters and management of the business,monitoring key projects/products and major investments, overseeing performance targets, whether it befinancial, individual, programmes or support functions, outlining policies to motivate, recruit and retain
employees. It is also accountable for regulatory and statutory obligations along with policy matters,
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communications and market disclosures. It is also the forum where the information or requests for approvaldestined for the Board of Directors are discussed and approved. The EC members shall jointly contributeto the overall interests of the Company, in addition to each member's individual operational or functional
responsibility within the Company.
The EC comprises the heads of the Divisions and key functions of the Company.
The CEO is the only Executive Director within the Board of Directors and represents the Company on the
Board of Directors. But, depending on the topic, he usually asks the responsible EC member to join him at
meetings of the Board of Directors to present the financials (CFO), programme/product topics (Division
heads), HR matters (CHRO) or any other topic where a specialist is needed. This approach allows theBoard members to get to know the EC members and equips them to make judgements when it comes todecisions about key positions.

4.2 Conflict of interest
Conflict of interest
The Company has a conflict of interest policy, which sets out that any potential or actual conflict of interest
between the Company and any member of the Board of Directors shall be disclosed and, where possible,
avoided (please refer to the "Board Rules (Annex D – Article 8: Conflicts of interest)"). This policy isavailable on the Company's website: www.airbus.com (Company / Corporate Governance / Governance
Framework and Documents), as is the related principle 2.7 of the Dutch Code (as such term is defined in"- 4.3: Dutch Corporate Governance Code" below), which the Company complied with during 2022.
Pursuant to the Articles of Association and the Board Rules, a conflicted member of the Board of Directors
should abstain from participating in the deliberation and decision-making process relating to the mattersconcerned.
René Obermann is a non-executive director at ISAT Connect Bidco Limited (the holding company for theInmarsat group), a mobile satellite communications company. As such and to avoid any appearance of aconflict of interest, by principle he abstains from participating in the Board’s discussions regarding Airbus’satellites activities.
In particular, during the financial year 2022, he recused himself from some of the Board’s discussions
regarding Airbus’ Space Systems and Connected Intelligence strategy. As per the Board Rules, he did nottake part in the deliberations or decision-making and the Lead Independent Director acted as Chair for theduration of the discussion.
The Board of Directors must approve any decision to enter a transaction where a Director has conflicts ofinterest that are material to the Company or the individual Director.
In 2022, no transactions were reported. There were, however, related-party transactions: for an overview,please refer to "Notes to the IFRS Consolidated Financial Statements – Note 11: Related Party
Transactions".

4.3 Dutch corporate governance code
In accordance with Dutch law and with the provisions of the Dutch Code, which includes a number of nonmandatory recommendations, the Company either applies the provisions of the Dutch Code or, if applicable,
explains and gives sound reasons for why they have not been applied.
On 20 December 2022, the Dutch Code was revised: its updated recommendations apply to financial years
starting on or after 1 January 2023. The Company welcomed the updates to the Dutch Code and continues
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supporting its emphasis on topics, such as sustainable long-term value creation and the importance of
culture (in particular, diversity and inclusion).
While the Company, in its continuous efforts to adhere to the highest standards, applies nearly all thecurrent recommendations of the Dutch Code, it must, in accordance with the "comply or explain" principle,
provide the explanations below.
For the full text of the Dutch Code, please refer to: https://www.mccg.nl/.
For the financial year 2022, and in respect of compliance with the Dutch Code, the Company states thefollowing:
1. Securities in the Company as long-term investment
Provision 3.3.3 of the Dutch Code recommends that non-Executive Directors who hold securities in the
Company should keep them as a long-term investment.
In the absence of legal requirement it is at the discretion of the non-Executive Directors to own shares. The
Company does not require the non-Executive Directors who hold shares to keep them as a long-term
investment.
Provision 3.1.2 vi of the Dutch Code recommends that the shares awarded to the CEO are held for at least
five years after they are awarded. The rules applicable within the Company (as described in section 4.4.2
B e) below) do not impose a minimum five year holding period for awarded shares; however, the Company
believes that potential deviations from this recommendation are significantly limited by the share ownershipguideline (set forth in section 4.4.2 B f), under which the CEO is expected to hold throughout his / her tenure
Airbus SE shares with a value equal to 200% of his / her base salary.
2. Dealings with analysts
Best practice provision 4.2.3 of the Dutch Code recommends meetings with analysts, presentations toanalysts, presentations to investors and institutional investors and press conferences shall be announced
in advance on the Company's website and by means of press releases. In addition, it recommends thatprovisions shall be made for all shareholders to follow these meetings and presentations in real time, andthat after the meetings the presentations shall be posted on the Company's website.
For practical reasons, the Company does not always allow shareholders to follow meetings with analysts
in real time. However, the Company ensures that all shareholders and other parties in the financial markets
are provided with equal and simultaneous information about matters that may influence the share price.
3. Diversity and inclusion
Best practice provision 2.1.6 of the Dutch Code recommends that the corporate governance statement
explain the diversity and inclusion policy of the Company and the way it is implemented. In accordance with
Dutch law (article 2:166 of the Dutch Civil code) the Company provides such information in "- 6.1.11:
Inclusion & diversity” below.
For information on the operation of the Shareholders' Meeting, its key powers, the shareholders' rights andhow such powers and rights can be exercised, see "- 3.1: Shareholding and Voting Rights – right to attend
Shareholders' Meetings".
For information on the composition and operation of the Board of Directors and its respective committees,see "- 4.1.1: Board of Directors composition, power and rules"; "- 4.1.2: Operation of the Board of Directors
in 2022"; and "- 4.1.3: Board Committees".

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For information on (i) significant direct and indirect shareholdings, (ii) holders of shares with special control
rights, (iii) rules governing appointment and dismissal of Directors, (iv) amendments to the Articles of
Association, and (v) the delegation to the Board of Directors of the power to issue or buy back shares, see"- 3.1: Shareholding and voting rights – Shareholding structure at the end of 2022"; "- 3.2: Relationships
with principal shareholders"; "- 4.1.1: Board of Directors composition, powers and rules"; "- 3.1:
Shareholding and voting rights – Amendments to the Articles of Association"; and "- 3.1: Shareholding andvoting rights – Modification of share capital or rights attached to shares".

4.4 Remuneration report
4.4.1 Introduction
The RNGC, comprised solely of independent non-executive members of the Board of Directors, is pleased
to present the Remuneration Report which comprises the following sections:Paragraph 4.4.2 presents the Company's remuneration policy ("Remuneration Policy") as adopted by the
AGM held in 2020 and applicable from 1 January 2020.
Paragraphs 4.4.3 and 4.4.4 respectively describe how the Remuneration Policy was implemented in 2022
in respect of the CEO and of the Non-Executive Members of the Board of Directors.
As a reminder, shareholders endorsed at the 2022 AGM the implementation of the Remuneration Policy
during the financial year 2021 through the approval of resolution 6 with a very high level of votes casted infavour.
Following a review of the voting results, including the level of abstentions which resulted from some of theCompany’s principal shareholders exercising their abstention rights on the basis of a principle-based
approach, the RNGC did not propose any specific changes to the Remuneration Policy based on thisshareholders' vote. However, a new Remuneration Policy will be submitted to the 2024 AGM. The RNGC,
with the support of an external advisor, already launched a comprehensive review process that will evaluate
pay components, pay mix (including the balance between short and long-term incentives), performance
conditions considered and other structural features to ensure that the policy continues to attract, retain andmotivate executives. This process, as in previous policy reviews, would include engagement withshareholders and other relevant stakeholders as well as an independent benchmark of peers’ pay practices.
Note: Whilst this chapter 4.4 is presented as the Company's Remuneration Report, only the disclosure
included in (or expressly incorporated by reference into) this paragraph 4.4.1 and paragraphs 4.4.3 and4.4.4 constitute the remuneration report (bezoldigingsverslag) for purposes of Section 2:135b of the Dutch
Civil Code and will be included as a separate agenda item for an advisory vote at the AGM 2023.
The cumulated remuneration of all Executive Committee Members is presented in the "Notes to the IFRS
Consolidated Financial Statements – Note 34: Remuneration". To the extent that any information presented
in this note relates to matters referred to Sections 2:383c through 2:383e of the Dutch Civil Code and is notdescribed in paragraph 4.4.3, such information is incorporated by reference into this Remuneration Reportin order to satisfy the requirements of the Dutch Civil Code.

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4.4.2 Remuneration Policy
A - General
The Remuneration Policy covers all members of the Board of Directors: the CEO (who is the only Executive
Director) and the other members of the Board of Directors (who are the Non-Executive Directors).
Pursuant to a resolution to that effect, the general meeting may (re)adopt, amend or supplement the
Remuneration Policy on the basis of a proposal by the Board of Directors at the recommendation of the
RNGC.
The Board of Directors, at the recommendation of the RNGC, may decide to deviate (with either an upward
or downward effect on the remuneration levels) temporarily (and ultimately until the General Meeting adopts
an amended version of the Remuneration Policy following the occurrence of such deviation) from any
element of the Remuneration Policy as outlined below, if this is necessary to serve the long-term interestsand sustainability of the Company or to assure its viability. Any deviation will be made public and duly
justified.
The Remuneration Policy in the form set out below in this chapter 4.4.2 has been adopted by the AGM heldin 2020 with effect as of 1 January 2020.
As explained in chapter 4.4.1, the RNGC did not propose any specific changes to the current Remuneration
Policy this year. The Remuneration Policy shall be posted on the Company's website as part of theCompany's annual report of the Board of Directors.
B - Executive remuneration - Applicable to the CEO
1) Remuneration philosophy
The Company's remuneration philosophy aims to provide remuneration that will attract, retain and motivate
high-calibre executives, whose contribution will ensure that the Company achieves its strategic andoperational objectives, thereby delivering long-term sustainable returns for all shareholders and otherstakeholders in a manner consistent with the Company's identity, mission and corporate values.
The Board of Directors and the RNGC are committed to making sure that the executive remuneration
structure (i) is transparent and comprehensive for all stakeholders; (ii) is consistent and aligned with theinterests of long-term shareholders, also taking into consideration the employment conditions of theCompany's employees; and (iii) incentivises further the Company's corporate values by basing variable
remuneration components also on the achievement of non-financial targets and metrics using
environmental, social or governance criteria via the sustainability performance measure.
Before setting the targets to be proposed for adoption by the Board of Directors, the RNGC considers thefinancial outcome scenarios of meeting performance targets, including achieving maximum performancethresholds, and how these may affect the level and structure of the executive remuneration, as well as
potential risks for the Company's business which may result from variable compensation. The Board of
Directors shall also consider these aspects, based on the RNGC's recommendations.
Also, before making a recommendation relating to the remuneration of the CEO, the RNGC and the Boardof Directors shall take note of the views of the CEO with regard to the amount, level and structure of his or
her remuneration.

2- Total direct compensation and peer group
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The CEO's total direct compensation ("Total Direct Compensation") comprises a base remuneration ("BaseSalary"), an annual variable short-term remuneration ("Annual Variable Remuneration" or "VR") and anaward under the long term incentive plan (“LTIP”). The three elements of the Total Direct Compensation
are each intended to comprise one third of the total, assuming the achievement of performance conditions
is 100% of the applicable targets. The level of the Total Direct Compensation for the CEO (Base Salary,VR and LTIP) is set by reference to the median of an extensive peer group (as described in paragraph 4.4.3
item 1) below) and takes into account the scope of the role of the CEO, and the level and structure of
executive rewards within the Company. The benchmark is regularly reviewed by the RNGC, with thesupport of an independent consultant, and is based on a peer group which comprises:
global companies in the Company's main markets (France, Germany, UK, Spain and US), excluding
financial institutions; and▶ companies operating in the same industries as the Company worldwide.
▶

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The elements of the Total Direct Compensation are described below:

Remuneration
Element

Base Salary(in €)

Variable
remuneration(in €)

LTIP(in Units and/or
Shares)Main Drivers

Reflects market
value of position.

Rewards annual
performance basedon achievement ofCompany
performancemeasures andindividual
objectives.

Rewards long-term
commitment andCompany
performance, andengagement basedon financial targets
aligned with longterm objectives
subject tocumulative
performance over athree-year period.

Performance Measures

Target and Maximum

Not applicable

1/3 of Total Direct Compensation (whenperformance achievement is 100% of target)

Collective (50% of VR):
divided between EBIT2(40%);
Free Cash Flow3 (40%)
and Sustainability (20%).

The VR is targeted at 100% of base salary
for the CEO and, depending on theperformance assessment, ranges from 0%
to 200% of target.

Individual (50% of VR):
Achievement of annual
individual objectives,
divided between
outcomes and behaviour.

Vesting, subject toperformance over a threeyear period. In principle,
no vesting if cumulative
EBIT is negative. If
cumulative EBIT ispositive, vesting from
50% to 150% of grant
based on EPS (75%) andFree Cash Flow (25%).

The VR is capped at 200% of Base Salary.

The original allocation to the CEOis capped at 100% of base salary at the timeof grant.
Vesting capped at 150% of initial grant (innumber of Performance Shares and/orUnits).
In addition, for the vesting of Performance
Units:- overall pay-out is capped at 250% of theoriginal value at the date of grant.
- the value that could result from share priceincreases is capped at 200% of thereference share price at the date of grant.

2 The Company continues to use the term EBIT (Earnings Before Interest and Taxes). It is identical to profit before finance cost and income taxes as defined by
IFRS Rules.

3 Airbus defines the alternative performance measure FCF as the sum of (i) cash provided by operating activities and (ii) cash used for investing activities, less (iii)change of securities, (iv) contribution to plan assets for pension schemes, (v) realised treasury swaps and (vi) bank activities. It is a key indicator which allows theCompany to measure the amount of cash flow generated from operations after cash used in investing activities.

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The following graphic depicts three relevant scenarios for the outcome of the Total Direct Compensation:

Indications assume a Base Salary of EUR 1.485 million.
"Below Threshold" includes annual Base Salary; VR at 0%; LTIP not vesting.
"Target" includes Base Salary, VR at target and LTIP grant face value in cash and/or in shares.
"Maximum" includes Base Salary; maximum VR value (200% of VR at target); maximum LTIP cash grant projected at vesting date (250% of grant value);
maximum performance applicable to the number of shares granted (150%). The final value of Performance Shares depends on the share pricedevelopment which is not capped. Illustrative table for a theoretical grant of 50% Shares / 50% Units.

3- Base Salary
The CEO's Base Salary is determined by the Board of Directors, taking into account the peer group analysis
mentioned above.
4- Annual Variable Remuneration
The Variable Remuneration is a cash payment that is paid following the end of each financial year,
depending on the achievement of specific and challenging performance targets as determined at the
beginning of each financial year. The level of the CEO's variable remuneration is targeted at 100% of theBase Salary; it is capped at a maximum level of 200% of the Base Salary. The entire Variable Remuneration
is at-risk, and therefore if performance targets are not achieved as per the defined objectives agreed by the
Board of Directors, it may mean that no variable remuneration is paid at all.
The performance measures that are considered when awarding the variable remuneration to the CEO are
split between common collective performance measures and individual performance measures.
Common collective component
The common collective component is based on earnings before interest and taxes ("EBIT") (40%), free
cash flow (40%) and sustainability (20%) objectives (the "Common Collective Component"). At the
beginning of each year, the Board of Directors sets the targets for these key value drivers at Company andDivision levels. The common collective targets relate closely to internal planning and to guidance given to
the capital markets (although there may be variations from these). The key value drivers that form thesustainability component will be determined by the Board of Directors and disclosed in the implementation
section of the Company's remuneration report for the relevant financial year. They can be related to matterssuch as health & safety, climate and/or people.
To calculate the common collective annual achievement levels, actual EBIT, free cash flow andsustainability performance are compared against the targets that were set for the year. This comparison
forms the basis for computing achievement levels, noting that the actual EBIT, free cash flow levels areoccasionally normalised for a limited number of factors which are outside management's control (such as
certain foreign exchange impacts or unplanned merger and acquisition activities). The RNGC's intention isto ensure ambitious financial and sustainability targets, and to incentivise the CEO's commitment to meetingthese targets.

Airbus SE/ Report of the Board of Directors 2022

37

The graphic below illustrates the Common Collective Component, how it is measured and what the key
value drivers are:Individual component
The individual element ("Individual Component") focuses on outcomes and behaviour (as defined below).
Individual performance is assessed in these two important dimensions, which both contribute to theCompany's remuneration philosophy. Among other matters, corporate social responsibility and theCompany's corporate values are considered as part of this assessment.
▶ Outcomes encompass various aspects of what the CEO can do to contribute to the success of thebusiness: specific business results he achieves, projects he drives and processes he improves. The
individual targets of the CEO are comprehensive and shared with all employees via the top company
objectives.
▶ Behaviour refers to the way results have been achieved, which is also critical for long-term success:how the CEO and the Board of Directors work as a team, how the CEO leads the Executive Committee,
quality of communication, encouragement of innovation, etc. A specific part of the behaviourassessment relates to ethics, compliance, quality and other sustainability matters.
The performance of the Individual Component is measured by the RNGC for the CEO and for all the othermembers of the Executive Committee.
The RNGC discusses the level of achievement of every single target and derives a combined target
achievement level for the outcomes. The behavioural part of the Individual Component is also discussed
by the RNGC and constitutes an adjustment factor for the target achievement of the outcomes. Finally, the
RNGC proposes to the Board of Directors the compound Individual Component of the CEO target
achievement made up from the outcomes and behavioural achievements.
5- Long-Term Incentive Plan
The CEO participates in the Company's LTIP in order to increase the alignment with shareholders' interests.
The LTIP allows the award of performance units ("Performance Units" or "Units") and/or performance
shares ("Performance Shares" or "Shares").
The value of the CEO's LTIP allocation is capped at 100% of the Base Salary at the date of grant andsubject to performance conditions. The achievement of the performance criteria is assessed by the RNGC

Airbus SE/ Report of the Board of Directors 2022

38

after a three-year period, based on relevant financial criteria during this period of three years with stringent
targets set in advance and agreed by the Board of Directors at the recommendation of the RNGC.
At the end of this three-year period, the grant is subject to a performance calculation to determine whether
and to what extent it should vest. Depending on this calculation (i) Performance Units will vest in two
tranches, the payment of which takes place approximately six and 18 months following the end of theperformance period and (ii) Performance Shares will vest in one tranche, approximately six months
following the end of the performance period. This is depicted in the graphic below:

The level of vesting of Performance Shares and Units is subject to the following performance measures:▶ 0-50% of the allocation: In principle, this element of the Performance Unit/Share award will not vest if

the Company reports negative cumulated EBIT results. Nonetheless, in case the Company's EBIT
results are impacted by exceptional and unpredictable circumstances, the Board of Directors, uponrecommendation of the RNGC, may decide that a maximum portion of 50% of the allocation will vest;▶ 50-150% of the allocation: This element of the Performance Unit/Shares vests based on the two
following performance criteria: average earnings per share (75%) ("Earnings per Share" or "EPS") andcumulative free cash flow (25%).

The vesting of Performance Units and Shares is subject to the following maximum cap:
▶ the maximum level of vesting is 150% of the number of Units/Shares granted.

The vesting of Performance Units is subject to the following maximum caps:▶ the value that could result from share price increases is capped at 200% of the reference share price atthe date of grant; and▶ the overall pay-out is capped at 250% of the value at the date of grant.

Performance Units and Performance Shares that vest in accordance with the terms and conditions
applicable to them are settled without further action being required by the beneficiary.
For each payment in cash, one Unit is equal to the value of one Company share at the time of vesting. The
Company share value is the average of the opening share price, on the Paris Stock Exchange, during the
20 trading days preceding and including the respective vesting dates.

Airbus SE/ Report of the Board of Directors 2022

39

6- Share ownership guideline
The Board of Directors has established a share ownership guideline pursuant to which the CEO is expectedto acquire Airbus SE shares with a value equal to 200% of the Base Salary and to hold them throughout
his or her tenure.
7- Benefits
The benefits offered to the CEO are similar to the benefits granted to other executives of the Company andcomprise, among other matters, medical, death and disability coverage (both through a social security
system or a company plan, depending on the contractual agreement with the CEO), a company car andusual facilities.
Unless the law provides otherwise, the costs and expenses of the CEO are covered, including reasonable
costs of defending claims, under the conditions set forth in the insurance policy subscribed by the Company.
Under circumstances excluded by the insurance policy, such as an act or failure to act by the CEO that canbe characterised as intentional, intentionally reckless, or seriously culpable, there will be no entitlement toany coverage.
8- Retirement
The CEO is entitled to retirement benefits through mandatory applicable state and collective pension plans.
The CEO participates also in a Company pension contributions based plan. This plan consists of an annual
pension contribution of 20% of the annual pensionable remuneration (as described in paragraph 4.4.3 item8) below) subject to applicable local practices (if any).
9- Clawback
In accordance with Dutch law, the Board of Directors may adjust a "bonus" (as defined under Dutch law,
including short-term remuneration and awards under the Long-Term Incentive Plan subject to performance
criteria) awarded to the CEO to a suitable level, if payment or satisfaction of that bonus would be
unacceptable under the standards of reasonableness and fairness. Also, the Company may reclaim abonus already paid, in whole or in part subject to applicable local legal requirements, if any, to the extent
that such payment was made on the basis of incorrect information regarding the achievement of the targets,
objectives and/or conditions underlying the bonus or regarding the circumstances on which the bonus wasdependent. The Non-Executive Directors, or a special representative designated by the general meeting,may demand such repayment on the Company's behalf.
Any such adjustment or clawback will be reported in the notes of the relevant financial statements of theCompany.
10- Loans
The Company does not provide loans or advances to the CEO.
11- Severance
In case of termination of the CEO's duties at the initiative of the Board of Directors, the CEO shall be entitledto an indemnity equal to one (1) time the last Total Annual Remuneration (defined as Base Salary and VR
most recently paid) subject to applicable local legal requirements if any, and provided that the performance
conditions (as described in paragraph 4.4.3 item 11) below) assessed by the Board of Directors have been
fulfilled. If the CEO's appointment as member of the Board of Directors terminates within a period of 12months or less prior to his retirement date, the termination indemnity will be limited by pro-rating its amount.
Airbus SE/ Report of the Board of Directors 2022

40

This will not apply if the CEO's mandate is terminated for cause (misconduct), in case of resignation or
termination on or after his retirement date.
The CEO's appointment terms and conditions include a non-compete clause, which applies for a maximumof one year. The compensation under the non-compete clause is equal to 50% of the last total annual
remuneration (defined as Base Salary and VR most recently paid), subject to applicable local legal
requirements if any and paid in monthly instalments.
Past LTIP awards may be maintained, in such cases as retirement or if a mandate is not renewed by theCompany for a reason other than cause (misconduct). The vesting of past LTIP awards follows the rules
and regulations of the LTIP including performance conditions and is not accelerated in any case. LTIP
awards are forfeited for executives who leave the Company at their own initiative, but this is subject toreview by the Board of Directors.
The term of the CEO's appointment is linked to his or her mandate as a member of the Board of Directors.
The termination of the CEO's appointment may be subject to a notice period of six months, except if the
CEO's appointment is terminated for cause (misconduct), in which case the CEO's appointment may beterminated immediately, or in case of non-renewal of the CEO's mandate by the general meeting.
C - Non-Executive remuneration – applicable to Non-Executive Directors
The Company's Remuneration Policy with regard to Non-Executive Directors aims at ensuring faircompensation and protecting the independence of the Board's members. Their remuneration should becommensurate to the time spent and the responsibilities of their role on the Board of Directors.
Fees and entitlements
Non-Executive Directors are entitled to the following remuneration components:▶ a base fee for membership or chair of the Board of Directors;▶ a Committee fee for membership or chair on each of the Board's Committees;▶ an attendance fee for the attendance of Board meetings (subject to such conditions as may be imposedby the Board of Directors at the recommendation of the RNGC); and▶ an attendance fee for the attendance of Committee meetings if and when such Committees would havemore than four Committee meetings per year (whether these meetings are held physically or by phone).

Each of these fees is a fixed amount that is determined by the Board of Directors from time to time, at therecommendation of the RNGC.
Committee chairmanship and Committee membership fees are cumulative if the concerned Non-Executive
Director belongs to two different Committees. Fees are paid twice a year at the end of each semester (asclose as possible to the Board meeting dates).
Non-Executive Directors do not receive any performance or equity- related compensation, and do notaccrue pension rights with the Company in the frame of their mandate, except what they would receive inthe frame of a current or past executive mandate. These measures are designed to ensure theindependence of Board Members and strengthen the overall effectiveness of the Company's corporate
governance.
The Company does not encourage Non-Executive Directors to purchase Airbus SE shares.
The Company does not provide loans or advances to the Non-Executive Directors.
Unless the law provides otherwise, the Non-Executive Directors shall be reimbursed by the Company forvarious costs and expenses, including reasonable costs of defending claims. Under certain circumstances,
Airbus SE/ Report of the Board of Directors 2022

41

such as an act or failure to act by a Member of the Board of Directors that can be characterised asintentional, intentionally reckless, or seriously culpable, there will be no entitlement to this reimbursement.

4.4.3 Implementation of the Remuneration Policy in 2022: CEOThis paragraph 4.4.3 describes how the Remuneration Policy was implemented in 2022 with respect to theCEO (Mr Guillaume Faury). As a reminder, the AGM held in 2020 approved the Remuneration Policy
through resolution five with a very high level of support.
In line with the Remuneration Policy and the expectation of the RNGC and the Board of Directors, thephilosophy of the remuneration policy aims to provide remuneration that will attract, retain and motivate
high-calibre executive, while taking into account best practices as well as employee and shareholder
considerations. It should help to ensure that the Company achieves its strategic and operational objectives,
thereby delivering sustainable returns for all shareholders and other stakeholders in a manner consistent
with the Company's identity, mission and corporate values.
1- Benchmarking
The latest benchmark was performed in July 2021 at RNGC and Board of Directors request.
To consider the Company operations and employees’ breakdown by geographic areas, the relevant peergroup from this last benchmark, based on Willis Towers Watson database, was composed of 55 companies[1]
selected from CAC40 in France, DAX 40 (formerly DAX 30) in Germany, FTSE 100 in the UK, IBEX 35
in Spain and DJ 30 in the US having comparable economic indicators such as revenues, number of
employees and market capitalisation and providing perspective on compensation practices from direct orindirect competitors.
In particular, US companies were included in this peer group since Airbus has direct competitors in thiscountry and since Airbus has senior executives in the US where it competes to recruit talents. However,and considering the very unique US pay practices and as Airbus executives are mainly based in Europe,
US companies were solely weighted at 10% over all countries. The data was compounded using thefollowing weighting: France 30% Germany 30%, Spain 15%, the United Kingdom 15% and the USA 10%.
Financial institutions were excluded from the peer group.
(1) France : Total, Sanofi, Safran SA, Air Liquide, Stellantis, Danone, Schneider Electric, Saint-Gobain, Vinci, Engie, Thales, Dassault systèmes
Germany: Bayer, Volkswagen, Daimler, BASF, Deutsche Telekom, Siemens, BMW, Continental, E.ON, Henkel, Deutsche Post , SAP
Spain: Iberdrola, Endesa, Siemens Gamesa, Santander, Telefónica, Naturgy, Repsol, Banco Bilbao, Inditex, Ferrovial SA
UK: Shell, BP, BAT, GSK, Rio Tinto, Vodafone, Bae Systems, Rolls Royce, Diageo, Unilever, Tesco
US: Boeing, Lockheed, Raytheon, General Dynamics, Northrop Grumm, GE, Caterpillar, 3M, IMB, Fedex

Based on the benchmark run by this independent third party, the Board of Directors, upon recommendationof the RNGC decided to increase by 10 % the Total Direct Compensation (Base Salary + Variable
Remuneration + LTIP) of the CEO applicable from 1 January 2022.
This decision has been taken after due consideration of the outcome of the benchmark and the successful
leadership of the CEO during his ﬁrst term of office as CEO.
With this increase,▶ the Total Target Cash (TTC) (Base Salary + Variable Remuneration) of the CEO (€ 2,970,000) is
closer to the median market range of the peer group (i.e. € 3,000,000)▶ however his Total Direct Compensation (TDC) remains by around 28% below the median level ofthe peer group (i.e. € 4,455,000 for the CEO compared to € 6,200,000 for the peer group in 2022).
Airbus SE/ Report of the Board of Directors 202242

In addition to external benchmark, the RNGC also considers the remuneration of employees through thereview of the evolution of the pay-ratio (see 4.4.3 item 10 ).
2- Base SalaryThe 2022 CEO Base Salary level on a full year basis increased by 10% in the context of his renewal as per
the Board of Directors’ decision, compared to 2021 and amounts to € 1,485,000 (still below the Base Salaryof the former CEO: € 1,500,000 in 2019).
3- Annual Variable Remuneration
As stipulated in the Company's Remuneration Policy, the CEO's VR is targeted at 100% of the Base Salaryand capped at 200% of the Base Salary. It is subject to the fulfilment of collective and individual performancetargets.
For 2022, the VR of the CEO amounts to an aggregate of € 2,041,875 composed of € 1,113,750 (55%) for
the Common Collective Component and € 928,125 (45%) for the Individual Component.

Airbus SE/ Report of the Board of Directors 2022

43Performance achievement – Common Collective Component
According to the policy applicable for the financial year 2022, the Common Collective Component for theCompany consolidated achievement have been assessed at 150% by the RNGC and the Board of Directors
in February 2023 against the target letters validated at the beginning of 2022 and that include detailed
vesting scales for each criteria*. It is based on an achievement of 121% of target EBIT, 161% of target free
cash flow, and 186% of target sustainability (which is based on achievement of 171% of target reduction of
CO2 emissions and 200% of target reduction of FR1).
These criteria and their assessment apply to all Executives having a Common Collective Component intheir variable remuneration and since 2022 it has been extended to all Senior Managers. Therefore, circa
4,500 employees receive a collective bonus based on the achievements mentioned above.
* while the Company is paying all due attention to investors' feedback, for sensitivity reasons specificinformation on vesting scale (threshold, target, maximum) is not disclosed

High level of achievement for EBIT and Free Cash Flow was driven by Airbus Commercial and Airbus
Helicopters partially offset by Airbus Defence & Space. Normalisations were made to exclude exceptional
financial impacts such as currency exchange differences.
Sustainability targets are measured by two criteria: the rolling lost time injury frequency rate ("FR1") whichis the monthly number of lost time injuries per million worked hours averaged over 12 months) and the
reduction in CO2 emissions (“CO2e”), each weighted for 10% of the Common Collective Performance.
In 2022, the rolling FR1 decreased by more than 30% in Airbus Commercial and by more than 20%
in both Airbus Helicopters and Airbus Defence and Space, leading to a consolidated achievementof 200%. For further details, please refer to section 6.1.9 Health and Safety.
▶ In 2022, the CO2e decreased by 8.5% (reduction of circa 63ktons), which is above the targeted
reduction of 5%, leading to an achievement of 171%. For further details, please refer to section
6.1.2 Climate Change.
▶

For 2023, the Board of Directors decided to maintain the sustainability component as follows: FR1 for 50%
and CO2 avoidance for 50%. The targets for 2023 are:▶

a reduction of the rolling FR1 by 15% in Airbus Commercial and Airbus Helicopters (the rolling FR1
in these two divisions at the end of 2022 being still above 1) and by 10% in Airbus Defence andSpace (the rolling FR1 for this division at the end of 2022 being below 1) versus the actual 2022
rolling FR1.
Airbus SE/ Report of the Board of Directors 2022

44

▶

annual targets are set in line with the Company’s 2030 roadmap; they refer to a material sub-scopeof its operations on which the Company can have a more direct control and influence. The CO2efor 2023 was set in absolute value at 687ktons, which represents a reduction of -0.9% vs. 2022 fora scope extended to another four sites. For further details, please refer to section 6.1.2 Climate
Change.

Performance achievement – Individual Component
The Individual Component in 2022 results from an achievement level of 125%, assessed by the RNGC andapproved by the Board of Directors in February 2023 on the basis of achievement demonstrated on different
criteria defined at the beginning of 2022, as summarised in the table below:

The Individual component has been assessed according to three sets of complementary objectives:▶ Top Company Objectives Assessment – accounting for 30% of the total Individual Component,
shared with all company executives to promote collective alignment;▶ CEO Individual Objectives – accounting for 60% of the total Individual Component;▶ CEO Behavioural Objectives – accounting for 10% of the total Individual Component.
I. Outcomes element
A. 2022 Top Company Objectives
These have been defined and are structured around 6 clusters:- Customer- Operational Performance- Financial Performance- People- Sustainability- Enable the Future
A series of KPIs and associated targets have been set at the beginning of the year for each of the clusters.
Each of the KPIs has been measured and compared to the relevant target, leading to a global measurementof the TCOs achievement at 90% of the targets, as per details shown in the table “summary CEO
achievement – Individual Component” at the beginning of this chapter.
B. CEO Individual Objectives
Airbus SE/ Report of the Board of Directors 202245

In line with the TCOs, Individual Objectives have been set up specifically for the CEO.
They are structured around 5 priorities, detailed below.
Each of the priorities has been assessed by the RNGC, as per the details shown in the table “summary
CEO achievement – Individual Component”.
The main and most noticeable factors for each of the 5 priorities determining the achievement level of CEO
Individual Objectives include, but are not limited to:
1. Perform again
Despite a challenging supply chain context, with notable disruption on engines and electronic components,
aircraft deliveries increased, reaching 661 at the end of 2022 compared to 611 in 2021. However, this falls
short of the initial 2022 delivery guidance.
The industrial setup reshaping was pursued, with progress on the restructuring of the Aerostructures
business (Airbus Atlantic, Airbus Aerostructures GmbH, Premium Aerotec Industries) as well as on making
all Final Assembly Lines A321-capable (Tianjin and Toulouse in addition to Hamburg and Mobile).
2. Commercial aviation market position consolidation
Progress was made on all major aircraft developments, notably on A321XLR, which made its first test flightand achieved concrete steps towards certification and eventual entry into service. The development of theA350 Freighter also advanced, while also confirming its market potential through new orders.
A strong overall order intake was secured (more than 1000 commercial aircraft gross orders), further
consolidating the company position as market leader for the fourth consecutive year. Good progress was
also made on further developing customer relationships, paving the way for future landmark orders, suchas the one recently concluded with Air India.
3. Secure and deliver key defence programmes
Important strategic European military programs have been secured:- Future Combat Air System (FCAS) Phase 1B negotiation was successfully completed resulting incontract signature in December 2022.
- EuroDrone, Tiger MkIII as well as HIL for the French Armed Forces have been secured in 2022.
However, the overall performance of the Defence and Space division remained below expectations, notably
impacted by inflation on long-term contracts such as the A400M programme.
4. Environment, Social and Governance (ESG) and Ethics & Compliance
ESG and Ethics & Compliance have been established as a strategic building block, actively engaging with
the Company’s wide stakeholders base:- Notable steps have been made on the ZEROe aircraft program, which aims to develop the first zero
emission commercial aircraft entering the market by 2035. In particular, the progress in terms ofTechnology Readiness Level and industrial capabilities can be highlighted, such as through thedevelopment of the ZEROe Emissions Development facilities.
- Developments were driven on Sustainable Aviation Fuels with the notable example of theestablishment of a joint fund with Qantas.
- Very good progress has also been made on employee diversity, notably in terms of executives’ gender
diversity hiring and promotions.
- Progress has been made on integrating Defence within the wider ESG framework. Positive feedback
was received after the 2022 Capital Market Day, and increased alignment with the wider private andpublic stakeholder base.
Airbus SE/ Report of the Board of Directors 2022

46

-

Positive feedback was received from the Agence Française Anticorruption (AFA) following the audits,and significant progress was made in anchoring Compliance as a key pillar of the Company’s culture.
The Deferred Prosecution Agreements have now expired and formal closure by the authorities ispending in line with the procedural requirements of each country.
5. Deliver the key 2022 strategic milestones

Digital Design, Manufacturing & Services (DDMS) programme and digital transformation have progressed
as planned.
The Company has recently set its first near-term science-based targets to reduce emissions on all scopes,
in line with a 1.5°C temperature pathway for its Scope 1 & 2 emissions, which were submitted to SBTi in
June 2022 and validated in January 2023.
At the ICAO Assembly in October 2022, the member states agreed on a collective Long-Term Aspirational
Goal (LTAG) for international civil aviation operations of net zero carbon emissions by 2050, in support of
the Paris’ Agreement’s temperature goal. The Company has actively supported this outcome, which will
prove pivotal in driving the overall industry towards a net zero emissions future.
The Company signed several strategic partnerships to accelerate the decarbonisation roadmap (e.g. DACC
1PointFive, Neste, Renault).
II. Behaviour element
The “Behaviour element” accounts for 10% of the total Individual Component and has been assessedaround two axes: Personal Development and Leadership Team Development.
Each of the priorities has been assessed by the RNGC leading to a global achievement of 130% for the
Behavioural Objectives, as per details shown in the table “summary CEO achievement – Individual
Component”.

Personal Development and Leadership Team Development
The CEO has gained strong recognition from his peers and the wider public, further reinforcing theCompany leadership and brand value. This contributes to putting Airbus in an even stronger position todrive change within the industry and attract talents.
Following the changes made in 2021, further development of the top management team was implemented,
especially with a strong focus on preparing the future generation and on promoting diversity, both in termsof gender and international profiles.
III. 2023 CEO priorities
For 2023, the CEO priorities revolve around operational performance, market position in commercial
aviation, major European defence programmes, Environment, Social and Governance topics, Digital and
Decarbonisation roadmap, leadership team development and portfolio management.
4- Long-Term Incentive Plan
2022 Grant
In 2022, under the Company’s LTIP, the Board decided to grant only Performance Shares, and no
Performance Units. This applies to the CEO as well as to all beneficiaries of LTIP. The value of the
Performance Share award has been capped at 100% of the Base Salary, in line with the current
Airbus SE/ Report of the Board of Directors 2022

47

Remuneration Policy as validated by the AGM 2020, which then represents one third of the CEO's target
Total Direct Compensation. The table below gives an overview of the Performance Shares granted to the
CEO in 2022 pursuant to the LTIP:
Share plan: number of Performance Shares
Granted in 2022
Vesting dates
Guillaume Faury
14,115
Vesting schedule is made up of 1 tranche expected in May
2026
The grants in 2022 were performed in compliance with the performance measures (average EPS (75%)
and cumulative FCF (25%)) described in paragraph 4.4.2 B item 5). As per the current Remuneration Policy,
the Performance Shares granted in 2022 will vest in one tranche in May 2026.
Vesting values in 2022
In 2022, the CEO received both cash payments and vested shares in connection with the vesting of 2017and 2018 LTIP awards:▶ Cash: the total cash payment to the CEO amounted to € 226,388 in 2022.
▶ Shares: in connection with the 2018 LTIP award, the CEO received 2,104 vested shares on 12 May
2022.

Airbus SE/ Report of the Board of Directors 202248

LTIP overview: granting and vesting
Date ofgrants

Grant
Type

NumberShareprice at
grant

Value atgrant date

Performanceachievement

Units withperformanceachievement

2017

Unit

4,404

€ 73.81€ 325,059

50%

2,202

2 vestingsin 2021 2022

1st vesting 5
May 2021 €100.252nd vesting
12 May 2022
€ 105.15

2017

Share

4,404

€ 73.81€ 325,059

50%

2,202

1 vestingin 20215 May 2021
€ 97.58

2018

Unit

4,208

€ 106.94€ 450,004

50%

2,104

2 vestingsin 2022 2023

1st vesting
12 May 2022
€ 105.15

2018

Share

4,208

€ 106.94€ 450,004

50%

2,104

1 vestingin 202212 May 2022
€ 104.4

2019

Unit

5,530

€ 122.06€ 674,992

50%

2,766

2 vestingsin 2023 2024

Not yet
known

2019

Share

5,530

€ 122.06€ 674,992

50%

2,765

1 vestingin 2023

Not yet
known

2020

Unit

9,920

€ 68.04€ 674,957

Not yet known

Not yet known

Not yet
known

2020

Share

9,920

€ 68.04€ 674,957

Not yet known

Not yet known

2021

Share

12,121€111.38€ 1,350,037

Not yet known

Not yet known

2022

Share

14,115€ 105.20€ 1,484,898

Not yet known

Not yet known

2 vestingsin 2024 –2025
1 vestingin 2024
1 vestingin 2025
1 vestingin 2026

Dates ofvesting

Share value
at vesting
dates(*)

Not yetknown
Not yetknown
Not yetknown

Calculations may involve rounding to the nearest unit.

* Vesting will occur according to the respective rules and regulations of each plan.
100% of units and shares granted are conditional to the achievement of performance conditions
NOTE: 2017 to 2018 awards were granted to Mr Faury before his appointment as CEO and should vest
during his mandate.
Performance Conditions of LTIP 2019:
The performance conditions for LTIP 2019 were determined as follows: if the Company reports a
positive cumulative EBIT, a minimum portion of 50% of the Performance Units / Shares vest. If theCompany reports a negative cumulative EBIT resulting from exceptional circumstances, the Board of
Directors can decide at its sole discretion to vest a maximum portion of 50% of the Performance Units/ Shares.
▶ 50% to 150% of the allocation would be granted depending on the compounded achievement of thetwo following performance criteria:● 75% of average EPS ("Ave EPS"): determined on a linear basis depending on three-year Ave
EPS for the 2020, 2021 and 2022 fiscal years, with the three-year Ave EPS target for an allocationof 100% equal to € 7.72; and● 25% of cumulative FCF ("Cum FCF"): determined on a linear basis depending on three-year
Cum FCF for the 2020, 2021 and 2022 fiscal years, with the three-year Cum FCF target for an▶

Airbus SE/ Report of the Board of Directors 202249

allocation of 100% equal to € 13,150 million.
Review of achievement of performance conditions:
In February 2023, the Board of Directors noted the achievement of the performance conditions of the 2019
plan, i.e. for the 2020, 2021 and 2022 fiscal years. The three-year average EPS was € 3.10 and the threeyear Cum FCF was € 4,320 million.
The cumulative EBIT for the 3-year period is positive, leading, according to the policy, to the vesting of 50%
of Performance Shares and Units. The positive performances of 2021 and 2022 exercises did not mitigate
the 2020 exercise strongly impacted by the sanitary crisis leading to no vesting above 50%.
For reasons of confidentiality, the precise targets set for the average EPS and cumulative free cash flow,even though they have been properly established and validated in a suitable manner, cannot be publicly
disclosed as these objectives are considered as competitive sensitive information. Nonetheless, in the spiritof providing the highest level of transparency to our shareholders and to adhere to best practices,
retrospective information demonstrating the stringency of the targets set by the Board of Directors isprovided for the previous LTIP, as follows:Dateofgrants

KPI

Numberof units

Target for
a 100%
allocation

Achieved

Performanceachievementin percentage

Compounded
performanceachievementin percentage

2017

Ave
EPS
Cum
FCF

8,808

€ 6.00€ 9,339m€ 1.83€ 4,331m

50%
50%

50%

2018

Ave
EPS
Cum
FCF

8,416

€ 6.73€ 13,000m€ 2.27€ 3,230m

50%
50%

50%

2019

Ave
EPS
Cum
FCF

11,060€ 7.72€ 13,150m€ 3.10€ 4,320m

50%
50%

50%

Resultingvesting in
numberFor
comparison,
average EPS
for the last 3
reported
years at thedate of grant

4,404€ 2.28*4,208€ 2.81**5,530€ 2.98**** Average EPS of 2016, 2015 and 2014. ** Average EPS of 2017, 2016 and 2015. *** Average EPS of
2018, 2017 and 2016
Based on the above, the ratio between the fixed part of the remuneration of the CEO in 2022 (Base Salary,
annual contribution to the Company's defined contribution pension plan and benefits) and the variable partof the remuneration (Variable Remuneration related to 2022 paid-out in 2023 and LTIP vesting in 2022) is
48% / 52% (versus 41% / 59% in 2021).
5- Share ownership
The CEO owned 26,599 Airbus SE shares on 31 December 2022. The CEO has reached the target of
200% of the Base Salary in 2022 thanks to a personal investment plan in Airbus SE shares.
Please refer to the AFM website www.afm.nl for any further information related to the transactions of theCEO.
Airbus SE/ Report of the Board of Directors 202250

6- Employee Share Ownership Plan (ESOP)In March 2022, the Company offered all eligible employees the opportunity to subscribe to a share matchingplan, through which the Company matches a certain number of directly acquired shares with a grant ofmatching shares. This ratio varies depending on the number of shares acquired at fair market value by theemployees, with a maximum discount of 50%. The total offering was up to 2.2 million shares of Airbus SE,
open to all qualifying employees. Information about the plan can be found on the Company's website.
Under the umbrella of the ESOP 2022, a dedicated UK tax advantageous Share Incentive Plan ("SIP") was
also deployed in March 2022.
Although the CEO was eligible for the plan, he did not participate in the ESOP 2022 plan leaving moreshares for employees in order to favour the development of employee shareholding.
7- Benefits
Costs of benefits provided through applicable mandatory collective and social security plans are accounted
for among social charges (please refer to Note 34 to the IFRS Consolidated Financial Statements for further
details). The monetary value of other benefits provided to the CEO in 2022 amounts to € 32,734 (vs €32,479 in 2021).
8- Retirement
Until the end of 2019, the retirement benefit of the CEO accrued through a defined benefit commitment.
Following the Board of Directors decision approved in the AGM 2020, the accrued pension rights under thiscommitment have been frozen based on the seniority of the CEO as Executive Committee member at theend of 2019. A replacement target ratio has therefore been set at 52% of his Base Salary (i.e. 26% of thesum of his Base Salary and his target VR) and will no longer accrue. The pension rights under thiscommitment remain unvested until the retirement date of the CEO.
The pension rights arising from the Company's defined contribution plan (i.e. contribution of 20% of thepensionable remuneration, which is the Base Salary and the most recently paid VR) are deducted from thefrozen pension rights described above.
The present value of the remaining CEO's pension obligation related to the frozen defined benefit
commitment is estimated annually by an independent actuarial firm according to the international
accounting standard IAS19 as applied by the Company for post-employment benefits. As of 31 December
2022, the defined benefit obligation amounted to € 6,895,263 (€ 9,046,433 in 2021). This obligation has
been accrued in the 2022 Consolidated Financial Statements and will be updated annually up to theretirement date of the CEO considering future changes on economic assumptions or other factors like salary
increase.
For the fiscal year 2022, the cost related to the CEO's pension rights accrued under Company's plans
during the year represented an expense of € 1,385,222 (versus € 1,138,794 in 2021).
The annual cost of pension rights accrued under applicable mandatory collective and state pension plans
are accounted for among social charges (please refer to Note 34 to the IFRS Consolidated Financial
Statements for further details).
9- Clawback
The Board of Directors did not apply any clawback in 2022.

Airbus SE/ Report of the Board of Directors 202251

10- Pay ratio
The Dutch Corporate Governance Code recommends that the Company provides a ratio comparing thecompensation of the CEO and that of a "representative reference group" determined by the Company.
The Company's pay ratio is calculated by comparing the compensation of the CEO with the averagecompensation of full-time equivalent permanent employees from France, Germany, the UK and Spain for
the Company, excluding subsidiaries (encompassing around 99,000 employees).
Since 2021, the aggregate compensation over the fiscal year that is used as a reference amount to calculate
the ratio includes the gross sum of the Base Salary, annual bonus, profit and success sharing, overtime,
premium for work conditions and other premiums, social charges, value of benefits and pension
contributions and the face value of LTIP at grant date.
The ratio between the compensation of the CEO (including base salary, variable remuneration, social
charges, benefits, pension contributions and LTIP grant face value) and the average compensation of fulltime equivalent permanent employees for the fiscal year to which this report relates is 70 (for 2021: 61 after
restatement) (rounded to the nearest integer).
The increase in pay-ratio is mainly due to the increase in the collective component of the Annual Variable
Remuneration (VR): the collective component related to the VR paid-out in 2021 to CEO was impacted by
the COVID-19 crisis, while it was not the case for the payment in 2022 related to the 2021 performance
which was very strong due to quicker than expected post COVID-19 recovery.
11- Severance
No payment has been made to the CEO in 2022 related to severance or other termination indemnity.
Under the current CEO's appointment terms and conditions, the payment of an indemnity in case oftermination would be subject to performance conditions. These conditions would be fulfilled if the collective
and individual components of the VR for the last 2 financial years preceding the financial year during which
the termination occurs have been assessed by the Board of Directors at 100% or more.

Airbus SE/ Report of the Board of Directors 202252

12- Development of the compensation
The table below provides an overview of the development of the direct cash compensation paid to the CEO
during a financial year composed by the Base Salary plus the VR (as defined below) and of the Employee
Compensation (as defined below).
Financial year
I. CEO's direct cash
compensation
Annual Base Salary (k€)
VR (k€) (2)
Total
Annual Variation
II. Long Term Incentive Plan (k€)(3)
III. Company Performance
EBIT Adjusted (m€)
Annual Variation
FCF before M&A and customer
financing (m€)
Annual variation
IV. Employee Compensation (k€)(4)
Annual Variation

2022

2021

2020

2019

2018

1,485
2,241
3,726
+35%

1,350
1,404
2,754
-5.1%

1,350
1,553
2,903
-21.8%

1,392(1)
2,318
3,710
+1.1%

1,500
2,168
3,668
+7.5%

1,485

1,350

1,350

1,350

-

5,627
+16%

4,865
+185%

1,706
-75%

6,946
+19%

5,834
+37%

4,680
+33%

3,515
n.a

(6,935)
-298%

3,509
+21%

2,912
-1%

79.1
+10.5%

71.6
-0.6%

72.0
-4.1%

75.1
+2.0%

73.6
+3.6%

(1) Base salary 2019 relates to the former CEO up to 10 April 2019 and to the current CEO from 10
April 2019.
(2) VR paid during the financial year at stake in relation to the previous financial year. In 2020, the VR
paid is related to the former CEO from 1 January 2019 up to 10 April 2019 (based on target) and to thecurrent CEO from 10 April 2019 up to the end of the year 2019. As a reminder, the current CEO decided
in 2020 to donate the equivalent to his VR related to 2019 to non-governmental organisations andhumanitarian organisations.
(3) Face value of LTIP granted in the financial year. No LTIP was granted in 2018 to the former CEO
due to his future departure.
(4) Average compensation of full-time equivalent permanent employees from France, Germany, theUK and Spain for the Company, excluding subsidiaries, composed by gross sum of the Base Salary,
annual bonus, profit and success sharing, overtime, premium for work conditions and other premiums.
For the 2021 financial year, the amount presented has been adjusted based on final figures. For the2022 financial year, the amount presented is still an estimate and will be adjusted next year.
The 2022 CEO’s direct cash compensation is roughly the same as in 2019, before the COVID-19 crisis.
The annual variation (+35%) of the CEO’s direct cash compensation between 2022 and 2021 is mainly due
to the increase in the collective component of the Annual Variable Remuneration (VR): the collective
component related to the VR paid-out in 2021 to the CEO was impacted by the COVID-19 crisis, while it
was not the case for the payment in 2022 related to the 2021 performance which was very strong due toquicker than expected post COVID-19 recovery.
The annual variation of the Employee compensation between 2022 and 2021 is mainly due to two factors:
Airbus SE/ Report of the Board of Directors 2022

53the success sharing paid in 2022 was much higher than the one paid in 2021 due to the COVID-19
impact,▶ in 2022, an exceptional premium of € 1,500 or £ 1,500 has been paid following a decision from the
CEO and the Executive Committee in order to support our employees facing the high inflation
environment.
▶

4.4.4 Implementation of the Remuneration Policy in 2022: Non-Executive Directors
This section describes how the Remuneration Policy was implemented in 2022 in respect of the NonExecutive Directors. In line with the Remuneration Policy, the implementation thereof with regard to the
Non-Executive Directors aims at ensuring fair compensation and protecting the independence of theBoard's Members. Their remuneration should be commensurate to the time spent and the responsibilitiesof their role on the Board of Directors.
The CEO is the only Member of the Board of Directors who is not entitled to any Board or Committee fee.
In 2022, Non-Executive Members of the Board of Directors were entitled to the fees described below. These
fees were based on the review of the Board remuneration undertaken in 2018 with the support of an
independent consultant to align the Board remuneration with market practice, incentivise attendance andrecognise the strategic role played by the Board of Directors in the Company's developments.
1- Board fees:▶ Fixed fee for membership of the Board of Directors (EUR / year):●●

Chair of the Board: 210,000
Member of the Board: 80,000▶ Attendance fees (EUR / Board meeting):●●

Chair: 15,000
Member: 10,000

Attendance fees shall decrease by 50% in case of an attendance by phone or a Board meeting held byphone.
2- Committee fees:▶ Fixed fee for membership of a Committee (EUR / year):● Chair: 30,000● Member of a Committee: 20,000▶ Attendance fee for membership of a Committee applicable to chair and members (EUR / additional
meeting above four meetings per Committee per year, whether these meetings were held physically orby phone):● Physical participation: 3,000 if the chair or member is based in Europe and double
attendance fee amount, i.e. 6,000 if the chair or member is based outside Europe.
● Participation by phone (whether the meeting is held physically or by phone): 1,500.
Note: upon recommendation of the RNGC, the Board of Directors decided that the Committee fees inrelation to the meetings of the ad hoc Board Committee convened in 2022 to address some specificstrategic topics (please refer to 4.1.3 – Board Committees), would be prorated to cover only the period from
July 2022, when the committee first met, and December 2022.
The remuneration of the Non-Executive Members of the Board of Directors was as follows:
Airbus SE/ Report of the Board of Directors 2022

54

(In €)
Non-Executive
Board Members
René Obermann
Victor Chu
Jean-Pierre
Clamadieu
Ralph D. Crosby
Jr.
Mark
Dunkerley (3)StephanGemkow
Catherine
Guillouard
AmparoMoraleda
Claudia Nemat
Irene
Rummelhoff (4)Antony Wood (5)Former NonExecutive Board
Members
Lord Drayson (6)CarlosTavares (7)Fixum (1)2022
AttendanceFees (2)Fixum (1)2021
AttendanceFees (2)

Total

Total

225,000
100,000
140,000

135,000
66,00096,500360,000
166,000
236,500

210,000
100,000
130,000

90,00043,00067,500300,000
143,000
197,500

100,000

100,000

200,000

100,000

61,000161,000

124,420

112,000

236,420

100,000

66,000166,000

110,000

98,000208,000

100,000

63,000163,000

140,000

98,000238,000

130,000

67,500

197,500

140,000

103,000

243,000

130,000

54,500184,500

100,000
72,10076,50075,000176,500
147,100

100,000
N/A

56,500N/A

156,500
N/A

3,913

10,00013,913

N/A

N/A

N/A

33,811
22,541

15,0005,000

48,811
27,541

120,000
80,00049,50045,000169,500
125,000

Total
1,311,785
990,000
2,301,785
1,300,000
663,500
1,963,500
1) Fixum includes a base fee for Board membership and the relevant Committee membership as thecase may be (Audit Committee, Remuneration, Nomination and Governance Committee ("RNGC"),
Ethics, Compliance and Sustainability Committee ("ECSC") and/or ad hoc Committee). The fixum forthe year 2022 was paid 50% in January 2022 and 50% in July 2022 except in relation to the ad hoc
Committee for which the full amount was paid in January 2023. The fixum for the year 2021 was paid
50% in January 2021 and 50% in July 2021.
(2) 2022 attendance fees include the Board attendance fees and the fees in relation to the relevantCommittee (Audit Committee, RNGC and ECSC) meetings. The Board attendance fees related to thefirst semester 2022 were paid in July 2022, those related to the second semester 2022 were paid in
January 2023. The Committees’ attendance fees related to full year 2022 were paid in January 2023.
(3) Member of the RNGC since 12 April 2022.
(4) Member of the Board of Directors and the ECSC since 12 April 2022.
(5) Member of the Board of Directors since 14 December 2022.
(6) Member of the Board of Directors, the RNGC and the ECSC until 12 April 2022.
(7) Member of the Board of Directors until 12 April 2022.
The total aggregated remuneration (i.e. fixum and attendance fee) of the Non-Executive Members of theBoard of Directors was respectively € 2,154,838 in 2020, € 2,350,176 in 2019 and € 2,010,910 in 2018.
For 2022, the applicable fixum for Board chair as well as the applicable attendance fees for Board
membership and chair remained unchanged since 1 January 2016 (first comprehensive revision since2007) following the decision made at the 2016 AGM to increase the remuneration of the Chair (fixum by €Airbus SE/ Report of the Board of Directors 202255

30,000 and attendance fees by € 5,000) and double (to € 10,000) the attendance fees of the non-executive
Board members in order to be in line with market practice, incentivise attendance and recognise thestrategic role played by the Board of Directors in the Company developments. The applicable fixum for
Board membership as well as Committee membership and chair remained unchanged since 2007.
The applicable attendance fees for Committee membership remained unchanged since 1 January 2019
following the decision made at the 2019 AGM to allocate an attendance fee above four meetings per
Committee per year in order to take into account Directors' attendance at a greater number of Committee
meetings when the workload substantially intensifies due to exceptional circumstances.

4.4.5 Miscellaneous
Policy for loans and guarantees granted
The Company’s general policy is not to grant any loan to the members of the Board of Directors. Unlessthe law provides otherwise, the members of the Board of Directors shall be reimbursed by the Company forvarious costs and expenses, like reasonable costs of defending claims. Under certain circumstances, suchas an act or failure to act by a member of the Board of Directors that can be characterised as intentional,
intentionally reckless, or seriously culpable, there will be no entitlement to this reimbursement. The
Company has also taken out liability insurance (‘‘D&O’’ - Directors & Officers) for the persons concerned.

4.5 Enterprise risk management system
The long-term development and production cycles of the Company's wide range of products and services
in a globalised supply chain and highly regulated environment make enterprise risk management (ERM) a
crucial mechanism both to mitigate risks faced by the Company and to identify and enhance potential
opportunities.
Applied across the Company and its main subsidiaries, ERM is a permanent top-down and bottom-up
process, which is executed across the Divisions at each level of the organisation. It is designed to identify
and manage relevant risks and opportunities. A sharp focus is put on the operational dimension due to theimportance of programmes and operations for the Company. External factors are also considered in our
approach in order to strengthen company resilience.
ERM is an operational process embedded into the day-to-day management activities of programmes,
operations and functions. The top risks and their mitigations are reported to the Board of Directors througha reporting synthesis, consolidated on a quarterly basis.
The ERM system relies on five pillars:▶ Anticipation: early risk reduction and attention to emerging risks;▶ Speak-up & early warnings;▶ Robust risk mitigations;▶ Opportunities; and▶ Strong governance.

Airbus SE/ Report of the Board of Directors 2022

56

ERM process
The objectives and principles of the ERM system, as endorsed by the Board of Directors, are set forth in
the Company's ERM Policy and communicated throughout the Company. The Company's ERM Policy issupplemented by directives, manuals, guidelines, handbooks, and other supporting documents. External
standards which contribute to the Company's ERM system include the ISO 31000 defined by theInternational Organization for Standardization ("ISO").
The ERM process consists of three elements:▶ a strong operational dimension - derived from ISO 31000 - to enhance operational risk and opportunity
management, identifying and mitigating threats and vulnerabilities, including single points of failure;▶ a reporting dimension (bottom up and top down), which contains procedures for the status reporting of
the ERM system and the risk/opportunity situation; and▶ an ERM confirmation dimension, which comprises procedures to assess the effectiveness of the ERM
system.

The ERM process applies to all relevant sources of risks and opportunities that potentially affect theCompany's activities, its businesses and its organisation in the short-, mid- and long-term. The ERM
process is part of the management process and inter-related with the other processes.
All Airbus organisations, including the Divisions, subsidiaries and controlled participations, commit to andconfirm the effective implementation of the ERM system. The annual ERM Confirmation Letter issued byeach organisation is the formal acknowledgement about the effectiveness of the ERM system.
For the main risks to which Airbus is exposed, see "- 4.6: Risk Factors" of this document.
ERM governance and responsibility
The governance structure and related responsibilities for the ERM system are as follows:▶ the Board of Directors with support of the Audit Committee supervises the strategy and business risks
and opportunities, as well as design and effectiveness of the ERM system;▶ the CEO authorises the reports escalated to the Board of Directors. The CFO is accountable for aneffective ERM system and supervises the Head of ERM, and the ERM system design and process
implementation;▶ the Head of ERM has primary responsibility for the ERM strategy, priorities, system design, culture
development and reporting tool. He supervises the operation of the ERM system and is backed by a
dedicated risk management organisation in the Company, focusing on the operational dimension, early
warning and anticipation culture development, while actively seeking to reduce overall risk criticality bychallenging the business. The risk management organisation is structured as a cross-divisional Centreof Competence ("CoC") and pushes for a proactive risk management; and▶ the management at executive levels has responsibility for the operation and monitoring of the ERM
system in its respective areas of responsibility, and for the implementation of appropriate response
activities to reduce risks and seize opportunities, also considering the recommendations of the internaland external auditors.

ERM effectivenessAirbus SE/ Report of the Board of Directors 2022

57

The ERM effectiveness is analysed by:▶ ERM centre of competence (CoC), based on ERM reports, confirmation letters, in situ sessions (e.g.
risk reviews), participation to key controls (e.g. major programme maturity gate reviews);▶ ERM key performance indicators (KPIs) measuring maturity and effectiveness of the ERM process inthe programmes and functions;▶ Risk & opportunity in-depth analyses proposed by the ERM CoC and performed by the functions with
the involvement and support of the ERM CoC; and▶ Corporate Audit, based on internal Corporate Audit reports and on an annual survey of heads ofprogrammes and functions regarding the ERM network.

The combination of the following controls is designed to achieve reasonable internal assurance about ERM
effectiveness:

Organisation

Explanations
Regular monitoring

Board of Directors /Audit
Committee

The Board of Directors and the Audit Committee review, monitor and supervise
the ERM system. Any material failings in, material changes to, and/or
material improvements of the ERM system which are observed, madeand/or planned are discussed with the Board of Directors and the Audit
Committee.
ERM as part of the regular divisional business reviews

Top management

Results of the operational risk and opportunity management process, selfassessments and confirmation procedures are presented by the Divisions
or other Airbus' organisations to top management.
ERM working sessions at an executive leadership meeting twice a year.
ERM confirmation letter procedureManagement

Entities and department heads that participate in the annual ERM compliance
procedures must sign ERM confirmation letters.
ERM effectiveness measurement

ERM CoC

Assess ERM effectiveness by consideration of ERM performance KPI, ERM
reports, ERM confirmations, in situ sessions (risk reviews etc.),
participation to key controls (e.g. major programme maturity gate reviews).

Corporate Audit

Audits on ERM

Airbus SE/ Report of the Board of Directors 2022

58

Provide independent assurance to the Audit Committee on the effectivenessof the ERM system; annual survey.
Alert system
Ethicscompliance&
Detects deficiencies regarding conformity with applicable laws and regulations,as well as with ethical business principles.

Board declaration
Based on the Company's current state of affairs, the reports made directly available to the Board of
Directors coming from different processes, audits and controls and the information it received frommanagement the Board of Directors believes to the best of its knowledge that:▶ the internal risk management and control systems provide reasonable assurance that the financial
reporting does not contain any material inaccuracies;▶ this report provides sufficient insight into any material failings in the effectiveness of the internalrisk management and control systems;▶ it is justified that the financial statements have been prepared on a going concern basis; and▶ this report states the material risks and uncertainties that are relevant to the Company's continuity
for the period of 12 months after the preparation of the report.

It should be noted that no matter how well designed, the internal risk management and control system has
inherent limitations, such as vulnerability to circumvention or overrides of the controls in place.
Consequently, no assurance can be given that the Company's internal risk management and system andprocedures are or will be, despite all care and effort, entirely effective.

4.6 Risk factors
The Company is subject to the risks and uncertainties described below that may materially affect its
business, results of operations and financial condition. These are not the only risks the Company faces.
Additional risks and uncertainties not presently known to the Company, or that it currently considers
immaterial may also impair its business and operations.
Although a certain degree of risk is inherent in the Company’s business (as described in the risk factors
mentioned in this section), the Company endeavours to minimise risk to the extent reasonably possible. To
achieve its strategy, the Company is prepared to take modest or low event risks to provide sufficient
predictability on profitability and cash flow given the necessity to stay competitive, invest in research anddevelopment and manage the diversified business portfolio in a world of uncertain market and economic
conditions. Due to the importance of programmes and operations for the Company, a particular focus is puton the operational dimension of risk identification and management. Within the area of legal and compliancerisks, the Company seeks to ensure that its business practices conform to applicable laws, regulations andethical business principles, while developing a culture of integrity. Regarding financial risks, our risk
approach can be qualified as prudent and the Company aims to minimise the downside risk through anappropriate liquidity buffer, moderate financial leverage and the use of hedging derivatives and otherinsurance products.
Airbus SE/ Report of the Board of Directors 2022

59

4.6.1 Financial market risks-

Global economic conditions

The Company’s business, results of operations and financial condition are materially affected by global
economic conditions.
Market disruptions and significant economic downturns may develop quickly due to, among other things,
crises affecting credit or liquidity markets, regional or global recessions, sharp fluctuations in or sustained
high commodity prices (including gas and oil), energy shortage or unavailability, currency exchange rates
or interest rates, rapid increases in or sustained high levels of inflation or deflation, sovereign debt and bankdebt rating downgrades, restructurings or defaults, or adverse geopolitical events (including armed conflicts
such as Russia’s invasion of Ukraine, rising tensions around the world, global pandemic diseases such as
COVID-19 or the impact of potentially conflicting policies from the United States (“US”), European Union,
Russia and China with ramifications beyond their borders). Recent US administrations have introduced
greater uncertainty with respect to US tax and trade policies, tariffs and government regulations affecting
trade between the US and other countries. Such measures, and the countermeasures they provoked,
affected and may continue to affect countries where our customers and suppliers are located or where theCompany has an operational presence or to which its financing activities are linked. See “4.6.2– BusinessRelated Risks – Ukraine Crisis”, “4.6.2– Business-Related Risks – COVID-19 Risks” and “4.6.2– BusinessRelated Risks – Availability of Government and other Sources of Financing”.
The Company’s global presence includes France, Germany, Spain and the UK as well as fully-owned
subsidiaries in the US, China, Japan, India and in the Middle East, and spare parts centres in Hamburg,Frankfurt, Washington, Beijing, Dubai and Singapore. At the end of 2022, the Company had engineeringand training centres in Toulouse, Miami, Mexico, Wichita, Hamburg, Bangalore, Beijing and Singapore.
There are also hubs and field service stations around the world. The Company also relies on industrial cooperation and partnerships with major companies and a wide network of suppliers. This global presenceentails the risk of being affected by weak market and economic conditions in particular in Europe, the US
and Asia where it manufactures and to which it sells the majority of its products.
It is a priority to ensure that the Company can identify, attract, develop and retain a world-class competent,
motivated and flexible workforce, which fits current business requirements and future business needs ineach of the countries in which the Company has a presence. A change in economic conditions in any of
the geographies where the Company has significant numbers of employees or key employees may
therefore impact its ability to compete effectively for employees in such countries.
At the end of 2022, approximately 18,000 suppliers from more than 90 countries supply parts, components,
systems and services to the Company. In 2021, the overall external sourcing volume of the Company wasvalued at around € 38 billion. The Company requires its suppliers’ and subcontractors’ services in order todeliver our products and generate revenue and profit. Therefore financial, economic and geopoliticalinstability in any part of the world that would affect our suppliers or subcontractors, including conditions
resulting in sharply rising inflation, increasing energy prices, their inability to obtain credit or even in theirinsolvency, could impact the Company’s ability to meet its customer obligations in a satisfactory and timely
manner. In addition, financial, economic and geopolitical instability affecting suppliers or subcontractors
could impact such parties’ ability to meet their obligations under risk sharing partnership agreements
entered into with the Company. The health and economic crisis resulting from the COVID-19 pandemic andthe consequences of Russia’s invasion of Ukraine have increased the Company’s exposure to supply chain
risk. See “4.6.2– Business-Related Risks – Dependence on Key Suppliers and Subcontractors”.
Airbus SE/ Report of the Board of Directors 2022

60

The behaviour of our customers and by extension, the demand for and supply of the Company’s products
and services has been and may continue to be materially affected by global economic conditions.
Historically, the Company has experienced that order intake for commercial aircraft has shown cyclicaltrends, due in part to changes in passenger demand for air travel and the air cargo share of freight activity,
which are in turn driven by a range of economic variables including gross domestic product (“GDP”) growthand private consumption levels.
A deterioration in economic factors driven by geopolitical events such as Russia’s invasion of Ukraine orby new variants of the COVID-19 pandemic and the related drop in air travel in many parts of the world
driving our commercial airline business, could lead to protracted weak demand for our commercial aircraft.
The relative size of the Company’s commercial aircraft business relative to its defence, space andgovernment activities has diluted the latter’s ability to serve as an effective tool to counter commercial
cycles.
Demand for military and parapublic products may be affected by governmental budget constraints causedby economic pressure.
Therefore protracted weak global economic conditions could directly result in:! financial distress of airlines and lessors, and potential bankruptcies around the world;! requests by customers to postpone or cancel existing orders for aircraft (including helicopters) or
decisions by customers to review their order intake strategy due to, among other things, lack of adequate
credit supply from the market to finance aircraft purchases or increases in operating costs or weak levelsof passenger demand for air travel and cargo activity more generally, which could negatively impact theCompany’s results of operations;! variations in public spending for defence, homeland security and space activities, which may lead totermination or reduction of future funding or cancellations or delays impacting existing contracts which could
negatively impact the Company’s results of operations; and! an increase in the amount of sales financing that the Company is requested to provide to its customers
to support aircraft deliveries typically secured over the underlying aircraft and bearing exposure to thecustomer credit risk. See “4.6.1 – Financial Market Risks – Sales Financing Arrangements”.
In addition, in the commercial aircraft industry it is the industry standard to include revision clauses in sales
and supplier contracts due to the lengthy terms of such contracts. Such revision clauses can be based on
one or multiple indices and therefore, can evolve due to changes in economic measures on which such
indices are based, thereby potentially negatively impacting the Company’s results.
The Company generally finances its manufacturing activities and product development programmes, andin particular the development of new commercial aircraft, through a combination of cash flows generated
by operating activities, customer advances, European governments’ refundable advances and risk-sharing
partnerships with subcontractors. In addition, the Company’s military activities benefit from governmentfinanced research and development contracts. If necessary, the Company may raise funds in the capital
markets. Weak economic circumstances, uncertainty or adverse trends leading to liquidity constraints or
reduced availability of finance for the Company’s customers, suppliers, European and other governments,and other risk sharing partners may affect the Company’s ability to finance its product development
programmes and raise funds in the capital markets.

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61

The Company’s financial results could also be negatively affected depending on gains or losses realisedon the sale or exchange of financial instruments; impairment charges resulting from revaluations of debt
and equity securities and other investments; interest rates; cash balances; and changes in fair value ofderivative instruments. Increased volatility in the financial markets and overall economic uncertainty would
increase the risk of the actual amounts realised in the future on the Company’s financial instruments
differing significantly from the fair values currently assigned to them.
Although the potential negative impact of global economic conditions has been thoroughly assessed, theconsequences thereof could have unforeseen material effects on the Company’s business, results ofoperations and financial condition, and in particular if these were to impact the Company’s commercial
aviation activities or otherwise impact its access to financing.
-Foreign currency exposure

In 2022, more than 70% of the Company’s revenues are denominated in US dollars, with approximately
60% of such currency exposure “naturally hedged” by US dollar-denominated costs. The remainder of costs
are incurred primarily in Euros. Consequently, to the extent that the Company does not use financial
instruments to hedge its net current and future exchange rate exposure from the time of a customer orderto the time of delivery, its profits will be affected by market changes in the exchange rate of the US dollar
against these currencies.
There are complexities inherent in determining whether and when foreign currency exposure of theCompany will materialise, in particular given the possibility of unpredictable revenue variations arising fromorder cancellations, postponements or delivery delays. The Company may also have difficulty in fully
implementing its hedging strategy if its hedging counterparties are unwilling to increase derivatives risk
limits with the Company, and is exposed to the risk of non-performance or default by these hedging
counterparties. The exchange rates at which the Company is able to hedge its foreign currency exposure
may also deteriorate, as the Euro could appreciate against the US dollar for some time, as has been thecase in the past and as higher capital requirements for banks result in higher credit charges foruncollateralised derivatives. Accordingly, the Company’s foreign currency hedging strategy may not protect
it from significant changes in the exchange rate of the US dollar to the Euro and the pound sterling, inparticular over the long-term, which could have a negative effect on its financial condition and results ofoperations. In addition, the portion of the Company’s US dollar-denominated revenues that is not hedgedin accordance with the Company’s hedging strategy will be exposed to fluctuations in exchange rates, which
may be significant. As of 31 December 2022, the total blended portfolio with maturities up to 2029 amounts
to US$ 93.9 billion and covers a major portion of the foreign exchange exposure expected over the periodof the operative planning.
Furthermore, the Company is exposed to certain other price risks such as interest rate risks, changes incommodity prices and in the price of its own stocks. Adverse movements of these prices may jeopardise
the Company’s profitability if not hedged.
Currency exchange rate fluctuations in currencies other than the US dollar in which the Company incurs its
principal manufacturing expenses (mainly the Euro) may affect the ability of the Company to compete withcompetitors whose costs are incurred in other currencies. This is particularly true with respect to fluctuations
relative to the US dollar, as many of the Company’s products and those of its competitors (e.g., in the
defence export market) are priced in US dollars. The Company’s ability to compete with competitors may
be eroded to the extent that any of the Company’s principal currencies appreciates in value against the
principal currencies of such competitors.
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The Company’s consolidated revenues, costs, assets and liabilities denominated in currencies other thanthe Euro are translated into the Euro for the purposes of compiling its financial statements. Changes in thevalue of these currencies relative to the Euro will, therefore, have an effect on the Euro value of theCompany’s reported revenues, costs, EBIT, other financial results, assets, liabilities and equity.

-

Sales financing arrangements

In support of sales, the Company may agree, case by case, to participate in the financing of selectedcustomers. Over 2019 to 2021, the average number of aircraft delivered in respect of which financing
support has been provided by Airbus amounted to approximately 1% of the number of deliveries over thesame period.
The risks arising from the Company’s sales financing activities may be classified into two categories: (i)credit risk, which relates to the customer’s ability to perform its obligations under a financing arrangement,and (ii) aircraft value risk, which primarily relates to unexpected decreases in the future value of aircraft.
Defaults by its customers or significant decreases in the value of the financed aircraft in the resale market
may materially adversely affect the Company’s business, results of operations and financial condition.
The Company’s sales financing arrangements expose it to residual aircraft value risk, because it generally
retains security interests in aircraft for the purpose of securing customers’ performance of their financial
obligations to the Company, and/or because it may guarantee a portion of the value of certain aircraft at
certain anniversaries from the date of their delivery to customers. Under adverse market conditions, themarket for used aircraft could become illiquid and the market value of used aircraft could significantly
decrease below projected amounts. In the event of a financing customer default at a time when the market
value for a used aircraft has unexpectedly decreased, the Company would be exposed to the difference
between the outstanding loan amount and the market value of the aircraft, net of ancillary costs (such as
maintenance and remarketing costs, etc.). Similarly, if an unexpected decrease in the market value of agiven aircraft coincided with the exercise window date of an asset value guarantee with respect to thataircraft, the Company would be exposed to losing as much as the difference between the market value ofsuch aircraft and the guaranteed amount, though such amounts are usually capped. Through the Airbus
Asset Management department or as a result of past financing transactions, the Company is the owner ofused aircraft, exposing it directly to fluctuations in the market value of these used aircraft.
In addition, the Company has backstop commitments to provide financing related to orders on the
Company’s and ATR’s backlog. The Company’s sales financing exposure could rise in line with future sales
growth depending on the agreement reached with customers. The Company remains exposed to the riskof defaults by its customers or significant decreases in the value of the financed aircraft in the resale market,
which may have a negative effect on its future financial condition and results of operations.
-

Liquidity

The Company is exposed to liquidity risk in case of funding needs during a market disruption situation. If
the liquidity risk would materialise, the Company could be at risk of not being able to pay its creditors andshareholders in due time or could have to delay the closing of some transactions. The liquidity risk can arise
when money markets and debt capital markets are closed for new issuances for a period of time. In orderto mitigate this risk, the Company maintains:! significant amounts of highly liquid cash on-balance sheet;
Airbus SE/ Report of the Board of Directors 202263

! undrawn committed credit facilities;! diversified Euro funding programmes (such as a € 12 billion Euro medium-term note (“EMTN”) programmeeligible to the Corporate Sector Purchase Programme of the European Central Bank (“ECB”), a € 11 billion
Negotiable European Commercial Paper programme eligible to the Pandemic Emergency Purchase
Programme of the ECB, and a € 4 billion Euro Commercial Paper programme); and! access to USD funding (through a US$ 3 billion US Commercial Paper programme, and a 144A US dollar
bond market).
On 5 July 2022, the Company signed a new sustainability-linked Revolving Syndicated Credit Facility (the‘‘2022 facility’’) committed by 38 banks for € 8 billion with a maturity of five years and two extension optionsof one year (subject to banks’ approval). The 2022 facility cancels and replaces the € 6 billion sustainabilitylinked Revolving Syndicated Credit Facility signed in 2020.
Going forward, the Company will continue to adopt a prudent approach when it comes to managing its
liquidity with the objective of maintaining its robust credit rating.
-

Counterparty credit

In addition to the credit risk relating to sales financing as discussed above, the Company is exposed tocredit risk to the extent of non-performance by its counterparties for financial instruments, such as hedging
instruments (US$ 76.2 billion nominal value at 31 December 2022) and cash investments (€ 22.065 billion
nominal value at 31 December 2022). However, the Company has policies in place to avoid concentrationsof credit risk and to ensure that credit risk exposure is limited.
Counterparties for transactions in cash, cash equivalents and securities as well as for derivativetransactions are limited to highly-rated financial institutions, corporates or sovereigns. The Company’s
credit limit system assigns maximum exposure lines to such counterparties, based on a minimum credit
rating threshold as published by Standard & Poor’s and Moody’s. If neither is present, Fitch ratings areused. Besides the credit rating, the limit system also takes into account fundamental counterparty data, as
well as sector and maturity allocations and further qualitative and quantitative criteria such as credit risk
indicators. The credit exposure of the Company is reviewed on a regular basis and the respective limits are
regularly monitored and updated.
As of 31 December 2022 the credit exposure had been estimated as follows (in € million)(1):
Source of risk

Exposure

Unexpected
Loss Contribution

Banks

4,991

34

Corporates

4,816

104

Sovereign issuers

1,583

15

Money market funds

12,21017

Total

23,600170(1)

Not audited.

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The Company also seeks to maintain a certain level of diversification in its portfolio between individual
counterparties as well as between financial institutions, corporates and sovereigns in order to avoid anincreased concentration of credit risk on only a few counterparties.
However, there can be no assurance that the Company will not lose the benefit of certain derivatives orcash investments in case of a systemic market disruption. In such circumstances, the value and liquidity ofthese financial instruments could decline and result in a significant impairment, which may in turn have anegative effect on the Company’s financial condition and results of operations.
Moreover, the progressive implementation of new financial regulations and adjustments to existing
regulations will have an impact on the business model of banks (for example, the split between investmentbanking and commercial banking activities) and on the capital structure and cost of such banks’ activities
in relation to over-the-counter derivatives, and therefore on the funding consequences of central clearing
and collateralisation of over-the-counter derivatives for corporations like the Company. This may ultimately
increase the cost and reduce the liquidity of the Company’s long-term hedges, for example, as banks seek
to either pass-on the additional costs to their corporate counterparties or withdraw from low-profit
businesses altogether.
-Pension commitments

The Company participates in several pension plans for both executive and non-executive employees, someof which are underfunded. As of 31 December 2022, the provision for retirement plans and similar
obligations amounted to € 3.5 billion (compared to € 7.1 billion as of 31 December 2021). In addition as aconsequence of the increased discount rates a non-current asset of € 0.6 billion has been accounted for toreflect the surplus in two pension funds in the UK. For information related to these plans, please refer tothe “Notes to the IFRS Consolidated Financial Statements – Note 32: Post-Employment Benefits”. The
Company has recorded a provision in its balance sheet for its share of the underfunding measured inaccordance with IFRS based on current estimates. These estimates will be reviewed annually and as thecase may be revised leading the Company to record lower or higher provisions.
Necessary adjustments of such provisions include but are not limited to (i) the discount factor (dependent
in part on interest rates) and the inflation rate applied to calculate the net present value of the pension
liabilities, (ii) the performance of the asset classes which are represented in the pension assets, and (iii)behavioural assumptions regarding beneficiaries, and (iv) additional cash injections contributed by theCompany from time to time to the pension assets. The Company has taken measures to reduce potential
losses on the pension assets and to better match the characteristics of the pension liabilities with those of
the pension assets as a long-term objective. Nevertheless, any required additional provisions would havea negative effect on the Company’s total equity (net of deferred tax), which could in turn have a negative
effect on its future financial condition.

4.6.2 Business-related risks-

Commercial aircraft and helicopter market factors

Historically, the Company has experienced that order intake for commercial aircraft has shown cyclicaltrends, due in part to changes in passenger demand for air travel and the air cargo share of freight activity,
which are in turn driven by a range of economic variables, such as GDP growth, private consumption levels
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or working age population size. Other factors, however, play an important role in determining the market
for commercial aircraft, such as (i) the average age and technical obsolescence of the fleet relative to new
aircraft; (ii) the number and characteristics of aircraft taken out of service and parked pending potential
return into service; (iii) passenger and freight load factors; (iv) airline pricing policies and resultant yields;(v) airline financial health; (vi) the availability of third party financing for aircraft purchases; (vii) evolution offuel price; (viii) regulatory environment; (ix) environmental constraints imposed upon aircraft operations,such as the Carbon Offsetting and Reduction Scheme for International Aviation (“CORSIA”), carbon
standards and other environmental taxes; and (x) market evolutionary factors such as the volume ofbusiness-related travel or the growth of low-cost passenger airline business models or the impact of ecommerce on air cargo volumes or consolidation of airlines. The health and economic crisis resulting fromthe COVID-19 pandemic, armed conflicts such as Russia’s invasion of Ukraine, and rising tensions aroundthe world can amplify the impact of these factors.
The factors described above may have a material impact on the commercial aircraft industry and, therefore,on the Company’s financial condition and results of operations. In 2022, the commercial aircraft businesssegment of Airbus recorded total revenues of € 41.1 billion – representing 69% of the Company’s revenues.
See “ 2.1– Summary 2022 – Airbus”. During the COVID-19 pandemic, the Company observed that the
downturn in its commercial aircraft business was partially mitigated by its defence, space and government
activities. Such a cyclical pattern had already been observed in the past but historically diminished, due tothe significant growth of the Company’s commercial aircraft business relative to its other activities, until the
global pandemic arrived.
The commercial helicopter market in which the Company operates has shown cyclical trends and could
also be influenced by factors listed above. The civil & parapublic market has shown signs of recovery in
2022, notably in the intermediate single engine and medium twin helicopter segment and the private &business aviation and aerial work market. However, the offshore oil & gas market remains soft with lowlevel of investments in the acquisition of new platforms. The offshore oil & gas market shows signs ofrecovery with increased flight hours however the level of investment in the acquisition of new platforms has
not significantly increased. Flight hours have now exceeded pre-pandemic levels and Airbus Helicopters
has increased revenues thanks to the wide-ranging portfolio of service solutions.
-

COVID-19 risks

Over the last three years, new variants of the COVID-19 pandemic, the resulting health and economic crisis
and actions taken in response to the spread of the pandemic, including government measures, lockdowns,
travel limitations and restrictions, have resulted in significant disruption to the Company’s business,
operations and supply chain.
The aerospace industry, the financial health of operators, airlines, lessors and suppliers, commercial aircraft
market, demand for air travel and commercial air traffic have been severely impacted by the COVID-19
pandemic and the resulting health and economic crisis. As a result, airlines reduced capacity, grounded
portions of their fleets and sought to implement measures to reduce cash spending and secure liquidity.
Some airlines also sought arrangements with creditors, restructuring or applying for bankruptcy or
insolvency protection, which may have further consequences for the Company and its order book as wellas other consequences resulting from the related proceedings. The Company will continue to face
additional risks and uncertainties resulting from future consequences of the health and economic crisis on
operators, airlines, lessors, suppliers and other actors in the air transport industry. See also “4.6.2–
Business-related risks – Commercial Aircraft and Helicopter Market Factors” below.
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Notably in 2020 and 2021, a number of measures were taken by the Company to implement stringent healthand safety procedures while taking account of stock levels and production lead-times. The COVID-19 crisis
may lead to further disruptions to the Company’s internal operations and to its ability to deliver products
and services. See also “4.6.2– Business-related risks – Dependence on Key Suppliers and Subcontractors”
below.
In addition to its impact on the financial viability of operators, airlines and lessors and the reduction ofcommercial air traffic, lockdowns, travel limitations and restrictions around the world have posed logisticalchallenges and may continue to cause disruptions to the Company’s business, its operations and supply
chain. These measures have and may continue to adversely affect the Company’s ability to deliver products
and services as well as customers’ ability to take delivery of aircraft.
The Company has been adversely affected by weak market and economic conditions in markets aroundthe world. Protracted weaker market and economic conditions and their knock-on effects have resulted inand could continue to result in (i) additional requests by customers to postpone delivery or cancel existingorders for aircraft (including helicopters) or other products including services, (ii) decisions by customers toreview their fleet strategy, (iii) weak levels of passenger demand for air travel and cargo activity moregenerally, (iv) a sustained reduction in the volume of air travel for business purposes, and (v) prolonged or
additional travel limitations and restrictions, which could negatively impact the Company’s results ofoperations.
In 2022, the Company delivered 661 commercial aircraft, an increase of 8% compared to 2021 (compared
to 611 commercial aircraft in 2021). This excludes two deliveries recorded in December 2021 (two A350900 Aeroflot) for which a transfer was not possible due to international sanctions. In 2022, the Company
recorded 258 commercial aircraft cancellations (compared to 264 cancellations in 2021).
The Company continues to monitor the evolution of the COVID-19 pandemic and will evaluate further
impacts and additional measures going forward while taking into account the latest industry outlook.
The Company’s business, results of operations and financial condition have been materially affected inprevious years by the COVID-19 pandemic, and the Company may continue to face significant risks anduncertainties related to certain regions including China. There can be no assurance that the Company's
business, results of operations and financial condition will not be materially affected by other pandemics inthe future.
Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 3: Macroeconomic
Environment”.
-

Ukraine crisis

Russia’s invasion of Ukraine on 24 February 2022 and the resulting export control restrictions andinternational sanctions against Russia, Belarus and certain Russian entities and individuals have resulted
in disruption to the Company’s business, its operations, data management and supply chain.
Following the imposition of export control restrictions and sanctions by the EU, the UK, the US and othercountries that are relevant to the Company’s business, the Company announced in March 2022 it hassuspended the delivery of aircraft and support services to Russian customers, as well as the supply of
spare parts, equipment and software to Russia. The Company is complying with all applicable regulations
and sanctions to its facilities and operations in Russia (including the Airbus Russia affiliate, Airbus
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Engineering Centre (ECAR), representation office in Moscow and the Space Division’s two joint venturesin Russia, Energia Satellite Technologies and Synertech). See “Export Control Laws and Regulations”
below.
The crisis has increased the Company’s exposure to supply chain disruption risk. Part of the titanium usedby the Company is sourced from Russia, both directly and indirectly through the Company’s suppliers.
While geopolitical risks are integrated into the Company’s titanium sourcing policies, the impact of Russia’s
invasion of Ukraine on the Company’s ability to source materials and components and any future expansionof sanctions is being reviewed.
The Company is also indirectly exposed through its partnership into the joint venture ArianeGroup.
Arianespace paid and received payments for the Soyuz program for which Roscosmos decided to suspend
the rocket launches operated by Arianespace. Agreements have been reached on pre-payments received
with two of these clients. Negotiations are well advanced with the remaining customers.
Due to the above mentioned export control restrictions and sanctions, the Company has been unable todeliver two aircraft previously recorded as sold at 31 December 2021. As a result, the associated revenues
and margin have been derecognised as of 31 March 2022. These aircraft have been remarketed in thesecond quarter 2022.
As of 31 December 2022, the resulting recorded EBIT charge amounts to approximately € 0.1 billion, mainly
relating to Airbus.
Although the full impact cannot reasonably be assessed at the time of this report, the Company’s business,
results of operations and financial condition may be materially affected by the direct and indirect impacts ofRussia’s invasion of Ukraine and the resulting export control restrictions and international sanctions. See
also “4.6.2– Business-related risks – Dependence on Key Suppliers and Subcontractors” and “4.6.2–
Business-related risks –Industrial System Adaptation” below.
-

Cyber security risks

The Company’s extensive information and communications systems, industrial environment, products andservices are exposed to cyber security risks. Cyber security threats are rapidly changing and scenarios ofattacks are becoming more sophisticated.
The Company is exposed to a number of different cyber security risks, directly or through its supply chain,arising from actions that may be intentional and hostile, accidental or negligent. Some of the objectives ofan attacker are espionage, to influence, to create an obstacle to functioning or for lucrative purposes. The
main cyber security risks for the Company are intrusion in systems leading to data leakage, attacks
impacting the resilience of industrial systems and compromising products and services.
All of the above mentioned risks are heightened in the context of the increasingly common use of digitalsolutions by the Company (including greater use of cloud services, mobile devices, “internet of things”),
increasingly capable adversaries and integration with the extended enterprise. Risks related to theCompany’s industrial control systems, manufacturing processes and products are growing with the increaseof interconnectivity and digitalisation. Moreover, a main challenge is to maintain an appropriate level of
security of complex and legacy industrial systems to face attacks from hackers, who are improving theirtechniques and skills rapidly.
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Finally, the Company is exposed to reputational damage and destabilisation from the growing volume offalse and malicious information injected into media and social networks.
The Company continues to make significant efforts to prevent such risks from materialising. Targeted
investments will reduce but not eradicate likelihood and impact through strengthening the business cyberprotection and resilience.
The materialisation of one or several of such risks could lead to severe damage, including but not limited
to significant financial loss, need for additional investment, contractual or reputational performancedegradation, loss of intellectual property, loss of business data and information, operational businessdegradation or disruptions, and product or services malfunctions. Loss of personal data may result in
administrative, civil or criminal liabilities including significant fines and penalties.
-

Physical security, terrorism, pandemics and other catastrophic events

Terrorist attacks, public health crises and the spread of disease (such as the global COVID-19 pandemic),
armed conflict and rising military tensions have demonstrated that such events may negatively affect public
perception of air travel, which may in turn reduce demand for travel and commercial aircraft. The outbreakof wars, riots or political unrest or uncertainties including those resulting in an acute increase of cost ofliving may also affect the willingness of the public to travel by air. Furthermore, major aircraft accidents may
have a negative effect on the public’s or regulators’ perception of the safety of a given class of aircraft, agiven airline, form of design or air traffic management. Flight activity ramp-up requires particular focus onsafety aspects such as removing aircraft from storage and pilot training. As a result of such factors, theaeronautic industry may be confronted again with additional sudden or prolonged reduced demand for airtransport and be compelled to take additional costly security and safety measures. The Company may,therefore, suffer from a decline in demand for all or certain types of its aircraft or other products, and theCompany’s customers may postpone delivery or cancel orders.
In addition to affecting demand for its products, catastrophic events could disrupt the Company’s internal
operations, supply chain or its ability to deliver products and services. Disruptions may be related to threats
to infrastructure, personnel security and physical security and may arise from terrorism, conflict and civil
unrests, malicious acts, natural disasters, fire, damaging weather, and other types of incidents such as
drone air traffic disruption. Effects of such events may be amplified if they happen on single points of failure(SPOFs) for which dedicated identification and mitigations are monitored. Any resulting impact on the
Company’s production, services or information systems could have a significant adverse effect on the
Company’s operations, financial condition and results of operations as well as on its reputation and on its
products and services.

-

Dependence on key suppliers and subcontractors

The Company is dependent on numerous key suppliers and subcontractors to provide it with the raw
materials, parts, assemblies, systems, equipment and services that it needs to manufacture and deliver its
products.
The Company relies upon the good performance and financial health of its suppliers and subcontractors tomeet the obligations defined under their contracts. A supplier’s performance and health may be negatively
impacted by a variety of topics including: the COVID-19 pandemic and its resulting economic impact; local
quarantines; loss of skilled resources as a result of workforce reduction and difficulties to re-staff due toAirbus SE/ Report of the Board of Directors 202269

market employment tensions; need for working capital increase while state/bank loans obtained to weather
the COVID-19 crisis have reached maturity in a context of inflation, high energy costs and interest rateincreases; difficulty gaining access to the needed material and components, including semiconductors andelectronic components in the needed quantity and time frame and at competitive conditions as well astransport and logistic means availability; energy supply shortages including as a consequence of Russia’s
invasion of Ukraine; cyber security threats; geopolitical unrest; export controls evolving regulations,sanctions and embargoes; and environmental issues.
In the context described above, changes to the Company’s production or development schedules may
impact suppliers and customers so that they initiate claims under their respective contracts for financial
compensation or do not fulfil their on time and on quality delivery commitments. This may have a negative
effect on the financial condition and results of operations of the Company.
As the Company’s global sourcing footprint extends, some suppliers (or their sub-tier suppliers) may haveproduction facilities located in countries that are exposed to socio-political unrest, natural disasters or
sanctions imposed by governmental authorities which could interrupt deliveries. This may have a negative
effect on the financial condition and results of operations of the Company.
The Company cannot fully protect itself from non-performance of a supplier, including in case of external
factors beyond its control, which could disrupt production and in turn may have a negative effect on thefinancial condition and results of operations of the Company. Nevertheless, the Company is striving to
improve its supply chain resilience and has implemented a robust governance to prevent, anticipate andmonitor supply chain disruption risks and efficient management of issues.

-

Industrial system adaptation

The Company faces a challenging risk profile due to the adverse geopolitical and economic environment,
which increases the risks concerning its ability to adapt its industrial system and increase its production
rates on the commercial aircraft programmes as planned.
In May 2022, the Company confirmed that commercial aircraft production for the A320 Family was
progressing towards a monthly rate of 65 aircraft by early 2024, in a complex environment. Taking into
account the fact that this complex environment will persist longer than previously expected, the Company
announced in December 2022 that it will adjust the speed of the A320 Family ramp-up to rate 65 for 2023
and 2024, maintaining its objective to reach a monthly rate of 75 aircraft. In February 2023, the Company
announced it was progressing towards a monthly production rate of 65 aircraft by the end of 2024 and 75
in 2026.
In February 2023, the Company announced that, in order to meet growing demand for widebody aircraft asinternational air travel recovers, and following a feasibility study with the supply chain, it is now targeting amonthly production rate of 9 A350s at the end of 2025.
While the Company is engaged in the process of adapting its industrial set-up in order to reach its targeted
production rates, it will continue to monitor the ramp-up across the complete value chain for all commercial
aircraft programmes and seek to adapt to the new complex environment. This encompasses the fullindustrial process, including the supply chain (raw material, subcontracted work packages, equipment, etc.)
and the Company’s resource adaptation (headcount, skills and competencies). In this process, theCompany focuses attention on quality industrial adherence Production Organisation Approval (POA).
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Acquiring the specific skills and competencies that the Company needs to support the ramp-up remains achallenging task for the human resource and management teams in the current aviation hiring environment.
Taking into account the complex environment, the Company cannot fully protect itself from production
disruptions and delays, which may have a negative effect on the financial condition and results of operationsof the Company.
For more details on specific programme risks, see “4.6.2– Business-related risks – Programme-Specific
Risks” below.

-

Technologically advanced products and services

The Company offers its customers products and services that are technologically advanced, so the design,
manufacturing, components and materials utilised can be complex and require substantial integration andcoordination along the supply chain. In addition, most of the Company’s products must function underdemanding operating conditions. Throughout the lifecycle of its products, the Company performs checks
and inspections, which may result in modifications, retrofits or other corrective actions, each of which may
have an adverse effect on production, operations, in-service performance or financial condition. There canbe no assurance that the Company’s products or services will be successfully developed, manufactured or
operated or that they will perform as intended.
Certain of the Company’s contracts require it (i) to forfeit part of its expected profit, (ii) to receive reduced
payments, (iii) to provide a replacement launch or other products or services, (iv) to provide cancellationrights, or (v) to reduce the price of subsequent sales to the same customer if its products fail to be deliveredon time or to perform adequately. No assurances can be given that performance penalties or contract
cancellations will not be imposed should the Company fail to meet delivery schedules or other measuresof contract performance, in particular with respect to programmes and developments such as the A220
Step3, ACJ TwentyTwo, A321XLR, A330 LMXT, A350-1000 ULR, A350 Freighter, A400M, H160 or Ariane
6 . See “4.6.2– Business-related risks – Programme-Specific Risks” below.
In addition to the risk of contract cancellations, the Company may also incur significant costs or loss ofrevenues in connection with remedial action required to correct any performance issues detected in its
products or services. Moreover, to the extent that a performance issue is considered to have a possible
impact on safety, regulators could suspend the authorisation for the affected product or service.
Any significant problems with the development, manufacturing, operation, performance or safety of theCompany’s products and services could have a significant adverse effect on the Company’s financial
condition and results of operations as well as on the reputation of the Company and its products andservices.
-

Dependence on public spending and on certain markets

In any single market, public spending (including defence and security spending) depends on a complex mix
of geopolitical considerations and budgetary priorities, and may therefore be subject to significant
fluctuations from year to year and country to country. Any termination or reduction of future funding orcancellations or delays impacting existing contracts may have a negative effect on the Company’s financial
condition and results of operations. In instances where several countries undertake to enter together into
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defence or other procurement contracts, economic, political or budgetary constraints in any one of thesecountries may have a negative effect on the ability of the Company to enter into or perform such contracts.
The Company has a geographically diverse backlog. Adverse economic and political conditions, as well as
downturns in broad economic trends in certain countries or regions, may have a negative effect on the
Company’s financial condition and results of operations generated not only in those regions but may also
affect the rest of the world due to complex economic interdependencies.
-

Availability of government and other sources of financing

In prior years, the Company and its principal competitors have each received different types of government
financing of product research and development. However, no assurances can be given that government
financing will continue to be made available in the future. Moreover, the availability of other outside sourcesof financing will depend on a variety of factors such as market conditions, the general availability of credit,
the Company’s credit ratings, as well as the possibility that lenders or investors could develop a negative
perception of the Company’s long- or short-term financial prospects if it incurred large losses or if the levelof its business activity decreased due to an economic downturn. The Company may, therefore, not be able
to successfully obtain additional outside financing on appropriate terms, or at all, which may limit theCompany’s future ability to make capital expenditures, fully carry out its research and development efforts
and fund operations.
-Competition and market access

The markets in which the Company operates are highly competitive. With regard to the Company’scommercial aircraft business for aircraft with more than 150 seats, the Company today operates in acompetitive duopoly. In China, however, an indigenous large aircraft (single aisle) received its typecertificate in September 2022 from the Chinese authorities. The Company therefore also faces competition
from a third player, in China only, as this certification has not yet been recognised by any other regulator.
The design, development and production of commercial aircraft involves high barriers to entry (including
certification requirements, large investment needs, skilled competencies and access to technology and longdevelopment cycles). Although the two main market participants for aircraft with more than 150 seats havesecured significant order backlogs, the competition could grow its market presence or launch new products
or services that could have a negative impact on the Company’s revenues, future financial condition andresults of operations.
New players are operating or seeking to operate in the Company’s existing markets, which may impact thestructure and profitability of these markets. In addition, enterprises with different business models andalternative technologies could substitute the Company’s services and some of its products or component
parts thereof. In some areas, competitors may have more extensive or more specialised engineering,
manufacturing, support and marketing capabilities. There can be no assurance that the Company will beable to continue to operate in the long term as the market leader or compete successfully against thesefuture competitors or that the competitive pressures it faces in all business areas will not result in reduced
revenues, market share or profit. See “4.6.4– Environment, Human Rights, Health & Safety Risks – ClimateRelated Risks” below. In addition, competitors may develop the capability to manufacture products orprovide services similar to those of the Company. This would result in these companies marketing their own
products or services and competing directly with the Company for sales of these products or services, allof which could significantly reduce the Company’s revenues.
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In addition, the contracts for many aerospace and defence products are awarded, implicitly or explicitly, on
the basis of home country preference or geopolitical considerations. Although the Company is amultinational company which helps to broaden its domestic market, it may remain at a competitive
disadvantage in certain countries, especially outside of Europe, relative to local contractors for certain
products. The strategic importance and political sensitivity attached to the aerospace and defence
industries means that political considerations will play a role in the choice of many products and services
for the foreseeable future.
The contracts for many aerospace and defence products and services are from time to time associatedwith offset obligations. The Company may face difficulties to meet those obligations, to leverage the assetsof the country and at the same time to optimise its industrial base and supply chain.
-

Major research and development programmes

The business environment in many of the Company’s principal operating business segments ischaracterised by extensive research and development costs requiring significant up-front investments witha high level of complexity. For the year 2022, research and development expenses were € 3.0 billion. For
the year 2021, research and development expenses were € 2.7 billion (compared to € 2.9 billion for 2020and € 3.4 billion for 2019).
Due to the technologically advanced complex nature of the products that the Company produces and thelong period, including ramp up time, it takes to produce them, the business plans underlying suchinvestments often contemplate a long payback period before these investments are recouped, and assume
a certain level of return over the course of this period in order to justify the initial investment. There can be
no assurance that the commercial, technical and market assumptions underlying such business plans will
be met, and consequently, the payback period or returns contemplated therein achieved.
Significant technological, skills and industrial challenges exist to achieve the Company’s sustainability
ambitions for the future generations of aerospace. These ambitions require cross industry and crossgovernment collaboration to address the technological risks that need to be overcome. See “4.6.4–
Environment, Human Rights, Health & Safety Risks – Climate-Related Risks” below.
Successful development of new programmes also depends on the Company’s ability to attract and retain
engineers and other professionals with the technical skills and experience required to meet its specificneeds. Demand for such engineers may often exceed supply depending on the market, resulting in intensecompetition for qualified professionals. The Company’s attrition rate in 2022 was 5.0% overall (including
subsidiaries) (compared to 7.4% overall in 2021). There can be no assurance that the Company will attract
and retain the personnel it requires to conduct its operations successfully and in particular to attract andretain engineers and other professionals with the technical skills and experience required for its researchand development programmes. Failure to attract and retain such personnel or an increase in the Company’s
employee turnover rate could negatively affect the Company’s financial condition and results of operations
more generally and particularly its ability to successfully execute its research and development
programmes.
There is a risk of additional repercussions from COVID-19’s impact on skills and expertise. Significant effort
has been made to maintain key resources and cope with the increased departure of skilled staff withimproved knowledge management and knowledge transfer schemes across the Company.

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The COVID-19 crisis has impacted key company technological developments and competencies, but
despite this, the Company continues seeking to further its development in sustainable technologies. This
commitment directs a significant proportion of the longer term technology research efforts for future
products and services and is based on solving complex problems backed by exploring multiple technology
pathways. Retaining this ambitious programme is achieved with national research funding throughframeworks such as CORAC, LUFO, ATI, CDTI and Horizon Europe where the frameworks enable theCompany and the wider aviation ecosystem to mature and develop the required key competencies andtechnologies.
No assurances can be given that the Company will achieve the anticipated level of returns from these
programmes and other development projects, which may negatively affect the Company’s financial
condition and results of operations and competitiveness.
-

Acquisitions, divestments, joint ventures and strategic alliances

As part of its business strategy, the Company may acquire or divest businesses and/or form joint ventures
or strategic alliances. Executing acquisitions and divestments can be difficult and costly due to thecomplexities inherent in integrating or carving out people, operations, technologies and products. Therecan be no assurance that any of the businesses that the Company intends to acquire or divest can be
integrated or carved out successfully, as timely as originally planned or that they will perform well anddeliver the expected synergies or cost savings once integrated or separated. In addition, regulatory,administrative, opposition by social partners or other contractual conditions can prevent transactions frombeing finalised. Each acquisition, divestment, joint venture and strategic alliance is very specific in its nature,
purpose, risk and opportunities. The Company identifies risks through a detailed and systematic due
diligence process and addresses the risks identified through price mitigation and/or appropriate contractual
coverage, such as indemnification mechanisms, both being the tailored-made results of complex
negotiations with the sellers/buyers and/or partners. The Company’s business, results of operations andfinancial condition may be materially affected if these transactions will not be successfully completed or do
not produce the expected benefits.
-

Public-private partnerships and private finance initiatives

Governmental customers may request proposals and grant contracts under schemes known as publicprivate partnerships (“PPPs”). PPPs differ substantially from traditional defence equipment sales, as theyoften incorporate elements such as:! the provision of extensive operational services over the life of the equipment;! continued ownership and financing of the equipment by a party other than the customer, such as theequipment provider;! mandatory compliance with specific customer requirements pertaining to public accounting or government
procurement regulations; and! provisions allowing for the service provider to seek additional customers for unused capacity.
The Company is party to PPP and private finance initiatives (“PFI”) contracts, for example the two UK
Ministry of Defence projects, Skynet 5 and related telecommunications services, and the AirTanker(“FSTA”). One of the complexities presented by PFIs lies in the allocation of risks and the timing thereof
among different parties over the life-time of the project.
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There can be no assurance of the extent to which the Company will efficiently and effectively (i) compete
for future PFI or PPP programmes, (ii) administer the services contemplated under the contracts, (iii)finance the acquisition of the equipment and the ongoing provision of services related thereto, or (iv) accessthe markets for the commercialisation of excess capacity. The Company may also encounter unexpected
political, budgetary, regulatory or competitive risks over the long duration of PPP and PFI programmes.
-

Programme-specific risks

In addition to the risk factors mentioned above, the Company also faces the following programme-specificrisks that could have a material impact on the Company’s business, results of operations and financial
condition.
The Company faces the following main challenges on its commercial programmes:! adapt to rate and stabilise operational performance post-COVID-19 while maintaining high safety andquality standards;! monitor and support the supply chain with a specific focus on engine manufacturers, especially in termsof availability and maturity of both production and in-service engines;! accompany customers and facilitate deliveries to customers including by remote delivery process;! ensure a strong customer focus to support return to operations; and! protect priority projects and deliver developments as per revised plan in an environment of increased
certification scrutiny and greater complexity, including A321XLR, A220 Step3, ACJ TwentyTwo, A350
Freighter, A350-1000 ULR, A330 LMXT (KC-Y) and Digital (DDMS and Skywise).
A320 Family programme. In response to the new COVID-19 market environment, the commercial aircraft
production rate for the A320 Family was reduced to 40 per month in June 2020. In 2021 and 2022, theCompany announced demand for the A320 Family leading to a gradual increase in production for theupcoming years. The Company proactively and constantly monitors the backlog, the internal and external
supply chain, including engines, so as to ensure readiness for further rate adaptations in accordance withtraffic evolution, to minimise inventory levels, and secure aircraft storage capacity. In connection with theA320 Family programme, the Company faces the following challenges: ensure the A321XLR on-track
development including A321XLR certification topics with primary airworthiness authorities, adapt andupgrade our industrial system and capability to meet the growing market demands and corresponding
product mix within the family. Market demand for A320 Family aircraft, production and supply chain
capabilities will evolve in the next few years and the Company will closely monitor these evolutions including
a projected significant increase in A321 production. Attention will remain high on the overall supply chain
including engines’ ramp up availability and engine maturity in-service.
A400M programme. After the Company signed a contract amendment to restructure the contract, risks
remain on development of technical capabilities (development effort as well as possible commercial
agreement associated costs in order to reach Type Acceptance) and the associated costs, on aircraft
operational reliability, on cost reductions and on securing sufficient export orders in time as per the revised
baseline.
For further information, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note
13: Revenue and Gross Margin”.
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A350 programme. In connection with the A350 programme, the Company faces the following main
challenges: secure revised delivery targets and further rate adaptation depending on traffic evolution,
monitor and support the supply chain including lead-time items from corresponding suppliers, reduce
recurring costs to improve competitiveness within a widebody market that starts to recover, and deliver on
major programme developments (A350 Freighter development, A350-1000 Ultra Long Range certification
baseline, A350 new paint scheme). Attention will remain high towards the engine manufacturer’s capacity
to deliver on engines’ maturity and competitiveness topics.
A330 programme. In response to the new COVID-19 market environment, the commercial aircraft
production rate for the A330 programme was adapted to two per month in June 2020. Then, following neworders, the decision was taken in Q3 2021 to increase the production rate to almost three, which was doneat the end of 2022. In February 2023, the Company announced it now targets to reach rate 4 in 2024.
Decisions on further rate adaptation will depend on traffic evolution. In connection with the A330
programme, the main challenges the Company faces are to secure product competitiveness in the
widebody market segment, and to monitor and support the supply chain. The developments were deliveredon track in recent years. Attention will remain high towards the engine manufacturer’s capacity to deliveron engines’ maturity and competitiveness topics.
A220 programme. In connection with the A220 programme, the main challenges the Company faces are
to secure the A220 cost reduction trajectory with a strong focus on its Design to Cost roadmap and recurring
cost reduction, and to ensure an A220 book to bill ratio above one to fill current open slots. As aconsequence of the COVID-19 pandemic, the commercial aircraft production rates were adapted to rate
five per month (in Mirabel and in Mobile) in 2020-2021 and have been around rate six since early 2022 witha monthly production target of rate 14 targeted for the middle of the decade. Attention will remain high on
the overall supply chain including engine maturity and availability in service.
A380 programme. In connection with the A380 programme, the Company faces the following main
challenges: secure ageing fleet in-service support for the next decades and long-term competitiveness.
H175 programme. Positive market trend leading to a production ramp up challenge.
NH90 programme. Risk of termination of Norway’s contract for 14 NH90 helicopters (13 of which havealready been delivered) following receipt of notice of termination dated 9 June 2022. Parties are engaged
in discussions with a view to resolve the matter.
H160 programme. The main challenge for the H160 programme is the industrial ramp-up phase.
Border security. In connection with border security projects, the Company faces the following main
challenges: meeting the schedule and cost objectives taking into account the complexity of the local
infrastructures to be delivered and the integration of commercial-off-the-shelf products (radars, cameras
and other sensors) interfaced into complex system networks; assuring efficient project and staffing;
managing the rollout including subcontractors and customers. Negotiations on change requests in thisrespect along with schedule re-alignments remain ongoing. The Company continues to engage with its
customer to agree a way forward on this contract. The outcome of these negotiations is presently unclear
but could result in significant further financial impacts.
Launchers. Following the failed first commercial flight of the Vega C launcher on 20 December 2022 andin light of the few years delay in the launch of Ariane 5's successor, Ariane 6, with its maiden flight scheduled

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at the time of publication of this report to take place by the end of 2023, the Company faces a challenge
related to Europe's lack of independent access to space in the short term.

4.6.3 Legal risks-

Legal and regulatory proceedings

The Company is currently engaged in a number of active legal and regulatory proceedings. For further
information, please refer to “Notes to the IFRS Consolidated Financial Statements - Note 39: Litigation and
Claims”.
For the investigation by the UK Serious Fraud Office (“SFO”), France’s Parquet National Financier (“PNF”),
and the US Departments of State (“DoS”) and Justice (“DoJ”), which is described in “4.6.3– Legal risks –Anti-Corruption Laws and Regulations”, the Company has reached an agreement with the authorities, which
was approved by the French and UK courts and US court and regulator on 31 January 2020. The agreement
resulted in a fine totalling € 3.6 billion plus costs to the French, UK, and US authorities. The three-year
deferral period expired on 30 January 2023, after which time the charges would be dismissed, absent
extension by the authorities or agreement among the parties. The Company awaits the formal determinationby the authorities that it has complied with the agreements’ terms throughout the period and to close theprosecutions in line with the procedural requirements of each country. For further information about theinvestigation and related securities litigation, please refer to “Notes to the IFRS Consolidated Financial
Statements - Note 39: Litigation and Claims” (Investigation by the SFO, PNF, DoJ, DoS, Related
Commercial Litigation and Securities Litigation), respectively.
The Company expects to continue to spend time and incur expenses associated with its defence of legal
and regulatory proceedings, regardless of the outcome, and this may divert the efforts and attention ofmanagement from normal business operations. Although the Company is unable to predict the outcome ofthese proceedings, it is possible that they will result in the imposition of damages, fines or other remedies,
which could have a material effect on the Company’s business, results of operations and financial condition.
An unfavourable ruling could also negatively impact the Company’s stock price and reputation.
In addition, the Company is from time to time subject to government inquiries and investigations of its
business and competitive environment due, among other things, to the heavily regulated nature of its
industry. Such inquiries and investigations may cover matters relating to, among other matters, anti-bribery
laws and regulations, export control laws and regulations, securities law, trade law and competition law. An
adverse decision in any such matter could have a material effect on the Company’s business, results ofoperations and financial condition. In addition to the risk of an unfavourable ruling against the Company,
any such inquiry or investigation could negatively affect the Company’s reputation and its ability to attract
and retain customers and investors, which could have a negative effect on its business, results of operations
and financial condition. See “6.1.14– Non-Financial Information – Exemplify Business Integrity”.

-

Anti-corruption laws and regulations

The Company is required to comply with applicable anti-bribery laws and regulations in jurisdictions aroundthe world where it does business. To that end, an anti-corruption programme has been put in place thatseeks to ensure adequate identification, assessment, monitoring and mitigation of corruption risks. Despite
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these efforts, ethical misconduct or non-compliance with applicable laws and regulations by the Company,
its employees or any third party acting on its behalf could expose it to liability or have a negative impact on
its business.
The Company may be subject to administrative, civil or criminal liabilities including significant fines andpenalties, as well as suspension or debarment from government or non-government contracts for someperiod of time. The Company may also be required to modify its business practices and complianceprogramme and/or have a compliance monitor imposed on it. Any one or more of the foregoing could havea significant adverse effect on the Company’s reputation and its business, results of operations and financial
condition.
In 2016, for example, the Company announced that it had discovered misstatements and omissions incertain applications for export credit financing for the Company’s customers, and had engaged legal,
investigative and forensic accounting experts to conduct a review. Separately, the UK SFO announced thatit had opened a criminal investigation into allegations of fraud, bribery and corruption in the civil aviation
business of the Company, relating to irregularities concerning third party consultants. The Company was
subsequently informed that the French authorities, the PNF, had also opened a preliminary investigation
into the same subject and that the two authorities would act in coordination going forward. The Company
engaged with the government of the US (DoS and DoJ) relating to conduct forming part of the SFO/PNF
investigation that could fall within US jurisdiction. The Company also engaged with the government of the
US concerning breaches of the International Traffic in Arms Regulations (ITAR). On 31 January 2020, theFrench and UK courts and US court and regulator approved an agreement reached by the Company withthe authorities. Any breach of the terms of the agreements by the Company could lead to rescission by theauthorities of the terms of the agreements and reopening of the prosecutions. Prosecution could result in
the imposition of further monetary penalties or other sanctions including additional tax liability and could
have a material impact on the Financial Statements, business and operations of the Company. The
agreements reached with authorities may lead to additional commercial litigation and arbitration against theCompany and tax liability in the future, which could have a material impact on the Financial Statements,
business and operations of the Company. For further information, please refer to “Notes to the IFRS
Consolidated Financial Statements - Note 39: Litigation and Claims” (Investigation by the SFO, PNF, DoJ,DoS and Related Commercial Litigation).
-

Export controls laws and regulations

The export market is a significant market for the Company. In addition, many of the products the Company
designs and manufactures for military use are considered to be of national strategic interest. Consequently,
the export of such products outside of the jurisdictions in which they are produced may be restricted or
subject to licensing and export control requirements, notably by the UK, France, Germany and Spain, where
the Company carries out its principal activities relating to military products and services as well as by othercountries where suppliers are based, including but not exclusively the US. There can be no assurance (i)that the export controls to which the Company is subject will not become more restrictive, (ii) that new
generations of the Company’s products will not also be subject to similar or more stringent controls or (iii)that geopolitical factors or changing international circumstances will not make it impossible to obtain export
licences for one or more clients or constrain the Company’s ability to perform under previously signed
contracts. Reduced access to military export markets may have a significant adverse effect on the
Company’s business, results of operations and financial condition.

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Operating worldwide, the Company must comply with several, sometimes competing sets of sanctions laws
and regulations implemented by transnational / national / regional authorities. Depending on geopoliticalconsiderations including national security interests and foreign policy, new sanctions regimes may be set
up or the scope of existing ones may be widened, at any time, immediately impacting the Company’s
activities. This has been well illustrated in the current Ukrainian crisis. The imposition of international Export
Control restrictions targeting the aviation and space sectors have resulted in Airbus suspending deliveries,
the provisions of services and the supply of spare parts to customers in Russia. The Company continues
to monitor the evolution of the export control restrictions and broader sanctions and will adapt to thechanging environment.
The Company seeks to comply with all such laws and regulations. However, even unintentional violations
or a failure to comply could result in suspension of the Company’s export privileges, or preclude theCompany from bidding on certain government contracts (even in the absence of a formal suspension or
debarment).
Furthermore, the Company’s ability to market new products and enter new markets may be dependent on
obtaining government certifications and approvals in a timely manner.
-

Dependence on joint ventures and minority holdings

The Company generates a proportion of its results through various consortia, joint ventures and equity
holdings. The Company recognises its share in the results of its equity holdings in the proportion of the
stake held. In 2022, the Company’s total share of result from these arrangements amounted to € 134 million(compared to € 40 million in 2021, € 39 million in 2020 and € 299 million in 2019). The Company’s
individually material joint ventures are ArianeGroup (50%), MBDA (37.5%) and ATR GIE (50%). For further
information, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 10:
Investments Accounted for under the Equity Method” and “– Note 16: Share of Profit from Investments
Accounted for under the Equity Method and Other Income from Investments”.
The formation of partnerships and alliances with other market players is an integral strategy of theCompany, and the proportion of sales generated from consortia, joint ventures and equity holdings may
rise in future years. This strategy may from time to time lead to changes in the organisational structure, or
realignment in the control, of the Company’s existing joint ventures.
The Company exercises varying and evolving degrees of control in the consortia, joint ventures and equity
holdings in which it participates. While the Company seeks to participate only in ventures in which its
interests are aligned with those of its partners, the risk of disagreement or deadlock is inherent in a jointly
controlled entity, particularly in those entities that require the unanimous consent of all members with regard
to major decisions and specify limited exit rights. The other parties in these entities may also be competitorsof the Company, and thus may have interests that differ from those of the Company.

-

Product liability and warranty claims

The Company designs, develops and produces a number of high profile products of large individual value,
particularly civil and military aircraft and space equipment. The Company is subject to the risk of product
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liability and warranty claims in the event that any of its products fails to perform as designed. While theCompany believes that its insurance programmes are adequate to protect it from such liabilities, noassurances can be given that claims will not arise in the future or that such insurance coverage will beadequate. Some types of claimed damages, such as punitive, exemplary or moral damages may not be
insured or insurable.
The Company follows a policy of seeking to transfer the insurable risk of the Company to external insurance
markets at reasonable rates, on customised and sufficient terms and limits as provided by the international
insurance markets. The insurance industry remains unpredictable. There may be future demands to change
scope of coverage, premiums and deductible amounts. No assurances can be given that the Company will
be able to maintain its current levels of coverage nor that the insurance coverages in place are adequate
to cover all significant risk exposure of the Company.
Any problems in this respect may also have a significant adverse effect on the reputation of the Company
and lead to a decline in demand for its products and services. Any reputational damage faced by theCompany may be exacerbated due to the Company’s visibility.
The Company cannot predict at this time the impact on it as a result of any product liability or warranty
claims as such will depend on the nature and size of any such claim.
-

Intellectual property

The Company continuously seeks to develop and deliver new products to meet customers’ evolving needs,
while also improving its existing product lines. Technological innovation has been at the core of theCompany’s strategy since its creation. The Company’s innovations often provide distinct competitive
advantages, with many becoming standard in the aircraft industry. In addition, the Company designs,
develops and produces a number of high profile products of large individual value, particularly civil andmilitary aircraft and space equipment. Therefore, intellectual property (“IP”) is one of the Company’s mostvaluable assets and the protection of IP is critical to its business.
The Company relies upon patents, copyright, trademark, confidentiality and trade secret laws, andagreements with its employees, customers, suppliers and other parties, to establish and maintain its IP
rights in its products and services and in its operations. In a typical year, the Company files around 800
new priority-establishing patent applications and files globally around 1,600 national patent applications in
global markets where it seeks to protect its technology assets. The Company has granted patents foraround 10,500 individual technologies with nearly 4,000 patents pending. This level of protection isbenchmarked against peer and competitor companies and is considered sufficient to protect core,
proprietary differentiating technology which is developed by the Company. Despite these efforts to protect
its IP rights, any of the Company’s direct or indirect IP rights could be challenged, invalidated or
circumvented. Further, the laws of certain countries do not protect the Company’s proprietary rights to thesame extent as the laws in Europe and the US. Therefore, in certain jurisdictions the Company may beunable to protect its proprietary technology adequately against unauthorised third-party copying or use,which could adversely affect its competitive position. The Company may also face lack of certainty withrespect to IP rights for existing or new research and development programmes and established or potential
partnerships with private or public organisations, academic institutions and research councils, charities andgovernment departments, where the relevant IP frameworks or user-rights/ownership governing thoserelationships is dependent on the UK’s former status as a member state of the European Union.

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In the event the Company is unable to adequately procure and protect critical IP it could potentially not
implement its business strategy.
The Company has been accused of infringement on occasion and could have additional claims asserted
against it in the future. These claims could harm its reputation, result in financial penalties or prevent it fromoffering certain products or services which may be subject to such third-party IP rights. Any claims or
litigation in this area, whether the Company ultimately wins or loses, could be time-consuming and costly,
harm the Company’s reputation or require it to enter into licensing arrangements. The Company might not
be able to enter into these licensing arrangements on acceptable terms. If a claim of infringement weresuccessful against it, an injunction might be ordered against the Company, causing further losses. Thereare currently no significant claims of IP infringement pending against the Company. Minor claims and predispute matters commonly settle either without the issuance of formal legal proceedings or during initialproceedings.

4.6.4 Environment, human rights, health & safety risks-

Climate-related risks

In accordance with the Task Force on Climate-related Financial Disclosures ("TCFD") recommendations,the Company is strengthening its ERM risk identification process for climate-related risks and opportunities,
incorporating climate scenario analysis. The Company categorises its climate-related risks andopportunities according to the TCFD classification (e.g. physical, transitional and the corresponding
subcategories). The scope of analysis is the Company - including its Divisions - and includes the upstream
and downstream value chain. The ERM system aims for early identification of short-term (around 2025),
medium-term (around 2035) and long-term (around 2050) climate-related risks and opportunities.
To identify the climate-related risks and opportunities, the Company used three temperature climate
scenarios (1.5°C, 2°C and 3°C), five driving forces (e.g. environment, technology, social, political andeconomic) and three time horizons. Based on a qualitative analysis, the Company estimated the probabilityof risk or opportunity materialisation; the results are displayed in tables next to the corresponding risk. The
assessment of risks and opportunities identified by the Company is subject to revision, as the methodology
and process further mature.

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Aggressive mitigation - Limiting warming to 1.5°C
This is an ambitious scenario that limits global warming to 1.5 °C by the end of the century (50% chance) through stringent climate policies, laws
and high levels of innovation reaching net-zero CO2 emissions around 2050 with some countries (e.g., EU) reaching net-zero GHG by this point.
In this scenario it is assumed that policies to decarbonise are introduced immediately (2020s). Such policies and laws could diverge acrosssectors, regions and pace or could be introduced smoothly and harmoniously. Progress towards sustainable development goals is fast.
Mitigation strategies implemented worldwide and across sectors include: (i) transitioning from fossil-based energy to very low or zero-carbon
energy sources (renewable energy). Carbon Capture and Storage (“CCS”) is used in targeted remaining fossil-based facilities; (ii) improving
energy efficiency; (iii) deploying both nature and technology based Carbon Dioxide Removals (“CDR”) to neutralise residual GHG emissions; and1.5°C (iv) implementation of measures that could restrict demand.
CDR is used to accelerate decarbonisation but kept to the minimum possible (residual emissions) and broadly in line with sustainable levels of
renewable energy production. Technologies could reduce the emissions of the transport sector in developed countries and limit emissions growthin developing countries. Demand-focused policies could reduce demand for transport services and support the shift to more energy efficient andlow carbon intensive products and transport modes. While efficiency improvements can provide some mitigation potential, additional mitigation
technologies for aviation are required. Renewable and low-carbon fuels, such as hydrogen, high density biofuels and synthetic fuels can provide
a viable substitute for aviation when electrification is not possible, and contribute to renewable energy storage.
Generally, physical risks are relatively low but transition risks are high.

2°C

Strong mitigation – Warming limited to 2°C
This scenario assumes a more gradual approach in the introduction of climate mitigation actions limiting global warming to 2°C by the end of the
century (~65% chance). Net-zero emissions are achieved after 2070. In this scenario, countries' ambitions of emissions reductions are different
around the world and consequently, climate policies and laws are divergently introduced. Progress towards achieving sustainable development
goals is slow. Development and growth proceed unevenly depending on the country and region. The environment experiences degradation
despite measures that are less resource- and energy-intensive.
Mitigation strategies implemented worldwide and across sectors include: (i) transitioning from fossil fuels to low carbon and renewable energy
sources, CCS is used for fossil-based facilities; (ii) the deployment of CDR is slow and mostly focused in nature based solutions; (iii) improving
energy efficiency and; (iv) implementation of demand measures.
Complementary investment will be needed in new grid management and storage solutions to ensure continued reliability. Carbon-neutral fuels
like (renewable) hydrogen, biofuels and synthetic fuels can provide a viable substitute when electrification is not possible.
Generally, physical risks are higher than in 1.5C and transition risks are lower compared to a 1.5C scenario.

3°C

Disorderly mitigation – Warming exceeding 3°C
The world’s nations have failed to control climate change. Global agreements to limit GHG emissions have not been successful and global
warming is over 3°C. This scenario results from “business as usual” behaviour.
Unilateral decisions from some countries to protect their own population or resources have resulted in conflicts, creating humanitarian crises andmass movement of populations. In this scenario, GHG emissions have resulted in a complete change of the global climate, to an extent that isnear impossible to predict today. Tipping points have been passed and triggered irreversible changes to the global ecosystem. Degradedenvironmental conditions have rendered the dryer areas of the world inhabitable, inducing further climate related migrations. In these conditions,the population has regrouped in giant urban areas and the global growth has stopped. Access to food, water and medicine is difficult for the
majority, leading to significantly degraded living conditions and life expectancy.
Generally, transition risks are lower than physical risks.

Climate-related risks:Technology. Transition - Technology
The Company has identified the risk of a reduction in the Company’s business, results of operations andfinancial condition if a competitor brings a lower emission product to the market before it does. Deliveringon commitments and potential future requirements to mitigate climate impacts will require significant
technological developments for the commercial aircraft sector as well as appropriate infrastructuredevelopments and other ecosystem adaptations. In the event that a competitor or new market participant
has access to technological developments unavailable to the Company and is able to place on the market
a large passenger aircraft with significantly lower emissions before the Company, climate mitigation
requirements may push the market towards competing products until the Company and its partners candevelop a competing alternative, which could lead to a temporary loss of market share and competitivenessas well as reduced revenue. This risk may trigger the need for the Company to develop new technologies
faster in order to be able to market competitive products, leading to substantial R&T and R&D expenses.
Energy Ecosystem Readiness. Transition - Market
The Company has identified the risk of low volumes of renewable electricity and of available sustainablebiomass and the risk of them not being directed for the use of industries and/or aviation. This could resultin insufficient quantities of Sustainable Aviation Fuels ("SAF"), hydrogen, and energy for manufacturing
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activities, thereby limiting the Company’s decarbonisation levers to align with the Paris Agreement
temperature targets and increasing costs and operational restrictions. This could result in reduced
attractiveness of current and new products leading to lower or longer returns on invested R&D. This market
risk may trigger the need for the Company to deploy a dedicated ecosystem engagement plan (see "6.1.2- Climate change”), leading to material operating expenses and/or related investments.
Change in climate, weather, environmental conditions, water availability and sea level rise. Physical- Chronic
The foreseen consequences of climate change include harsher average weather conditions, increased
temperatures and a rise in sea level. The change in environmental conditions and available resources for
manufacturing activities could produce an accelerated degradation of the Company's industrial
infrastructure and assets (buildings, tools, hardware), and disruption of its supply chain therefore impacting
the Company’s manufacturing activities. In addition, the change in environmental conditions could also
negatively impact the performance of products in operation and negatively impact the health and safety of
the Company’s employees. Longer-term shifts in climate patterns may result in temporary production
disruption leading to loss in revenues and subsequently profit margins. Additionally, shifts in climate
patterns could trigger the need for additional modifications to the Company’s products as well as toindustrial operations and procurement strategy, leading to increased costs and the adaptation of theCompany’s insurance policy.
Change in climate, weather, environmental conditions and water availability. Physical - AcuteThe foreseen consequences of climate change include more frequent extreme weather events, such as
hurricanes, hail storms, heat waves, droughts or extreme cold spells. These could negatively impact theCompany’s products and operations, including but not limited to changes to aircraft operation safety
standards, destruction and/or damage of exposed industrial infrastructure and increased risk to people’ssafety. The above may result in temporary production disruptions leading to loss in revenues andsubsequently profit margins. Additionally, it could trigger the need for additional modifications to the aircraftin order to meet more stringent safety standards, as well as to industrial operations and procurement
strategy, leading to increased costs and the adaptation of the Company’s insurance policy.

Company’s climate-related risks mapping

Climate scenario / time horizon(s)where risk or opportunity likelihood is considered medium or high,based on Company's qualitative analysis

RISKS

1.5°C

2°C

3°C

Transition - Technology

▶▶▶

▶▶▶

▶▶▶

Transition - Market

▶▶▶

▶▶▶

▶▶▶

Physical - Chronic

▶▶▶

▶▶▶

▶▶▶

Physical - Acute

▶▶▶

▶▶▶

▶▶▶

▶ ▶ ▶ : ST-▶ ▶ ▶ : MT-▶ ▶ ▶ : LT

Mitigation actions the Company has engaged, including to address these risks are presented in the section“ 6.1.2 - Climate change / IV. Transition plan”.
The Company identified the following complementary climate-related risks presented below as per TCFD
categories:
Airbus SE/ Report of the Board of Directors 2022

83Market: Changes in societal expectations and growing concerns about climate change may impact market
demand for air transport. In particular, a change in certain passengers’ behaviour or their transition to othertransport modes could decrease the demand for the Company’s current and future generation of products,
causing a loss of revenues.
The development of future products based on the ZEROe concepts will require significant investments inboth products and supporting infrastructure, which could directly impact the operating costs of such a
product.
The competitiveness of this next generation product will also strongly depend, among other factors, on theevolution of the price of carbon dioxide emissions. It is, therefore, crucial for the Company to account at
each step of development for market expectations, while staying affordable for its customers andcompetitive with regards to competitors’ portfolios. The failure to do so could result in the Company losing
market share to competitors, as well as affecting the Company’s return on investment with regards to futurecommercial aircraft products.
Policy and Legal: Aviation and aerospace are complex industries, with long product development cycles
and where change takes a long time to be implemented. A rapid evolution of climate-related policies (suchas the EU zero-pollution communications) and regulatory frameworks (CO2 standards, sustainable finance,
emissions trading systems, aircraft operation restrictions, among others) could generate fast-changing
requirements and could obstruct new product development pathways.
In particular for aviation, as this is a global industry, policies and regulations implemented at regional rather
than international level, or these evolving at a different speed depending on the region, could result in anegative impact on the competitive conditions for manufacturers and aircraft operators. This could resultin a loss of competitiveness for the Company.
Reputation: Reputational risks could be divided into several categories. Firstly, there is a risk that negative
perceptions about the Company’s environmental performance are used as key decision-making criteria for
consumers, investors, or even new talents. Secondly, there is a risk that the Company’s reputation isdamaged by growing societal concerns about the climate change impact of aviation or by the lack oftransparency on progress made to address climate-related issues. As an example, the Company was thefirst manufacturer to disclose its ambition to bring a hydrogen-powered aircraft to the market. If the ambitionis perceived as unattainable or if the Company is not able to deliver on its ambition this could result in
reputational damage leading to less investment, loss of revenues and reduced attractiveness. A similar
situation could occur if the Company’s environmental performance is not on par with its expressed ambition.
-

Regulated chemicals

Evolution of the chemicals’ regulatory framework may lead to short- and long-term potential bans andrestrictions, and result in business disruption across the Company’s value chain.
With the aim of protecting human health and the environment, regulators at national and international level
have developed a stringent set of legal requirements that are continuously evolving to regulate, minimise
the use of and eliminate various substances.
Due to the above-mentioned regulatory requirements, the Company has identified the risk of chemicals
obsolescence that may lead to supply disruption.
In order to reduce the use of targeted substances and mitigate the risk of disruption in its operations andsupply chain, the Company’s policy is the development of alternative technologies that use substances ofAirbus SE/ Report of the Board of Directors 2022

84

less concern and substitution of these when suitable alternatives meeting stringent certification andairworthiness criteria are available for deployment.
Complementary to substitution, digital solutions are being developed to improve traceability of regulated
substances in our products from the early design steps down to the end of life.

-

Regulatory risks

The Company’s expenditure associated with environmental, human rights, health and safety challenges
may increase due to both increased costs of compliance with regulations in those areas as well as
reputational and litigation risks.
Given the scope of its activities and the industries in which it operates, the Company is subject to stringent
environmental, human rights, health and safety laws and regulations in numerous jurisdictions around theworld. The Company therefore incurs, and expects to continue to incur, significant capital expenditure andother operating costs to comply with increasingly complex laws and regulations covering the protection of
the natural environment, as well as occupational health and safety and human rights. Moreover, new laws
and regulations, the imposition of tougher licence requirements, increasingly strict enforcement or new
interpretations of existing laws and regulations, may cause the Company to also incur increased capital
expenditure and operating costs in the future, which could have a negative effect on the Company’sbusiness, results of operations and financial condition.
Health and safety expenditures include investments in the identification and the prevention, elimination orcontrol of physical and psychological risks to people arising from work, including chemical, mechanical andphysical agents in light of applicable regulations. Risks that could arise from work activities include thepossibility of injury, physical and mental ill-health, damage to equipment, business interruption andregulatory action. Any reputational risk and claims against the Company that may result will also need tobe managed and may lead to additional health and safety expenditure being required. The Company
maintained its COVID-19 surveillance and appropriate risk management measures in the workplace.
Environmental protection expenditures include costs to prevent, control, eliminate or reduce emissions to
the environment, waste management, the content of the Company’s products, and reporting and warning
obligations. Current trends indicate that regulatory pressure on the international scene to reduce theenvironmental footprint of industry is steadily growing (circular economy and resources efficiency, energy
transition and climate change engagement, air and water quality improvement).
If the Company fails to comply with environmental, human rights, health and safety laws and regulations,even if caused by factors beyond its control, that failure may result in the levying of civil or criminal penalties
and fines against it. Regulatory authorities may require the Company to conduct investigations andundertake remedial activities, curtail operations or close installations or facilities temporarily to prevent
imminent risks. In the event of an industrial accident or other serious incident, employees, customers andother third parties may file claims for ill-health, personal injury, or damage to property or the environment(including natural resources). Further, liability under some environmental, human rights, health and safety
laws can be imposed retrospectively, on a joint and several basis, and in relation to contaminated sites,
without any finding of non-compliance or fault. These potential liabilities may not always be covered byinsurance, or may be only partially covered. The obligation to compensate for such damages could have anegative effect on the Company’s business, results of operations and financial condition.

Airbus SE/ Report of the Board of Directors 2022

85

In addition, the various products manufactured and sold by the Company must comply with relevant health,safety and environmental laws, for example those designed to protect customers and downstream workers
or communities, and those covering substances and preparations, in the jurisdictions in which they operate.
Although the Company seeks to ensure that its products meet the highest quality standards, increasingly
stringent and complex laws and regulations, new scientific discoveries, delivery of defective products or the
obligation to notify or provide regulatory authorities or others with required information (such as under theEuropean Union Regulation known as “REACH”, which addresses the production and use of chemical
substances) may force the Company to adapt, redesign, redevelop, recertify and/or eliminate its products
from the market thereby incurring significant additional costs. Seizures of defective products may bepronounced, and the Company may incur administrative, civil or criminal liability. Any problems in thisrespect may also have a significant adverse effect on the reputation of the Company and lead to a decline
in demand for its products and services.
Irrespective of compliance with applicable laws and regulations, the Company’s reputation and the demandfor its products may also be affected by the public perception of environmental and societal impacts of theCompany’s products in operation (such as the emission of greenhouse gases or noise) and of the impactsof the Company and its supply chain industrial operations on local communities, on the environment andon air and water quality.
The Company cannot predict at this time the impact on it as a result of environmental, human rights, healthand safety matters, and may be adversely affected by them in the manner described above. For further
information on sustainability-related risks, see “6.1 – Non-Financial Information”.

Airbus SE/ Report of the Board of Directors 2022

86

5. Financial statements
The Airbus SE IFRS Consolidated Financial Statements are prepared in accordance with International
Reporting Standards (“IFRS”).

5.1 IFRS consolidated financial statements
Please refer to the “Airbus SE – IFRS Consolidated Financial Statements” and the “Notes to the IFRS
Consolidated Financial Statements” for the years ended 31 December 2022 and 2021.
IFRS Consolidated Income Statement
Please refer to the “Airbus SE – IFRS Consolidated Income Statement” for the years ended 31 December
2022 and 2021.
Revenues
Revenues increased 13 percent to € 58.8 billion (2021: € 52.1 billion). A total of 661(1) commercial aircraft
were delivered (2021: 611(2) aircraft), comprising 53 A220s, 516 A320 Family, 32 A330s and 60 A350s.
Revenues generated by Airbus’ commercial aircraft activities increased 15 percent year-on-year, mainlyreflecting the higher deliveries and the strengthening of the US dollar. Airbus Helicopters delivered 344
units (2021: 338 units), with revenues rising by 8 percent, mainly reflecting growth in services and afavourable mix in programmes. Revenues at Airbus Defence and Space increased 11 percent, mainly
driven by higher volume in Military Aircraft and Eurodrone. A total of 10 A400M airlifters were delivered in
2022, compared to 8 in 2021.
EBIT and Financial Result
EBIT Adjusted – an alternative performance measure and key indicator capturing the underlying businessmargin by excluding material charges or profits caused by movements in provisions related to programmes,
restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisitionof businesses – increased to € 5,627 million (2021: € 4,865 million).
The EBIT Adjusted related to Airbus’ commercial aircraft activities increased to € 4,600 million (2021: €3,570 million). The increase reflects the higher deliveries and is supported by some non-recurring elements– mainly the positive impacts from retirement obligations and from the progress made on compliance related
topics – partly offset by a less favourable hedge rate compared to FY 2021.
On the A320 Family programme, the ramp-up trajectory has been adapted with suppliers. The Company is
now progressing towards a monthly production rate of 65 aircraft by the end of 2024 and 75 in 2026. Entryinto-service for the A321XLR is expected to take place in Q2 2024.

1) After a reduction of two aircraft previously recorded as sold in December 2021 for which a transfer was not possible due tointernational sanctions against Russia.
2) Two A330s delivered on operating lease in FY 2021.

Airbus SE/ Report of the Board of Directors 2022

87

The A330 monthly production rate increased to around 3 at the end of 2022 as planned and the Company
now targets to reach rate 4 in 2024. The A350 monthly rate is now around 6 aircraft. In order to meetgrowing demand for widebody aircraft as international air travel recovers, and following a feasibility study
with the supply chain, the Company is now targeting a monthly production rate of 9 A350s at the end of2025.
Airbus Helicopters’ EBIT Adjusted increased to € 639 million (2021: € 535 million), reflecting higher services
and programme execution. Non-recurring elements included the positive impact related to retirement
obligations booked in Q1.
EBIT Adjusted at Airbus Defence and Space decreased to € 384 million (2021: € 696 million), mainlyreflecting the impairment related to the loss of two Pleiades Neo satellites in December and to delays on
the Ariane 6 launcher, as well as the impact of rising inflation. This was partly offset by higher volume in
Military Aircraft, the ramp-up in Eurodrone and the positive impact related to retirement obligations booked
in Q1.
On the A400M programme, development activities continue towards achieving the revised capability
roadmap. Retrofit activities are progressing in close alignment with the customer. In 2022, an update of thecontract “Estimate at Completion” was performed and an additional charge of € 0.5 billion recorded. This
mainly reflects updated assumptions, including inflation and risks related to the remaining SOC3 contractual
development milestones to be achieved. Risks remain on the qualification of technical capabilities andassociated costs, on aircraft operational reliability, on cost reductions and on securing export orders in time
as per the revised baseline.
EBIT (reported) amounted to € 5,325 million (2021: € 5,342 million), including net Adjustments of € -302
million.
These Adjustments comprised:
▶
▶
▶
▶
▶

€ +308 million related to the dollar pre-delivery payment mismatch and balance sheet revaluation, of
which € -41 million were in Q4;€ +28 million related to the A380 programme, of which € -5 million were in Q4;€ -477 million related to the A400M programme, of which € -258 million were in Q4;€ -82 million related to the Aerostructures transformation in France and Germany, of which € -34 million
were in Q4;€ -79 million of other costs including compliance, of which € -35 million were in Q4.

The financial result was € -250 million (2021: € -315 million). It mainly reflects the net interest result of€ -232 million. It also includes a negative impact from the revaluation of financial instruments and a positive
impact from the revaluation of certain equity investments. Net Income was € 4,247 million (2021: € 4,213
million) with reported earnings per share of € 5.40 (2021: € 5.36).
Revenue and EBIT (reported) by Business Segment(In € million)

AirbusAirbus Helicopters
Airbus Defence and Space
Eliminations
Total

2022
41,428
7,048
11,259(972)
58,763

Revenues
2021
36,164
6,509
10,186(710)
52,149Change
+15%
+8%
+11%
+13%

EBIT (reported)
2022
2021
4,800
4,175
639
535
(118)
568
4
64
5,325
5,342

Change
+15%
+19%
-94%
0%

IFRS Consolidated Statement of Financial Position
Airbus SE/ Report of the Board of Directors 2022

88

Please refer to the “Airbus SE – IFRS Consolidated Statement of Financial Position” at 31 December 2022
and 2021.
Intangible Assets and Property, Plant and Equipment
Intangible assets increased by € +401 million to € 16,768 million (2021: € 16,367 million). Intangible assets
mainly relate to goodwill of € 13,165 million (2021: € 13,028 million). The increase in goodwill is primarily
due to the acquisitions of VAS Aero Services, LLC and ZF Luftfahrttechnik GmbH.
The annual impairment tests performed in 2022 led to no impairment charge.
Property, plant and equipment decreased by € -31 million to € 16,505 million (2021: € 16,536 million).
Property, plant and equipment include right-of-use assets for an amount of € 1,746 million as of 31
December 2022 (2021: € 1,698 million).
Following the launch failure of the two satellites Pléiades Neo 5 and 6 on 21 December 2022, thecorresponding fixed assets were written-off for a total of € 248 million and an impairment of € 184 million
has been recorded for the remaining Pléiades Neo assets value partly offset by the insurance receivableof € 200 million, all recognized as of 31 December 2022 in other income and other expenses.
Investments Accounted for under the Equity Method
Investments accounted for under the equity method increased by € +395 million to € 2,067 million(2021: € 1,672 million). They mainly include the equity investments in ArianeGroup, MBDA and ATR GIE.
Other Investments and Other Long-Term Financial Assets
31 December(In € million)

Other investments
Other long-term financial assets
Total non-current other investments and other long-term financial assets
Current portion of other long-term financial assets
Total

2022
2,641
1,549
4,190
665
4,855

2021
2,511
1,490
4,001
537
4,538

Other investments mainly comprise the Company’s participations and include the remaining investment
in Dassault Aviation (9.90%, 2021: 9.90%) amounting to € 1,309 million at 31 December 2022 (2021: € 786
million). It is partly offset by the decrease in fair value of other investments.
Other long-term financial assets and the current portion of other long-term financial assets include
other loans in the amount of € 2,129 million as of 31 December 2022 (2021: € 1,909 million), and the sales
financing activities in the form of finance lease receivables and loans from aircraft financing.
Inventories
Inventories of € 32,202 million (2021: € 28,538 million) increased by € +3,664 million. This is driven by
Airbus (€ +3,825 million), mainly reflecting the inventory build up to support ramp up. It also includes higher
advance payments made to suppliers.

Airbus SE/ Report of the Board of Directors 2022

89

Provisions(In € million)

Provisions for pensions
Other provisions
Total
thereof non-current portion
thereof current portion

31 December
2022
3,509
7,514
11,023
6,896
4,127

2021
7,072
8,209
15,281
10,771
4,510

As of 31 December 2022, provisions for pensions decreased by € -3.6 billion. It mainly reflects theincrease of the discount rates in Germany, France, Canada and the UK of € 7.8 billion, resulting from market
volatility related mainly to the Ukraine crisis. It is partly offset by deteriorated performance of the asset
market values for € 2.7 billion and increased inflation assumptions particularly in Germany and France for€ 0.5 billion.
As a consequence of the increased discount rates a non-current asset of € 0.6 billion has been accounted
for to reflect the surplus in two pension funds in the UK, the Airbus Section of the participation in BAE
Systems Pension Scheme and the Company UK Pension Scheme.
Furthermore, due to the re-measurement of past service cost in the retirement obligation, a gain of € 0.4
billion was recognised in the first quarter 2022.
Other provisions decreased mainly due to the decrease in provisions for onerous contracts due to theutilisation and net presentation of the A400M programme losses against inventories, the reduction in the
A220 programme and the release of compliance-related provisions.
Other Financial Assets and Other Financial Liabilities
Other Financial Assets(In € million)

Positive fair values of derivative financial instruments
OthersTotal non-current other financial assets
Receivables from related companies
Positive fair values of derivative financial instruments
OthersTotal current other financial assets
Total

31 December
2022
753
28
781
1,104
1,141
297
2,542
3,323

2021
664
27
691
803
341
307
1,451
2,142

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90

Other Financial Liabilities(In € million)

Liabilities for derivative financial instruments
European Governments' refundable advances
OthersTotal non-current other financial liabilities
Liabilities for derivative financial instruments
European Governments' refundable advances
Liabilities to related companies
OthersTotal current other financial liabilities
Total
thereof other financial liabilities due within 1 year

31 December
2022
6,163
3,717
237
10,117
3,450
140
186
297
4,073
14,190
4,073

2021
2,640
3,730
192
6,562
1,923
131
180
298
2,532
9,094
2,532

The total net fair value of derivative financial instruments decreased by € -4,161 million to € -7,719 million(2021: € -3,558 million) as a result of the strengthened US dollar versus the euro associated with the markto market valuation of the hedge portfolio.
In 2022, the European Governments’ refundable advances decreased by € -4 million to € 3,857 million(2021: € 3,861 million).
The allocation of European Governments’ refundable advances between non-current and current presented
in the Consolidated Financial Statements ended 31 December 2022 is based on the applicable contractual
repayment dates.
Other Assets and Other Liabilities
Other Assets(In € million)

Cost to fulfil a contract
Prepaid expenses
OthersTotal non-current other assets
Value added tax claims
Cost to fulfil a contract
Prepaid expenses
OthersTotal current other assets
Total

31 December
2022
337
149
1,386
1,872
1,732
448
161
509
2,850
4,722

2021
301
116
484(1)
901
1,183
499
392
319
2,393
3,294

(1) 2021 figures restated in accordance with 2022 presentation.

As of 31 December 2022, non-current other assets include € 673 million of payments to be made to Airbus
by suppliers after aircraft delivery (2021: € 411 million). They are recorded as a reduction of cost of goods
sold at the time of aircraft delivery. These future payments are discounted to reflect specific contractual
terms and repayment profile.
As of 31 December 2022, a non-current asset of € 0.6 billion has been accounted for to reflect the surplus
in two pension funds in the UK as a consequence of the increased discount rates.

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91

Other Liabilities(In € million)

OthersTotal non-current other liabilities
Tax liabilities (excluding income tax)
OthersTotal current other liabilities
Total
thereof other liabilities due within 1 year

31 December
2022
498
498
1,082
2,721
3,803
4,301
3,803

2021
583
583
771
2,761
3,532
4,115
3,532

As of 31 December 2022, current other liabilities mainly comprise tax (excluding income tax) and personnel
liabilities.
Total equity
The Company’s shares are exclusively ordinary shares with a par value of € 1.00. The following table shows
the development of the number of shares issued and fully paid:(In number of shares)

Issued at 1 January
Issued for ESOP
Issued at 31 December
Treasury shares
Outstanding at 31 December

2022
786,083,690
2,121,318
788,205,008(647,500)
787,557,508

2021
784,149,270
1,934,420
786,083,690(454,735)
785,628,955

Holders of ordinary shares are entitled to dividends and to one vote per share at general meetings of theCompany.
Equity attributable to equity owners of the parent (including purchased treasury shares) amounts to€ 12,950 million (2021: € 9,466 million) representing an increase of € +3,484 million. This is mainly due tothe net income for the period of € +4,247 million and a change in actuarial gains and losses of € +3,432
million, partly offset by the mark to market revaluation of the hedge portfolio of € -2,240 million, the change
in fair value of financial assets of € -1,091 million and a dividend payment of € -1,181 million(1.50 € per share).
The non-controlling interests (“NCI”) from non-wholly owned subsidiaries increased to € 32 million as of
31 December 2022 (2021: € 20 million). These NCI do not have a material interest in the Company’s
activities and cash flows.

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92

Net Cash
The net cash position provides financial flexibility to fund the Company’s operations, to react to businessneeds and risk profile and to return capital to the shareholders.

(In € million)

Cash and cash equivalents
Current securities
Non-current securities
Gross cash position
Short-term financing liabilities
Long-term financing liabilities
Interest rate contracts (1)Total

31 December
2022
15,823
1,762
6,013
23,598(2,142)(10,631)(1,394)
9,431

2021
14,572
1,317
6,794
22,683(1,946)(13,094)97
7,740(1) The Company has decided to refine the net cash definition to include interest rate contracts related to fair value hedges, which isalso reflected in the 2022 balance.

The net cash position on 31 December 2022 amounted to € 9,431 million (2021: € 7,740 million), with agross cash position of € 23,598 million (2021: € 22,683 million).
Cash and Cash Equivalents
Cash and cash equivalents are composed of the following elements:(In € million)

Bank account and petty cash
Short-term securities (at fair value through profit or loss)
Short-term securities (at fair value through OCI)
Total cash and cash equivalents

31 December
2022
3,687
11,135
1,001
15,8232021
1,964
12,075533
14,572

Only securities with a maturity of three months or less from the date of the acquisition, that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value,
are recognised in cash equivalents.
Cash and cash equivalents have increased by € +1.3 billion from € 14.6 billion at 31 December 2021 to€ 15.8 billion at 31 December 2022. They include payments received in advance from certain customers
and payments made to suppliers in anticipation.
Securities
The Company’s securities portfolio amounts to € 7,775 million and € 8,111 million as of 31 December 2022
and 2021, respectively. The security portfolio contains a non-current portion of € 6,013 million (2021: €6,794 million), and a current portion of € 1,762 million (2021: € 1,317 million).

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93

Financing liabilities(In € million)

Bonds and commercial papers
Liabilities to financial institutions
Loans
Lease liabilities
Total long term financing liabilities
Bonds and commercial papers
Liabilities to financial institutions
Loans
Lease liabilities
Others (1)Total short term financing liabilities
Total

31 December
2022
8,681
383
75
1,492
10,631
0
27
83
242
1,790
2,142
12,7732021
11,061467
75
1,491
13,094
0
26
96
245
1,579
1,946
15,040(1) Included in “others” are financing liabilities to joint ventures.
Long-term financing liabilities, mainly comprising of bonds and lease liabilities, decreased by € -2,463
million to € 10,631 million (2021: € 13,094 million), mainly due to the decrease in the value of bonds linked
to higher interest rates and a € 1 billion bond buyback performed in June 2022.
Short-term financing liabilities increased by € +196 million to € 2,142 million (2021: € 1,946 million).
Free Cash Flow
Free cash flow before M&A and customer financing – an alternative performance measure and indicatorthat may be used occasionally by the Company in its financial guidance, especially when there is higher
uncertainty around customer financing activities – was € 4,680 million (2021: € 3,515 million), supported by
the favourable foreign exchange environment and a strong positive phasing impact from working capital.
Free cash flow – an alternative performance measure and key indicator which allows the Company tomeasure the amount of cash flow generated from operations after cash used in investing activities – was €4,324 million (2021: € 3,511 million). The 2021 dividend of € 1.50 per share, or € 1.2 billion in total, waspaid in Q2 2022 while pension contributions totalled € 0.6 billion during the year. The gross cash positionstood at € 23.6 billion at the end of 2022 (year-end 2021: € 22.7 billion), with a net cash position of € 9.4
billion (year-end 2021: € 7.7 billion).
Order Intake and Order Book
Gross commercial aircraft orders increased to 1,078 (2021: 771 aircraft), with net orders of 820 aircraft aftercancellations (2021: 507 aircraft) corresponding to a net book-to-bill ratio significantly above 1. The orderbacklog amounted to 7,239 commercial aircraft at the end of 2022. Airbus Helicopters registered 362 netorders (2021: 414 units), with a book-to-bill above 1 both in units and value. Helicopter orders were wellspread across programmes and included 12 H160s. Airbus Defence and Space’s order intake by value was€ 13.7 billion (2021: € 13.7 billion), corresponding to a book-to-bill of around 1.2. Key orders included
Demonstrator Phase 1B of the Future Combat Air System, the Eurodrone unmanned aerial system and 20
latest-generation Eurofighters for the Spanish Air Force.
Order intake by value increased to € 82.5 billion (2021: € 62.0 billion) with the order book valued at€ 449 billion at the end of 2022 (year-end 2021: € 398 billion). The increase in the backlog value mainlyreflects the book-to-bill above 1 and the strengthening of the US dollar.

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Order Intake and Order Book by Business Segment

Airbus (in units)
Airbus (in € million)
Airbus Helicopters (in units)
Airbus Helicopters (in € million)
Airbus Defence and Space (in € million)

Order Intake (net)2022
2021 Change
820
507
+62%
59,72740,004
+49%
362
414
-13%
9,338
8,552
+9%
13,66013,656
0%

2022
7,239
390,456757
20,77438,426

Order Book
2021
7,082
345,101
739
17,98536,131

Change
+2%
+13%
+2%
+16%
+6%

5.2 Information on Airbus SE auditors

Ernst & Young Accountants LLP
Boompjes 258
3011 XZ Rotterdam
Postbus 488
3000 AL Rotterdam
The Netherlands
Represented by N.M. Pul

Date of first
appointment

Expiration of current term of office (1)28 April 201619 April 2023

(1) A resolution will be submitted to the Annual General Meeting of Shareholders in 2023, in order to appoint Ernst & Young
Accountants LLP as the Company’s auditors for the 2023 financial year.

Ernst & Young Accountants LLP has a licence from the AFM to perform statutory audits for Public Interest
Entities and its representative is member of the NBA (Koninklijke Nederlandse Beroepsorganisatie van
Accountants – the Royal Netherlands Institute of Chartered Accountants). The NBA is the professional bodyfor accountants in the Netherlands.

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6. Non-financial Information and other corporate activities

6.1 Non-financial information
6.1.1 The Company’s approach to sustainability
I. Purpose
The Company’s purpose is to "pioneer sustainable aerospace for a safe and united world". The Company designs,
manufactures and delivers aerospace products, services and solutions to customers on a worldwide scale helping to create
value and drive growth. The Company is deeply aware of its responsibility to society and future generations, and contributes
to a number of UN Sustainable Development Goals ("SDGs") through its core business and how it operates.
The Company strives to respect the planet. It aspires to lead the journey towards clean aerospace. The Company pioneersadvanced and disruptive technologies while delivering and continuously improving its fuel-efficient products. From exploring
new aircraft and propulsion technologies and alternatives to fossil fuels (sustainable aviation fuels) to testing new prototype
aircraft powered by hydrogen, the Company is committed to reducing the environmental impact of its products. It is also
committed to taking environmental responsibility and, for example, to actively reducing emissions through its value chain,cutting on-site waste and increasing the recycling of aircraft at the end of their service life. The Company’s products andservices, such as its Earth-observation technologies, allow it to play an active role in tackling climate change, providing
insights that help make the planet more resilient.
The Company is committed to valuing people. Its business is built on a foundation of safety, quality, integrity andcompliance, with the highest standards ensured from design to operation. The Company supports the balance of powers
and is uniquely-positioned to strengthen global resilience through its products and services. The Company’s technology
allows its customers to protect lives during a conflict and prevent crises before they escalate. The Company's products help
to protect citizens, defend sovereignty and advance global security, mindful that there can be no sustainability without
security.
The Company enables prosperity. Its products help to unite cultures, connect economies, and enable global cooperationand partnership. The Company brings together people and organisations across the globe, physically with its commercial
aircraft and helicopters, and virtually with its satellites and connectivity solutions. It mobilises the collective positive impact of
its workforce, products and services to tackle societal challenges in partnership with local communities. In addition, theCompany works collaboratively to maximise its positive impact, playing an active advocacy role, educating the aerospaceindustry and partnering with other businesses and public sector organisations to develop technology and solutions that willallow the industry to transition towards a sustainable economy. It is committed to being an economically resilient businessthat has the financial strength to invest in a more sustainable future. The Company believes that a sustainable tomorrowneeds the strongest foundations today.
GENERALGRI

SDGs

Others102 General Disclosures

4, 5, 8, 9, 12, 13, 16, 17 Vigilance Plan

Highest governancebody(ies) involved

Board of Directors / ECSC
Executive Committee supported by topic-focused committees

Commitments toexternal frameworks

UN Global Compact, The Ten Principles, Sustainable Development Goals

Add. resources

Sustainability on Airbus.com, Airbus Tax Strategy,
Innovation contributing to a more sustainable world on Airbus.com, Earth monitoring and understanding (e.g.
Climate change monitoring), Example partnership for innovation: ANITI project⇲, Toulouse University (ANITI)⇲,ATAG Benefits Beyond Borders fact sheet⇲, ASD Fact Sheet 2022⇲, UN Global Compact⇲,⇲ : this symbol
indicates a link to an
external website

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In line with its purpose, the progress in its sustainability journey, and the evolution of reporting frameworks, the Company
has further evolved its non-financial reporting in 2022, providing additional transparency and striving to better demonstrate
its level of commitment and performance, as presented in the following pages.

II. Indirect contributions
The Company’s contribution to a more prosperous and sustainable society goes beyond what it offers directly through its
products and services.
For example, as one of the most important players in the aviation industry, the Company contributes significantly to SDG 8 “Decent Work and Economic Growth” - as highlighted through the 2020 Benefits Beyond Borders - global fact sheet,available on the Air Transport Action Group website (figures reflect pre-COVID 19 situation, a “normal” year for air transport):

As a major European defence manufacturer, the Company also has significant economic impact across Europe. According
to the AeroSpace and Defence Industries Association of Europe, the industry supports over 879,000 jobs across thecontinent, all contributing to Europe’s economic prosperity with €238 billion in annual revenue in 2021, €138 billion of whichcomes from exports.
While the Company contributes to the global economy as a whole, it also contributes to the economic development of thecommunities where it operates. Full aerospace ecosystems - bringing together academia, research centres andcorporations, all with high value-added jobs - often develop around the Company’s sites such as those in Toulouse or
Hamburg. This development is accelerated thanks to the Company’s innovation ecosystem such as Airbus Scale: aninnovation unit that combines corporate innovation, start-up engagement and company-building activities. Airbus Scale
identifies and promotes internal corporate innovation opportunities that can be developed into solutions for the external
world, bringing them to market and attracting external investments that could result in spin-offs. This generates value not
only for the Company but also for the local communities where these new companies will set up, operate and prosper.

III. Sustainability commitments
Furthermore, the Company understands that contributing to a sustainable society is achieved not just through what it does
but also how it does it, striving to minimise negative impacts and maximise the positive ones. In order to give direction andfocus, in 2020 the Company updated its sustainability strategic framework around the four sustainability priority
commitments listed below that apply across its entire value chain. These commitments are in close connection with the UN
SDGs and contribute more specifically to eight of them.

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The Company's
four commitments

Material topics(see hereafter)#1
Lead the journey
towards clean aerospace

Climate change
Pollution
Materials and circularity
Water
Biodiversity

6.1.2
6.1.3
6.1.4
6.1.5
6.1.6

Product safety
Cyber security
Health and safety

6.1.7
6.1.8
6.1.9

Human rights
Inclusion and diversity
Social dialogue
People6.1.106.1.11
6.1.12
6.1.13Business integrity

6.1.14#2
Build our business on the foundationof safety and quality#3
Respect human rights
and foster inclusion#4
Exemplify business integrity

SDGs

SectionAcross each commitment the Company has set key performance indicators (“KPIs”) and targets enabling the Company tomonitor progress towards these ambitions. These can be found in "– 6.1.17 ESG data board", which gathers all reported
sustainability metrics. They can also be found in the related sections of this chapter, which is structured around each of thefour commitments, completed by two sections which cut across all four commitments, "– 6.1.15 Responsible supply chain"and "– 6.1.16 Community impact". Complementing the climate change section, EU taxonomy regulatory information isdisclosed in section 6.1.19.
Several sources were essential in deciding on the four commitments, including the 2019 materiality assessment, abenchmark exercise, an analysis of market and regulatory trends, an evaluation of ESG risks in the Company’s risk report, ahuman rights gap analysis and the consideration of the Company’s values.

IV. Materiality matrix
The Company updated its materiality assessment in 2022 and used stakeholders´ inputs to support the ranking, of which
ESG issues are most material (and subsequently shall be addressed in the sustainability strategy). The range of ESG topics
assessed was defined based on relevant industry and regulatory references, as well as on internal expertise. This materiality
matrix is to be fully updated periodically - indicatively every three years - and possibly adjusted in the meantime based on
feedback captured from stakeholders in day-to-day business and further methodological improvements. The results of this2022 update were captured in a materiality matrix (refer to materiality matrix chart below), which is fundamental in confirming
the relevance of the Company’s four commitments. It is a three-dimensional matrix:- Importance to stakeholders (vertical axis): The Company asked its 12 most important stakeholder groups (see “Stakeholder engagement section below) about their view on how important it is for the Company to address a given topic.
Scoring was established by capturing the voice of critical stakeholders - including employees, customers, suppliers,
investors, social partners - via a survey sent to selected representatives in each category and targeting individuals who arefamiliar with sustainability matters. Other information was obtained with the support of artificial intelligence (based on
analysis of reports, legislation and media sources), capturing the importance of the respective topics in stakeholders’communication. Most information was collected using the Datamaran tool. During the feedback consolidation phase, agreater weight was assigned to critical stakeholders.
- Potential impact on rightsholders or ecosystems (horizontal axis): the Company evaluated the potential impact of its
activities on people and environment in connection with the Company’s activities - e.g. employees, end users, and local
communities. Scoring was established taking into account the scale, scope, remediability and likelihood of risks associatedwith the topic. This assessment was based on interviews with internal experts in each domain.
- Impact on the Company or financial materiality (bubble size): The assessment of the potential impact of ESG-related
topics on the Company’s financial performance took into consideration the degree of risk associated with identified
ESG-topics topics. Scoring was derived from the Company’s enterprise risk management (“ERM”) system andcomplemented by interviews with representatives from the Company’s top management.
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V. Stakeholder engagement
The Company’s approach to sustainability is built on constant engagement with its stakeholders. Key stakeholder groups, inline with International Aerospace Environmental Group recommendation for the sector, include employees, customers,
suppliers, industrial partners (including energy providers), social partners, investors, NGOs, authorities / governments /policy makers, industry associations, MRO (maintenance, repair and operations) providers, airports, and the community atlarge. Dialogue with numerous stakeholders helps the Company progress its sustainability ambition. In addition, it hasformalised a number of opportunities to exchange more widely with its stakeholders. For instance, beyond materiality
assessment, the Company meets at least twice a year with social partners to review sustainability topics (see “- 6.1.12
Social dialogue”). Besides, the Company established the Airbus Supplier Sustainability Council in 2022 (see “- 6.1.15
Responsible supply chain''). It organised other events where sustainability topics were addressed during the year, such as
the Capital Market Day and the Airbus Summit. Additionally, it participated in numerous events such as air shows orconferences, which fostered dialogue on sustainability matters with a large number of external stakeholders including
investors, customers, media, NGOs, institutions, policy makers, and other industry or value chain partners.

VI. GovernanceConscious of the strategic importance of sustainability, the Company has defined governance at the highest level. Oversighthas been established at the Board of Directors level with the Ethics, Compliance and Sustainability Committee (“ECSC”).
For further information about the ECSC, see “– Corporate Governance – 4.1 Management and Control”. The ECSC is
responsible for assisting the Board of Directors to oversee the Company’s:–

Culture and commitment to ethical business, integrity and sustainability;–

Ethics and Compliance programme, organisation and framework for the effective governance of ethics andcompliance, including all associated internal policies, procedures and controls; and–Sustainability strategy and effective governance to ensure that sustainability-related topics are taken into accountin the Company’s strategy and objectives.

Under the Board Rules, the Board of Directors delegates the day-to-day management of the Company to the CEO, who,
supported by the Executive Committee, makes decisions with respect to the management of the Company, including
sustainability. The Executive Committee has the responsibility to provide top level expectations and direction, while

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overseeing and validating the sustainability strategy. This entails validating sustainability targets, including those integrated
into the top company objectives.

The Executive Committee is supported by several committees or boards linked to the Company’s four sustainability
commitments:- The Environment Executive Steering Committee, the Inclusion & Diversity Advisory Board, the Product Safety Board aswell as the Occupational Health and Safety Governance Board (created in 2022; see “- 6.1.9 Health and Safety”), all chaired
by Executive Committee members.
- The Steering Committees of the Human Rights and Sustainable Supply Chain Roadmaps, both sponsored by Executive
Committee members.
Other sustainability topics such as business integrity are brought directly to the attention of the Executive Committee. Where
relevant, additional elements of governance linked to specific topics are explained in the governance sections of this report.

Organisation and policy framework: The sustainability & environment team put in place in January 2020 atcorporate level has continued to develop and expand. Its mission continues to focus on:
●
●
●
●
●
●

Setting the ambition level regarding the Company's environmental and social commitments;
Identifying the levers to achieve this ambition;
Enabling the business to deliver this ambition across the full value chain;
Engaging employees on sustainability;
Providing clarity on ambition and progress to internal and external stakeholders;
Coordinating with relevant functions the performance and reporting on progress with regards to the four commitments.

While the sustainability & environment team has a Company-wide role to provide direction and check regularly on
advancements across all sustainability topics, there are for each of those topics (e.g. health and safety, inclusion anddiversity, human rights, etc.), related functions, departments or “roadmaps” (multi-functional teams addressing
cross-functional sustainability topics) driving their continuous improvement. These teams are for the most part supported bydedicated policies which are referred to in the Company’s Code of Conduct - a single reference intended to guide daily
behaviour and help employees resolve the most common ethical and compliance issues that they may encounter. The Codeof Conduct applies to all Company’s employees and directors, regardless of their job title, responsibilities, seniority, or
location, within every subsidiary or joint venture where the Company has control.

Incentivisation and remuneration: The Company also believes the integration of sustainability criteria into its
reward mechanisms is an important enabler for accelerating its sustainability ambition. A sustainability criterion is integrated
into the common collective component of the CEO’s variable remuneration, accounting for 20%, see “– Corporate
Governance – 4.4 Remuneration Report”. This principle also applies to the other members of the Executive Committee who
do not serve on the Board of Directors, and to a large extent to executives and “Level IV” managers employed at theCompany. Other criteria also apply to all employees as summarised below:
Variable remuneration component Objective / KPI (s)Collective performance Health and Safety FR1
Reduction of CO2 emission
Success sharing
Health and Safety FR1
Individual performance Ethics & Compliance
Functional sustainability objectives

Weight (s)
10%
10%
c. 5%
Over 10%
Individualised

Population“Level IV” Managers and Executives(around 4,500 employees)
Around 115,000 employees
All employees entitled to an individual bonus(around 50,000 employees)

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VII. Airbus' way forward: vigilance plan
The Company is determined to conduct its business responsibly and with integrity. It is convinced that promoting responsible
business conduct within its value chain is key to sustainable growth. The Company’s vigilance plan includes measures to
identify risks and prevent serious impacts related to sustainability resulting from the Company’s own operations and from its
suppliers and other contractors (including subcontractors). As far as its own operations are concerned, the Company has
adopted internal policies and management tools to perform the monitoring, assessment, mitigation and reporting of risk andcompliance allegations, which are embedded into the Company’s culture and processes. For the Company’s vigilance planfor its supply chain, see “– 6.1.15 Responsible supply chain”, which shall be deemed to be incorporated by reference andform part of this plan.

Enterprise risk management and internal audit: With regards to risk management, sustainability risks andopportunities are fully embedded in the Company’s ERM system. For further information on ERM, see “– Corporate
Governance – 4.5 Enterprise Risk Management System”. For further information on the Company’s risks, see “– 4.6 Risk
Factors”. Internal audits are also performed regularly across the Company, including on sustainability topics. External audits
are performed in line with certification requirements, as detailed in the related material topic sections.

Sustainability competencies and employee engagement: Raising awareness, developing competencies
and engaging employees are essential to preventing and mitigating sustainability risks and maximising opportunities. On thismatter, the Company offered employees more than 900 online and in-person training opportunities in 2022, ranging fromethics and compliance to export control, health and safety, product safety, cyber security, internal controls, inclusion anddiversity, quality and customer centricity, sustainability awareness and more. Training courses linked to sustainability topics
were integrated into the 2022 mandatory training list for Company employees. Specific information on training is covered in
the related material topic sections.

Affiliates: All Company controlled affiliates are expected to deploy similar internal policies by applying the Company’s
directives. A company-wide single directive defines rules, processes and procedures applicable to the Company’s affiliates
and their respective boards, directors and officers. Its enforcement is supported by the Directors’ training programme which
was delivered to 117 people in 2022 over eight full-day digital sessions, as well as on-boarding sessions performed for newly
appointed managing directors of controlled affiliates. The single directive assists the Company’s affiliates in effectively
fulfilling their responsibilities, while assuring the Company’s ongoing commitment to high standards of corporate
governance. It was built on the basis of Company related internal policies including, but not limited to: the Company’s Codeof Conduct, International Framework Agreement, Agreement on the European Works Council, Supplier Code of Conduct,
Health & Safety Policy, Environmental Policy, the Company’s Anti-Corruption Policy and related directives. An online
self-assessment (“ICSA”) is completed on an annual basis by the controlled affiliates to self-assess their internal controls,
including how they relate to the environment, health and safety, human resources, governance, finance, procurement andcompliance requirements in order to identify any gaps and define remedial action plans as required. Controlled affiliates canupdate the self-assessment on a quarterly basis based on their progression. Following ICSA, internal verifications arecarried out by the respective corporate functions to validate answers and, when gaps are identified, develop improvement
measures jointly with controlled affiliates to enhance their conformity level. In 2022, 81 controlled affiliates were selected toperform such verifications. Verifications are run every three years at least, and more frequently when ICSAs evidencematerial gaps. The Company’s controlled affiliates are also asked to regularly evaluate risks via the Company’s ERM
system, and to regularly monitor them as part of their risk assessment process.

Risk mapping:
ENVIRONMENT
Climate change
HUMAN RIGHTS
Impacts related to products and services
Impacts related to diverse and inclusive workplaces
Risk of forced labour
Impacts related to sourcing of raw materials
HEALTH AND SAFETY
Exposure to hazardous substances and materials
Working environment
In situ contractor health and safety management
Mental health and wellbeing

Priority risk in the scope of
the Company
Suppliers and Contractors
☑
☑
☑

☑
☑
☑
☑

☑

☑
☑
☑
☑
☑
☑

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Complementing the materiality assessment described further above, the Company reviewed in 2022 the list of its priority
sustainability risks as shown above to help prioritise its actions. This process complements, and is fully integrated into, theCompany’s ERM process. It is based on contributions and inputs consolidated from a wide range of stakeholders andresources. This includes desktop research, interviews with key internal stakeholders and verification with internal andexternal stakeholders. The human rights risks identified were complemented and cross-analysed with product life cycle
assessments - including sectoral inputs - and the Company’s top health and safety risks.

Procedures for regularly assessing the situation of relevant subsidiaries, contractors andsuppliers: The table below summarises effective procedures for regularly assessing the situation of relevant
subsidiaries, contractors and suppliers. Specific relevant complementary information can be found in the respective material
topic sections.
The Company
ICSA (SelfInternal
assessment) assessment / audit
Environment
Health and Safety☑
☑

Suppliers and Contractors

External audits Management(e.g. ISO)systemSelf assessment

Company (or via 3rd party)
assessment☑

☑ ISO 14001 (1)

☑

☑

☑

☑

(2)

☑

☑

☑

☑

☑

☑ ISO 45001

Human Rights☑

(1) 88% workforce currently covered, (2) 25% workforce currently covered

Prevention and mitigation actions: The table below summarises transversal mitigation / preventive actions.
The Company

Suppliers and Contractors

Training

Whistleblowing
system (see below)

Code of
Conduct

Policies /
directives

Contractual terms
and conditions

Whistleblowing
systemSupplier Code of
Conduct

Environment

☑

☑

☑

☑

☑

☑

☑

Health and Safety

☑

☑

☑

☑

☑

☑

☑

Human Rights

☑

☑

☑

☑

☑

☑

☑

Alert / grievance and whistleblowing mechanism: The Company is committed to maintaining a "speak up"
culture, by promoting an open and trusting dialogue with employees at all levels. All employees are encouraged to express
their views, defend their opinions, and point out unacceptable behaviour — especially behaviour that violates the Company’s
Code of Conduct. Employees can raise concerns with their line manager, their human resources business partner, a legal
and compliance representative, or through the Company’s "OpenLine" hotline (www.airbusopenline.com). OpenLine isanonymous where legally permissible. It covers all sustainability topics and is also available to external stakeholders
including, affiliates and suppliers. The Company endeavours to ensure that the procedures to assess, investigate andmanage allegations are well-aligned throughout the Company. For further information, see “– 6.1.14 Exemplify Business
Integrity”.

Monitoring system: The table below shows an overview of the monitoring system in place. More detailed descriptions,as well as performance measures and analysis, can be found in the respective material topic sections.
KPIs

Responsible
management body

CO2 Scope 1, 2, Water, Waste
Delivered aircraft CO2 efficiency metric

S&E Department /Environmental Roadmap

Lost time injury frequency rate

Health and Safety
Department

Human Rights

Nb of social assessments% of findings closed within 18 months

S&E Department /Human Rights Roadmap

Supply Chain% suppliers at risk
% action plan launched

Procurement / Sustainable
Supply Chain Roadmap

Environment
Operations
Use of Products
Health and Safety

Supervisorycommittees

Controls

ERM, internal audit
seegovernancechart ingovernancesectionabove

ERM, internal audit
ERM, site social assessments
and supply chain assessments
ERM, audits
Self questionnaires

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Lead the journey towards clean aerospace
6.1.2 Climate change
I. Introduction
In line with the Company’s purpose, “pioneering sustainable aerospace for a safe and united world”, and its aim to leadthe transition of the air transport sector towards its net-zero carbon emissions aspirational goal, the Company’s foremost
ambition as an aircraft manufacturer is to bring the first hydrogen-powered commercial aircraft to the market by the middle ofthe next decade, and to play a leading role in the decarbonisation of the aviation sector. In parallel, the Company is investinglarge resources into examining and reducing the impact of its products in operation together with all actors within theaviation sector. Consideration of greenhouse gas (“GHG”) emissions throughout the value chain, which are predominantly
carbon dioxide (CO2) emissions, is a key focus for the Company’s analysis of its contribution to climate change. The
non-CO2 effects of aircraft operations are also being studied in order to determine their potential contribution to the climate(see Transition plan - Product stewardship).
CLIMATE CHANGE

GRI

SASB

SDGs

302 Energy
305 Emissions- Energy Management
9-12-13- Fuel Economy & Emissions in Use-Phase 17

Highest governancebody(ies) involved

Board of Directors / ECSC
Executive Committee / Environment Executive Steering Committee

Related corporate policies

Environmental Policy, Code of Conduct

Management system
certifications / labels

EMS - Environmental Management System, ISO14001 - 88% of workforce covered
SBTi-validated emission targets

KPIs

TCFD
Vigilance plan

2015 baseline

2021

2022

2022 vs.
2021

2022 vs.
baseline

2030: -63% in line with 1.5°C pathway,
and neutralising residual emissions

1,126

809

762

-5.8%

-32%

2030: -20%

3,108

2,717

2,594

-4.5%

-16.5%

2035: -46%

88.8

66.3

64.4

-2.9%

-27%

“Maintain at least 75% of sourcing volume of suppliers
invited to CDP who have responded”

68%

78%

+10p.p

2021

2022

2022 vs. 2021

Scope 3 - Cat 11 - commercial aircraft - SAF as per IEA-SDS scenario (CO2e ktons)

400,611425,454

Scope 3 - Cat 11 - commercial aircraft - “no SAF” scenario (CO2e ktons)

CO2e(1) Scope 1 & 2 (ktons)
Energy from stationary
sources(2) (GWh)
CO2e Scope 3 intensity
Delivered aircraft efficiency
intensity (gCO2/km.pax)
Supply chain CDP
engagement

TargetOthersOther key metrics (More metrics available in the ESG Data Board)+6.2%

458,738

494,893+7.9%

Scope 3 - Cat 11 - other products (incl. military aircraft and helicopters, CO2e ktons)

9,343

10,703+14.5%

Scope 3 - Cat 1 - Purchased goods and services (CO2e ktons)

8,439

N/A

N/A

A-

A-

Stable53%

66%+13p.p

CDP Rating
Percentage of responding suppliers to the CDP scoring A or B
Remuneration

CO2 performance included in CEO, Executives and “Level IV” managers variable remuneration.
Targets (on TCO scope): -5% in 2022, 687ktons CO2e or -0.9% in 2023. 2022 performance: -8.5%.

KPI assumptions

Metrics: see “- 6.1.17 ESG data board”; targets: see “- IV. Transition plan”.
(1)
CO2 equivalent (“CO2e”); (2)energy consumption from stationary sources and electricity;

Additional resources

Environmental Policy Statement, Sustainability on Airbus.com, Environment on Airbus.com, CDP Climate
Change Questionnaire on Airbus.com and on CDP website⇲, ATAG Waypoint 2050⇲, ATAG Waypoint 2050
(cost of transition)⇲, IEAG - GHG Reporting Guidance⇲, IEA - Aviation report⇲ , IPCC AR6 report⇲, Clean
Sky initiative⇲, SESAR initiative⇲, CEDAR Chair "Chair for Eco-Design of Aircraft" together with
ISAE-SUPAERO⇲, ATM decarbonisation potential by Eurocontrol⇲

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Climate change is considered by the Company as a financially material topic and is one of the top Company risks (see risk
factors and risk management section hereafter). Impact materiality was also confirmed through the comprehensive Scope 1,
2 and 3 screening completed in 2022 in the framework of the Company submitting targets for validation of the
Science-Based Target Initiative ("SBTi"), using the recommended Greenhouse Gas Protocol methodology.
While Scope 1 & 2 represent less than 0.2% of total emissions each, Scope 3 category 11 - Use of sold products - has been
identified as highly material for the Company, representing above 90% of total emissions. The second most material was
Category 1 - Purchased goods and services, representing around 2.5% of total emissions (see figures in table below). For
those categories, more precise methodological inventories have been developed (see “- 6.1.17 ESG data board /Environmental performance”).

CO2 emissions from commercial aircraft in operation appear to be the most material category. According to both theIntergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA), air transport represented
over 2% of global man-made GHG emissions in 2021. While this makes the decarbonisation of aircraft operations theabsolute priority, addressing emissions from upstream industrial operations, including the Company’s own, is also seen as
an important objective. In this context, the Company’s roadmap to decarbonisation is intrinsically linked to the entire sector’s.
While the Company has a direct and critical role in developing and providing technical solutions, the concomitantdevelopment of adapted ecosystems will also be a key success factor, which the Company intends to facilitate and enable.
In addition, in order to better meet stakeholders’ expectations and develop its own climate strategy, the Company adheres to
the CDP (formerly Carbon Disclosure Project), SBTi and Task Force on Climate-Related Financial Disclosures ("TCFD")
initiatives. In 2022, the Company’s approach to climate change was rated A- by the CDP for the third consecutive year. In
addition, the Company has recently set its first near-term science-based targets to reduce emissions on all scopes, in linewith a 1.5°C temperature pathway for its Scope 1 & 2 emissions, which were submitted to SBTi in June 2022 and validated
in January 2023. The following sections gather information related to the four pillars of the TCFD framework, of which theCompany has been a supporter since December 2020.

II. Governance
Environmental policy
The Airbus Environmental Policy is the top level definition of the guiding principles, vision, mission and associated initiatives
for the environment. The policy applies company-wide, including to affiliates where the Company owns more than half of thevoting rights or the right to appoint the majority of the board directors (to the extent that the shareholders agreement and/or
the level of control in force in each relevant affiliate allows it). The policy also covers the Company’s employees andcontractors while at the Company’s sites or at work under the responsibility of the Company. It takes a holistic approach tomeasuring and acting upon the Company’s environmental performance by assessing the environmental impact of internal
operations, as well as providing capabilities to the Company’s customers to reduce the impact of the products in operation.
This also means introducing a lifecycle perspective and mitigating the risks and impacts at all stages of the life-cycle: fromthe procurement of raw materials, through the design and manufacturing of products, to their in-service life until theirretirement.
Organisation and responsibilities
Two main management structures are relevant for the governance of sustainability matters and climate change: the Board of
Directors and the Executive Committee.
As mentioned earlier, the Board of Directors is supported by the ECSC. In practical terms, the ECSC, as a committee of theBoard of Directors, oversees strategic decision-making and the execution of the approved sustainability strategy, including
areas such as innovation and environmental and climate action.

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In 2022, the ECSC reviewed and provided guidance on a wide variety of climate-related topics, including the SBTi targets,sustainable aviation fuels, and decarbonisation of the supply chain.
To support the Executive Committee in environmental matters, especially climate-related, an Environment Executive
Steering Committee (“EnC”) was established in 2019. The EnC is composed of members of the Executive Committee andsenior executives company-wide responsible for environmental topics. It meets once a month to review progress and takedecisions on all matters related to environmental strategy. The EnC reviews climate change related topics, including the
progress on meeting objectives to reduce GHG emissions, the decarbonisation strategy and climate-related risks.
Environmental operations are led by the Sustainability & Environment department (described earlier), whose role is to guidethe business on environmental matters and to set the policy and deploy, drive and improve the Environmental Management
System (“EMS”) throughout the Company.
The Company’s EMS is based on ISO 14001:2015. It was recertified in November 2022, having previously confirmed bycertification surveillance audits in 2020 and 2021. The Company’s environmental strategy is implemented operationally bydedicated multi-functional teams at corporate and/or divisional level. These cover topics such as industrial and site impact,
product operation, supply chain or chemical substances.
Disclosure of environmental indicators
The Company actively monitors its environmental data throughout the organisation in order to measure the environmental
impact of its operations, track its performance and communicate information on environmental matters to internal andexternal stakeholders. Since 2010, environmental data published by the Company has been verified by external auditors.
This data is included in the ESG data board at the end of this section.
Capturing emerging regulatory requirements, stakeholder’s expectations and trends
In order to be aware of fast-evolving sustainability regulations, requirements and expectations that could impact its business,a “Sustainability Regulatory Intelligence” team monitors regulatory developments with a view to understanding, evaluating,anticipating and preparing for legal and regulatory requirements that apply to the Company’s activities and products. This
Sustainability Regulatory Intelligence team covers sustainability-related topics, including: environment, human rights andsustainable finance.

III. Risk management
Environmental risks and opportunities are managed following the Company’s ERM system. A specific sustainability andenvironment ERM plan integrates additional requirements, defined within the ISO14001:2015 certified EMS, and provides aset of rules applicable company-wide, to ensure a consistent management of environmental risks and opportunities.
Relevant criteria for the evaluation of environmental risks and opportunities include: financial impact, impact onenvironmental performance, and impact on EMS certification, as well as legal, supply chain and reputational aspects.
Risks and opportunities are reported quarterly to the Executive Committee of the Company and of its Divisions, including
climate-related risks. Top risks are consolidated at Company level to be brought to the attention of the Board of Directors
and reviewed semi-annually.
Climate-related risks and opportunities
In accordance with TCFD recommendations, the Company is strengthening its ERM risk identification process forclimate-related risks and opportunities, incorporating climate scenario analysis. Climate-related risks (adaptation andmitigation) shall be deemed to be incorporated by reference and form part of the non-financial information. The Company
used three temperature climate scenarios: 1.5°C, 2°C and 3°C; and three time horizons: short-term (“ST”, around 2025),
medium-term (“MT”, around 2035) and long-term (“LT”, around 2050) in identifying climate-related risks and opportunities.
The assessment of risks and opportunities identified by the Company is subject to revision as the methodology and processfurther mature.
Climate risks and methodology (including description of used scenarios) are described in “– 4.6 Risk factors– Environment, Human rights, Health & Safety risks". They are complemented by the following opportunities identified:●

Energy diversification - Energy source: Exploring and identifying new business opportunities in the field of
renewable and low-carbon energy (incl. through partnerships and collaboration with stakeholders) in order toposition the Company in the energy value chain and contribute to the Paris Agreement temperature goals.
Airbus SE/ Report of the Board of Directors 2022

105

●

●

Demand for energy-efficient products - Market: Demand for more energy-efficient products (driven by increased
energy costs, carbon pricing and voluntary climate commitments) or products allowing the use of other energies
could lead to an accelerated airline fleet replacement and to new business lines.
Growing market for Earth observation, atmospheric and weather data monitoring services - Products andservices: Increased need for Earth observation, atmospheric and weather data services (including but not limited
to the following sectors: aviation, agriculture, finance and insurance) could increase market demand for certain
products and services of the Company, and lead to the creation of new business opportunities.

The outcome of the Company’s qualitative analysis is synthesised in the following table:
Company’s climate-related risks andopportunities mapping

Climate scenario / time horizon(s)where risk or opportunity likelihood is considered medium or high,based on Company's qualitative analysis

RISKS (see “- 4.6 Risk factors” for full description)

1.5°C

2°C

3°C

Transition - Technology

▶▶▶

▶▶▶

▶▶▶

Transition - Market

▶▶▶

▶▶▶

▶▶▶

Physical - Chronic

▶▶▶

▶▶▶

▶▶▶

Physical - Acute

▶▶▶

▶▶▶

▶▶▶

Energy source

▶▶▶

▶▶▶

▶▶▶

Market

▶▶▶

▶▶▶

▶▶▶

Products and services

▶▶▶

▶▶▶

▶▶▶

OPPORTUNITIES▶ ▶ ▶ : ST-▶ ▶ ▶ : MT-▶ ▶ ▶ : LT

Mitigation actions the Company has engaged, including to address these risks and opportunities are presented in thefollowing “IV. Transition plan” section.

IV. Transition plan
Based on identified risks and opportunities, the Company has established a transition plan covering its industrial operations,products and services, supply chain, employees and communities, including relevant targets, against which performance ismonitored and reported. Regarding GHG emissions, this plan was based on a scientific approach and is consistent with theaviation sector's decarbonisation long-term aspirational goal of reaching net-zero carbon emissions by 2050. Its success will
depend on coordinated collaboration with numerous players in the sector.
The Company strives to have the aviation sector engaged to work towards and contribute to a just transition to a low-carbon
economy, whereby air transport’s decarbonisation journey is fair and inclusive. According to the International Energy
Agency, based on the remaining global carbon budget and the share allocated to air transport, air transport can grow at a
certain level and meet the Paris Agreement objectives. This relies in part on technological developments to improve theefficiency of air transport, in which the Company has a critical role to play. This approach also echoes “net zero carbon
2050” ambitions from international sectoral bodies such as the Air Transport Action Group (ATAG), as well as the UN
specialised civil aviation body, the International Civil Aviation Organization. This is consistent with the Company’s mid-termtarget setting, covering all three scopes, and with its core product policy that focuses on developing and delivering aircraftwith lower carbon emissions while engaging with the energy ecosystem (see section 2. Product stewardship).
The cost of such a transformation of the sector is expected to be substantial. In particular, the carbon price (through taxation,
emissions trading and crediting schemes) and the extra cost for sustainable aviation fuels and/or higher investments arelikely to materially impact business models of operators. However, even if reportedly difficult to predict, according to a study
published in 2022 by ATAG named “What will it cost to get to net-zero carbon for global aviation?", these extra costs could
be offset to a large extent by more efficient operations, especially where markets are developing. This could mean limited
Airbus SE/ Report of the Board of Directors 2022106

consequences on air fares, with differences across regions. Ultimately, the overall affordability of air travel could remain
relatively similar, and so; access to air travel should be preserved for the greatest number of people, according to the report.
The required transformation of the sector also implies the emergence of new technologies and associated ecosystems, withexpected impacts on jobs and required skills. Preparing the workforce for such changes will be both a social duty and an
important success factor. Conversely, if uncontrolled, the development of these technologies and energies could have
undesirable side effects, such as inappropriate land use impacting local communities and human rights. The Company will
strive to influence the ecosystem to consider and avoid these impacts, and to engage accordingly with any relevant
stakeholders in constant dialogue.

1. Industrial operations
Commitments

CO2
emissions
Scope 1&2

2030

Target -63% (SBTi-validated) vs. 2015
neutralisation of residual emissionsaligned with 1.5°C pathway

Absolute figures

2022

Target (TCO scope): -5% vs. 2021

2023

Target: 687 ktonsCO2e (-0.9% vs. 2022)

2030

Target -20% vs. 2015
from stationary sources

Energyconsumption
Absolute figures

2022 Progress-32%▶ ▶ ▶ ▶ ▶ ▶ ▶ ▶ ▶ ▶ -63%
51%-to-target
2022: -8.5% reported(3.5p.p. overachievement)-16.5%▶ ▶ ▶ ▶ ▶ ▶ ▶ ▶ ▶ ▶ -20%
83%-to-target

The Company has defined targets and ambitions for its own operations.
CO2 emissions:●

reduce direct (scope 1) and indirect (scope 2) net GHG emissions by 63% by 2030 compared to 2015 across thewhole Company reporting scope. This target is in line with a “1.5°C” pathway and was validated by SBTi in January
2023. As an additional voluntary commitment, the Company has committed to compensating all residual emissions
for scopes 1 & 2 from 2023 and gradually switching to using only carbon removals from 2030 and onwards;●

beyond the mid-term plan, the Company’s ambition is to pursue reducing emissions aligned with a 1.5°C trajectory
towards 2050. In order to do so, it is evaluating the future application of the SBTi Net-Zero standard and removing
residual emissions as an additional voluntary commitment.

●interim targets are set in line with the Company’s 2030 roadmap. They refer to a material sub-scope of its
operations representing 89% of total reported emissions in 2022, on which the Company can have a more directcontrol and influence (see below). This target was set in absolute value at 687kt CO2e for 2023 (or -0.9% vs. 2022)
on a scope extended to another four sites.

For performance monitoring purposes, the Company refers to Scope 1 & 2 market-based proxy - "market-based(location-based net of REC)”, i.e. location based with purchased guarantees of origin deduced. The Company is working
towards improving data collection and market-based methodology implementation. Meanwhile, this metric is used by theCompany to measure its progress towards its 2030 target, in order to be able to take into account the contribution of its
electricity sourcing on its industrial decarbonisation target. This refining of methodology is expected to trigger restatementsin the coming years, including that of the 2015 baseline.
Energy:●reduce final energy consumption from stationary sources and electricity by 20% by 2030 compared to 2015 acrossthe whole Company reporting scope.

In order to deliver its ambitions, the Company has developed a comprehensive action plan for both stationary (ground-fixed
assets) and mobile sources (vehicles such as cars, trucks or aircraft). This takes into account both efficiency anddecarbonisation measures, complemented by an offset strategy for residual emissions.
This roadmap was further strengthened in 2022, and, together with proof points, can be synthesised as follows:
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107

Energyefficiency
measures

Stationary sources~70% of energy consumption(e.g. heating, cooling, manufacturing processes)

Mobile sources~30% of energy consumption(e.g. ground vehicles, “Beluga” airtransport operations, flight test)

Substituting energy-intensive assets by energy-efficient ones
and optimising energy consumptions. In order to meet the -20%
target by 2030, a portfolio of projects was identified and phased,
including low-energy lighting, improved insulation, voltage
management, energy-efficient heating and cooling or optimised
ventilation system, as well as enabling projects such as extending
metering network, and enhancing energy monitoring solutions.

Switching to lower emission
vehicles where possible andavoiding emissions through better
planning of flights and logistics.

》In 2022, 17,500 fixed phones were removed across European
sites. In France, it represented electricity savings of 920MWh.
》The installation of a compressed air management system inDonauwörth has saved approximately 150MWh.
》In Broughton, automatic standby in Paint Shops during weekends
and shutdowns has already led to energy saving of 340MWh.
》In the context of the energy crisis in Europe, the Company
undertook a number of actions to contribute to the collective effort
as a corporate citizen. This included reducing heating systems
temperature by 1°C in its European sites, reducing heating device
energy consumption by about 7%, and diverting from the use of gas
to other sources of energy where possible in German sites.
Transition
to low
carbonenergysources

Ambition to secure at least 90% renewable or low-carbon
electricity direct supply to all sites in Europe before 2030.
This will be achieved with the implementation from 2023 of powerpurchase agreement (PPA) contracts and a combination of local
projects (wind, solar), complemented by electricity generated from
nuclear power. The amount of electricity purchased through the PPA
contracts will increase progressively.
》The renewable power purchase agreement (PPA) project launchedin 2020 reached a major milestone in 2022 with the validation ofrenewable and low-carbon power purchase requirements as well as
finalising the selection of suppliers. The Company is making
progress on contracting for 2023 and 2024.
All remaining purchased electricity in Europe will be coveredby guarantees of origin (GoOs) from 2024. In 2030, this will
represent a maximum of 10% of consumed electricity.
》Since 2019, the share of electricity consumption from industrial
operations in Europe which is covered by GoOs has increased
annually by 10%, exceeding 40% in 2022.
In addition, the Company is investigating similar opportunities inother regions (e.g. USA, China).
More efficient heating systems energy sources.
》The installation of a combined heat and power plant (CHP) in
Donauwörth led to a further saving of 1,800t of CO2.

》Since 2022, new Beluga jigs andtools have enabled each logistic flightto transport 2 A350 wings instead of
one previously.
》Deployment of Airseas Seawing(see hereafter “other initiatives”) for
vessels: the experiment on the “Ville
de Bordeaux” transatlantic logistic
vessel started in December 2021
continued in 2022.

Using lower carbon fuels (e.g.
SAF). The share of SAF used in
the Company’s own operations
will progressively increase to atleast 30% by 2030. The Company
set an interim target of 10% in 2023
for its commercial aircraft activities
and its Helicopters Division. This willconcern flight tests, delivery flights
and logistic flights (Belugas). In
addition, the Company also started
using sustainable fuels for its
maritime logistics.
》Since 2019, SAF has been used in
the operation of the Company’s
Beluga transport aircraft for the
purpose of internal logistics.
》In 2022, flight test activities in both
Divisions started using SAF. In total,
an estimated 4,823tons CO2 were
saved during the year whencompared to conventional kerosene.

》An Enthalpy Recovery project in Illescas and energy consumption
by 1,089MWh resulting in about 380t CO2e saving.

Airbus SE/ Report of the Board of Directors 2022

108

Carbonoffsetstrategy

The Company has committed to remove 100% of its residual emissions by 2030, which will
represent around 400kt CO2e in 2030. It will start with compensating all remaining emissions from 2023,
with a gradual phase-in of carbon removal solutions to cover 100% of residual emissions by 2030. Bothnature-based and technology-based solutions are considered, in alignment with the Intergovernmental
Panel on Climate Change reports.
Since 2019, the Company has introduced a mechanism to compensate for its business travel emissions
based on the concepts of additionality, real (permanent) reduction, prevention of double counting,prevention of overestimation and no additional harm. As a minimum, the carbon offsets purchased by theCompany are certified by the Gold Standard or Verra or Verified Carbon Standard or Climate, Community
and Biodiversity Standards and the supplier needs to show proof of how each one of the mentioned criteria
was met. In addition, understanding that these carbon offsetting programs may have gaps in their
methodologies, additional proof is requested of how such gaps are managed by the provider. Moreover,societal aspects are considered, such as prevention of child labour, respect of human rights and relations
with the communities surrounding the projects.
The volume of offsets required in 2022 was around 45ktCO2e procured through offset producer South Polein the form of a cluster of compensation and removal projects: aforestation (VCS), landfill gas and wastegas (GS-VER), forest conservation (VCS-CCBS). This contract with the South Pole has been reviewed tocover the full volume of 2023 residual emissions, estimated to be over 700kt CO2e.
In addition, the Company plans to secure 2024-2030 volumes well in advance. Terms will meet underlying
principles of progressive transition towards 100% removals, as well as a relevant mix of nature-based andtechnology-based solutions.
》In 2022, to foster tech-based solutions development, the Company has partnered with 1PointFive, a US
company, and has pre-purchased 100,000 tons of carbon removals per year over four years – or 400,000
tons in total – as part of an initial offtake. A portion of these volumes will be allocated to the Company’s
scope 1 & 2 offset strategy.

As an enabler for consistent decision making, the Company uses an internal carbon price to support investment withpositive energy and CO2 reduction impacts on operations. In 2021, this price was updated from 30 €/tCO2 to 150 €/tCO2,
giving a clear signal to project leaders on the importance of CO2 footprint reduction and enabling an acceleration of project
portfolio implementation.

Tracking progress and performance
In 2022, scope 1 & 2 GHG emissions have decreased by around 5.8% (-8.5% on TCO scope), exceeding the target,
primarily due to four factors: the acceleration of energy saving investments and of SAF usage (that reached over 3% of theCompany’s total aircraft fuel consumption (see above)), the lower-than-planned industrial ramp-up, the deployment ofadditional energy saving measures in the context of the energy crisis, as well as clement weather conditions especially overthe last months of the year.
TCO
CO2e (ktons)

Target2021

2022

YoY Change

-5%

741

678

-8.5%

Verified by EY®, based on limited assurance.
The TCO scope is reviewed annually. It covered 89% of total
emissions in 2022. Data were updated to reflect change in TCO
scope accordingly. Geographical scope: In 2022, 48 sites.
Scope of metrics: Scope 1 & 2 and notably excluding refrigerantleakage, electricity on site from CHP, emissions due toprocesses, as well as excluding DFO for 12 sites and heating for1 site representing less than 4 ktons CO2e in total. Scope 2 islocation based with purchased guarantees of origin deduced.

Additional performance metrics are disclosed in “- 6.1.17 ESG data board / Environmental performance”.
Airbus SE/ Report of the Board of Directors 2022

109

2. Product stewardship
Commitments
2035
CO2e Scope 3 intensity
Delivered aircraft efficiency(gCO2/km.pax)

2050

Target -46% vs. 2015
SBTi-validated
Supportsector’s “net zero CO2
ambition”

2022 Progress / performance-27%▶ ▶ ▶ ▶ ▶ ▶ ▶ ▶ ▶ ▶ –46%
60%
achieved-to-target

In 2022, the Company defined a target for its Scope 3 category 11 (use of sold products) for commercial aircraft products,
covering over 90% of its total emissions●

CO2: reduce scope 3 (category 11 - use of sold product) for commercial aircraft by 46% in terms of CO2 perpassenger-kilometre. This target, alongside the Company’s scope 1 & 2 target, was validated by SBTi in January2023, showing the Company’s GHG reduction targets are aligned with the goals of the Paris Agreement adopted
at COP21 in December 2015. It was set based on the carbon budget allocated to aviation by the International
Energy Agency in its Sustainable Development Scenario (SDS).

●

This is a physical intensity target, in line with the SBTi recommendations, and highlighting the importance oftechnology and aircraft carbon efficiency for the decarbonisation of the sector. The metric is based on the
Company’s corresponding scope 3 Use of Sold Product for commercial aircraft. In alignment with SBTi
methodology, it now includes emissions from upstream fuel production and predicted average SAF usage over theaircraft lifetime as per IEA SDS (ETP 2020) scenario. See “- 6.1.17 ESG data board / Environmental performance”
for detailed methodology.

The Company is committed to contributing to meeting the Paris Agreement targets and to taking a leading role in the
decarbonisation of the aviation sector in cooperation with all stakeholders. Consequently, the Company is developing a
multi-faceted climate-impact programme for commercial aircraft. This includes a focus on new aircraft technology
development, "SAF, hydrogen, air traffic management (ATM) solutions, and carbon removal solutions.
Aviation industry targets
The efforts of the aviation sector to
reduce its environmental footprint
started decades ago, with significant
achievements to report. Since the1990s, the sector has improved
significantly the fuel and CO2
efficiency of subsequent generationsof aircraft, thereby reducing CO2
emissions per revenue passenger
kilometre by more than 50%(according to ATAG). In 2009, theaviation sector was the first to agree
at sectoral level on ambitious CO2
emission reduction goals throughATAG
bycommitting
toanaspirational goal of reducing net emissions from aviation by 50% by 2050 compared to 2005 levels. In September 2021,
ATAG updated its ambition and commitment with the 2021 edition of the “ATAG Waypoint 2050” report to reflect theindustry's increased ambition to achieve “net-zero carbon emissions” by 2050 and contribute to the Paris Agreement goals.
Along with the revised ambition, ATAG provided several scenarios with ranges of improvement for each mitigation option(technology and design improvements, operational and ATM enhancements, SAF (drop in) and hydrogen (non drop-in)
solutions, and market-based measures including “ICAO's Carbon Offsetting and Reduction Scheme). In the most ambitious
scenario, a reduction of up to 40% of CO2 emissions can be achieved through technological developments, as illustrated by
the graph.
In Europe, the EU Green Deal creates conditions and opportunities for the Company and the European aviation industry toaccelerate the transition. The Company supports the ambition to reach a net-zero carbon aviation ecosystem in Europe by
2050, and will contribute to the EU’s “2030 Climate Target Plan”. At the international level, in October 2022, ICAO member
Airbus SE/ Report of the Board of Directors 2022110

states adopted a long-term aspirational goal (LTAG) that sets the objective of net zero carbon emissions in 2050 for
international civil aviation operations. This paves the way for the transformation of the aviation sector on a level playing field
and will accelerate the development of mitigation measures such as fleet renewal, aircraft and engine technologies,
alternative energy sources such as SAF or green hydrogen, and the optimisation of the operational practices and air traffic
management enhancements. The Company fully supports this international achievement.
The Company’s roadmap to reducing emissions
In this context and as a core axis of its strategy, the Company aims to accelerate the development of lower emission
technologies in order to market lower carbon aircraft such as hydrogen-powered aircraft. Fostering the ecosystem readinessincluding associated infrastructure and the dynamic deployment of SAF will be another priority, in order to achieve theambition while minimising the recourse to offsetting, as presented below.
▶▶ Strategic pathway 1

Renew current fleets with best-in-class aircraft

Around 75% of the global commercial aircraft fleet is still made up of older generation
aircraft, while latest generation aircraft are up to 25% more efficient than the previous
generation. Renewing the fleet therefore offers immediate huge potential for aviation
decarbonisation.
The Company’s commercial aircraft portfolio includes the most efficient aircraft:- A350 and A330neo offer 25% reduction in fuel burn and significantly reduced noise
footprint versus the previous generation of aircraft;- the A320neo family brings a 20% reduction in fuel burn, and nearly half the noise footprintcompared to previous generation of aircraft;- A220 offers 25% reduction in CO2 emissions per seat versus previous generation of small
single aisle aircraft, 50% reduction in noise footprint and 50% fewer NOx emissions than
the standards.
The Company is continuously improving its products through new aerostructures designs
and technologies, advanced materials, upgraded systems and more fuel-efficient engines
aiming to achieve CO2, NOx and noise emissions reductions in operations.
▶▶ Strategic pathway 2》In 2022, 99% of thedelivered commercial
aircraft corresponded tolatest generation aircraft(2021: 95%).
》Continuous improvement
commitment is also
reflected by the Company’scontribution to Europe's
CleanSky2 programme: amilitary aircraft C295 fromthe Company has beenused as an in-flighttechnology demonstrator,
Flight Test Bed.

Developing and deploying SAF, with all aircraft types 100% SAF compatible before 2030.

In order to accelerate its action plan, the Company strengthened its governance on this matter by creating a dedicatedproject team, responsible for the end-to-end SAF roadmap strategy and deployment.
▶ Deliver technical capability
Although they currently represent a small share of aviation’s fueluse, SAF are key for the air transport sector decarbonisation
strategy. All the Company's commercial aircraft are alreadycertified to fly with a fuel blend of up to 50% SAF. SAF produced
by using most advanced pathways can provide CO2 emission
reductions of up to 80% throughout their life cycle. This meansthat already today, the emissions from aircraft currently offeredby the Company could be reduced by ~40% if their full blending
capability was used.
Looking ahead, the Company’s ambition is to have all its
aircraft platforms, including helicopters, capable of being
operated with 100% SAF before the end of the decade.
The 50% limit is set today to ensure the blended SAF fits within
the JetA specification, and thus can be used on aircraft with nomodification. Going beyond this limit implies either modifying theaircraft, and surrounding infrastructure, to adapt to what would
be a new fuel, “non-drop in”, or working on a purely synthetic》Since 2008, the Company has acted as an important
catalyst in the certification process, demonstrationflights, partnerships and policy advocacy ofsustainable jet fuel.
》Since 2011, over 460,000 commercial flights haveused SAF and more than 1 million flights with SAF
are expected by 2025 (source: IATA, flynetzero,2021).
》Besides ECLIF and VOLCAN projects, flight test
campaigns started with the A380, with the A320
powered by P&W, and with the H225 helicopter (withboth engines).

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111

fuel that would fit within the JetA specification, “drop in” solution.
The Company is involved in two main research projects:
VOLCAN (A319 with CFM engines) and ECLIF3 (A350 with
Rolls Royce engines), conducted in partnership with important
actors of the industry. Both projects aim at assessing the impactof 100% SAF (non-drop in) on engine and fuel systems whilemeasuring the positive impact on aircraft’s emissions and fuelefficiency. Both projects will pave the way for going beyond
current maximum blending levels for SAF (currently 50%). They
will allow the Company to collect information and enable further
research activities and technical work in order to reach the goalof gaining 100% SAF certification for commercial flights.

》Flight tests using blended SAF were also performedon the A400M and C295 military aircraft. The
Company, the Organisation for Joint Armament
Cooperation (OCCAR) and the A400M customer
nations are engaged in initial discussions to develop
the roadmap towards the certification and operationaluse of 100% SAF in military aircraft.
》In addition, the Company and other industry partners
have carried out in 2022 the world’s first 100% SAF
flight using an in-service military aircraft.

▶ “Prime the pump”
In addition, as an aircraft operator through its flight tests andinternal logistics, the Company strives to “prime the pump” bydemonstrating market demand (see industrial operations).
In the context of the developing regulatory frameworks fostering
SAF market growth, the Company supports policies that would
incentivise SAF production and usage at affordable costs. In
particular, the Company is supporting and sharing industry bestpractices, looking at production levels assessment, life cycle
analysis methodology and sustainability criteria and standards
harmonisation.

》While the aviation sector contemplates an objectiveof 10% SAF globally by 2030, today’s pipeline ofdemand hardly exceeds 20 Mtons, suggestingnecessity for further acceleration.
》The USA Sustainable Skies Act targets 3 billion
gallons annually by 2030.
》The EU’s current “ReFuelEU” legislative proposal
targets a 5% SAF mandate for 2030 growing to 63%
by 2050 (including >28% synthetic e-fuels).

▶ Foster SAF ecosystem readiness and partnerships
The Company believes a coordinated action of all actors could
foster a 10% SAF penetration at the global level by 2030.
Today, SAF production is very limited. The price and global
production capacity remain the main constraints for operators,
preventing large-scale incorporation of these types of fuels. A
rapid ramp-up is necessary to enable the aviation sector’s
ambitions and to decrease the emissions of the Company’s
product in use. Matching SAF production and demand isessential to achieve the establishment of the SAF market.
The Company supports decarbonisation scenarios which include
an ambitious rollout of SAF using all possible pathways (HEFA,
alcohol-to-jet, Fischer Tropsch, power-to-liquid, etc.).
Actions need to be global and associated with regulatory
frameworks and incentivisation schemes. It is necessary tocreate market emergence conditions:- give visibility and confidence to producers, be capable to attract
investors;- give access for end users (airlines) to enough volumes at a fair
price, and maintain a level playing field for aviation.
Positive momentum is seen in the EU and in the USA. A similarpace for creating a favourable ecosystem is needed worldwide.
Creating favourable conditions for the SAF market to develop
can be achieved if stakeholders gather together in collaborative
platforms such as Commercial Aviation Alternative Fuels
Initiative (CAAFI) in the US.

》The Company estimates that products delivered in
2022 will see their life-time emissions reduced byaround 14% thanks to the gradual introduction of SAF
during their operational life (compared to a “no SAF”
scenario). This considers a SAF penetration scenarioaligned with the IEA SDS (ETP2020), and with theCompany’s scope 3 disclosure and SBTI-validated
target.
》The Company is engaged in many initiatives andpartnerships promoting the development of SAF
production and use, participating for instance in theWorld Economic Forum, including its “First Movers
Coalition” and “Clean Skies for Tomorrow” coalition,and in the Coalition for the Energies of the Future.
This also includes partnerships with producers suchas the agreement signed in 2022 with Neste, aiming
to accelerate the aviation sector’s transition to SAF.
》As a member of ICCAIA (through ASD), theCompany has actively supported the activities of
ICAO defining the 2050 net zero carbon LTAG for civil
aviation and continuously contributes to theCommittee on Aviation Environmental Protection(CAEP) on SAF.
》The Company contributed to the 2019 study fromwhich the French SAF roadmap was developed.

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As of 2022, 38 countries have implemented SAF policies tosupport the industry’s ambition, according to IATA.

》In the UK, the Company is a member of the Jet ZeroCouncil under which a SAF delivery group has been
put in place.

▶ Regarding SAF production, the Company supports CORSIA's standard emphasising the necessity to respect land rights
and land use rights including indigenous and/or customary rights. The Company is committed to complying with local
regulations and CORSIA’s standard for its own usage.
▶▶ Strategic pathway 3

Investing in technologies to reduce product emissions▶ Disruptive engines and airframe to further reduce emissions
On the engine side, the Company is closely following
innovations coming from the engine manufacturers, andsupporting them to adapt their latest innovation to aircraft
needs.
The wings are often referred to as the second main lever toreduce aircraft emissions. Several technologies are being
studied such as:- The Company's transnational research & technology
programme, “wing of tomorrow”, has successfully delivered afirst full-size wing prototype or ‘demonstrator’ that will help
mature next-generation wing technologies.
- The completion of the first of three fully composite wing
demonstrators marks the integration of more than 100 different
component and manufacturing technologies that include an
all-new industrial assembly system, and which have helped
validate key automation targets.
- Wing of tomorrow is particularly efficient thanks to theincorporation of lighter composite components and of a folding
wing tip.

》In July 2022, the Company partnered with CFM to test
flight the “open fan” technology. The open fanarchitecture is a key component of the engine maker’s“revolutionary innovation for sustainable engines”(RISE) technology development programme - aims todemonstrate and mature a range of new technologies
for future engines that could enter service by themid-2030s.
The open fan engine will be tested on an A380 in thesecond half of this decade.
》The “eXtra performance wing project”, launched in
September 2021, improves wing aerodynamics andperformance that is intended to be compatible with any
future aircraft configuration and propulsion system toreduce CO₂ emissions.
In April 2022, The Company completed wind-tunnel
testing of its eXtra performance wing demonstrator.

▶ Hydrogen-powered commercial aircraft ambition by 2035
The Company believes hydrogen is one of the most promisingtechnologies for reducing aviation’s climate impact. If produced
from low carbon electricity through electrolysis, it allows asignificant reduction in overall emissions.
Aviation will be an end use application of hydrogen. The
Company sees two primary uses for hydrogen:- Hydrogen can be used to directly power the aircraft by being
combusted through modified gas-turbine engines or converted
into electric power via fuel cells. The combination of both would
create an efficient hybrid electric propulsion chain powered
entirely by hydrogen.
- Hydrogen can be used to create eFuels (power-to-liquid or
power-biomass-to-liquid synthetic fuels in combination withcarbon from biomass or enhanced carbon sink sources).
From hydrogen propulsion to hydrogen-based synthetic SAF,
from pod configuration to blended-wing aircraft, the Company
is evaluating, maturing and validating radical technologicalbreakthroughs.

》In 2020 the Company revealed three differenthydrogen-powered “ZEROe” concept aircraft. They
illustrate the research that the Company is investing inwith the objective to bring a hydrogen-poweredcommercial aircraft to market in 2035.
》Progress was made in key areas in 2022:- The launch of the hydrogen combustion engine
A380-based demonstrator, in partnership with CFM;
- The iron pod of a first fuel cell powered engine isready to be tested in the EAS test house, and thelaunch of its associated demonstrator, also based on amodified A380;- The launch of the Blue Condor demonstrator to study
and assess the impact of non-CO2 emissions inducedby hydrogen combustion;- The launch of “Zero-Emission Development Centres”
around Europe (France, Germany, Spain in 2021; UK
in 2022), and the first prototype of cryogenic tanks -andcoldbox- tested with nitrogen and then hydrogen.
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▶ Foster hydrogen ecosystem readiness
The Company goes beyond technology maturation by collaborating with the wider ecosystem, and focusing primarily on
the evolution of market needs and how they can be answered with low-carbon hydrogen. It has engaged in many
partnerships, as well as collaborations and alliances with airports, airlines, and energy providers. Hydrogen can only
become a substantial decarbonisation lever with the support of all stakeholders.
》In 2019, the Company signed a memorandum of understanding with airlines such as SAS Scandinavian Airlines andeasyJet to jointly research a hydrogen-powered aircraft ecosystem and its infrastructure requirements.
》It has joined several major hydrogen alliances, such as the Hydrogen Council, Hydrogen Europe, and European Clean
Hydrogen Alliance. It has launched in 2020 a joint-venture with ElringKlinger in order to benefit from the hugecross-industry experience of other industries, and accelerate its ambition.
》It also participates in The Fuel Cells and Hydrogen Joint Undertaking, European Clean Hydrogen Alliance, France
Hydrogène, French Conseil National de l’Hydrogène, and the German Wasserstoffrat.
》The Company promotes the "H2
Hub at airport" concept in which
partners will join forces to adapt the
infrastructure to the use of hydrogenby aircraft, and more. In thiscontext, it has signed partnerships
with Delta, Wizz Air, Linde, Air
Liquide, Changi Airport / Caas,
Korean Air, Incheon Airport,
Kawasaki Heavy Industries, Kansai
Airport, Plug Power, Fortescue
Future Industries, ANA, Air New
Zealand, Vinci, Engie, AREC, group
ADP, Bristol Airport, Hynamics,
Hydrogen South West, SAVE SNAM
and Milan Airport.
▶ Electric flight
The Company’s work in electric flight has laid thefoundations for the future concept of lower carbon
commercial aircraft. Since 2014, the Company has
been
exploringhow
recenttechnology
advancements – from battery capacity andautonomy to electric propulsion – can help drive thedevelopment of new kinds of aerial vehicles withthe potential for significantly reduced impact.
EcoPulse. The Company has partnered with Daher
andSafrantodevelopadistributed
hybrid-propulsion aircraft demonstrator with thesupport of France’s CORAC and DGAC and forwhich it is providing battery technology andoverseeing aerodynamic modelling.
Urban air mobility ambition. The idea for acompact “flying taxi” first came from the Company’s
desire to take city commuting into the air in asustainable way. The Company has learned a lot
from the test campaigns with two demonstrators,
CityAirbus and Vahana. Beyond the vehicle, theCompany is working with partners, cities; and city
inhabitants in order to create the ecosystem that isessential for this new operating environment todeliver a sustainable service to society.

》In 2022, the Company partnered with Renault Group to advanceresearch on electrification and mature technologies associated with
next-generation battery systems. Engineering teams will focus onenergy storage, which remains one of the main roadblocks for thedevelopment of long-range electric vehicles. This includes
technology bricks related to energy management optimisation andbattery weight improvement, and looking for the best pathways tomove from current cell chemistries (advanced lithium-ion) to allsolid-state designs which could double the energy density ofbatteries in the 2030 timeframe.
》The Company is also investing in the required facilities to test
these new technologies. Inaugurated in 2019, the more than
3,000m2 E-Aircraft System House (“EAS”) is the largest test house
dedicated exclusively to alternative propulsion systems and fuels in
Europe. This means the Company can now test the latest electricmotors and hybrid-electric engines directly on its own premises,and develop its own low-emission alternative propulsion units.
》In May 2018, the Company created the Urban Mobility entity totake its exploration into cutting-edge commercial urban air mobility
solutions and services to the next level.
》The CityAirbus NextGen revealed in September 2021 strikes abalance between hover and forward flight. This product vision isintended to target the first markets/use cases and support thecreation and maturation of the technology, business and industry.
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▶▶ Strategic pathway 4

Investing in smart air traffic management (ATM) solutions and optimised operations

Improving the efficiency of air transport operations and infrastructure
could reduce emissions by up to 10% (source: ATAG).
The Company therefore supports initiatives aimed at reducing ATM
inefficiencies such as the Single European Sky Air Traffic
Management Research programme (SESAR), while working on
disruptive practices like formation flying. The Company also focuses
on developing fuel saving procedures for airports and ground
operations to minimise the use of engine power and auxiliary power
units (APU) while the aircraft is on the ground.
The Company organises face-to-face forums and webinars every
year with airlines to exchange knowledge on how to improve groundand in-flight operational efficiency and using latest technologicalsolutions. Namely, a "fuel efficiency network" has been developedwith representatives of the ecosystem including airlines, ATM,
engine manufacturers, airports and suppliers.
In November 2019, the Company launched the fello’fly project whichaims to demonstrate the technical, operational and commercial
viability of two aircraft flying closer together for long-haul flights.
Through fello’fly, the follower aircraft will retrieve the energy lost by
the wake of a leader aircraft by flying in the smooth updraft of the air
it creates. This provides lift to the follower aircraft, allowing it todecrease engine thrust and therefore reduce fuel consumption in
the range of 5-10% per trip.
Through its subsidiary Navblue, the Company provides services
helping its customers to minimise fuel consumption with best
operational practices, innovative services and training.
Through its subsidiary Metron, the Company provides solutions to
airports, authorities and airlines to optimise air traffic managementtaking into account live congestion and weather condition data,
hence reducing engines’ running time and fuel burnt. In 2022, flights
in the airspace of nine countries could benefit from it.

▶▶ Strategic pathway 5》Coordinated by the Company in the Single
European Sky ATM Research program (SESAR),ALBATROSS launched in 2021, is an initiative ofmajor European aviation stakeholders todemonstrate how the technical and operationalinnovations the Company delivered in the past
years can be combined and used all together tofurther reduce the environmental footprint ofaviation on the short term. It includes technologies
such as continuous climb and descent operations,flight trajectory optimisation with real-timetransmission of four-dimensional trajectory dataand hybrid “taxibot” assistance on ground
operations.
》By end 2020, the Company’s fello’fly
demonstrator project had signed agreements with
two airline customers, Frenchbee and SAS
Scandinavian Airlines, as well as with three Air
Navigation Service Providers (ANSP) - France’s
DSNA (Direction des Services de la Navigation
Aérienne), the UK’s NATS (National Air Traffic
Services) and European Eurocontrol - todemonstrate its operational feasibility. In
November 2021, two A350 test aircraft conducted
the first-ever transatlantic fello'fly flight confirming
the potential for fuel savings of more than 5%
during long-haul flights.
》In 2022, Metron’s ATM optimisation solution
deployment was further extended to Qatar andexpanded in Singapore. It is estimated that some
2Mt CO2 were avoided in 2022 by the global fleet
thanks to this innovation.

Encouraging temporary CO2 emission compensation schemes

Finally, CO2 emission compensation will be instrumental to stabilising
aviation emissions in the medium term until disruptive solutions reachmarket maturity. For that reason, the Company supports ICAO’s CORSIA
scheme as the only global market-based measure for international civil
aviation.
The Company believes that direct air carbon capture and storage(DACCS) is a high-potential technology that could turn out to bemeaningful in carbon schemes applicable to aviation at some point. It
involves capturing CO2 emissions directly from the air using high powered
fans. Once removed from the air, the CO2 can be used to produce
power-to-liquid SAF that is drop-in compatible with today’s aircraft. As theaviation industry cannot capture CO2 emissions released into theatmosphere at source, captured atmospheric CO2 can also be safely andpermanently stored in reservoirs within rock formations. This latter carbon
removal solution would allow the sector to extract the equivalent amountof emissions from its operations directly from the air, thereby removing
residual emissions.

》In 2021, the Company and a number ofmajor airlines – Air Canada, Air France-KLM,
easyJet, International Airlines Group, LATAM
Airlines Group, Lufthansa Group and Virgin
Atlantic – have signed Letters of Intent (LoI)
to explore opportunities for a future supply ofcarbon removal credits from direct air carbon
capture technology.
》In 2022, the Company partnered with
1PointFive and pre-purchased 400,000 tonsof carbon removals (see Offset Strategy
above). It also invested in Carbon
Engineering Ltd., a Canadian-based climate
solutions company, operating the largest
Direct Air Carbon Capture (DACC) Research& Development facility in the world.

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Non-CO2 effect impacts
Aircraft engines produce emissions linked to the fuel combustion and indirect emissions formed in its wake. Thoseemissions, which have an impact on climate when flying in high altitudes, include carbon dioxide (CO2), nitrogen oxides(NOx), water vapour (H2O), nvPM (non-volatile particulate matter of black-carbon or soot), sulphur oxides (SOx) and
condensation trails. Depending upon prevailing weather conditions, altitude and geographical location, non-CO2 emissions
can change the chemical composition of the atmosphere and the cloudiness, which in turn affect the climate. CO2 emissions
contribute to increased atmospheric CO2 concentrations, which induce a low and positive radiative forcing, but withcumulative effects due to the long lifetime of this greenhouse gas in the atmosphere. Non-CO2 emissions do not have thesame cumulative effect as CO2. Non-CO2 forcers such as contrail-cirrus and NOx are short-lived components that havestronger, but time-limited effects. Uncertainties are still high on the exact impact of non-CO2 emissions of aviation. Lee et al.
2020, states that uncertainties around the contribution of non-CO2 emissions on aviation’s net effective radiative forcing(ERF) are ~8 times higher than those of CO2.
Non-CO2 emissions can have both positive and negative radiative impacts. In particular, contrail-cirrus can have large
cooling or warming effects depending on several factors such as their location and time of generation, spatial coverage,
lifetime, or optical properties (ice crystals size, shape, density), though the effect at night is exclusively warming.
The Company is actively working on a large portfolio of projects focused on increasing the understanding of non-CO2
emissions generation, their evolution and their climate effects, but also to evaluate and develop solutions covering several
promising mitigation options impacting three well-identified domains: through the use of new energies such as SAF orhydrogen, enhanced engine technology and flight operations (implementation of operational/ATM measures). These include:- On SAF, the ECLIF and VOLCAN projects included a DLR’s Falcon aircraft, flying within 100m behind the Company test
aircraft fuelled with 100% SAF, to capture and analyse in-flight data. The preliminary observations show a positive impactof SAF on aircraft emissions, and the tests will continue in 2023.
- On hydrogen, the Company launched Blue Condor in 2022, a demonstrator taking a modified glider up to 33,000 feet toanalyse hydrogen combustion’s impact on contrail properties. The result of this analysis will provide critical information
on aviation’s non-CO2 emissions, including contrails and NOx, in advance of the ZEROe demonstrator flight testing.
- On operational measures, the Company announced in 2022 its participation in the Contrail Impact Task Force, across-sector cooperation led by the RMI (Rocky Mountain Institute) to explore opportunities to address the warming
impact of certain contrails. It also submitted a project proposal in the frame of SESAR 3. If selected - expected early
2023, as expected, the Company’s project (due to start in 2023) will run for three years with the objectives of improving
weather forecasting capabilities, improving climate impact assessment, defining a climate-optimised concept ofoperations and trialling system solutions at aircraft and ATC level. The project will bring together experts and partners
from climate science, meteorological institutions, airlines, manufacturers and air traffic control. to focus on effective andoperationally viable solutions to aviation non-CO2 emissions.

Products and services supporting climate monitoring and adaptation
Climate change-related disasters are set to become more intense and frequent. This will require immediate action fromrescue teams for whom the Company’s products play an important role. For instance, the Company’s helicopters are usedby public authorities around the world in missions linked to disaster risk management, including medical evacuation, searchand rescue or firefighting operations. In 2022, around 20% of delivered helicopters were equipped for such missions.
Military aircraft platforms can play a crucial role in the protection of populations from natural disasters, such as for example
during the aftermath of hurricane “Irma” in 2017 when several European nations used their A400M and C295 aircraft totransport first aid and humanitarian equipment to several impacted Caribbean islands. In July 2022, a removable firefighting
demonstrator kit was successfully tested on the A400M airlifter during a flight test campaign in Spain. Due to its low-level
flight capability and manoeuvrability at low speeds, the A400M can accurately drop payloads of water at very low heights,
down to 150ft.
The Company’s space products also play an important role in the understanding of climate phenomenon and monitoring of
their evolution. Today, 20 of the Company’s satellites are involved in climate change monitoring and an additional 20 are indevelopment. As climate adaptation entails preparing for natural disasters, this critical geospatial data enables the Company
to deliver data that helps governments and humanitarian agencies predict and manage disasters. Earth-observation
satellites allow the monitoring of deforestation, rising sea levels and greenhouse gas emissions in the atmosphere. The
Company is involved in all major environment-monitoring satellite programmes in Europe and plays a key role in all 12 of theCopernicus missions, the EU’s Earth Observation Programme. For instance, the Sentinel-5 Precursor satellite is fitted withan array of measuring equipment used for air quality, ozone and ultra-violet radiation, and climate monitoring andforecasting. Sentinel-5P takes up to 40 million observations per day and provides a much finer view of emissions thanprevious satellites or detectors on the ground.
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In 2022, the Company has progressed on the development and testing of new technologies that will be featured on biomass,
the first ever satellite that will report how much CO2 is captured by the world’s forests. The spacecraft will deliver accurate
maps of tropical, temperate and boreal forest biomass and changes in the biomass stock that are not obtainable by groundmeasurement techniques. In arid areas of the planet, it will see through to the underlying bedrock, enabling mapping of therock structure and search for subterranean reservoirs of water.
Upcoming missions also include EarthCARE, monitoring the impact of clouds and tiny atmospheric particles (aerosols) on
atmospheric radiation; Merlin, studying greenhouse gases and global warming; and Microcarb, measuring CO2 levels.
The Company’s satellite-based services help support a more sustainable agriculture. They provide insights enabling
reduction in the use of nitrates, and play a significant role in helping agro-industrial companies like Ferrero or Nestlé monitor
adherence to their non-deforestation commitments. The Company’s Pléiades Neo constellation delivers precision insights to
help farmers cultivate their fields more sustainably in the context of a changing climate. Pléiades Neo’s Red Edge band
makes it possible to accurately predict and pinpoint subtle stress situations in crops long before the problem can be detectedwith conventional vegetation indices or even the human eye. This information will allow farmers to assess the root cause of
the problem and take remedial action before the ailment spreads or crops are lost, enabling more effective climate
adaptation.

Investing in the future
The Company is investing in and accelerating its efforts on five complementary strategic pathways to reduce its
environmental footprint, in support of the overall sector ambition, as highlighted above. Overall, a major portion of theCompany capital expenditures (CapEx), research & technology (R&T), and research & development (R&D) expenses islinked to its commercial aircraft activities and the realisation of these five decarbonisation pathways. In 2022, the total R&D
spend of the Company amounted to € 3.1 billion (2021: € 2.7 billion).

Progress and performance
In 2022, the Company delivered 661 commercial aircraft.
Of note, the emissions of five A330-200 aircraft destined to
A330 MRTT production are excluded from the commercial
aircraft perimeter and included in the military aircraft
perimeter as part of the “other products” category. Basedon an average life-time in service of around 22 years(average life-times specific to each aircraft type were usedin the calculation), and SAF uptake assumptions as per
IEA-SDS scenario 2020, the total CO2 emissions for theseproducts over their anticipated life-time is estimated ataround 425MtCO2e, which translates to an average
efficiency of 64.4gCO2e per passenger-kilometre. In 2021,
the Company delivered 611 aircraft with resulting
estimated life-time emissions of around 400MtCO2e andaverage efficiency of 66.3gCO2e per passenger-kilometre.
In 2022, in order to align with SBTi-validated target
methodology, the Company established a new efficiency metric that will be used for
performance measurement. Namely, the difference in the two efficiency metrics canbe explained by differences in the following two key assumptions: the integration ofemissions related to the upstream fuel production and the consideration of the likely
usage of SAF over the product lifetime, as per the IEA-SDS assumptions, as
illustrated on the chart for the year 2022. The Company estimates that products
delivered in 2022 will see their life-time emissions reduced by around 14% thanks to
the gradual introduction of SAF during their operational life. For all reported Scope 3
figures and performance metrics, see “- 6.1.17 ESG data board”.
Efficiency metric (SBTi-validated target) - Since 2015, aircraft efficiency measured through this metric has improved by
27%, largely supported by significant investments into new aircraft technology and designs, as well as by projected SAF
uptake impact to a lower extent. Given the variable time horizons of each of the five decarbonisation pathways presented
above, it is expected that the increase of SAF used by airlines in the coming decades will have a decisive impact forachieving this -46% target by 2035. The Company intends to develop means to monitor the actual availability of SAF and theresulting impact on aircraft emissions.
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3. Supply chain engagement
TargetCDP Engagement

Maintain at least 75%

Suppliers responding
to CDP questionnaireof sourcing volume(based on year-1 turnover)2022 Performance78%+3p.p vs. target

While the greatest contribution from the Company’s supply chain to decarbonisation will be the capacity of its suppliers toaccompany the development and delivery of technical solutions, getting its whole supply chain operations engaged into thetransition towards a low carbon economy also remains a priority.
Scope 3 Purchased goods and services
In 2021, the Company published a first evaluation of the GHG emissions arising from the goods and services it purchases(Scope 3 – Purchased goods and service) based on its 2020 spend that amounted to 11.3 MtCO2e. In the course of 2022,
the calculation methodology has been refined which resulted in a reduction of 12.5% of reported emissions to 9.9MtCO2e.
Following similar assumptions, emissions based on 2021 spent were estimated at about 8.4MtCO2e. 2022 estimates will becomputed in early 2023 as spent data consolidation is completed.
These evaluations were performed using a dedicated tool developed by the International Aerospace Environmental Group(IAEG) and are expected to be further refined in the coming years as mass-based information can be used. See
methodology details in “- 6.1.17 ESG data board / Environmental performance”. While this method includes a certain degreeof uncertainty - considered high by the IAEG on a certain number of emissions factors used - it provides a relevant view ofthe sources of GHG emissions in the Company’s supply chain and enables comparison of the Company’s various scopes
throughout its supply chain.
Notably, this evaluation helped prioritise the engagement with the highest contributing suppliers, through the CDP (seehereafter) or the Airbus Supplier Code of Conduct (see “- 6.1.15 Responsible supply chain”).
CDP (formerly Carbon Disclosure Project)
In addition, the Company considers a CDP score as a relevant indicator for assessing the maturity of its suppliers to address
climate change, and requests its main suppliers to respond to the CDP Supply Chain program on an annual basis. In 2022,
it continued engaging with suppliers representing 82% of the Company’s total sourcing volume, following which suppliers
representing 78% of the Company’s sourcing volume have completed the CDP questionnaire. In 2022, suppliers
representing 66% of the sourcing volume received an A or B score.
Sending feedback letters to all suppliers after the 2021 campaign has allowed the Company to raise the awareness of
suppliers and propose areas of improvement. From the 2022 campaign results, the Company is going to request multi-year
action plans from suppliers that got a C or D score in order to foster improvement in the management of their carbon
footprint. These action plans will be followed up by the procurement organisation.

4. Employee engagement
Contribution of Company culture and employee engagement to climate objectives
Success can only be collective and the engagement of each and every employee is necessary. Environmental targets andobjectives, including the ones related to climate, are internally promoted under the label high5+. Periodic communication
campaigns are led using different communication channels, such as posters and the intranet. In addition, climate-related
objectives are part of the Company Top Company Objectives (‘TCO’). In the process of being cascaded to functions andteams, TCO trigger discussions where teams reflect on how and to what extent they can contribute and set meaningful
objectives. Furthermore, a dedicated section in the Company’s intranet provides information about the Company’scommitment towards climate, and related action plans are available for employees to expand their awareness. On the
training platform, e-learnings in relation to climate, such as “climate crisis”, “climate science”, or “climate change economics”,
are freely available to employees while one environment-related e-learning has been included since 2022 in the Company
mandatory yearly training plan, applicable to all employees. From October 2021 to September 2022, some 73,457
employees were trained in environmental awareness.

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Since 2021, the Company has established a global sustainability ambassadors network now comprising 448 ambassadorsfrom across 18 functions and 18 countries. Ambassadors help to foster sustainability culture and awareness, engage theirlocal teams in various initiatives, and support the adoption and integration of sustainability objectives into the business,
including climate and communities. In addition, in 2022, through the Company’s “+impact” digital platform (launched acrossthe Company in November), employees had the chance to participate in several climate change-related challenges inspiredby international days such as World Water Day and UN Earth Day, recording over 1,700 individual actions (see “- 6.1.16
Community impact”).
Incentivised remuneration
In order to better embed this ambition into the Company’s performance management, CO2 performance targets have been
included in variable remuneration schemes since 2021 (See “- 6.1.1 The Company’s approach to sustainability /Governance”). Such short-term incentivisation enables to accelerate the transformation of the Company and cultural shift.
The Executive Committee agreed in 2021 to include a reduction target for 2022 (compared to 2021) of -5% for CO2 Scopes
1 & 2 (TCO scope, see above), part of the Top Company Objectives. The 2022 target was overachieved with an actual
performance of -8.5%. This target was set in absolute value at 687kt CO2e for 2023 (or -0.9% vs. 2022). In addition, whenrelevant, the transposition of TCOs into individual or team objectives may impact the variable remuneration of concerned
employees, such as engineers working on decarbonisation-related projects, or employees working on the Company’s
industrial decarbonisation roadmap.
Competence management and employability
The Company’s transition plan largely relies on technology and innovation. Anticipating, developing and securing requiredcompetencies will be decisive, both for the Company to be able to deliver on its commitment and for employees’ skills to beadapted to a changing world. Due to the significant impact of lower-carbon aviation and eco-design (product) on its
business, the Company estimates that at least 50% of engineering profiles will have to be upskilled by 2030. “Clean andSustainable Aerospace” is identified as one critical skill group in the Company’s competence strategy. Specifically, identified
skills requiring priority action are: hybrid propulsion, hydrogen, electrical high voltage, cryogenics - directly related todecarbonisation innovation - as well as supply chain environmental impact analysis or eco-design. Dedicated learning paths
are being developed and deployed under the leadership of academies in the Company functions. In addition, when needed,
targeted external recruitments will enable the Company to align its workforce skills with its business challenge.

5. Engaging the ecosystem
Cooperating with the scientific community and universities
Climate change is a critical challenge for humanity, and the Company believes innovation and technology can bring somepieces of the solution. Achieving this common goal will require all forces from the scientific community to be joined. Hencethe Company participates in a number of research programs worldwide; it is committed to sharing acquired knowledge that
could help accelerate the progress of science. For instance, the Company is collaborating with the DLR in Germany,
Manchester Metropolitan University in the UK, with the ONERA or the Montpellier Business School in France, the Denmark
Technical University in Denmark, the Massachusetts Institute of Technology (MIT) in the USA, the Tsinghua University in
China or the European Joint Research Centre. The Company also created the CEDAR “Chair for Eco-Design of Aircraft"
together with ISAE-SUPAERO (French aerospace engineering school) in 2013. This five-year chair aimed to define
disruptive concepts in air transport by introducing, from the start of the design, innovative technologies. In 2019, thepartnership was renewed and adopted the main learnings of previous years all while integrating a more comprehensive
environmental engineering approach. The CEDAR Chair is composed of international scholarships, interdisciplinary programof student projects derived from concrete industrial cases in the field of “Future Aircraft Design”, and environmental
engineering certificate with focus on the issues of sustainable development, offering an approach to design aircraft over theentire product life cycle, addresses eco-mobility and the economics of air transport. It also provides a research component
that focuses on technological developments that will improve the implementation of air transport solutions, making it possible
to reduce the global ecological footprint.
Engaging with policy makers
Leveraging on the Company’s unique understanding of aerospace industry specificities, the Company is engaged in aconstant dialogue with policy makers, directly or through trade associations. Such engagements are performed in
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119compliance with the Ethical business conduct principles described in section “- 6.1.14 Business integrity”, the Company’s
Code of Conduct and the Company’s Responsible Lobbying Charter.
In 2022, as a member of the industry association ICCAIA through the ASD, the Company actively participated in theInternational Civil Aviation Organisation’s (ICAO) work to define guidance, standards and recommended practices aimed atminimising emissions from aircraft and engines, as well as defining policies with regards to local air quality, climate change,
and noise. Specifically, in 2022 the Company has been an active member supporting the adoption of a climate "Long Term
Ambitious Goal" to the ICAO 41st assembly in October. At European level, the Company has engaged with the EU
Commission on climate change policies discussions such as the "ReFuel Aviation" initiative as part of the "Fit for 55"
regulatory package. At national level, the Company has engaged with France, Spain, UK and Germany in order to exchangearound federal policies on climate change. In particular in France, the Company has cooperated with the CORAC (Conseil
pour la Recherche Aeronautique Civile) on research for technology and fuels. As well, in 2022 the Company has directlydiscussed with the EU Commission supporting the development of a carbon removal framework with high environmental
integrity in Europe. The Company’s positions on climate-related topics are consistent with the principles and axis of thetransformation described in its transition plan, where it considers that emerging regulatory frameworks could be a decisive
enabler.
Other initiatives
The Company is also engaged in a number of initiatives addressing its “less material” carbon footprints where relevant.
When impactful and connected to its know-how, the Company engages in various projects with local communities orpartners, and develops projects beyond its immediate core business that could generate meaningful CO2 savings.
Scope 3 commuting - In 2022, in partnership with Toulouse Métropole, Tisséo (the local transport authority) andSopra-Steria, a smartphone application called Ecomode was developed to incentivise the shift to collective commuting (e.g.
public transport and car sharing) or low-carbon individual mobility modes (e.g. bicycles). This has been deployed amongst
employees in Toulouse and is of potential benefit to the citizens of all 37 municipalities of the Toulouse Métropole. Such an
initiative benefits both the Company and the whole local community. At site level, cycling to work is encouraged by improved
infrastructures, cycling paths made safer in collaboration with local authorities, and periodic “cycle to work” events
organised. Car parks are being equipped with charging devices to encourage the use of electric cars, and Company car
policy has evolved in order to incentivise the selection of low-carbon vehicles by collaborators.
Airseas - Through its Airseas joint-venture, the Company is co-developing kite solutions for sea vessels as complementarycarbon-free propulsion, with a potential to ultimately equip a significant part of the global maritime fleet and generate up to
20% emission savings.
Climate adaptation, supporting local communities - Through its Community Impact Policy - including corporate activities
and its non-profit arm the Airbus Foundation - the Company is committed to support vulnerable communities throughdisaster response at a time when climate-related catastrophes are getting more intense and frequent. The Company works
in collaboration with local knowledgeable associations, as well as with partners that have a global reach. Support can takethe form of fund-raising, the coordination of humanitarian flights using Company products or logistic aircraft, and providing
satellite imagery for partners to properly assess a disaster’s scope and adapt their response plans. For instance, in 2022 theAirbus Foundation organised humanitarian missions, including providing free-of-cost chartering of air transport, in response
to Cyclone Batsirai in Madagascar, Cyclone Rai in the Philippines and also following the flooding in Pakistan. A mission was
also organised to deliver medical supplies to populations in Somalia impacted by severe famine. Over 43 satellite image
requests were made on the dedicated portal platform, with partners conducting monitoring including flooding and weather
impacts. For more detailed information see “- 6.1.16 Community impact”.

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6.1.3 Pollution
I. Introduction
Linked to the industrial nature of its operations, the Company’s activities may cause adverse impacts on the naturalenvironment. The Company strives to reduce this impact in compliance with applicable standards, laws and regulations. As
covered in this section, pollution includes air pollution (except GHG, see “- 6.1.2 Climate change”), soil pollution, waterpollution (surface and groundwater) and noise pollution caused by the Company’s activities and value chain. Pollution linked
to the emission of volatile organic compounds (VOCs) is a primary focus of the Company, as it arises from aircraft painting
and cleaning activities. Light pollution has been deemed to be non-material to the Company’s value chain. Pollution may
impact the Company primarily through the potential consequences of business disruption arising from constraints on
activities in the Company’s value chain in case of local pollution peaks, for instance. Eventually, unmanaged pollution risks
could disrupt the Company’s ability to operate, e.g. deliver its products to customers or imply depolluting costs.
Pollution is regulated around the world. Overall, the Company’s compliance with applicable standards, laws and regulations
is part of the operating licences granted by local authorities. In this regard, the Company is reportedly subject to multiple
regulatory provisions, including those of the EU Industrial Emissions Directive (IED). The IED notably applies to the
management of the Company's industrial activities in France, Germany and Spain. This Directive requests operators ofcertain installations to establish the state of soil and surface and groundwater contamination at the start of operations, apply
for a permit that includes conditions to prevent soil pollution through application of the best available techniques, and takenecessary action upon definitive cessation to return the site to its initial status. Beyond this directive, the law on soil
management is covered under several national texts which may differ from one country to another, as well as in the permits
issued for the Company’s industrial activities. Specific regulations cover the topic of chemical substances, with the main
regulations covering the Company’s activities and products being Registration, Evaluation, Authorization and restriction ofchemicals (REACH); Restriction of Hazardous Substances (RoHS); Persistent Organic Pollutants (POP); and Biocidal
Products.
Pollution

GRI

SASB

SDGs

305 - Emissions

Others9-12-13-17

Highest governancebody(ies) involved

Board of Directors / ECSC
Executive Committee / Environment Executive Steering Committee

Related corporate policies

Environmental Policy, Code of Conduct

Management system
Relevant certifications

EMS - Environmental Management System
ISO14001 - 88% of workforce covered

KPIs
Air emissions:2030 Target

2015
Baseline

2021

2022

2022 vs.
2021

2022 vs.
Baseline

VOC (tons)

0% increase

1481

1,042

1,120

+7.5%

-24%

Other key metrics

2021

2022 2022 vs. 2021

NOx (tons)
SOx (tons)

226
14

207
16

KPI assumptions

2022 VOC emissions data is estimated. 2022 actuals will be consolidated in April 2023.

Additional resources

Environmental Policy Statement, Sustainability on Airbus.com

-8.5%
+14%

II. Governance
The Airbus Environmental Policy and overall governance, as described in “- 6.1.2 Climate change” applies to the pollution
topic.

III. Risk management
Environmental risk and opportunities are managed following the Company’s ERM system, see section “- 6.1.2 Climatechange”. Substance-related risks are included in the Company’s top risks, as reported in “- 4.6 Risk factors”.
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121

In addition, the Company’s ISO14001 certified EMS notably applies the standard recommendations for pollution control
audits, training, risk assessment and identification, implementation of risk prevention procedures (emergency plans,simulation exercises). For example, sites shall conduct an analysis of environmental aspects and impacts at least every
three years, as well as each time a material change in operations occurs, also in connection with the Company’s ERM
process. While the EMS sets requirements, actual deployment, concrete means and measures are managed at site level
and adapted to the nature of a site’s industrial activities and to applicable regulations. For instance, in Toulouse and linked toflight test activities, concerned employees systematically follow dedicated training sessions, including on instructions for fuelhandling or on procedures to follow in case of an incident. Also, each year, more than five spill-related emergency situations(e.g. a kerozen leak or a fire-fighting water spill) are conducted to test defined emergency plans. At least one emergency
situation is performed in coordination with local authorities.

IV. Implementation / activities
Air emissions
Air emissions - primarily referring to VOC emissions related to surface treatment - are mostly impacted by the number ofdeliveries. Substance substitution may also lead to the use of new chemicals with more VOC emissions which need to bemonitored. Overall, in 2022, emitted VOCs increased 7.5% year-on-year, reflecting the increase in aircraft production ratecompared to 2021.
Chemical substances
Many chemicals used in the global aerospace industry to achieve high levels of product quality and meet stringent technicalperformance, airworthiness and reliability requirements are subject to strict regulations. These regulations impact key
processes and products, such as surface treatments, paints and fire protection.
The Company remains committed to replacing such substances in products and processes. To help achieve this, it has put
in place a portfolio of activities and projects, working with suppliers to identify, develop, qualify and deploy new technologies
and solutions that avoid the use of substances classified as posing a risk to human health or the environment, while stillsatisfying airworthiness, certification and performance requirements.
The Company also engages with suppliers to promote the adoption of a similar approach through regular communication
and, more widely, by working together with the aerospace industry to promote worldwide harmonisation of regulations andways of working, taking into account the sector’s safety and lifecycle specificities.
Using information obtained from its own design and suppliers, the Company tracks, records, assesses and declares
regulated chemicals and materials. Since 2011, the Company has analysed the impact of over 1,100 substances, andqualified and deployed substitutes for over 100 substances in 300 products.
The Company invests substantial time and resources in research and development for technologies that use alternatives toregulated substances. When it can be demonstrated that these technologies meet the strict safety and reliability criteria
required for aviation, the Company seeks to implement them in its aircraft design and manufacturing. For example, theCompany is, in cooperation with its suppliers, developing, qualifying and progressively deploying on all its new aircraft,
chromate-free corrosion protection and paint systems for aluminium structures. Another example is the halon replacement
project that researches alternatives to halon, a highly regulated ozone depleting substances family, used in the fire
extinguishing systems in engines and cargo areas. Several fire extinguishing technical solutions are now being tested on
aircraft in flight conditions, with an objective to roll them out into production from 2027.
Noise
Noise around the Company’s sites can also be an important topic for neighbouring communities. The Company is actively
engaged with local authorities and the affected populations to minimise its impact, by adapting operating times and actively
seeking to reduce the noise at the source. In Toulouse, the Company has launched the Median initiative, regrouping actors
in charge of flight activities around the airport to find the most effective solution to reduce noise levels.

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6.1.4 Materials and circularity
I. Introduction
The Company recognises the challenges associated with depleting natural sources. This section covers its approach
towards optimising the use of materials end-to-end - including product life cycle, eco-design, circularity, and end-of-life
considerations - with a focus on waste when it comes to its own industrial operations. The Company identified threematerials for which this approach is especially meaningful as they are essential to aircraft manufacturing: aluminium,
titanium, and carbon fibre-reinforced plastics (“CFRP”).
While aerospace represents a small fraction of the global volumes for most materials - e.g. the Company’s aluminium
consumption is estimated to be about 0.1% of the global market - it can figure among the main users for some highly
specialised materials such as titanium or CFRP. The use of these materials, and the impacts associated with their production
or end-of-life, are justified by their contribution to the efficiency of the end product, as they enable lighter structures and more
efficient design. As around 97% of a typical aircraft’s life cycle impact comes from its operational use phase, using lightermaterials (which are sometimes more impactful in their production processes) is particularly effective in regards to achieving
significant reductions in energy consumption and emissions overall. Product weight optimisation is largely linked to productperformance in terms of range and fuel consumption, and therefore has a benefit for customers’ expectations and theCompany’s order book. Optimising the use of such high-value materials is directly linked to the Company’s competitiveness,while securing their supply, as they become scarcer, is necessary to ensure business continuity.
Nevertheless, these materials can pose unique challenges in terms of supply, application and recycling. Addressing this
topic requires an engagement and coordination with the end-to-end value chain, from the extraction stages to the eventual
disposal or recycling. Of note, the human rights aspects that may be linked to the sourcing of materials, including conflictminerals, as well as the potential environmental impact linked to their extraction and processing are covered in sections “6.1.10 Human rights” and “- 6.1.15 Responsible supply chain”. A number of related regulations apply to the Company
globally, regionally and locally, such as the Basel Convention on the Control of Transboundary Movements of Hazardous
Wastes and their Disposal, or the EU Waste Framework Directive.
Finally, all considerations for optimising material use shall under no circumstance be detrimental to product safety and shallmeet all technical requirements from stringent certification standards.
MATERIALS AND
CIRCULARITY

GRI

SASB

SDGs

Others301 - Materials

Hazardous Waste Management

9-12-13-17

Highest governancebody(ies) involved

Board of Directors / ECSC
Executive Committee / Environment Executive Steering Committee

Related corporate policies

Environmental Policy, Code of Conduct

Management system
Relevant certifications

EMS - Environmental Management System
ISO14001 - 88% of workforce covered

KPIs

2030
Target2015
Baseline

2021

2022

2022 vs.
2021

2022 vs.
Baseline

Waste produced
excluding exceptional waste(tons)-20%

107,986

71,15273,751+3.7%-31.7%

with no landfill or incineration without energy recovery

Other key metrics (More metrics and assumptions, see “- 6.1.17 ESG data board”)

2021

2022 2022 vs. 2021

% Material recovery rate
% Energy recovery rate

55%
20%

60%
16%

Additional resources

+5p.p
-4p.p

Environmental Policy Statement, Sustainability on Airbus.com, Tarmac Aerosave

II. Governance
The Airbus Environmental Policy and overall governance, as described in “- 6.1.2 Climate change” apply to this topic. At theoperational level, a multi-functional team leads this activity. Additionally, this was complemented at the end of 2021 for theCompany’s commercial aircraft activities by a specific cross program forum that reviews, prioritises, and budgets waste orinventory-related initiatives.
Airbus SE/ Report of the Board of Directors 2022

123

III. Risk management
Environmental risk and opportunities are managed through the Company’s ERM system. See “- 6.1.2 Climate change” III.

IV. Implementation / activities
The Company’s aircraft products make efficient use of these materials by being designed to operate for several decadeswith high utilisation rates, being highly serviceable and repairable, and ultimately allowing for around 90% of theirconstituents by mass to be recovered, including recycling. The Company promotes the development of a circular economy
model, and it is proactive in seeking ways to recover, reuse and recycle materials beyond their initial life. Overall, in order tominimise the impact of its activities, the Company's strategy relies on the approach: avoid; reduce, reuse-recycle-repair,
supported by a number of enablers such as measuring, Life Cycle Analysis (“LCA”) and eco-design, or digitalisation.
Metallic waste accounts for more than 30% of the Company’s site-generated waste. Considering the risk of resource
depletion versus growing demand, the Company has kicked off in 2022 a dedicated transformation project related to thecircularity of critical raw materials, especially non-ferrous metals, with a focus on the most material perimeter, its commercial
aircraft activity.
Avoid - material use optimisation
Weight reduction through material use optimisation has always been a priority in aerospace, as this is directly linked toaircraft performance. Lately, the development of new technologies such as additive layer manufacturing (ALM or “3D
printing”), including for metallic components, enabled the redesign of parts, resulting in significant improvements by limiting
material consumption to what structure and resistance require. For example, 3D printing technologies such as direct energy
deposition (DED) can reduce the titanium raw material consumption by up to 70%. More optimised design andmanufacturing processes for metallic and composite components can improve the buy-to-fly ratios, as well as reduce weight,
material consumption, energy consumption and production costs. For instance, forming technology has led to an aluminium
material reduction of 80% for some parts compared to machining from a plate.
ReduceIndustrial waste
The Company also focuses on the waste generated by its operations throughout the manufacturing process and has set an
objective of reducing overall waste amounts by 20% by 2030 (from a 2015 baseline), with 0% landfilling and 0% incineration
without energy recovery.
A dedicated multi-functional team with skills from across the organisation such as engineering, information management,
procurement, industrial operations and facility management is actively working on a waste roadmap. Over the past years,
the Company has focused on metering and on data robustness and accuracy for measuring waste, with a focus made on
standardising the practices towards waste collectors and in line with regulatory requirements for greater traceability. The
objective is to enhance data monitoring, reporting, and forecasting capabilities. This includes a harmonisation of definitions,processes and assumptions. Priority has been given to commercial aircraft activities due to the industrial ramp-up.
In 2022, non-exceptional waste increased by 3.7%, largely explained by the commercial aircraft production ramp up context
and people returning to the workplace after the COVID-19 period, impacting general waste. The proportion landfilled orincinerated without energy recovery amounted to an estimate of 23%.
Hazardous waste
In the Company’s European operations, the main sources of hazardous waste are contaminated packaging and chemical
waste, especially waste from surface treatment activities, oil, fuel and various chemicals. While chemical waste reduction
remains a priority, this is a topic also driven by chemical regulations, the evolution of which may impact the roadmap’s
ambition for reducing waste as well as its timing (see Chemical Substances section in “- 6.1.3 Pollution”).
Increase the lifespan of components
The Company's components are designed to last over the average aircraft service lifetime, which can exceed 20 years.
Some components, called life-limited parts (“LLPs”), have a shorter lifetime, but still maximised considering physicalresistance, airworthiness and safety requirements.

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Repairability - reuse - second life
With regards to LLPs, easy replacement and availability of parts over the whole program lifetime are a priority. The
Company’s products are designed to be repaired when damaged by a number of maintenance, repair and operations(MROs) companies worldwide and spare parts providers. The Company's after-sale activities include the sale of spare parts
and the provision of maintenance, repair and overhaul services. LLPs can be overhauled to serve other operators, routes or
missions. In particular, passenger-to-freighter conversions are frequently considered to extend the lifetime of aircraft.
Recycling
Waste generated by the Company’s industrial processes often includes high-value materials, so optimising their circularity
responds to both environmental and economic objectives. The Company sends over half of its waste to be recycled. It iscurrently working on specific initiatives to further increase this rate, such as specific loop creation for titanium in order toreintegrate chips or end-of-life parts into raw material manufacturing processes.
In addition, the Company sources material volumes of recycled materials that are used for the manufacturing of aircraft. As
an order of magnitude, in 2022, 20% to 50% of aluminium products delivered to the Company (highest volume of material in
an aircraft) came from recycled raw materials.
Finally, more than 90% of an aircraft’s weight can be recovered at end-of-life (including material and energy recovery)
through a selective dismantling process. For example, TARMAC Aerosave joint venture, provides such reverse
manufacturing services, including dismantling, sorting, packaging for reuse or sending to relevant waste collectors while
ensuring parts traceability, in various locations in France and Spain. A memorandum of understanding between the
Company and the city of Chengdu was signed in 2022 for the launch of an aircraft life cycle management service in China.
Overall, TARMAC has recycled over 300 aircraft since 2007.
Life cycle thinking and conscious design
The Company invests in lifecycle assessments (“LCA”) for environmental impact accounting associated with a specificproduct, in accordance with the requirements specified in the ISO14040 standard. Detailed LCA studies have been finalised
for the A220-100, A220-300, A320neo and A350-900, covering over 95% of the Company’s deliveries of commercial aircraft
products in 2022. The Company is currently working together with the European Union Aviation Safety Agency (EASA) in
the frame of the Product Environmental Footprint initiative on the framework, to enable the publication of verified andstandardised data in the future.
In addition, the Company is deploying frameworks enabling environmentally-conscious design choices to reduce thefootprint of projects and optimise aspects such as product end-of-life management and critical raw materials usage. For
instance, in 2022 environmental assessments have complemented research & technology decision-making processes
related to commercial aircraft activities. Besides, as an example and part of its Eco-design initiative, the Defence and Space
Division used LCA for the development of the Sentinel satellites that are built for the European Space Agency. The
Company’s Defence and Space Division is engaged in a strategic transformation process which will focus on increasing thecircularity of its products, and expanding its product environmental impact assessment capabilities to include topics such as
hybrid propulsion. These assessments would be performed in addition to the regular LCA assessments for satellites.
Digitalisation, traceability and criticality mapping
The Company leverages digitalisation as an enabler to optimise and reduce its environmental footprint. For example, some
applications seek to improve design and material utilisation, or to optimise usage of critical resources. At the same time,
traceability of parts is essential to facilitate recycling. The Company reports on marking parts to facilitate the ability to reuse,recycle, and repair, while complying with legal provisions applicable to the sector. In addition, the Company has launched a
dedicated traceability project to increase data availability and transparency from the aircraft ‘Bill of Materials’ and leveraging
on digital capabilities in collaboration with its supply chain.
As recommended by the EU Critical Raw Material (“CRM”) framework, the Company has created and is maintaining a
dedicated Company framework - CRM. It is an internal methodology to assess that criticality of raw materials has beendeveloped on the axis of supply risk, environmental and ethical impacts. Based on this, a regularly updated watchlist of themost critical raw materials for the Company has been defined to influence design choices. The mapping of CRM in
Company’s products is currently ongoing, based on available bill of materials, in the frame of an internal project. Additionally,
the methodology is currently being reviewed and improved by an external party, prior to being delivered in 2023.
Competence management
Circularity is a part of the Company’s sustainability and environment competency strategy. Accordingly, related training
modules have been identified and are in the process of being integrated in the Company’s training catalogue.
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6.1.5 Water
I. Introduction
The Company’s water usage is mostly linked to non-industrial uses, including sanitary, heating, ventilation and air
conditioning, canteens and fire extinguishing. Around 15% of the water purchased / withdrawn is used for industrial uses
such as surface treatment, machining, non-destructive testing and painting. This section covers both withdrawal anddischarge.
Water consideration is included in the Company’s LCA approach. Procuring the required water does not currently represent
a material cost for the Company as overall withdrawn volumes are relatively limited, especially for its industrial operations.
However, securing water availability to operate the industrial processes requiring water is critical for the Company and its
supply chain to ensure business continuity.
The Company analyses current and projected local water stress levels to understand where the Company’s activities havethe greatest impact on water resources and prioritise actions in these areas (e.g. south of Spain, northern China). This
analysis is based on the World Resources Institute’s Aqueduct Water Risk Atlas tool. Of note, the Company has also
identified water as a relevant topic in its supply-chain roadmap and is currently assessing water-related impacts and risks inthe supply chain. Due diligence aspects with regards to the potential environmental impact on water resources in the
Company supply chain are described in section “- 6.1.15 Responsible supply chain”.
Water discharge quality is managed by each site directly to ensure compliance with applicable local regulatory requirements.
WATER

GRI

SASB

SDGs

303 - Water and Effluents

9-12-13-17

Highest governancebody(ies) involved

Board of Directors / ECSC
Executive Committee / Environment Executive Steering Committee

Related corporate policies

Environmental Policy, Code of Conduct

Management system
Relevant certifications

EMS - Environmental Management System
ISO14001 - 88% of workforce covered

KPIs
Water:
Water purchased (m3)
Water withdrawal (m3)OthersTarget2030

Baseline
2015

2021

2022

2022 vs.
2021

2022 vs.
Baseline-50%
0% increase

3,323,228
3,766,153

2,631,363
3,345,261

2,889,557
3,672,217

+9.8%
+9.8%

-13%
-2.5%

Other key metrics (More metrics available in “- 6.1.17 ESG data board”)
Percentage of water withdrawal from all areas with high water stress(1)

Metrics assumptions(1)

Additional resources

Environmental Policy Statement, Sustainability on Airbus.com

2021

2022 2022 vs. 2021

34%

30%

-4p.p

areas identified with high or extremely high water stress. Water stress level as defined per the Aqueduct
Water Risk Atlas in medium scenario for 2030.

II. Governance
The Airbus Environmental Policy and overall governance, as described in “- 6.1.2 Climate change” are applicable to water.

III. Risk management
Environmental risk and opportunities, including the ones related to water, are managed following the Company’s ERM
system, as described in the section “- 6.1.2 Climate change”. In addition, water has been identified as relevant to climatechange physical risks: work is on-going to update the above-mentioned risks in line with the Task Force on Climate-related
Disclosure.
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126IV. Implementation / activities
In order to better monitor its approach with regards to water management, the Company has set the following 2030 targets(vs. 2015 baseline):●●-50% reduction in purchased water;
0% increase in water withdrawal.

The Company’s water usage is mostly linked to sanitation and general uses (around 85%), while the rest is used in
production-related processes. The underlying approach is to reduce the use of potable water for uses where it is notnecessary, while ensuring that the overall withdrawal does not increase. While all concerned sites are working towards thesetargets to ensure advanced water management practices are implemented, a keen focus is put on areas with current or
future high water stress levels. For example, local water stress levels are used as a criterion for prioritising the funding of
projects (OpEx and CapEx) and for selecting sites for the launch of pilot projects (e.g. proof of concept launched in Illescas(Spain) on digitised and automated water consumption real-time monitoring).
The strategy is based on the following eight pillars:
Key pillars

measure/metre

monitoravoid waste

Description and rationale
Measuring as a prerequisite to identify
water flows and manage consumption.

Installation of smart water metres with automated and digital
data transfer, high frequency and increased granularity (e.g.
commercial aircraft sites and Airbus Defence and Space Divisionsites in Europe).

Track consumption, identify biggest
consumers to focus priorities; detect
deviations.

Smart metering on site/building/asset level, connection to digitalplatforms, creation of KPIs and regular reports, alert systems.

Identify and fix leakages, reconsider
processes.

Leakage detection campaigns at Blagnac (France) and Mirabel(Canada) sites.

Increase efficiency; equipment retrofit.

Implementation of latest technical solutions for cooling at Illescas
site (Spain), air conditioning, boilers and sanitary equipment
retrofit at Puerto Real site (Spain), replacement of water chiller
with air-cooled systems in Portsmouth (UK), reduction ofirrigation at Miami (US) and Tianjin (China) sites.

Create (closed) loops; use the same
volume several times.

Reuse for non-drinking purposes (e.g. toilets, gardening),
industrial process water loops for surface treatment and air
conditioning.

Use rainwater, surface water,
groundwater.

River/lake water treatment and reuse at Hamburg andFriedrichshafen sites (Germany), rainwater harvesting at
Toulouse site (France), groundwater use at Donauwörth site(Germany).

Ensure high water efficiency standards
from the design phase.

Certified building standards, e.g. LEED (Silver certification,
Mobile site, US).

Inform and engage employees.

Employee awareness campaigns (e.g. World Water Day
communication on internal portal).

reducereuse

replacenew building
designcommunication

Examples of projects

In 2022, water withdrawal volumes increased by about 10% compared to 2021, mainly as a result of people returning to theworkplace after the COVID-19 period. When compared to 2015 baseline, water withdrawal reduced by 2.5% whilepurchased water dropped by 13%. In 2022, leaks were identified and fixed in Blagnac (France) and Mirabel (Canada), withan estimated impact of less than 2% on total water withdrawal.

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127

6.1.6 Biodiversity
I. Introduction
The Company recognises the considerable pressure planet Earth is facing as a result of loss of biodiversity. The latest 2019
report of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (“IPBES”) demonstrates
that the health of ecosystems is deteriorating more rapidly than ever and the 2021 IPBES-IPCC co-sponsored workshop
shows the clear interdependencies between climate action and biodiversity protection. In this context, the Company intends
to improve its understanding of the impacts its activities and biodiversity may have on each other alongside theinterdependencies of this subject with the Company’s on-going climate actions.
Moreover, the Company aims to contribute to the updated and new goals and objectives for biodiversity. These include theones for 2030 and 2050 agreed at the 15th Conference of the Parties of the UN Convention on Biological Diversity inDecember 2022, in Montreal, according to which all signatory countries should update their National Biodiversity Strategies
and Action Plans as well as National Biodiversity Finance Strategies. Key goals are also ones set by the EU in the EU
Green Deal and the EU Biodiversity Strategy of 2020 that place the EU at the forefront of this transformation.

II. Governance
The Airbus Environmental Policy and overall governance, as described in “- 6.1.2 Climate change” applies to the biodiversity
topic.

III. Risk management
Environmental risk and opportunities are managed following the Company’s ERM system, as described in the section “6.1.2 Climate change”.

IV. Implementation / activities
In order to progress its understanding of the impact of its activities on biodiversity, the Company has identified the IPBES
report as a relevant framework to follow. In 2022, the Company launched a project to compile an inventory of potential
impacts across the five drivers of biodiversity loss: changing use of sea and lands, direct exploitation of organisms, climatechange, pollution and invasive non-native species. Meanwhile, the Company presumes that the most material biodiversity
loss impact is linked to the impact of its commercial aircraft activities on climate change and, as such, efforts are prioritisedalongside the existing climate-related initiatives. See “- 6.1.2 Climate change”. In addition, a number of mitigation actions
have been started in relation to the other drivers.
Pollution: see “- 6.1.3 Pollution”
Changing use of land
Overall, the ground footprint of the aviation industry, as a global means of transportation, is limited to local sites; mostly
airports and related activities. As for the Company, its operations are located at a number of industrial sites. When building a
new site or extending an existing one, the Company engages with local partners on conservation and remediation projects
to preserve flora and fauna that were impacted by the Company’s industrial activities. This is done in line with applicablelegal requirements. In France, for instance, during and after construction works, the Company strives to apply the Avoid,
Reduce, Compensate mitigation hierarchy, as well as establish a budget for compensation measures that goes beyond theduration of the project (for maintenance for example). This requires identifying areas rich in biodiversity (in particular
protected species), identifying the potential impacts on biodiversity, and carrying out, if required, the necessary biodiversity
inventories and the applicable deadlines in the timeline of each project.
Restoring biodiversity
The Company’s space products, and more especially Earth-observation satellites, play an instrumental role in theunderstanding of biodiversity evolution. See “- 6.1.2 Climate change” / Transition plan / Products and services supporting
climate monitoring and adaptation.
In addition, the Company through its corporate community work and its Airbus Foundation has supported a number of
biodiversity projects that aim to help preserve wildlife and natural ecosystems at a community level, such as contributing to
the International Union for Conservation of Nature (IUCN) forest restoration project. See “- 6.1.16 Community impact”.
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Build our business on the foundation of safety and quality
6.1.7 Aviation and product safety
I. Introduction
The Company believes that everyone in the aerospace industry has a role to play to further enhance the safety of the airtransport system. Flying today is safer than ever before, and collective efforts continue to ensure that it will be even safer byanticipating and responding to risks, threats and challenges. While the foundations of the air transport system are built on
regulatory compliance, the safety culture at the Company goes beyond compliance with certification and continued
airworthiness requirements to also focus on safety enhancement activities in products and services. This also extends to the
products and services of the Company’s Defence and Space Division that offer communication, collaboration andintelligence knowledge solutions to assist government authorities, emergency service providers and healthcare providers.
Aviation / Product Safety

GRI

SASB

SDGs

416 - Customer Health and Safety

Product Safety

12

OthersHighest governance body(ies) involved

Product Safety Board (PSB), involving several Executive Committee members
Board of Directors

Related corporate policies

Airbus Product Safety Company Policy (A67)

Management system
Relevant certifications

SMS
Products
Operations

Corporate Safety Management System
EASA regulation (Parts 21/145/147/M/ORA), EU 996/2010, EU 376/2014 (forCommercial Aircraft products), ECSS-Q ST-40-C (for Space Products) and
Def-Stan 00-56 (for Defence Products)
EN9100, EN9001, EN9110, AQAP 2110, AQAP 2210 and AQAP 2310

KPIs

Targethorizon

2021

2022

% SMS officers nominated% SMS officers trained

100%
100%

permanent
permanent

100%
100%

100%
100%

Other key metrics
Fatal accident rate Industry wide (1)

2021

2022

0.03 (Gen4)

0.05 (Gen4)

Metrics assumptions(1)

Additional resources

Code of Conduct, Product Safety on Airbus.com, Safety in Operations on Airbus.com, Safety
investigation on Airbus.com, Health Onboard, Accident Statistics website⇲

10 year moving average fatal accident rate (per million flights) per aircraft generation

II. Governance
A dedicated safety organisation within the Company acts as an independent voice of safety. The Chief Product Safety
Officer for the commercial aircraft activities of the Company reports directly to the CEO and is the Chairman of the Product
Safety Board (PSB). Several Executive Committee members and senior executives are part of the PSB. This ensures
proactive safety decision-making is based on multidisciplinary assessments at the highest decision level of the Company.
The PSB makes decisions regarding technical aspects, safety governance and strategy. Regular reviews with the Board of
Directors are also performed.
The Company’s Safety Management System
Consistent with ICAO Annex 19, the Company’s Corporate Safety Management System ("SMS") is based on the four ICAO
pillars: safety policy and objectives, safety risk management, safety assurance, and safety promotion. The Company’s
Corporate SMS principles also integrate the end-to-end approach to safety with the Company’s suppliers and operators.
This is facilitated by an appointed corporate SMS Officer and SMS Officers per function with support from a network of
nominated SMS representatives throughout the Company.

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The Company’s safety strategy
To support the Company vision for safety - “we constantly strive to enhance safety together in our quest to reach zeroaccident” - the Company’s product safety strategy is to:implement programs to continuously enhance the safety culture to ensure each employee has a personal andcollective engagement consistent with the Company’s safety values;
provide means so that any employee can report safety concerns;
ensure product safety is a priority in decision making, andshare lessons learned and best practices with internal and external stakeholders, and take action as appropriate
also based on identified top safety threats or opportunities.
Regulatory compliance
Product certifications are provided by the competent aviation authorities including the main civil aviation authorities andspecific military authorities. Within each Division, and according to their respective functions, the Company works to ensurecompliance through design and certification of products under EASA Part 21 Design Organisation Approvals (DOA);
ECSS-Q ST-40-C (for space products) and Def-Stan 00-56 (for defence products); manufacturing under Production
Organisation Approvals (POA); monitoring of in-service safety through approved EASA Part-M Continuing Airworthiness
Management Organisations (CAMO); aircraft maintenance and retrofit operations conducted in line with civil and military
EASA Part 145 regulations; and training provided to flight crews, cabin crews and maintenance crews through EASAPart 147 Approved Training Organisations (ATO).
The certified organisations within the Company where specific approvals are granted by the aviation authorities, are audited
and monitored by these authorities to ensure compliance with regulatory requirements. Additional audits are conducted bythird parties as part of the quality certifications appropriate to each Division, including EN9100, EN9001, EN9110, AQAP
2110, AQAP 2210 and AQAP 2310.
Commitment to just and fair culture
This commitment ensures that the appropriate reporting channels are available and known to all employees to report
product safety and quality-related matters in an atmosphere of trust and empowerment. It is documented and endorsed withthe signature of the CEO, Executive Committee members and top management.

III. Risk management
Applying proactive risk management principles has contributed to significant improvements to the safety of flight in recent
decades. This risk management approach drives the Company’s corporate safety process, which has been in place for morethan 15 years. It supports the principles of the Company’s safety enhancement culture, going beyond compliance withcertification and airworthiness duties.

IV. Implementation / activities
Consistent with its end-to-end approach and as part of its safety strategy, the Company has several collaborative initiatives
that contribute to reinforcing resilience capabilities in the air transport system and enhancing the safety level of its productswith all key actors.
For example, the Company is working with its supply chain to extend its safety enhancement principles with its suppliers.
This includes specific SMS forums and initiatives with its suppliers, which reinforce the collaborative approach for optimising
responses to in-service feedback and reports. To ensure the safety and quality of parts used in aircraft and spacecraft
manufacturing guarantees that the final product will meet safety and quality standards, the Company cascades related
requirements to all its direct suppliers through contractual terms and the Supplier Code of Conduct. These go beyond ISO
EN9100 quality standards, with the requirement for suppliers to continuously train their employees on quality assurance andensure they are appropriately skilled. The Company leads an annual audit campaign to verify all quality requirements aremet, including performance and compliance. Priorities are defined based on risk ranking criteria that consider parts criticality,
operational maturity and production capacity.

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Sharing safety information is a key contributor to increasing the level of safety. There have been 26 flight safety conferenceswith the Company’s customers since the first was held in 1994. Another means of sharing information is through “Safety
first”, the Company’s safety magazine contributing to the enhancement of safety for aircraft operations by increasing
knowledge and communication on safety-related topics. It reaches over 1,500 aviation professionals daily via the website
safetyfirst.airbus.com and the Safety-first app. D10X (short for Air Transport Safety, Destination 10X Together) is anothercollaborative initiative with airlines. The aim of D10X is to propose and share pragmatic solutions together with operators ofCompany’s aircraft for the key safety issues identified within this network.
In addition to these external safety promotion initiatives, the Company invests in internal safety promotion with the objectiveof continuously reinforcing the safety culture of all employees. This is supported by different means including communication
campaigns, training, safety awareness sessions, and development of a safety promotion centre. SMS officers are nominatedand trained in all key business functions to ensure implementation, and operation of the SMS within the Company, including
safety promotion. Since February 2021, all SMS officers have been nominated and trained. The above-mentioned
commitment to a just and fair reporting culture is another example of an initiative that promotes the Company’s safety
culture. These elements are integrated in the Company’s SMS action plan.
The Company also continues to innovate to benefit from technological evolutions to further enhance both operations andsafety. All these initiatives lead to continuous improvement of the safety record. This is illustrated in statistics (below)
showing that the latest fourth-generation jets are the safest. All Company’s fly-by-wire family aircraft (including A320,
A330/A340, A380, A350, A220 fleets) are the latest fourth-generation aircraft.

10 year moving average fatal accident rate (per million flights) per aircraft generation

Fig. 10 year moving average fatal accident rate (per million flights) per aircraft generation.
Source of data: official accident reports, ICAO, Cirium, and Company databases. Flight cycle data provided by Cirium.

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6.1.8 Cyber security
I. Introduction
Cyber security risks have the potential to impact all business operations, employees, plus products and services if incorrectly
managed - either in confidentiality, availability or integrity. As such, the Company undertakes a continual process of cybersecurity risk identification and remediation, supplemented with significant cyber security capabilities for the anticipation,
prevention, detection and response to cyber threats and events. Cyber security risk management is a core element ofmodern organisations, thus the Company has developed state-of-the-art cyber capabilities for the defence, detection andresponse to emerging cyber threats. The cyber security paradigm adopts a compliance, regulatory and risk-based approachembedded across four asset bodies: IM, industrial, products and services, and people and workplace domains.
Developing cyber security as a function of the business, with the relevant capabilities and stakeholders, ensures an
evolutionary approach for continued protection against emerging threats and to support the business in securely enabling its
digital transformation.
Cyber Security
Highest governance body(ies) involved

GRI

SASB

SDGs

Data Security

9, 12

OthersCorporate Security Council; Digital Security Team (Cyber Security Validation Body)

Related corporate policies and directives Airbus Company Security Policy
Security Requirements for Company Information & Data Classification and Protection
Security Requirements for Information Systems Management
Security Requirements for Affiliates
Security Requirements for Industrial Automation and Control Systems
Requirements for Product Security
Requirements on Information Security for SuppliersSpecific Requirements on Information Security for IT Service Providers
Management system

Manage Airbus Company Security - aligned to ISO27001 standard
Monitor, Identify & Report Company Asset vulnerabilities
Assess & Treat Company Asset Security Risk

Key metrics
Number of data breaches reported to data authorities
Percentage involving confidential information
Cyber security awareness training e-learning participation (started 1 Jan 2020, reporting period 1 Oct-30 Sep)
Corporate and IM Cyber Security headcount

2021

2022

1
100%
67,475290

0
N/A
107,808437

II. Governance
The Company has undertaken a cyber security transformation since 2019 with the establishment of a federated model ofdigital security encompassing accountable leaders in respective organisational structures such as IT, engineering andoperations. A dedicated team for security governance was established, reporting to the Company Chief Security Officer(CSO), responsible for the definition and audit of cyber security directives and methods aligned to major industry standards
such as ISO27001 or IEC62443. The Company Chief Information Security Officer reports to the CSO with a direct reporting
line to the CEO. Such an approach ensures localised accountability and reactivity to cyber risks with centralised
governance, reporting, technical standards, and processes. Cyber security governance encompasses both Divisions andglobal operations plus affiliates.
Corporate Security Council
The Company has established a Corporate Security Council, chaired by the Chief Security Officer, for the coordination of
security governance and to ensure consolidated security risk reporting from each of the four asset clusters: IT, industrial,
product and services, and people and workplace domains.
Security governance directives
Security directives are published and audited to ensure the Company business follows the same standards for dataprotection and systems security. Key cyber security directives include the ones listed in the table above (Related Corporate
Policies and Directives).

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III. Risk management
Confidentiality, integrity and availability are known to define cyber security objectives when thinking about systems risks.
Corporate Security is accountable for security risk management and is in charge of defining cyber security risks taxonomy
and managing the lifecycle in ERM, including strategy, organisation, roadmap and initiatives at company-wide level.
In terms of cyber security, risk management is the aggregation of continual risk reporting, cyber security validation processes
embedded within security by design principles for projects, applications and infrastructures – in addition to theimplementation of digital security controls aligned to the Company’s enterprise security architecture standards.
Risk mitigation measures follow the principle of people, process, and technology controls to reduce the likelihood and/or
impact of cyber incidents. The Company incorporates mandatory cyber security training and awareness for all employeeswith additional engagements for employees in higher risk categories or where additional regulatory stipulations apply.
Security processes are fixed through security governance directives, business management processes (e.g. MC.AS.01
Vulnerability Management), and operating models. Technical security controls are implemented and measured inaccordance with ISO27001 and other industry standard information security management standards.
The Company implements a number of key technical security controls in the reduction of cyber incident likelihood including
the rollout of endpoint protection and data loss prevention tools, the implementation of multi-factor authentication, and theadoption of enterprise security architecture approaches. To reduce impact from cyber events, it operates in-house security
operations centres covering both commercial and national activities; plus a Computer Emergency Response (CERT) teamanalysing cyber security threat intelligence and rapidly investigating and containing cyber security incidents.
Cyber security risk management is under regular internal and external audit, confirming processes and implementation toboth the Company’s and industry standards. Technical audits are also conducted regularly on applications, systems andinfrastructures in the form of cyber security penetration testing.
Technical red-team (offensive) cyber exercises are conducted minimally once per year for the evaluation of detection andresponse planning. These are in addition to annual cyber security crisis simulations for evaluation of business continuity andreactivity.

IV. Implementation / activities
Building upon the enhancements of 2021, a number of key initiative were undertaken in 2022 to improve the cyber security
position, reduce associated risks and decrease the likelihood of successful cyber attacks, including:
Maintaining full coverage of core divisional company-issued laptops deployed with Endpoint Detection & Response(EDR) tools;
Further enhancing data encryption mechanisms, especially for cloud based security;
Maintaining compliance with existing and evolving cyber security regulations, and anticipating future national,
international, and sector-specific cyber security laws;
Conducting an in-house full red-team cyber exercise for continual process improvement and controls maturity. In
addition to a crisis management anticipation exercise around a ransomware scenario;
Certified Airbus cyber security diploma launched in France, in order to reinforce and future-proof existing cybersecurity competency, in addition to building an appropriate pipeline for future skills and needs. This diploma wasvalidated by the French administration in charge of delivering professional certifications.
Such activities have continued to reduce the overall cyber security risk, specifically around the increasing threat
from ransomware.

V. Outlook
There are no signs globally that the threats of cyber attack will decrease; therefore, the Company maintains an advanced
cyber security posture and anticipates future threats. Specific focus is placed on:
Ensuring continued compliance to international, national, and industry specific cyber security regulations;Company resilience; ensuring prevention and recovery from cyber skirmishes, and destructive ransomware
attacks;
Extended enterprise and supply chain cyber security collaborations.

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6.1.9 Health and safety
I. Introduction
The Company continues to pursue its zero-harm aspiration. The safety of its employees and others is its top priority. The
Company aims to improve the health and well-being of its employees and everyone else who works within the Company
perimeter. Health and safety primarily addresses risk identification, and its elimination or prevention, to promote safer andhealthier conditions in the workplace.
Aligned with its ERM process, the Company has identified the following priority topics to manage: mental health andwellbeing, hazardous substances and materials, working environment, and on-site contractors health and safety
management. Associated mitigation plans are defined jointly by the health and safety and operational organisations.
The Company is applying the principles of the ISO 45001 for its management systems. The Company risk mitigation plans
follow the recognised health and safety hierarchy of control, which is hazards elimination, substitution, engineering control,
administrative controls and, as a final measure, personal protective equipment.
The Company shall comply with a wide range of local and international health and safety regulations. It measures its
performance using company-wide indicators, such as the lost time injuries frequency rate, as summarised in the table below:
Health and safety

GRI

SASB

403 Occupational Health and Safety
Highest governance body(ies)involved

Board of Directors / Ethics, Compliance and Sustainability Committee
Occupational Health and Safety Governance Board (New)

Related corporate policies

Occupational Health and Safety Policy A41, Airbus Code of Conduct

Management system
Relevant certifications

Formal Health and Safety Management Systems
ISO45001 certified sites cover ~25% of employees

Key metrics (More in “- 6.1.17 ESG data board”)

2021 Published 2021 Adjusted

SDGs

Others8, 12Vigilance Plan

2022 New perimeter

Lost-Time Injury Frequency Rate1 / 2 / 3
Lost-Time Injury Frequency Rate - commercial aircraft business 2 / 3
Lost Time Injury Severity Rate - FISH perimeter 3
Near-miss - commercial aircraft business1

3.21
4.31
19,305

Total health and safety training hours delivered
Number of employees who received health and safety training 4
Number of employees having attended "EH&S Certificate" modules 1 & 2 4

128,795
28,144
1,309

286,815
90,4902,214~one third
25%~one third
25%

Core entities with ISO45001 or similar certification% of the Company workforce covered

2.28
3.26
-

1.60
2.25
0.046
28,925

Remuneration

A proportion of variable pay for executives and “Level IV” leaders is tied to the achievement of the Company Lost
Time Injury Frequency rate target and Lost Time Injury Frequency rate performance also features in calculation of
success share payment made to employees.

KPI assumptions

1. The ‘2021 Published’ company frequency rate includes Airbus commercial aircraft business, Airbus Helicoptersand Airbus Defence & Space before the creation of Airbus Atlantic and Airbus Aerostructures as separate entities.
2. The 2021 Airbus commercial aircraft ‘Adjusted’ figure excludes sites transferred to the newly created Airbus
Atlantic and Airbus Aerostructures entities (formerly Stelia and Premium Aerotec and part of Airbus commercial
aircraft sites).
3.The FISH KPI perimeter was adjusted in 2022, see section IV. Implementation/activities below for more detail.
4. Reporting period for training-related metrics is from 1 October to 30 September

Additional resources

People Safety on Airbus.com; Code of Conduct - incl. Health and Safety commitment

N.B. In 2022, the company rolling FR1 (excluding Airbus Atlantic and Airbus Aerostructures) decreased from 2.28 to 1.60
however if this perimeter included Aerostructures and Airbus Atlantic, the FR1 decreased from 3.29 to 2.23.

II. GovernanceIn 2022 the Company strengthened its governance of health and safety by creating a Company Occupational Health and
Safety (OHS) Governance Board. The first meeting in July 2022 was attended by executive representatives of the Company,
its Divisions and Regions, and was chaired by the Company’s Chief Human Resources and Workplace Officer. The missionof the Company OHS Governance Board is to stimulate continuous improvement by reinforcing the compliance andperformance oversight required by ISO45001, and driving the ambition to improve strategic and operational safety, healthand wellbeing, while considering the needs of interested parties and the business´s sustainability.
A public Airbus Occupational Health and Safety Policy Statement was signed by the Company’s CEO in 2021. It enhancesand reinforces the company-wide Occupational Health and Safety Policy priorities, principles and key initiatives including:
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- the continued identification and management of risks to people and the business that could arise from work activities,- the application of the principles of the International Standard, ISO 45001, for the Company management system, and- the development of a culture in which employees take responsibility for their own health and safety and that of others.
Approximately one third of the Company’s core entities in home countries are certified to the ISO45001 Standard for healthand safety management systems. The Airbus Defence and Space Division sites have renewed their ISO45001 accreditation
this year. Company-wide, this means that about 25% of employees work on sites where the health and safety management
system is certified to ISO45001. Other sites operate to the standards required by the Company Policy and have formal
management systems, even though they may not yet be formally certified.

III. Risk management
Occupational health and safety risks are managed using the framework provided in the Company methods for ‘Health and
Safety Risk Management’ and ‘Incident Management’. Those risks that are considered to have a high potential impact,
including in the Company’s affiliates, are reported in the Company’s ERM system.
The method for risk assessment and control consists of a sequence of logical steps to identify significant hazards, evaluate
the risks, and prevent, eliminate or mitigate them. This is done following the hierarchy of control principles: elimination,
substitution, engineering control, administrative controls and, as a final measure, personal protective equipment.
The health and safety priority topics identified within the Company and forming part of the Company Vigilance Plan are:hazardous substances and materials;
working environment;
on-site contractors health and safety management;
mental health and wellbeing.
The Company has deployed prevention measures and mitigation plans around these topics.
The mitigation of the risk of exposure to hazardous substances and materials requires the Company to adhere to risk control
measures when suitable alternatives are not available and subject to appropriate authorisations. The mitigation plan
includes the application of relevant Company methods of substances and materials management, the development ofsurveillance programmes, and the recording and analysis of all prevention and protective activity. Late 2022 saw the closureof a five-year project called REACH-IT, and similar initiatives in the Divisions, aiming at ensuring the compliance of theCompany sites with the stringent environment, health and safety conditions described in the EU´s REACH Chromates
Authorisations. The project has given the means to local management for maintaining a high level of protection of
employees and the environment where chromates are concerned, covering the whole Authorisation period.
Working environment risks include slip, trip and fall, site roads and infrastructure, and work at height. These are key areas offocus for the Company: in particular, working at height considering the potential outcomes. As part of its risk mitigation
activities, the Company focuses on immediate containment actions while defining permanent solutions and putting in placerobust monitoring, including at top management level.
On-site health and safety contractor management is another priority topic. Due to its activities, the Company has various
contractors working on its sites for which the interaction and coordination of activities may generate risks of worker injury or
damage to products or infrastructure. As part of the mitigation activities, a company-wide method for supplier and contractor
health and safety management (M1243) has been issued. This method sets a standardised health and safety framework forthe selection, approval and management of suppliers and contractors who perform work for the Company on its work sites.
This method is under deployment locally, considering already existing procedures and in line with local regulatory
requirements.
Mental health and wellbeing are also topics of attention for the Company, especially given the increasingly challenging
personal and environmental factors. A management strategy and mitigation plan have been defined, which include a
network of ‘Wellbeing Focal Points’ and relevant training. Further related mitigating activities are detailed in section IV.
Implementation/activities below.
The Company’s affiliates report on their health and safety management status through the Internal Controls Self Assessment(ICSA) exercise or similar system in the Airbus Helicopters Division. Their annual report on key health and safety
management system requirements forms part of the ERM process.

IV. Implementation / activities
The Company’s goal is to enable an environment that’s safe and healthy for all. Risk prevention and promotion of safer andhealthier conditions in the workplace are also key wellbeing enablers.
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Safety
Key risk mitigation activities were pursued in 2022 including the continued promotion of the health and safety culture:
Campaigns to support a safe return to work after a long break such as summer holidays,‘Safety Awards’ at site level to motivate and engage employees;
Safety mobilisation days such as the ‘Winter Road’ campaign, the ‘Mental Health Day’ and ‘Safety Weeks’, supported
by “Level IV” managers;
Widespread ‘Safety Lab’ sessions that prompted proactive discussions;‘Safety Box’ training held in dedicated spaces raising awareness about risk prevention. For some years this has beena successful initiative, allowing employees to express and engage on relevant safety topics;
Transparent sharing of safety related information, such as frequency rates and ‘Flash Alerts’.
The Company also refreshed some existing activities and developed new initiatives, such as:
Mandatory environment, health and safety training in particular at managers level;
Extending the ‘Safety Ambassadors’ network;
Deploying multi-functional safety workshops;
Broadcasting videos to encourage employees to be actors of their own safety and to declare safety situations using
the FISH tool;
Introducing new topics such as mental health and well-being in the refreshed version of the ‘Safety Boxes’ for the sites
where all employees have completed the original ‘Safety Box’.
Projects such as “People Safety@Work” (PS@W) for the Company’s commercial aircraft activities, the ‘We Care´ initiativein the Airbus Defence and Space Division extended to non-operational areas, and the ‘Safe Together’ initiative in the Airbus
Helicopters Division, continue the pursuit of positive cultural and behavioural change.
New harmonised training courses have been, and are being, developed to support culture change and risk prevention,
including:
Health and safety fundamentals - A digital course providing a high-level overview of occupational health and safety,
the regulatory framework and the management system approach in securing a safer and healthier work environment;
Induction training - to guide managers in how to deliver an effective workplace health and safety induction for newteam members, also demonstrating the Company’s commitment to health, safety and wellbeing;
Over 286,815 hours of dedicated health and safety training were delivered to 90,490 individual employees between October
2021 and September 2022.
Since their creation, around 4,000 employees have attended modules 1 and 2 of the ‘Airbus Environment and Health &Safety (EHS) Leadership Certificate’. Between October 2021 and September 2022, 2,214 employees attended thesemodules. Modules 3 and 4 have been made available from end 2022. Successful completion of all four modules will result inan externally validated certificate in health and safety competence.
Leadership involvement is key in stimulating continual improvement. More than 180 executives and “Level IV” leaders
completed the ‘Leadership Masterclass on Environment and Health & Safety’ between October 2021 to September 2022. In
addition, the majority of executives and “Level IV” leaders have now attended the practical ‘Back to the Floor’ health andsafety training.
Occupational health and Wellbeing
Psychological health and wellbeing are priorities for the Company. Whilst the causes of psychological issues tend to be
multifactorial, this does not alleviate the ethical and commercial reasons for supporting employees in pursuit of a state ofwellbeing - which is more than just the absence of ill-health.
Mental health consultations are offered to employees on site and remotely, providing opportunities for them to anonymously
express concerns about personal or professional aspects in their life. In addition, health and wellbeing support material ismade available on the Company's intranet pages.
Initiatives such as ‘Wellbeing seminars’, ‘Mental Health days’ and ‘Therapy dogs’ visiting sites have helped to raiseawareness and open discussion on these sensitive topics. The role of ‘Wellbeing Ambassador’ has been created and will be
deployed in 2023.
In 2022, the mandatory training list for managers included:‘Mental Health Awareness’, exploring ways to recognise and address mental health concerns and supporting
managers in promoting good mental health.
‘Health and Safety Conscience of a Leader’, reinforcing the accident prevention role of leaders and the importance ofdeveloping a positive health and safety culture.
Finally, the occupational health teams have continued to robustly support the fight against COVID-19 and its consequences,by providing advice and support for individual employees and the business as a whole.

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Reporting and Indicators
The Company's employees are required to report accidents, near misses and hazards to their manager, who is consequently
required to investigate. The incident and investigation details are recorded and this data is analysed to identify opportunities
for risk mitigation and overall performance reporting. Lost time injuries are reviewed and assessed where appropriate by therelevant bodies, including safety committees. The Frequency rate performance is also periodically shared with relevant work
councils, including the SEWC.
Company-wide data collection and analysis is performed on FISH (Federated Information for Environment, Safety and
Health), a global environment, health and safety platform, including an incident management module. Around 80% of theCompany's employees including the active workforce, apprentices and temporary employees, are estimated to be covered
under the FISH platform. The FISH perimeter continues to be progressively extended. The deployment of the incident
management module is ongoing at sites in North America and the Asia Pacific region. Complimentary data are monitored by
the operational health and safety teams. The harmonisation of data management and thus more powerful analysis remains
a goal.
One of the indicators used by the Company to measure its performance is the lost time injury (LTI) frequency rate (the‘FR1’). This indicator is a company-wide standard designed to enable geographical and organisational comparisons and it
may differ from the formulae used by other companies. This indicator considers the work-related lost time injuries in relation
to the working hours, on a rolling year basis. In the company incident management method, lost time injuries are defined as
those that require medical attention and which cause the employee to be absent from their normal work activity for 24 hours
or more, not counting the day of the accident but including weekends and holidays. This produces a figure of the number of
injuries per one million (1,000,000) worked hours. The 2022 end-of-year figure of the rolling frequency rate amounts to 1.60
Company-wide and 2.25 for the Company’s commercial aircraft perimeter.
The Company perimeter of the FR1 covers:- all main sites in France, Germany and Spain for the Company’scommercial aircraft perimeter and the Company Divisions ,- all main sites in UK for the Company’s commercial aircraft perimeterand the Airbus Defence and Space Division,- the Company’s commercial aircraft plants in Mobile, US and in Tianjin,
China,- the Airbus Defence and Space Division site in Poland,- this year are also included the consolidated data from the Airbus
Helicopter Division’s Asia Pacific and Latin America affiliates- not included are the newly created Airbus Atlantic and Airbus
Aerostructures entities (and the French and German sites transferred tosuch entities this year).
In the case of the Airbus commercial aircraft business FR1 perimeter, allmain sites in France, Germany, Spain and UK, and the commercial
aircraft plants in Mobile, USA and in Tianjin, China are included (for the
avoidance of doubt, the Airbus Helicopters and Airbus Defence andSpace Divisions, and the French and German sites transferred to the
newly created Airbus Atlantic and Airbus Aerostructures entities are notincluded)Company-wide, the Company experienced an improvement of more than 29% in the adjusted perimeter in frequency rate in
2022. The frequency rate figures are reviewed monthly by the CEO and the Executive Committee and the data shared withall executives and senior leaders in a monthly webinar.
In addition for 2022, the Company is publishing an injury severity rate indicator. This indicator measures severity of an injury
by the number of lost workdays caused by the injury, enabling another view of key risk areas. The severity rate perimeter islimited to the FISH coverage and amounts to 0.046.
A total of 28,925 near misses have been declared on FISH in the commercial aircraft perimeter. The Company pursues
investigation of near misses to identify cause agents and mitigation actions that support accident prevention measures.

V. Outlook
As part of the health, safety and operational environment ‘2030 Flightpath’ vision, the Company aims to reduce the risk ofwork-related injury and ill-health even further, by continually improving management system elements, monitoring and data
analysis. To enhance this approach, a company-wide health and safety incident review panel is being put in place to provide
oversight of incident management and data quality. This oversight will include the work of the current local level review
panels, which determine accident classification. For 2023 onwards the ambition is to also audit FR1 at divisional / businesslevel. The Company will also continue to pursue its geographical deployment of the FISH platform and tools supporting theprevention and measurement of physical and ill-health risk. Leadership competence will be further enhanced by the
deployment of the final modules of the ‘Airbus Environment and Health & Safety (EHS) Leadership Certificate’, which will
provide managers with an externally validated certificate in health and safety management.

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Respect human rights and foster inclusion
6.1.10 Human rights
I. Introduction
A commitment to respect human rights
As a signatory to the United Nations Global Compact since 2003, the Company is committed to upholding international
human rights principles and standards, including the International Bill of Human Rights, the International Labour
Organization’s (“ILO”) Declaration on Fundamental Principles and Rights at Work and its Core Labour Standards. In doing
so, the Company aims to implement policies and processes that respect applicable law in the countries in which theCompany operates and take into account the UN Guiding Principles for Business and Human Rights, and the Organisation
for Economic Co-operation and Development's ("OECD") Guidelines for Multinational Enterprises.
“Respect for human rights” was prioritised by the Company as one of the four sustainability commitments agreed by the
Executive Committee and the ECSC at Board level during 2020. In addition, in reflection of the growing importance it placeson this topic, the Company endorsed including ‘respect human rights’ as part of its 2023 Top Company Objectives in the ‘inall we do, we’ section which aims to anchor good governance practices and values into the business.
The Company’s actions to progress its ambition to ‘embed and advance respect for human rights throughout its business,
operations and supply chain’ follow recommendations identified through a human rights impact and gap analysis conductedby a specialist external human rights consultancy in 2019. This analysis considered current and upcoming regulatory
requirements and international best practice as well as international principles and standards, including the UN Guiding
Principles for Business and Human Rights. Details of these actions follow.
Human Rights

GRI

SASB

SDGs

412 Human Rights Assessment
408 Child Labour
409 Forced or Compulsory Labour

Others

4,5,8,16

OthersVigilance Plan

Highest governancebody(ies) involved

Board of Directors / ECSC
Executive Committee

Related corporate policies
and reference documents

Code of Conduct; International Framework Agreement; Airbus Supplier Code of Conduct; Airbus Human
Rights Policy

Commitments to take into
account external standards
and frameworks

International Bill of Human Rights, ILO’s Declaration on Fundamental Principles and Rights at Work and its
Core Labour Standards, OECD Guidelines for Multinational Enterprises, United Nations Guiding Principles

KPIs
(1)

% of investigations completed or in progress% of sites having undertaken a social assessment (2)% of findings closed within 18-months (3)TargetTarget year

2021

2022

2022 vs. 2021

100%
100%
100%

Permanent
2026
Permanent

100%
10% (6)
100%(7)100%
29%100%(7)

+19pp
-

2021

2022

2022 vs. 2021

5789
4

6955
28

+1166
+24

Other key metrics
Number of participants to human rights trainings - cumulative, reporting period: 1 Oct - 30 Sep
Number of alerts of human rights concerns (5)(4)

KPI and metrics assumptions: (1) following reports of concerns linked to forced and child labour and other labour rights. (2) % of theCompany’s sites with over 100 employees, cumulative since 2020, undergoing a social assessment including human and labour rights(based on number of in scope sites at 2020). (3) following social assessments including human and labour rights, carried out on the
Company's sites. (4) cumulative number of participants who have completed e-learning modules on human rights and modern slavery since
2018. (5) including forced labour and labour rights (received via OpenLine and other means) through the Company’s supply chain. (6)cumulative since 2020. Due to a change in calculation methodology, this number has been reduced based on the 2021 report. (7) numberof site findings closed within 18 months 100%. Closure of identified findings related to corporate management systems pending release of
the Company’s Sustainability Due Diligence and Human Rights Directive.
Additional resources

Code of Conduct, Supplier Code of Conduct, Modern Slavery Statement, Human Rights on Airbus.com,
OECD Guidelines for Multinational Enterprises ⇲,Due Diligence Guidance for Responsible BusinessConduct, ILO Declaration on Fundamental Principles and Rights at Work ⇲Airbus SE/ Report of the Board of Directors 2022

138

II. Governance
The Executive Vice President Communication and Corporate Affairs has top level accountability for human rights at
Executive Committee level. During 2022, following formalisation of the Company’s governance arrangements for humanrights in 2020, the Company held a number of meetings and presentations to support and advance respect for human rights.
These included:
Governance

Number ofmeetings in 2022

Key responsibilities

Human Rights Core Team,
chaired by the Global Lead for
Human Rights

Target 6(achieved)

Ensuring the development and delivery of the human rights roadmap,
including actions against agreed targets and support for awarenessraising and capacity building.

Human Rights Steering
Committee, chaired by the
Head of Sustainability andEnvironment

Target 3(achieved)

Providing strategic guidance to support decision making andprioritisation, as well as providing guidance and support on progress.

Presentation on human rights
to the Executive Committee

Target 2(achieved)

Agree and guide the strategic direction of the Company’s human rights
ambition, agree and guide the prioritisation of initiatives and resource
allocation for implementation and review the status and effectivenessof actions in progress (including roadmap /targets /KPIs).

Presentation on human rights
at the ECSC

Target 1(achieved)

Make and support decisions on identified salient issues and emerging
significant risks, make and support decisions on key trends/ legislationand provide feedback and steering as required.

During 2022, the Company reviewed its governance on human rights to reflect its transition from policy-setting into businessintegration. Part of this review included a review of the role of the Human Rights Multi-Functional Team (MFT) which has
now transitioned into a Human Rights Core Team. The Core Team is made up of multi-divisional and multi-functional
representatives from within the Company with key actions aligned to delivery of the human rights roadmap. In addition, themandate of key internal networks, including the Sustainability Ambassadors’ network and the Ethics and Compliancenetwork were extended to cover the topic of human rights. Work will continue to embed human rights into these networks
and ensure they have the right competencies to adequately support the human rights roadmap.
Human rights policy
Building on the human rights commitments and expectations that have existed in various key documents for many years(including within the Airbus International Framework Agreement signed in 2005, the Company’s Code of Conduct andSupplier Code of Conduct), a key focus for 2022 included efforts to consolidate commitments to human rights standards andprinciples as well as expectations in this respect (aligned to international human rights standards and principles including theUnited Nations Guiding Principles for Business and Human Rights, the ILO Core Conventions on Labour Standards and theOECD Guidelines for Multinational Enterprises), into a specific internal Human Rights Policy which was formally approved in
2022 and endorsed by members of the Executive Committee.
A number of internal and external stakeholders supported the creation of the policy including divisional and functional
representatives of the Human Rights Core Team and Steering Committee and members of the Legal & Compliance team.
Externally the policy was reviewed by representatives from specialist expert human rights organisations, academics and civilsociety. The policy was also presented and discussed at the Airbus Global Forum which brings together social partner
representatives from the Company’s sites around the world and the Societas Europaea Works Council (“SE-WC”) which
represents the Company’s European social partners (see “- 6.1.12 Social Dialogue”). An external Human Rights Policy
Statement by the Company’s CEO, Guillaume Faury, was published on the Company’s website and provides a top levelsummary of the Company’s Human Rights Policy commitments.
The commitments contained within the Human Rights Policy will be integrated into the Company through the deployment of
a dedicated internal Directive. This Directive brings together external requirements such as legal requirements andinternational standards and principles, as well as existing internal commitments relating to human rights including throughthe Airbus Code of Conduct, Airbus Supplier Code of Conduct, the International Framework Agreement and the Airbus
Human Rights Policy. A key focus of 2022 included raising awareness of the Directive and respective requirements with a
Airbus SE/ Report of the Board of Directors 2022

139view to prepare the integration of the requirements into the Company’s internal management system and processes. This
work will continue to be a focus during 2023.

III. Risk management
The Company's identified salient human rights issues are embedded into the Company’s risk portfolio in the frame of theCompany’s ERM system and associated response plans developed to address identified impacts. Actions are reviewed
regularly by the Human Rights Core Team and any salient human rights issues requiring particular focus are escalated to the
Human Rights Steering Committee as well as the Executive Committee and ECSC as required. An update of actions related
to the Company’s salient human rights issues follows, with further actions progressing throughout 2023. Taking into accountthat salient human rights issues may change over time due to internal and external influences, the Company is committed toreviewing them regularly and at least once per year.
Salient human rights issues
The Company’s initial salient human rights issues were identified through a human rights impact and gap analysis carriedout in 2019. This identification was based on desktop research, a benchmark of industry peers and companies in similarindustries and an analysis of stakeholder expectations, including consideration from a rightsholder perspective. Theseissues were reviewed, updated and validated during 2020 through the Human Rights MFT and engagement with a numberof key external stakeholders, including human rights NGOs, academics/ researchers and industry groups. The identified
salient human rights issues (with impacted rightsholders in parentheses) and actions undertaken during 2022 follows:●

Impact of products and services (passengers and citizens): Overseen by the Company’s Executive Committee,
the Company continued to review how to integrate human rights due diligence through existing processes and tools
with a view to mitigating the risk of misuse of its defence products. For further details of actions related to this salientissue, please see the Due Diligence section below.

●

Forced and child labour and other labour rights (contractors and supply chain): Key activities to mitigate therisk of forced and child labour and other labour rights in the Company’s supply chain included the continued roll out of
the Company’s revised Supplier Code of Conduct, with strengthened expectations on forced and child labour as wellas other human and labour rights and a requirement for suppliers to formally confirm adherence to the Supplier Codeof Conduct and to cascade the principles throughout their supply chain. In addition, the Company took actions toinclude human rights in the supplier onboarding process and to strengthen its supply chain due diligence including
updated risk mapping (country and activity) and a review of its risk identification and alert management process. For
further information, see the Due Diligence section below and " – 6.1.15 Responsible supply chain".

●

Inclusion and diversity: During 2022, actions to progress this salient issue included a continued focus on the ‘25 by
25’ gender diversity ambition to increase female representation at executive levels of the Company, creating a robust
pipeline including specific leadership programs for women, such as ‘MyWay` where the Company increased thenumbers of cohorts by 100% versus 2021 and to support inclusive leadership. Furthermore, a mandatory inclusion anddiversity training module was rolled out for all employees achieving more than 95% by the end of 2022. For further
information, see " – 6.1.11 Inclusion and diversity".

●

The transition to decarbonisation (supply chain): 2022 was dedicated to identifying the key areas of risk that theCompany’s transition to decarbonisation may create, affecting in particular human rights. The identified areas include
the potential impact on communities due to the production of sustainable aviation fuels (SAF), carbon offset initiatives
and specific minerals required in the development and manufacturing of new technology. The Company is alreadyengaged in various coalitions (e.g. the Roundtable for Sustainable Biomaterials and the International Sustainability
and Carbon Certification) to ensure that human rights dimensions are considered in these areas. For further
information see “- 6.1.2 Climate change” and “- 6.1.15 Responsible supply chain”.

●

Data privacy: During 2022, the data privacy team continued to implement and improve the data privacy programmethroughout the Company. For further information see Privacy section in “- 6.1.14 Business integrity”.

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Review of salient human rights issues
During 2022, the Company undertook a full review of its salient
human rights issues. This review followed a similar process ofidentification as that undertaken in 2019 (via comprehensive
document review, interviews with key internal stakeholders andverification including with internal and external stakeholders) andprioritisation and weighting based on severity (assessed from scale,scope and remediability criteria) and likelihood. During this review,
stakeholder feedback was taken into account which led to theidentification and prioritisation of ‘underlying issues’ to support more
effective action plans. The review also included an analysis of theCompany’s ability to use its leverage to influence mitigation of therisk (e.g., whether it is directly linked to the risk), or whether the Company has caused or contributed to the risk. Actions toprogress response plans will continue through 2023.
In addition, in order to strengthen the management of the action plans, a governance framework has been established suchthat the Company’s salient human rights issues (and identified underlying issues) are sponsored by relevant members of theCompany’s Executive Committee who will provide oversight of the action plans within the frame of the Company’s risk
portfolio. In addition, a process for the regular review of the Company’s salient human rights issues is currently being
developed which will include ensuring a risk review is performed at least once per year, with a more in-depth review every
three years. For full details of the Company's priority risks, see “- 6.1.1 - VII. Airbus' way forward: vigilance plan”.
Due Diligence on human rights
During 2022, the Company continued to strengthen its risk-based human rights due diligence taking into account the OECD
Due Diligence Guidance for Responsible Business Conduct. This focus, which will continue throughout 2023, included:
Due diligence within the Company’s own operations
Supply chain due diligence
Product and service due diligence (focused on the Airbus Defence and Space Division)
This due diligence is intended to support identification, prevention or mitigation and remediation of human rights risks acrossthe Company’s value chain, including risks related to forced and child labour, working time and wages, freedom of
association and discrimination and harassment in both the Company’s supply chain and own operations as well as risks inrelation to the Company’s products and services. Key activities conducted during 2022 under each due diligence workstream
includes:Supply chain due diligenceThrough the Sustainable Supply Chain Roadmap, the Company undertook a full review of the way it conducts due diligence,
including related to human rights, within its supply chain. For full details, see " – 6.1.15 Responsible supply chain".
Due diligence related to own operations
Through the HR team, the Company started to develop due diligence in order to identify ways to manage risk related tohuman rights within its own operations. This included:● Development of a due diligence framework aligned to the OECD Due Diligence Guidance for Responsible BusinessConduct.
● Formalisation of governance for progressing actions related to this framework, including the nomination of a project
lead to support and progress actions.
● Prioritisation of actions linked to the Company’s salient human rights issues, which includes plans to conduct a
risk-based impact and gap analysis to understand the potential risk of forced labour on the Company’s sites as well as
review of relevant policies and processes.
Further actions will continue during 2023.
Product and service due diligence (focused on the Company’s defence products)
Overseen by the Company’s Executive Committee, the Company continued to review how to integrate human rights due
diligence through existing processes and tools with a view to mitigating the risk of misuse of its defence products. Analysis todate has focused on the Company’s products with plans to review integration of the provision of services to follow. Actions
during 2022 follow:

Airbus SE/ Report of the Board of Directors 2022

141

●

Recognising that human rights considerations already exist in the stringent export compliance process, an assessmentof the potential integration of actions, upstream of the export control process, to assess the level of risk of potential
misuse. This assessment will support a decision to progress to the export control stage.
● The current proposal includes a due diligence process that takes into account the potential risk of Company products
being used in violation of human rights using criteria including country risk and intended product use.
● This draft process received approval to move to a pilot phase during 2023 before further evaluation.
Further actions will continue during 2023.
Social assessments (focused on human and labour rights) conducted on the Company’s own sites
During 2022, the Company continued to conduct on-site social assessments focused on human and labour rights covering
its own sites. These assessments were carried out using an independent third-party social assurance provider consistent
with the assessments carried out in the Company’s supply chain.
Nineteen onsite social assessments (from a target of 18) were conducted in 2022 in countries including: China, Finland,
France, Germany, Malaysia, Morocco, Romania, Saudi Arabia, Singapore, the UAE and the UK. The sites were selectedbased on an analysis of country risk using publicly available indices (including child labour, forced labour and labour rights),
the type of activity (prioritising production facilities) and the number of employees. In addition, any alerts relating to humanrights coming from other sources, including the ICSA process. Relevant legislation was also taken into account.
During these assessments, findings were identified across 11 sites, including through in situ subcontractors. The Company
aims to close all site findings without undue delay and within a maximum of 18-months.
In order to strengthen its due diligence process, the Company has set a target to ensure that 100% of its sites with over 100
employees are assessed for human and labour rights risks by the end of 2026. Since 2020, 29% of the Company’s sites with
100+ employees have been assessed.
Grievance and remediation
During 2021, the Company continued to promote its SpeakUp and ListenUp culture related to human rights concerns,
including reinforcement of the use of its OpenLine confidential reporting system, within its revised Supplier Code of Conduct(see " – 6.1.15 Responsible Supply Chain").
In 2022, the Company undertook a gap analysis of its OpenLine policies and processes against upcoming legal
requirements (e.g, the German Supply Chain Due Diligence Act) and international standards and principles related to humanrights, in particular the UN Guiding Principles (UNGP31). Overall, Airbus’s existing policies and procedures align withbenchmark recommendations. Recommended additional actions included further clarification on the stakeholders who canaccess OpenLine, a review of the languages OpenLine is available in, and having the link to OpenLine available on thecontact us page of the Company’s website. These and other identified actions will be reviewed and progressively rolled out
during 2023.
If an allegation of human rights breach received from within the Company or through its supply chain or other third-party
business relationships is found to be substantiated, remedy would be sought through a variety of mechanisms. If an alert isreceived via its OpenLine reporting system, the Company commits to acknowledge receipt of the report as soon as possible.
The Company has a global network of internal investigators, tasked with investigating allegations, including those relating tohuman rights such as forced or child labour, or labour rights and working conditions.
During 2022, 28 alerts of concern were raised related to human rights or labour rights from within the Company’s supply
chain. This increase (from four disclosed in 2021) reflects the progressing maturity of the Company’s due diligence efforts aswell as increasing awareness on human rights topics. The alerts were raised through either the supplier screening process,external reports (media /NGO reports) or the Company’s OpenLine. Following analysis, 24 of the alerts were closed with norequired actions; four remain open pending completion of required actions.
The Company will continue to investigate any new alerts during 2023.

IV. Implementation / activities
Awareness raising and training
During 2022, the Company continued to raise awareness of human rights, including through the promotion of its dedicatedtraining on human rights and modern slavery, which is available to all employees in four languages. This training was
updated during 2022 to take into account the publication of the Human Rights Policy. During the period 1 October to 31
September 2022, 1,166 participants undertook this training (6,955 in total since its launch), which included information on
how to identify the signs of human rights abuse and what to do if anybody has concerns. This training will be part of thecompulsory training for all employees of the Company during 2023.
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Also during 2022, the Company created a dedicated eLearning module on human rights targeting “Level IV” managers,
including the heads of its subsidiaries and controlled affiliates. This eLearning formed part of the compulsory training for theCompany’s Executives during 2022 and will remain on the list during 2023. Since its launch up to 31 September 2022, 489
participants have completed this training.
Furthermore, during 2022 the Company introduced a pilot programme of in-depth training aimed at buyers and supply chain
quality managers focused on human rights and in particular identifying forced labour. This programme aims to provide
interactive small group virtual training to ensure deeper understanding and engagement. The aim is that this training will berolled out further during 2023.
Additional topic-based training relating to human rights is also available to all employees of the Company, a number of which
are mandatory, including inclusion and diversity topics such as unconscious bias.
The Company also published a number of articles on human rights internally via its Hub Portal and Airbus TV during 2022.
This communication was aimed at demystifying human rights as well as focusing on topics such as forced labour andwellbeing, and included interviews as well as opportunities to provide comments and feedback. Communication will continue
throughout 2023.
Stakeholder engagement and collaboration
During 2022, the Company continued its membership of the Global Business Initiative on Business and Human Rights (GBI),a specialist peer learning group focused on advancing respect for human rights throughout the world. As part of its
membership, the Company also took part in three dedicated workstreams: downstream due diligence, environment andhuman rights and tracking and measurement, the progress of which were shared with other GBI members.
The Company is also a member of a number of industry trade associations which during 2022 held focused discussions on
progressing human rights within the aerospace and defence industry. These include ASD (the Aerospace and Defence
Industries Association of Europe), GIFAS (French Aerospace Industries Association), BDSV (German Industry Associationfor Security and Defence), ADS (UK Industry Association for Aerospace, Defence, Security and Space) and TechUK (theUK’s technology trade association).
The Company also engaged with a number of external stakeholders on human rights in order to advance the topic throughexternal collaboration. These included academics, researchers, civil society organisations, officials and peers. A number ofdiscussions with the Company’s investors on the topic of human rights also took place during 2022, including on the topic
human rights due diligence related to defence sales.
In addition, an update of the human rights roadmap was also presented to key internal stakeholder groups including theSE-WC comprising social partners from across the Company’s European sites.
Regulatory complianceDuring 2022, the Company undertook an analysis of current and upcoming legislation related to human rights including
German’s new Supply Chain Due Diligence Act. Actions to fill any identified gaps will be undertaken throughout 2023.
During 2022, in accordance with the UK Modern Slavery Act and the Australian Commonwealth Modern Slavery Act, theCompany published a Modern Slavery Statement outlining the actions it had undertaken to mitigate modern slavery risks in
its global business, operations or supply chain. This Statement was published on the UK Government and AustralianGovernment websites as well as the Company’s website. In addition the Company completed the UK Ministry of Defence(MoD) Modern Slavery Assessment Tool.

V. Outlook
During 2023, the Company will continue its focus on embedding and advancing its commitment to respect human rights
throughout its business, operations and supply chain. Specific ongoing actions include:●
Progressing actions identified as part of the Company’s human rights roadmap.
●
Progressing response plans related to its identified salient human rights issues.
●
Progressing social assessments focused on human and labour rights throughout the Company’s sites.
●
Capacity building with key teams including development of training, communication and awareness raising.
●
Ensuring alignment of actions with current and upcoming legislation.

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6.1.11 Inclusion and diversity
I. Introduction”Respect human rights and foster inclusion” is one of the four sustainability commitments. This priority reflects the focus theCompany puts on inclusion & diversity ("I&D") and is illustrated by the 147 nations that its employees represent. An I&D
position statement outlines the Company’s commitments to creating a safe and inclusive culture, including zero tolerance todiscrimination and harassment, while the Company’s Code of Conduct and Supplier Code of Conduct express the
expectations towards both employees and suppliers in this respect.
In line with the Company’s values, a comprehensive I&D strategy drives the Company’s approach to embedding I&D
focusing on intergenerational, ethnic, social and cultural diversity as well as gender equality, LGBTQ+, neurodiversity anddisability-friendly policies and hiring practices. The I&D strategy aims to ensure that the Company:●

Creates a safe environment and inclusive culture where collaboration, empowerment, continuous learning andaccountability are promoted and valued. The Company has zero tolerance for harassment or discrimination of any
kind;

●

Attracts, recruits, develops and retains a large and diverse pool of talents. This talent is a reflection of the Company's
customer and supplier base as well as the communities around;●Develops a thriving work environment supported by its values system, leadership model as well as a code of conduct
understood and lived by all;●

Is committed to have a positive long-term sustainable impact not only in the aviation sector but also in thecommunities the Company works in by being signatories to the Sustainable Development Goals (SDG).

Inclusion & Diversity

GRI

SDGs

Others405 Diversity and Equal Opportunity,
406 Non-discrimination

4, 5, 8, 16

Vigilance Plan

Highest governance body(ies) involved

Board of Directors / ECSC; Executive Committee
Inclusion & Diversity Board

Related corporate policies and documents

Human Resources Airbus Company Policy,
Airbus Code of Conduct,
Airbus Supplier Code of Conduct

External standards or frameworks taken into accountUniversal Declaration of Human Rights,
OECD Guidelines for Multinational Enterprises,
ILO Conventions

KPIs

TargetTarget horizon

2021

2022

2022 vs. 2021

% of external hires to be female (active workforce)% women in Board of Directors% women in senior management - Executives
Number of men in senior management - Executives
Number of women in senior management - Executives

33%
33%
18%

Yearly
2022
2022

22%
25%
14%

27%
33%
16%
821
157

+5p.p
+8p.p
+2p.p

Other key metrics (More in “- 6.1.17 ESG Data Board”)

2021

2022

2022 vs. 2021

% women in active workforce% women in Executive Committee% women in “Level IV” managers

19%
25%
16%

20%
25%
17%

+1p.p
+0p.p
+1p.p

Additional resources

Code of Conduct - incl. non-discrimination commitment,
Inclusion and diversity on Airbus.com,
Airbus International Framework Agreement - incl. Equal Opportunities commitment
UN Women's Empowerment Principles - CEO statement, AD CEO statement,
LGBT+ Charter with L'Autre Cercle Association for an inclusive work environment ,France Gender Pay Gap Statement 2021, UK Gender Pay Gap Report,
Airbus UK I&D Agreement, Women in Aviation and Aerospace Charter⇲;
Women in Defence Charter⇲
Partnerships supporting people with disabilities: Atouts pour tous⇲, Handisup⇲,Handi Proconseil⇲

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II. Governance
The I&D team is part of the “DEVELOP Centre of Expertise” within the Human Resources function and represents Airbus
and its Divisions, with regional I&D focal points supporting the implementation of the I&D strategy globally.
An I&D Advisory Board, chaired by the Chief Human Resource Officer with representatives from the Executive Committee
and other Divisional and regional executives, meets quarterly and provides top level oversight and input into the I&D
strategy, as well as reviews risks or issues raised, providing support on new initiatives, processes or changes to policy andmakes appropriate recommendations to the Executive Committee.
In addition, local I&D steering committees, championed by “Level IV” leaders and executives in the regions, provide
additional support to embed and advance the I&D strategy, locally and provide valuable input to the I&D team and advisoryboard. The steering committees are supported by a network of diversity business champions embedded in the business,
who advocate for an inclusive working environment.

III. Risk management
Any identified risks related to I&D are recorded in the Company’s ERM and appropriate action plans agreed. Progress isreviewed quarterly. In addition, any alerts related to I&D raised via the Company’s SpeakUp culture, including its OpenLine
reporting system, are investigated in accordance with the Company’s investigation process.

IV. Implementation / activities
Gender diversity
The Company supports various national and international initiatives such as International Women’s Day, and since 2018 theCompany has committed to the UN Women’s Empowerment Principles aimed at empowering women to participate fully ineconomic life. The Company has also led the “Women in Aviation and Aerospace Charter” and has been instrumental in thedevelopment of the “Women in Defence Charter” which demonstrates the commitment of a growing number of organisations
across the industry to build a more balanced and fairer industry for women.
In order to actively follow the four sustainability commitments, dedicated training courses on I&D related matters arepermanently available to all employees and promoted within the learning catalogue and are as well included in thecompulsory learning plan. With a special focus on leaders, the Company launched a “Management Basics & LeadershipFoundations Programme” to ensure that inclusive leadership becomes the norm at all levels in 2020. In 2022, the MyWay
Women leadership program, dedicated to women leaders of tomorrow, registered 100 women, twice as many as theprevious year. To date, this programme has trained over 220 women, including the current cohort. The Company's
leadership development program attendances are balanced in terms of gender representation.
Further dedicated role model sessions called Women@Airbus, digital recruitment events to encourage more women to apply
for jobs, have been carried out online with over 400 women participating. During 2022, the Company disclosed its gender
pay gap as required by both French and UK legislation, and continues to put measures in place to ensure gender pay parity
worldwide.
Gender diversity in senior management - Executives
The Company strives to accelerate female representation in leadership roles. Accordingly, it has set targets for gender
diversity in Executives management positions, associated with a dedicated action plan. It includes slots in dedicatedleadership programs, aimed at development of leaders selected from across various geographies and functions. In 2022,
performance stood at 16% against a 18% target, which is a 2p.p. increase year-on-year. The company is committed topursuing efforts, focusing on leadership programs, mentorship, sponsorship, targeted recruitment and strengthening
promotions pipeline to enhance female representation on executives positions.
Other diversity dimensions
The Company is also accelerating change through its employee-led Employee Resource Group “Balance for Business”
network, which has around 10,000 volunteer members worldwide. Initiatives run through this network include roadshows
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promoting employee-led initiatives such as peer-to-peer mentoring, confidence building and encouraging employees tochallenge stereotypes and build their careers. The network also supports some outreach initiatives.
Other employee-led networks such as WIN Together, the Airbus Africa Network, Spectrum (Racial diversity and inclusion),
Pride@Airbus (LGBTQ+), Generation-A (Millennials), Seniors Talent and (Dis)Ability ambassadors networks are key toraising awareness of I&D, promoting inclusion, equal rights and increasing visibility. Initiatives include mentoring, leadershipdevelopment of under-represented groups as well as conferences and discussions open to all employees.
The annual Ability Weeks campaign aims to raise awareness on disability across the Company and worldwide. This includes
a series of workshops and awareness sessions on topics such as: digital accessibility, workplace adaptations, mental healthcare. During 2022’s campaign, more than 3000 employees participated in live workshops, and over 30 events wereorganised worldwide. These events are also an opportunity for the Company to share some of the initiatives set up
internally, such as Airbus Humanity Lab showcasing prosthetic blades made from recycled carbon from a production line.
Highlighting that being unique is valued and that difference is welcome, the Company ran an awareness campaign during2022 to promote awareness of the importance of digital accessibility for employees with disabilities as a means for inclusion.
During 2022, the Company also engaged in various social diversity programmes in partnership with a number of different
associations to promote quality education and mentorship for young people from underprivileged areas. For example, theCompany participated in the French government's initiative “La France, une chance. Les entreprises s’engagent !” toencourage companies to help everyone find their place in society by taking actions such as recruiting from underprivileged
areas, promoting education learning and committing to responsible purchasing (inclusive supply chain).

V. Outlook
In 2023, the Company will pursue its I&D ambition, aiming at embedding I&D in everything it does. Priorities for 2023 include
continuing the Company’s focus on gender parity, while simultaneously strengthening focus on other aspects of the I&D
strategy such as disability, internationality and cognitive diversity. Upcoming actions on I&D include:● Eliminating systemic barriers during talent recruitment, development and management;● Agreeing on targets for external recruitment of women, external recruitment from non-EU countries and external
recruitment of people with disabilities;● Extending leadership development programmes to include a focus on I&D and in particular on gender diversity;● Increasing awareness and training on inclusive leadership and unconscious bias;● Leveraging and reinforcing business ownership and accountability through the Company’s network of diversity
champions;● Continued support to encourage STEM studies for young women in schools and universities through mentorship,tutorship, directly or through the associations sponsored by the Company.

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6.1.12 Social dialogue
I. Introduction
In 2022, the Company continued its numerous discussions, consultations and negotiations with its social partners,
sometimes on a daily basis in order to discuss Company transformation projects, the evolution of Company agreements,
measures to support production ramp-up, or cope with the evolution of the economic environment.
These various transformations were carried out in line with the common principles and standards of the ILO convention, theOECD Guidelines for Multinational Enterprises and the principles laid down by the UN Global Compact.
Employee relations are underpinned by the Company commitments made in the Company’s Code of Conduct and theAirbus International Framework Agreement, signed in 2005.

Labour Relations

GRI
402 Labor/Management Relations

SASB

SDGs

Others8, 16, 17Highest governance body(ies) involved

Executive Committee

Related corporate ref documents

Airbus Code of Conduct, International Framework Agreement, SE-WC agreement (updated 2018)

Airbus commitments to take into account ILO's Declaration on Fundamental Principles and Rights at Work and its Core Labour Standards,
external standards and frameworks
OECD Guidelines for Multinational Enterprises
Key metrics
Number of meetings with SE-WC (agreement says 4 per year)% workforce covered by collective bargaining agreements
Additional resources

2021

2022

12
ca 80%

7ca 80%

Code of Conduct, Airbus International Framework Agreement⇲
ILO’s Declaration on Fundamental Principles and Rights⇲
OECD Guidelines for Multinational Enterprises⇲, the Global Deal Initiative⇲

II. GovernanceIn the International Framework Agreement (“IFA”), the Company reaffirms it strives to respect the regulation regarding
fundamental human rights, equal opportunities, free choice of employment, as well as prohibition of child labour and respectand ensuring the conditions for social dialogue.
The Company intends, via its agreements, to respect the disposition of the following ILO conventions: numbers 111(discrimination – employee and occupation), 100 (equal remuneration), 135 (workers’ representatives), 29 (forced labour),105 (abolition of forced labour), 182 (child labour), 138 (minimum age), 87 (freedom of association and protection of the rightto organise) and 98 (right to organise and collective bargaining).
The head of each business is responsible for ensuring compliance with these principles. The provisions of the IFA define theCompany’s standards to be applied wherever the Company operates provided they are not in contravention of local law,
insofar as more favourable conditions do not exist already. Dedicated processes ensure that the provisions of thisagreement are not breached wherever the Company operates.
Labour relations and social dialogue are fully part of the Company’s DNA and, therefore, their continuous evolution andimprovement are embedded in the Company’s Human Resources strategy supporting the Company’s business challenges
and the sustainability roadmap. It includes discussions about the identification and mitigation of risks inherent to Company’s
activities and those of its suppliers with regards to human rights, environment and health & safety. In cases of restructuring,
the Company strives to limit as much as possible the negative impacts on its workforce and considers employment as apriority. As an illustration, the last restructuring plan implying significant workforce reduction was completed in 2021: the
COVID-19 adaptation plan resulted in the signature of various collective agreements by the main unions and provided for arange of social measures including: trainings, internal mobilities, working time adaptations, voluntary departure schemes,
early retirement and the opportunity to pursue personal or professional opportunities outside of the Company, such as
business creation as well as dedicated partial unemployment schemes.

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Regular social dialogue is ensured at global, European and local levels as per ILO requirements, local legislation andCompany agreements about social dialogue, for instance thanks to the Company’s European SE-WC agreement which was
updated in 2018. Sites outside Europe are also covered by the Company’s IFA framing the social dialogue and social culture
in line with local labour legislation, culture and practices of respective countries.
In line with the Company´s global social dialogue strategy and since 2019, the discussions with the social partners have not
only been assured at local or European level but have also happened at global level with the creation of the Airbus Global
Forum (“AGF”). In line with the Company’s commitments in terms of Sustainability, the AGF is a clear illustration of theCompany’s engagement for a responsible social dialogue. The seat allocation for employee representatives is based upon
Company’s headcount distribution across the globe and conditional to existing legal employee representation as per
applicable regulations and practices in the relevant countries.
In addition, the Company is an active member of the Global Deal for Decent Work and Inclusive Growth initiative ("Global
Deal") that was developed in cooperation with the ILO and OECD. The Global Deal is a multi-stakeholder partnership
between governments, business and employers’ organisations, trade unions, civil society and other organisations that seeks
to make economic growth work for all against a backdrop of rapid changes in the world of work. Furthermore, the Company
has regular discussions with some national and international trade union federations.

III. Risk management
The European labour relations’ management of the four home countries of the Company (France, Germany, UK, Spain) is
also part of the Company risk management processes and these risks are reviewed internally on a quarterly basis. For
example, during 2022, employee relations continued to focus on ensuring legal compliance regarding national labour laws
and investing in training the Company's HR professionals about labour law. The Company’s approach to risk management isalso reinforced by the OpenLine reporting system, which allows employees to report concerns anonymously (where legallypermitted).

IV. Implementation / activities
During 2022, the Company continued activities aimed at strengthening collaborative and partnership approaches with unions
in various countries. The main focus has been on preserving global social dialogue, addressing Company transformation
projects as well as informing and consulting about employment, working conditions and sustainability.
Preserving a global social dialogue
In Europe, seven European committees have taken place at Company level in 2022,including discussions about theCompany’s commercial aircraft activities. The composition of the SE-WC was renewed in accordance with the Company
agreement and its rules of procedure. At the Company's Airbus Helicopters Division, four European committees have takenplace. The main topics have been the follow up of the Division's performance and strategy, the deployment of the site
specialisation strategy and more globally the Company transformation, focusing in particular on competitiveness,digitalization and environmental roadmap. At the Company's Airbus Defence and Space Division, eight European
committees have taken place. The main topics have been the strategy and performance of the Division with a focus onsustainable transformation, including the AD 4.1 and the AD Digital reorganisations.
With a global reach, the third AGF took place early July 2022 in a digital format and has proven again to be an effective
exchange platform between the Company's top leaders in the regions and its employee representatives from the Company’s
home countries as well as Poland, Romania, Morocco, Tunisia, Brazil, New Zealand, Australia, North America and China.
The AGF agenda triggered insightful discussions around business and human resources including actions aboutsustainability, human rights, safety and wellbeing. It also served as an opportunity to enhance the perspective of theCompany's social partners on local and regional practices with regards to social matters, especially out of the European
home countries.
Supporting Company transformation
Numerous discussions with the Company’s social partners have taken place to support the creation of global businessservices in Portugal, Airbus Protect in France Germany and the UK as well as the creation of Airbus Aerostructures GmbH in
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Germany, on top of the social impacts in relation to the ramp-up. In Spain, the discussions started in 2021 about theconsolidation of the industrial activities and the maintenance of workload in the Province of Cádiz in the CBC work centre
were continued and concluded successfully. Also, during 2022, the space activities in Getafe were successfully integrated.
Supporting employees
In 2022, the Company carried out constructive dialogue with its social partners to negotiate salary increase policies where
relevant with its employee representatives committees or in the frame of collective bargaining negotiations. After having
listened to the members of the Airbus European Works Council (SE-WC) on September 15, and then having discussed
further with the employee representatives who signed wage agreements, the Company decided to pay an exceptional
premium to its employees (see “- 6.1.13 People”), independently of current or future salary negotiations.
Furthermore, the Company is committed to preparing for the future of employment and working conditions together withsocial partners:
In Spain, the Company continued with the social dialogue in order to carry out the commitments included in the VI CBA(Spanish Collective Bargaining Agreement) and to put in place relevant agreements, such us a new remote working policy or
in order to share with social partners the strategic direction set out in the 2030 vision.
In France, thanks to a fruitful and established long-term social dialogue with employee representatives, the Company
continued the major transformation project called Reload which started in 2021, aiming at simplifying, modernising andharmonising Company agreements related to compensation, benefits, grading, working time duration, health, safety andworking conditions to make them more readable for its people and adapted to the Company’s challenges. This project also
aims at integrating the evolution of the Metallurgic Branch Agreement which was signed in 2022. In particular an agreement
about healthcare, death and disability was concluded with the signature of all unions.
In Germany, social dialogue mainly focussed on supporting the ramp-up activities, the works council elections andconcluding the collective bargaining round, which was conducted by the employers´ associations of the metal and electricalindustry in which the Company is a member.
In the UK, the Company reached an agreement with Unite for collective bargaining rights for employees in the “Advanced
Professional” and “Level V” grades for the Company’s commercial aircraft activities. This was supported in a ballot of all
employees in these grades.

Enabling for sustainability plans
In 2022, in line with its sustainability ambition, the Company reached an agreement with its social partners about theinclusion of the accident frequency rate and CO2 in the remuneration of “Level IV” managers from the year 2022.

V. Outlook
In 2023, the Company aims to continue its dialogue with social partners, sharing its strategy, its organisational changes andpreparing for its evolving ways of working, as was done in 2022. Other key areas will be the continued ramp-up of its
activities and the transformation projects which will be essential to the Company's future success. Furthermore, it aims tocontinue discussions and cooperation with some national and international trade union federations.

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6.1.13 People
I. Introduction
The Company’s people draw on each other’s expertise and experience and put all their passion and determination topioneering sustainable aerospace. Human Resources is at the heart of the Company.
The current priorities of the Company’s HR function within its People Strategy are:●Engaging, inclusive and high performing leadership;●
Skilled workforce and an agile learning organisation;●
Inclusive workplace and simplified ways of working;
As of 31 December 2022, the Company’s workforce amounted to 134,267 employees (compared to 126,495 employees in2021), 96% of which consisted of full-time employees. These statistics take into account consolidation effects and perimeterchanges throughout 2022. Depending on country and hierarchy level, the average contractual working time is between 35
and 40 hours per week.
2022 confirmed the strong aerospace industry recovery, enabling the Company to accomplish its recruitment plan with aparticular focus on new skills, diversity and generational renewal. As part of this, the Company launched a new program towelcome university graduates, the Airbus Global Graduate Program. The faster-than-expected recovery of commercial
aircraft activity and strategic programmes development in the two Divisions, resulted in the Company’s workforce increasing
by more than 6% (8% commercial perimeter, 5% in Airbus Defense and Space Division and 3% in Airbus Helicopters
Division). Following the workforce adaptations carried out in 2020/2021, the number of leavers seen in 2022 is returning to
pre COVID-19 levels, with an attrition rate of 5.0%.
The Company’s workforce is 88.6% based in Europe, across more than 100 sites. Concerning the nationality of its
employees, 35.0% are from France, 30.7% from Germany, 7.4% from the UK and 10.7% from Spain. The evolution of theCompany's global presence is seen in the increase of the workforce located outside Europe (11.4% in 2022 vs. 10.9% in2021) and the increase of nationals from outside the Company's home country nationals to 16.2% (vs. 15.1% in 2021),
coming from 143 other countries.
Workforce by business segment, geographical area
The breakdown of the Company's employees by business segment and geographical area, including the percentage ofpart-time employees, is available in " – 6.1.17 ESG data board".

People

GRI

SASB

SDGs

401 Employment
404 Training and Education

4, 5, 8, 12Highest governance body(ies) involved

Executive Committee

Related corporate policies

Human Resources Airbus Company Policy

Key metrics (More in “ - 6.1.17 ESG data board”)
Total number of employees (1)Number of Classroom Training (2)Number of Digital Training (2)Total training hours (2)Average training hours per employee (2)2021
126,495
78,984
967,495
1,164,243
10.8

Others2022
134,267 Breakdowns available in the ESG data board
116,363
1,645,816
1,786,274
15(1)

The Company’s headcount reporting includes all consolidated companies worldwide. Figures are based on the active
workforce, i.e. the number of permanent and short-term employees, irrespective of their individual working times, and having
worked in the last 30 days. The headcount is calculated according to the consolidation quota of the respective companies. The
scope for HR structure reporting covers 100% of the Company’s total active workforce from consolidated companies.
(2)
Reporting period: from 1 Oct to 30 Sep.
Additional resources

Code of Conduct, Airbus Global Workforce Forecast Book, Working at Airbus
Airbus International Framework Agreement⇲, European Commission - Pact for Skills⇲
Employer awards 2022: Universum⇲, Glassdoor⇲, Top Employer Institute⇲, Forbes⇲

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II. Governance
The Company’s workforce is managed by the Human Resources (HR) function, guided by a set of HR policies and a stronglabour structure. HR policies are discussed and agreed with social partners through continuous and regular meetings at
global and local levels. The overarching HR policy is applicable to all employees and provides them with the description of
the core values, mission, vision and top level initiatives for HR management, in accordance with Company’s Mid-Term
Strategic Plan, and external requirements and is also aligned with the Company's commitment to the International
Framework Agreement (IFA).
The Chief Human Resource Officer is a member of the Executive Committee. HR teams work together across Divisions andgeographical boundaries to support regional activities and adapt to business needs.

III. Risk management
Any identified risks related to the workforce and its skills and development are recorded in the Company’s ERM andappropriate action plans agreed.
In addition, every two years the Company measures the perception of its employees on where the Company stands in termsof Company culture and engagement through the “My Working Environment” survey. The participation rate for the last two
surveys has been above 60%; the last survey was conducted in September 2021. Employees’ feedback provides valuable
input to define an action plan on Company level, leveraging the Company's cultural strengths to build on and directly
address the concrete pain points to be improved. The Company culture and engagement are regularly measured to keep
track of the progress and adjust actions.

IV. Implementation / activities
Strategic workforce planning
The Company’s strategic workforce planning, a multi-year workforce outlook, is performed annually within the various
business functions in order to manage workforce related risks and opportunities in the context of the execution of thebusiness strategy. There are two steps that enable strategic workforce planning:●
A quantitative 2-5 year outlook based on workload scenarios;●
Qualitative business discussions performed as part of the resource review.
The qualitative part of the strategic workforce planning is generating a set of actions related to the business strategy,
competence strategy, demographic changes, employment strategy, knowledge management and global footprint. In addition
to the management of workforce risks and opportunities, the strategic workforce planning results support discussions withsocial partners and external workforce suppliers.

People development and competence assessment
The development of all employees is essential to deliver business success. The Company strives to provide an environmentthat offers opportunities and the means for continuous growth and development in line with its strategy.
A yearly process derives a short, mid- and long-term competence strategy out of the Company's business strategy by:●
Anticipating the supply and demand of competencies;●
Identifying, securing and developing key competencies;●
Creating added value through synergies, networking and best practices.
Investments in training and learning are prioritised in relation to this competence strategy.
In addition, emerging long-term competence needs are analysed in order to identify any measures to be taken. For example,
some non-existing competencies today might require the Company to partner with universities to ensure the supply of thesein the future. In that respect, the Company currently collaborates with more than 200 universities and 15 strategic partners.
In addition, the Company is actively participating in external forums on competence evolution, such as the World Economic
Forum and European Commission (Pact for Skills - see section ‘Training and Mobility’).
In order to ensure quality time is dedicated to discuss employees' development, the Company has, as part of its annual
talent management cycle, implemented the systematic development talk for all employees (with their line managers). This
talk is an exchange between the manager and employee that can take place as often as needed and at least once a year,with the intention to discuss the individual development plan of the employee and to align personal aspirations with theCompany needs and expectations.

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The Company provides employees with a portfolio of self-awareness solutions and feedback tools that can be used toprepare for such a development talk and development plan. All agreed development items are formalised in the annual
development plan by the employee which is then validated by the manager. These actions may consist of:●
Learning experiences - projects, missions or career mobility;●
Social learning - peer-to-peer development, coaching and mentoring;●Formal training - courses, certifications and diplomas.
The competency assessment is a means to identify potential gaps in the expected skills and knowledge of employees linked
to their current position, and can be used to identify the employee’s development needs. The assessment can be performed
whenever necessary. It must be completed at least once every two years, or within the first month after a career mobility or asignificant change to an existing job.

Training and mobility
Accelerated during COVID-19 crisis, the digital learning strategy has allowed employees to remain active in theirdevelopment during periods of remote working throughout 2022.
In addition, in 2022, to support the skills foundations and Top Company Objectives, the Company has defined and assigned
compulsory learning plans directly to its employees, covering Ethics & Compliance, Export Control, Health and Safety,
Product Safety, Cyber Security, Internal controls, Diversity and Inclusion, Quality and Customer Centricity, Sustainability
Awareness. This approach allows the Company to ensure the employees are well informed, trained and aware about those
key topics related to major Company priorities. In 2022, 103,482 employees completed this compulsory learning plan.
From October 2021 to September 2022, the Company provided more than 1.7 million training hours to employees. In
addition to the physical classroom and digital training, more than 53,600 employees benefited from other leadershipdevelopment and transformation solutions proposed by the Airbus Leadership University. The Leadership University
continues to strengthen the Company’s approach to leadership, offering opportunities for all managers to drive theirdevelopment, while accelerating the culture evolution and human transformation of the Company. It offers a range ofleadership programmes which focus on developing self-awareness, leadership mindset, purposeful leadership and people
leadership capabilities. One such programme that is currently offered is “Management Basics & Leadership Foundations(MBLF)” which is a refresher training available to all managers, allowing them to revisit and explore the most essential
elements of managing and leading people in challenging times. As one of the main objectives is to drive collaboration andengagement in the context of a properly managed performance cycle, the aim is to increase team efficiency andeffectiveness. Between 1 October 2021 and 30 September 2022, 1,819 managers completed the MBLF training.
In addition to learning solutions and managerial opportunities for development, the Company has established career anddevelopment paths enabling employees to develop specific skills, competence and jobs, such as project & program
manager, architects & integrator and expert career paths.
The Company is also involved in the “Pact for Skills” initiative launched by the European Commission to address theup-skilling and reskilling challenge in Europe. It is working together with aerospace and defence industrial companies, publicauthorities, and education and training providers, to build common upskilling and reskilling programs and explore ways ofworking together in skills partnerships.
Mobility of employees within the Company provides overall benefit and value. Mobility helps employees develop new skills
and competences and serves the business by bringing new ideas and broader perspectives to teams, while ensuring theCompany has the right skills in the right place to secure the future. In 2022, more than 11,400 employees have changed jobs
through internal mobility.

Remuneration
The Company’s overall remuneration policy is in line with local practices and provides employees with a competitive overall
compensation package. It is also an enabler to attract new talents and retain talented employees contributing to theCompany’s business success. The Company strives to compensate its own employees with, at a minimum, a living wage
covering their basic needs calculated in-line with best practice. A dedicated action was launched in 2022 to assess currentalignment status.
For employees below manager level, collective labour agreements are applied in the Company’s home countries (France,
Germany, UK and Spain). This includes wage levels and increases, supplementary grants and gratifications (e.g., end ofyear gratification). Starting at manager level, compensation of employees can contain a variable part. The percentage ofsuch variable pay in total compensation increases at higher hierarchical levels.
In order to help face the energy crisis and inflation, the Company has decided to pay in 2022 an exceptional premium to its
employees, including apprentices and temporary workers. Around 150,000 workers received this exceptional premium at theend of 2022.
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Support for health care, unemployment insurance, national and Company pension systems as well as social security
contributions are implemented, at least in compliance with national regulations.
Some benefits or specific worldwide schemes are implemented such as sharing the financial and operational success of theCompany with the employees (international success sharing scheme deployed for around 115,000 employees in 2022) ordeveloping the Company share ownership culture (Employee Share Ownership Plan - "ESOP").
Employee Share Ownership PlanThe ESOP allows employees to participate in the success of the Company and to become shareholders of the Company
every year. This plan is an investment opportunity to acquire a certain number of Company’ shares, which is open to theemployees in more than 40 countries. Introduced in 2011, the ESOP scheme is a “share matching plan” in which theCompany matches the number of shares bought by the employee according to set criteria. An eligible employee in the frameof ESOP 2022 is part of an entity which is at least 50 % owned by the Company, and has been an employee between 31
December 2021 and 17 March 2022. In 2022, more than 61,000 eligible employees seized the opportunity to subscribe. 2.12
million shares were distributed to employees through the plan ESOP 2022.
Other benefits
Employees in the vast majority of countries all over Airbus can benefit from several measures allowing a better work-lifebalance, such as remote or hybrid (from home or else) working when this is compatible with the job position.
The Company has also set up "family friendly" measures such as childcare facilities accessible to employees in some sites
or alternative subventioned kindergartens, in countries like France, Spain, Germany, Canada, Brazil, Chile and India.
Parental leaves are granted at least in line with regulatory requirements. More than 60% of Company’s employees located in
more than 20 countries can benefit from maternity or paternity leaves that exceed local applicable regulations, in terms of
period of leave and/or in terms of level of salary compensation during such leave.

V. Outlook
The Company created the People Strategy in 2020 to ensure "Our People," the Company's most valuable asset, areprepared to carry out the business strategy.
The three pillars of the People Strategy - Engaging Leadership, Agile Upskilling of our Workforce and an Inclusive
Workplace - have guided the Company people-related activities over the course of 2022 and will remain paramount as theCompany continues to attract, recruit and retain the key competencies and skills needed to support business ramp up andkey programme launches.
Over the next two years the Company expects to pursue significant external hiring. Several thousand positions shall be filled
in different functional and geographical areas of the Company to support the ramp up in commercial aviation and to prepare
for the development of future programmes. A fifth of these recruitments will target the skills needed for the development of
new programs and new technologies.
In the meantime, the Company will continuously focus on people development to close the gap on critical skills needed andwill invest into emerging skills development. The Company continues its journey towards becoming an agile learningorganisation. Reskilling is a major part of the learning culture aimed at the Company, to support critical ramp-up projects inthe short term, and in the long term to sustain the acceleration of skills shift.
The employee experience is brought back at the centre of the Company priorities. For the coming years, the Better
Workplace programme is empowering Company’s employees to address and act upon the changes they aspire in every
dimension of their workplace. In uncertain times and with tremendous challenges ahead, the Company aims at remaining
one of the best places to work at. Through its Better Workplace programme, the Company is working toward giving every
employee the workplace they need, the tools they deserve and a culture they can celebrate.
In the challenging employment market, the Company will continue to invest in global attraction campaigns and to strengthen
collaboration with the business to deliver on staffing needs.

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Exemplify business integrity
6.1.14 Business integrity
I. Introduction
The Company’s Ethics & Compliance programme seeks to ensure that the Company’s business practices conform toapplicable laws, regulations and ethical business principles, as well as reinforcing a culture of integrity and speak-up.
In 2022, Ethics & Compliance continued to be a top priority for the Company. In its list of priorities for the year, the Company
set the objective to Speak Up, Listen Up and act with integrity and respect.
The Company has worked over the past several years to develop an Ethics & Compliance programme that is structured
around the following key risk areas: Business Ethics / Anti‑Corruption Compliance, Export Compliance and Privacy. Each ofthese areas is, in turn, supported by dedicated compliance policies and a team responsible for their implementation,
together with the identification and proposal of new measures to adapt to a constantly evolving regulatory landscape.
Improving the Ethics & Compliance programme remains a constant and ongoing process, in cooperation with other functions
within the Company, in order to sustain and capitalise on its values.

Business Integrity

GRI

SASB

SDGs

205 Anti Corruption

Business Ethics

16

Highest governance body(ies)involved

Board of Directors / ECSC
Executive Committee

Related corporate policies andreference documents

Anti Corruption Policy, Responsible Lobbying Charter
Directives: see below, section III. Risk Management
Code of conduct, Supplier Code of Conduct

External standards taken into
account

IFBEC's Global Principles of Business Ethics, FX Global CodeOthersKey metrics

2021

2022

Number of employees per appointed Ethics & Compliance Representatives
Number of employees per appointed Export Control Point of Contact

372

360
236

90%
284,77496%
290,178
149,426
3,181% of employees who completed the E&C training objective (Reporting period: from 1 Jan to 31 Dec)
Number of E&C e-learning sessions taken by employees (Reporting period: from 1 Oct to 30 Sep)
Of which Export Control e-learning sessions delivered to employees (Reporting period: from 1 Oct to 30 Sep)
Number of privacy e-learning sessions delivered to employees (Reporting period: from 1 Oct to 30 Sep)
Additional resources

9,327

Airbus Ethics & Compliance webpage, including CEO statement, Airbus Values
Anti Corruption Policy, Responsible Lobbying Charter, Airbus’ commitment on the protection of Personal
Data, Code of Conduct, Supplier Code of Conduct, OpenLine, Compliance at Airbus
IFBEC website ⇲, Global Foreign Exchange Committee website ⇲II. Governance
The Ethics & Compliance organisation is part of the Legal Department under the ultimate responsibility of the Company’s
General Counsel. The aim is to provide strong governance throughout the Company with the global presence of qualified
Compliance officers who ensure the Ethics & Compliance programme is implemented consistently in the different functionaland operational areas.
The Company’s Chief Ethics & Compliance Officer, who reports to both the General Counsel and the ECSC of the Board of
Directors, leads a dedicated team of Compliance professionals who are responsible for supporting and advising across theCompany on compliance related topics, supporting the day-to-day business, performing risk assessments, drafting policies,
conducting third party due diligence, investigating compliance allegations, implementing tools and controls and delivering
compliance training.

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The ECSC also plays a key role in the oversight and continued development of the Company’s Ethics & Complianceprogramme, organisation and framework for the effective governance of Ethics & Compliance.
In addition to the dedicated Compliance professionals, the Company is coordinating a network of part-time Ethics &Compliance Representatives (“ECRs”), spanning all Divisions, functions, and regions. The number of ECRs slightly
increased in 2022, with a total of 373 ECRs at the end of 2022 (compared to 340 at the end of 2021). Although the ECR
network members are not compliance experts, they play an important role in promoting the Ethics & Compliance programmeand culture and serve as points of contact for any employee who has questions about the Ethics & Compliance programmeor wishes to raise an Ethics & Compliance concern, including but not limited to bribery or corruption. The Ethics &Compliance team animates the ECR network, providing continuous training and information to the ECRs.
In February 2022, the Company launched the Export Control Points of Contact (“EPoCs”) network, spanning all Divisions,functions, and regions. Similar to ECRs, EPoCs are not export control experts but serve as “first line of defence” and the“go-to” individuals for export control matters. On the occasion of the launch, the Chief Ethics & Compliance Officer statedthat “by raising awareness among employees and acting as local focal points for queries on Export Control-related topics intheir respective functions, EPoCs will be key contributors to the Company's common objective: embed an export control
compliance system and culture throughout Company’s businesses.” By the end of 2022, the network was established andactive within the business, with a total of 570 EPOCs.
Likewise, the Personal Data Protection Officer (“DPO”) relies on a team of privacy experts to guide, train and advise thebusiness with respect to privacy requirements, and a network of Privacy Focal Points in the business functions and affiliates,
to support the Airbus privacy programme.

III. Risk management
The Company is required to comply with numerous laws and regulations in jurisdictions around the world where it conducts
business. This includes countries perceived as presenting an increased risk of corruption.
Accordingly, the Company conducts a thorough bribery and corruption risk assessment across its two Divisions and different
businesses annually. The results of this risk assessment are embedded and monitored within the Company’s ERM
framework and highlight, among others, the risk of improper payments being made to or via third parties such as sales
intermediaries, lobbyists and special advisors, suppliers, distributors and joint venture or offset partners. Further corruption
risks include the use of sponsorships, donations, or political contributions to improperly benefit decision-makers, or theprovision of excessive or overly frequent gifts and hospitality by Company employees.
In order to ensure its compliance with Export Control regulations and laws in the EU, US and internationally, the Company
continues to strengthen its Export Control compliance programme to ensure it is fit for purpose. Where risks are identified,they are embedded and monitored in the Company’s ERM. Identified risks include potential unauthorised access toexport-controlled data and hardware by third parties and non-compliance with the International Traffic in Arms Regulations(“ITAR”).
Regarding privacy, the Company undertakes privacy impact assessments depending on the nature of the personal dataprocessed or scale of the processing. In addition, risks relating to the protection of personal data are also assessed in thecontext of the ERM and kept updated.
Specific directives have been adopted to address the Company’s key compliance risk areas. These include among others:●
Requirements for the Prevention of Corruption in the Engagement of Sales Intermediaries;●
Requirements for the Prevention of Corruption in the Engagement of Lobbyists & Special Advisors;●
Requirements for Gifts & Hospitality;●
Requirements for Sponsorships, Donations and Corporate Memberships;●
Requirements for Supplier Compliance Review;●
Requirements for Preventing and Declaring Conflicts of Interest;●
Requirements for the Prevention of Corruption related to Mergers & Acquisitions, Joint Ventures, Partnerships andsimilar Transactions;●
Method for the Prevention of Corruption in the Context of International Cooperation & Offset Activities;●
Requirements for Anti-Money Laundering/Know your Customer;●
Guidelines for Competitive Intelligence Gathering Activities●
Requirements for Export Control Sanctions, Embargoes and Screening;●
Requirements for Export Control Framework;●
Requirements for Export Control Escalation and Voluntary Disclosure;●
Requirements for Export Control Brokering;
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●
●
●
●

Requirements for Export Control Classification;
Requirements for Export Control Licences and Agreements;
Requirements for ITAR Part 130 Reporting;
Personal Data Protection Directive, Method and Binding Corporate Rules.

The Ethics & Compliance organisation is charged with oversight and monitoring of these directives to ensure that they arebeing implemented effectively. Periodic controls on key processes are performed and reports provided to the Company’s
Executive Committee and the ECSC, including recommendations to strengthen the Ethics & Compliance programme where
necessary.
In addition, the Corporate Audit & Forensic Department conducts periodic, independent audits of the Company’s compliance
processes to assess the effectiveness of internal controls and procedures and allow the Company to develop action plans
for strengthening such controls.

IV. Implementation / activities
Awareness and training
As part of their annual goals & objectives, all Company employees are required to undergo a minimum amount ofcompliance training via e-learning. Additionally, depending on the function, the country and the level of risk implied by theirrole, certain employees are selected to attend live classroom training as well, including on Anti Bribery & Corruption andExport Control. Attendance in such cases is mandatory, and managers have a responsibility to ensure that their teammembers do so. Exposed employees are also required to complete regular training refreshers.
From 1 October 2021 to 30 September 2022, the Company’s employees followed 290,178 Ethics & Compliance e-learning
sessions, including on bribery, corruption and export control. Furthermore, 4,699 employees attended live classroom training
on different Ethics & Compliance topics over the period, the majority of which were delivered in virtual classroom settings
due to the pandemic.
Likewise, the Company also delivered anti-bribery and corruption training towards higher risk third parties, including sales
intermediaries, lobbyists and special advisors. In 2022, 100% of higher risk third parties were trained on Ethics &Compliance requirements and expectations.
The Company continued the roll out of the privacy e-learning as part of the Ethics & Compliance compulsory training
catalogue. 3,181 privacy training sessions were performed in 2022 (reporting period from 1 October 2021 to 30 September2022).
Speak-Up channel: OpenLine
The Company recognises that the Code of Conduct cannot address every challenging situations that may arise, andtherefore encourages its employees to speak-up through various channels, including through OpenLine (available
at https://‌www.‌airbusopenline.com). The OpenLine enables users to submit an alert securely and confidentially, and also
to ask questions related to Ethics & Compliance.
The Company protects those who speak up and raise concerns appropriately and in good faith. The Company does not
retaliate against anyone who raises a concern, or against those who assist in investigations of suspected violations.
In addition, the dataprotection@airbus.com mailbox is systematically published in the Company’s privacy policies andinformation notices specific to the various applications, to ensure that data subjects can exercise their rights and/or lodge
complaints.
To further increase awareness about Speak-Up, in 2022, the Ethics & Compliance team conducted an analysis of the resultsfrom the Company's internal survey “My Working Environment” to identify opportunities to continuously foster a Speak Up
culture. This analysis led to the launch of additional initiatives throughout the Company to promote Speak-Up culture,including the development of a Speak-Up team talk in January 2022, which was shared with all managers to help them raise
the importance of speaking-up with their teams. A simplified version of this “team talk” was designed and deployed within the
shop floor community.
In 2022, the Company received a total of 847 investigative requests of which 524 were HR related. Cases requiring
investigation are managed by dedicated members of the Ethics & Compliance team in accordance with an internal method
for the conduct of Investigations. The Ethics & Compliance team provides regular updates to the pool of internal
investigators, on internal policies, recent developments in the regulatory framework, and recurring reminders on investigation
best practices to ensure the consistent deployment of compliance investigations across the entire Company.
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In some instances, the Company may engage outside counsel for support, depending on the nature of the investigation.
The Ethics, Compliance & Sustainability Committee and other relevant stakeholders (including relevant authorities, if
applicable, and Company’s local management teams) are briefed regarding the progress and outcome of internal
investigations on a regular basis.
Policies and procedures
In 2022, the Company continued to improve its policies and procedures framework, by issuing a guidance on third parties
categorisation, for example, and translating the Code of Conduct into seven additional languages to maximise the reach ofthis foundational document. All policies and guidelines are made available to employees on the Intranet, and classroom
training is delivered to employees who are particularly exposed to the underlying risks as described above.
On the Export Control side, the Company has cascaded its Export Control requirements through nine Directives andMethods throughout the Company. The cascading triggered an update of the relevant business processes and wascompleted in Summer 2022.
In 2021 and 2022, as required under the Consent Agreement, two audits of the Company’s ITAR compliance programme
were undertaken by external counsels. Please refer to “Notes to the IFRS Consolidated Financial Statements - Note 39:
Litigation and Claims” (Investigation by the SFO, PNF, DoJ, DoS, Related Commercial Litigation).
Responsible lobbying charter
The Company is committed to ensuring that any lobbying activity is undertaken in compliance with all applicable laws and its
anti-corruption programme. In 2021, the Company launched a Responsible Lobbying Charter aimed at anybody who
engages with public officials in any capacity, including third party representatives retained by the Company. The Charter
outlines the Company’s core principles for responsible lobbying and brings together the Company’s key codes and directives
relevant to this topic. The principles are also reinforced by a training module available to all employees.

V. Outlook
An effective Ethics & Compliance programme is one that, by definition, continuously adapts to changes and improves overtime. Going forward, the Company will continue to assess its risks and monitor and test the implementation of mitigation
measures at all levels: corporate level, Divisions, regions and local entities.
When misconduct reveals a gap in compliance policies, procedures or tools, the Company undertakes revisions to its Ethics& Compliance programme commensurate with the wrongdoing and in light of lessons learned. While compliance at theCompany will therefore always be a work in progress, the Company is committed to this endeavour, as it aims to make its
Ethics & Compliance programme sustainable over time.

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6.1.15 Responsible supply chain
I. Introduction
At the end of 2022, approximately 18,000 suppliers from more than 90 countries supply parts, components, systems andservices to the Company.
In 2022, the Company’s externalsourcing volume was estimatedaround €44 billion and shared
between Divisions with 77% for theCompany’scommercial
aircraftbusiness, 14% for the Airbus Defence
and Space Division and 8% for the
Airbus Helicopters Division.
Of note, these figures may marginallychange, as the data consolidation
process was not finalised at the dateof publication.
RESPONSIBLE SUPPLY CHAIN

GRI

SASB

SDGs

Others102-9 Supply Chain
204 Procurement Practices
308 Supplier Environmental Assessment
408 Child Labor
409 Forced or Compulsory Labor
414 Supplier Social Assessment

Materials Sourcing

4, 5, 8, 9, 12,
13, 16, 17

Vigilance
plan

Highest governance body(ies)involved

Board of Directors / ECSC
Sustainable Supply Chain Roadmap Steering Committee

Related corporate policies

Responsible Mineral Policy, Environmental Policy, Health and Safety Policy

Certifications

ISO14001

As Company’s commercial aircraft business and its two Divisions are certified, control
and influence of the supply chain is concerned.

Company’s commitments toReference to certain international organisations standards or principles, in particular ILO have beenexternal standards and frameworks included into the Airbus Supplier Code of Conduct
KPIs
Percentage of sourcing volume of suppliers invited to CDP
who have responded
Percentage of identified high risk suppliers(2), who have undergone asustainability assessment

2022 Target

2021

2022

2022 vs 2021

75%

(1)

(6)

+9p.p.

68%

78%

100% (5)

95%

99.5%

+4.5p.p.

Percentage of sourcing volume covered by supplier commitment to
the Supplier Code of Conduct(4)85%79% (3)

86%(6)+7p.p.

Digitalization of supplier substance data collection - supplier sites

290(7)--

298

Other key metrics

2021

2022

Sustainability assessment: percentage of assessed suppliers
not meeting the Company’s sustainability expectations (=red flags)

13%

16%

Percentage of action plans defined for suppliers not meeting theCompany’s sustainability expectations

15%

31%

Percentage of responding suppliers to the CDP scoring A or B

53%(8)

66%(6)

12

44

Number of sustainability alerts
Assumptions(1) Based on 2019 turnover. (2) Based on 2019 risky suppliers (see details further in § Risk Management/1. Supply base risk
mapping).19 suppliers have since 2019 been removed from the scope (see details below). (3) Based on 2020 turnover.
(4) Subsidiaries excluded from the scope. (5) 2021 target. (6) Based on 2021 turnover for the Divisions and the entity in Canada(7) Target defined for the Company's commercial aircraft business. (8) Based on number of suppliers.

Additional resources

Supplier Code of Conduct, Environmental Policy Statement, Responsible Mineral Policy statement,
Be an Airbus supplier on Airbus.com; Human Rights Policy, IFBEC⇲, Responsible Minerals
initiative⇲, OECD Due Diligence Guidelines for Responsible Business Conduct⇲
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In 2022, the Company sourced 89% of its
total purchased volume from countries inwhich it has significant operations,
including France 34%, USA 23%,
Germany 16%, United Kingdom 9%, Spain
4%, Canada 2% and China 1%.
While the Company’s products andservices are sold all over the world, themajority of its supply chain is based inEurope and OECD countries. However, inthe past few years, the supply chain has
becomeconcentrated
and
moreinternational. In addition, and due toincreasing
consolidation
withintheaerospace and defence sector, larger work
packages are being placed with a smaller
number of lead suppliers.

Company’s 2022 total spent regional split

The Company’s global sourcing footprint is represented as follows based on Tier one suppliers only.
To promote further globalisation of its sourcing footprint, the Company has established regional procurement offices in North
America (Herndon, VA), India (Bangalore), Asia Pacific (Singapore) and China (Beijing). The regional procurement offices
represent the Procurement function in the respective regions. They are responsible for strategic sourcing, generalprocurement and supplier development (procurement operations) while supporting the application of the Company’s
procurement process and policy and digital solutions. As the Company’s commercial aircraft business and its two Divisions
are certified ISO14001, the Procurement function acts in adherence with ISO 14001 requirements.

II. Governance
The Company’s sustainable supply chain ambition is built on four pillars: “lead the journey towards clean aerospace, respecthuman rights and foster inclusion, build our business on the foundation of safety and quality, exemplify business integrity”.
Derived from this ambition, the Company’s Sustainable Supply Chain Roadmap is based on a three-step approach; suppliercommitment, supplier assessment, supplier engagement & development.
The Company strives to make environmental and social responsibility a core element of its procurement strategy. This
includes managing the relationships with suppliers throughout the sourcing strategy, supplier selection, contract
management and supplier monitoring and development. The Company’s suppliers must comply with all applicable laws andregulations. In addition, all business shall be conducted by suppliers in compliance with the principles of the Company’s
Supplier Code of Conduct, which is the document of reference for the Company’s responsible supplier management. This
Supplier Code of Conduct integrates the group-wide values and principles in line with internationally recognised standards
and conventions (such as OECD and ILO).
In order to drive the Sustainable Supply Chain Roadmap (SSCR), a monthly steering committee chaired by the Head of
Sustainability & Environment, and the Head of Procurement Governance & Strategy and the representative of the Chief
Procurement Officer of the Company is implemented. The steering committee includes Chief Procurement Officers of Airbus
Helicopters and of Airbus Defence and Space, as well as the Head of Health & Safety, the Head of Product Safety and theHead of Ethics & Compliance, or their nominated representatives. The EVP Communication and Corporate Affairs and theChief Procurement Officer of the Company act as sponsors of the SSCR. In addition, the Head of Procurement Governanceand Strategy is part of the Procurement Leadership Team (PLT) and is responsible for facilitating the communication onsustainability activities between the SSCR and the PLT on a regular basis.
In 2022 the SSCR steering committee validated the annual planning and quarterly reviewed the progress of its sustainablesupply chain roadmap implementation notably regarding the assessment of suppliers' sustainability practices as well as thereinforcement of the engagement with suppliers. On top of those forums, the Chief Procurement Officer of the Company also
reports to the ECSC on the progress of the Company’s responsible sourcing strategy implementation.
Concrete sustainability targets have been included in the 2022 objectives of the Company’s Chief Procurement Officer(“CPO”) and are directly linked to the CPO’s variable pay and cascaded through the Company’s Procurement organisations:Airbus SE/ Report of the Board of Directors 2022

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●
●
●

Commitment by suppliers to Airbus Supplier Code of Conduct for 85% of the 2021 sourcing volume;
Supplier sustainability assessments completed for 50% of the 2021 sourcing volume;
Response of suppliers to CDP assessment for 75% of the 2021 sourcing volume.

All sustainability activities in the supply chain are based on the following key elements and principles of due diligence
following the OECD Due Diligence Guidance for Responsible Business Conduct:●
supply base risk mapping;●supplier engagement and contractual requirements;●
supplier assessment/audits and development plans;●
policies, tools and reporting.
For any anti-corruption topics in the supply chain, the Procurement function cooperates closely with the Legal & Compliancedepartment. The Company has also engaged into a plan to further develop its due diligence mechanisms (see IV. Due
Diligence in the supply chain).
Those priorities are consistent with the most material topics identified in the Company’s supply chain.

III. Risk management
The Company’s procurement-related risks and opportunities are embedded into the Company’s Enterprise Risk
Management (ERM) process. Risks and opportunities related to the deployment of the sustainability roadmap in the supply
chain are managed according to the Procurement ERM plan and detailed hereafter.
1. Impact on the Company’s reputation
Any industrial accident or other serious incident in the supply chain, or any problems of the supplier to fulfil its operational or
product compliance may have a significant adverse effect on the reputation of the Company and its products and services.
The Company’s reputation may also be affected by the public perception of social and/or environmental impacts of its supply
chain’s industrial operations on local environments, communities, biodiversity and the general public’s health.
2. Impact on the local environment
From the extraction of raw materials to the manufacturing of parts delivered to the Company, a supplier’s industrial
operations may have significant adverse environmental impacts on the local environment where the activity is performed,
with possible impacts on air, water, soil, biodiversity, workers’ occupational health and safety, on the health of the generalpublic, on the land rights of the local or indigenous communities and on forced & child labour (see salient risks in section “ 6.1.10 Human rights”).
3. Business disruption risk
In the event of a supplier failing to comply with environmental, human/labour rights, health and safety laws and regulations,even if caused by factors beyond its control, that failure may result in the levying of civil or criminal penalties and fines
against the supplier. Regulatory authorities may require them to conduct investigations and undertake remedial activities,
curtail operations or close installations or facilities temporarily to prevent imminent risks.
4. Risk of product non-compliance
The various products manufactured and sold by suppliers must comply with applicable environmental, human/labour rights,
health and safety laws and regulations, for example those covering substances and product composition. Even if a supplierseeks to ensure that its products meet the highest quality standards, increasingly stringent and complex laws andregulations, new scientific discoveries, delivery of defective products or the obligation to notify or provide regulatory
authorities or others with required information (such as under the REACH regulation) may force it to adapt, redesign,
redevelop, recertify and/or remove its products from the market. Seizures of defective products may be pronounced andcould prevent delivery to the Company. In response, a Procurement Task Force has been established to ensure group-wide
governance for supplier management and assessment of chemical regulations and obsolescence impact. This task force
also coordinates communication to suppliers on substance issues and on substitution solutions qualified by the Company.
In this frame, the Company provided to its supply chain a dedicated Tool Kit on "REACH Substances - Certain Requirements& Substitution programmes". This Tool kit reminds the main principles of the REACH regulation as Authorization,
Restrictions and Substitutions programs in order to raise the attention of the supply chain on these challenges.
In response to the above 1. to 4., the Company deploys responsible sourcing activities and specific supplier due diligence
actions in the frame of the SSCR.

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IV. Supply chain vigilance plan
1. Due diligence in the supply chain
In 2022 the Company launched a project aimed at reinforcing due diligence in its supply chain. The outcomes of the projectwill be rolled out in 2023. Activities under this project cover primarily the Company’s own suppliers; nonetheless, if an alert
raised is linked to an upstream supplier, the Company will act on it as appropriate.
Alert and grievance mechanism
From 2019, the Company’s OpenLine has been accessible to external stakeholders, such as suppliers and their employees.
For further information on OpenLine, see “– 6.1.14 Exemplify business integrity”. Access to OpenLine has been reiterated in
the updated Supplier Code of Conduct.
In addition to OpenLine, the Company’s sustainable supply chain team may receive alerts from other sources including
through the supplier onboarding process, media or directly from employees. During 2022, the sustainable supply chain
roadmap received alerts on 44 potential allegations relating to environmental and human rights concerns in its supply chain.
The number of alerts increased in 2022, following the change of external service provider supporting this exercise, and theinclusion in a more systematic manner of sustainability criteria into the screening (including human rights, environment,
health and safety). Analysis and/or investigations of those alerts are either complete or still in progress, according to bestpractice developed by the legal and compliance team as detailed below:● initial review to determine if an investigation is needed;● detailed analysis of the allegation including collection of evidence,● assessment of information and documentation collected during the investigation, preparation of an investigation reportwhich summarises the findings and proposes remedial actions necessary to reasonably respond to and prevent therecurrence of the conduct, if any;
● closing the investigation and reporting;● monitoring of the implementation of remedial actions.
Supplier risk mapping
The supplier risk mapping is based on the alerts and grievance mechanisms detailed above, as well as the inherent risk
mapping described below. It covers primarily tier-one suppliers; nonetheless if an alert raised is linked to a sub-tier supplier,
the Company will include it in its risk mapping and act on it as appropriate.
Since 2018, the Procurement team has carried out annual proactive sustainability inherent risk mapping in line withinternational guidance, internal commodity expertise and externally available country indices. In 2021 and 2022, with thesupport of external advisors, the Company upgraded its inherent risk mapping methodology building on risk indexes
considering the location and the type of activity performed by the suppliers. This allowed the delivery of an up-to-date
suppliers’ sustainability risk assessment and to identify suppliers most at risk regarding human rights, environment andhealth and safety (e.g. association freedom, decent wages, pollution).
In 2022, the Company updated its inherent risk mapping to rank its active suppliers according to this methodology. The
riskiest suppliers will be invited to undertake an evidence-based desktop sustainability assessment according to theprogramme developed in 2022 with IAEG (see VI. Engagement and awareness). Based on this assessment, a supplier notsatisfying the Company’s sustainability expectations, which means not meeting a defined level of maturity for each category,
will be classified as “red flag”, and will be requested to develop an improvement action plan.
Assessment - evidence-based desktop assessments
The Company conducts two types of evidence-based desktop assessments: sustainability and carbon maturity. Since 2019,
the Company has worked with external expert companies to conduct evidence-based desktop sustainability assessments
and specific on-site assessments covering human rights, labour practices, health and safety and environment. At the end of2022, 99.5% of the suppliers identified as high risk according to the Company’s 2019 risk mapping methodology (in 2022, 19
suppliers were removed from the list for reasons such as not doing business with the Company anymore, or being a
distributor) completed an evidence-based desktop assessment compared to a target of 100%.
In addition to suppliers identified as high risk, the Company extended the coverage of the assessment to additional suppliersin order to progressively cover a more representative portion of its supply chain. At the end of the year 2022, 73% of thesourcing volume was covered. Out of the suppliers completing an assessment, 16% (118) have at least one red flag (mainly
linked to the environmental criteria). Those red flags are mainly linked to the environmental category for which the Company
is requesting details on processes in place at the suppliers for capturing and satisfying regulatory changes, as well as for acertified environmental management systems addressing, notably, management of chemicals and GHG emissions.
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Since 2020, the Company has engaged in the supply chain programme of the Carbon Disclosure Project in order to promotetransparency about climate actions in the Company’s supply chain. See section 5. CO2 emissions.
Assessment - On-site assessments
A particular situation triggered by a result of an evidence based desktop assessment, or by any sustainability alert, may lead
the Company to request an on-site assessment at a particular supplier site. In 2022, the Company performed seven on-site
assessments. The Company engaged with suppliers on findings in order to improve the situation, when relevant.
Engagement & mitigation measures
The Company engages directly with suppliers in a number of different circumstances:●If sustainability alerts have been reported linked to those suppliers;●
If a supplier has been identified as risky in the frame of the risk mapping methodology;●
If a supplier's assessment results have raised concerns on one or more sustainability aspects.
The results of the completed assessments (including a sustainability or CDP assessment) are communicated during eventswith suppliers and engagement takes place with all suppliers presenting findings. In addition, the Company reviews its
relationship with suppliers who refuse to participate in its assessment programme.
On top of the above-described engagement linked to due diligence and findings, the Company is also engaging with its
supply chain as described in section 3. Engagement and awareness below.
2. Traceability
Substances
See section III. Risk management.
End of 2021, the Company launched a project to digitise the way for the suppliers to provide substance in products
information. The main objective is to improve traceability and transparency on Substances in products from the supply chain
related to regulatory requirements. It also aims at replacing the current process and allowing an automated way of sharing
this information. The solution for supplier substance data collection project started in 2022, with a target for the Company’scommercial aircraft business of 290 suppliers’ sites to be deployed in the digital solution by year end. At the end of 2022 thistarget was achieved.
Responsible mineral sourcing
The Company places great importance on the responsible sourcing of materials used in manufacturing. Some minerals
including 3TG (tin, tungsten, tantalum and gold) are necessary for the proper functioning of components within its products.
The Company largely does not directly import minerals, but these minerals are found in certain products the Company
procures. In that context, the Company requires all suppliers to comply with applicable laws and regulations on conflictminerals, including any 3TG conflict minerals. In 2019, the Company released a Responsible Mineral Policy, which details its
engagement to improve safety and human rights conditions in the mineral supply chains. As described in the section Work
with External Stakeholders hereafter, the Company benefits from the Responsible Mineral Initiative (RMI) experience &available audits, tools and standardised ways of working.
For the small portion of direct procurement of parts containing minerals in the Company’s Defence and Space Division, a
dedicated Conflict Mineral Management System has been established. For this small portion of direct import, the Defence
and Space Division is proactively asking suppliers to disclose proof of responsible sourcing and is cross-checking this datawith third parties’ audits available through the RMI trade association. In 2022, the Company’s Defence and Space Division
imported articles made of tungsten of the relevant Taric code above regulatory binding threshold; those articles are used ascounterweight for aircraft. The Company’s Defence and Space Division forecasted this import and performed relevant due
diligence for the unique supplier supplying the material involved. The supplier was informed that the Company’s Defence
and Space Division is expecting responsible sourcing for the tungsten purchased under this contract. The supplierdemonstrated that this material was exclusively originating from responsible sources.
This claim of responsible sourcing is based on third party audits of the smelters involved to deliver the products. The
Company reviewed this claim and recognized that the audits were part of the RMI scheme and that smelters involved in the
supply chain of the tungsten concerned metals conformed to RMI standards.
The Company is also monitoring developments from the European Commission on Critical Raw Materials (CRM) and isinvestigating the possibilities to take a deeper look at its related supply chain, through direct involvement and/or tradeassociations. The Supplier Code of Conduct formally requires suppliers to establish a policy and a management system toensure that critical raw materials are sourced responsibly.

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3. Engagement and awarenessContractual requirements
The Company’s standard procurement contract templates have evolved over the last few years to reinforce clauses relating
to sustainability and environment which require suppliers to:● comply with all applicable laws and regulations dealing with labour and employment, health and safety, environment,anti-corruption and bribery and personal data protection in relation to production, products and services;● provide information on substances used in manufacturing processes and contained in the product itself (covering both
hazardous substances and conflict minerals);● provide information on environmental, health and safety matters such as safe usage and management of products
across its lifecycle (including waste management);● implement an Environmental Management System based on ISO 14001 or equivalent;● comply with the Company’s anti-corruption and bribery requirements; and● commit to apply and cascade in its supply chain the principles of the Company’s Supplier Code of Conduct, including
with regard to environment, human rights, labour practices, responsible sourcing of minerals and anti-corruption.
● comply with the Company’s sustainability requirements such as maturity assessment by an external expert company
and completion of a questionnaire during the call-for-tender phase.
The Company’s contractual requirements enable assessment of levels of suppliers’ compliance.
Processes
In 2021, the SSCR steering committee agreed to anchor sustainability requirements into procurement processes of theCompany. In 2022, the Company introduced sustainability in its supplier selection process. Sustainability is now one of theselection criteria in a call for tender. Suppliers are requested to fill in a sustainability questionnaire based on theirgovernance and on the specific performance of the product or service the Company intends to source. The questionnairenotably requests information on certifications (e.g. environment, health and safety) and processes, as well as on resources
used and on the impact of processes related to product manufacturing or service delivery.
This also includes the agreement from suppliers to regularly fulfil the evidence-based assessment on sustainability (seesection Assessment above) and for the most important suppliers - based on annual spend with the Company - to betransparent on their climate change strategies (see section 5. CO2 emissions below). This will ultimately require suppliers tocooperate when a sustainability risk is identified, including with further analysis into the supplier’s supply chain (seeparagraph Contractual requirements above).
Supplier award and dialogue
The Company is fostering suppliers’ engagement through direct dialogue and values the commitment, contribution andefforts of its supply chain to improve on sustainability topics.
In 2022, the Company launched the first Airbus Supplier Sustainability Council establishing a framework to step-up
collaboration within its supply chain on sustainability and fostering a new model of engagement with suppliers. The target isto launch concrete improvement initiatives co-led by representatives of the Company and of members of the council. The
council will focus on areas such as decarbonisation, transparency and engagement acting as key enablers to accelerate
specific initiatives from industry bodies such as IAEG and to share best practices across the full supply base.
Sustainability is a standard agenda item in regular reviews or conferences with suppliers, including the Annual SupplierConference for the Company’s commercial aircraft business, the Defence and Space Division supplier conference or the
Suppliers’ councils. During these events, workshops take place to enable exchange on best practices and futurecollaboration.
The Company continues to give awards to its suppliers contributing positively to sustainability. In 2022, SABCA wasawarded by the Company’s commercial aircraft business for its 5-year plan to cut CO2 emissions at its site by installing windturbines, solar panels and optimising transportation of its employees and logistic flows. For the second time, Hexcel
Composite was also presented with an award for its sustainability efforts and its innovation in composite recycling during the
Defence and Space Division Supplier Awards.
Training & awarenessTrainings & competences
The Company's Procurement Academy defines jobs, competences, skills, and associated training to ensure procurement
employees in all Divisions are ready to face current and future challenges. In 2022:● The Sustainability Fundamentals competence was added to all procurement jobs to ensure generic understanding ofsustainability principles.
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● A new job “Procurement Sustainability Officer” was created for people in the organisation who are dedicated tosustainability in the supply chain.
● A new competence “Sustainability Concern Management” was defined to develop the ability to identify situations where
sustainability is at stake in all its dimensions (e.g. Human Rights, Environment, Health & Safety), as well as to define
measures to comply with Company's Supplier Code of Conduct. This competence is part of the Procurement
Sustainability Officer job and will be added to buyer and Supply Chain Quality Management (SCQM) jobs when relevant.
To support people upskilling, on top of existing Company training courses on sustainability, the Company’s Procurement
organisation developed an awareness of the contractual environmental clause with pilots in 2022, as well as a specifictraining on human rights with pilots in 2022. This awareness and human rights training will be deployed from 2023, giving
priority to buyers and quality and supply chain managers in charge of risky suppliers.
Additionally, sustainability modules are embedded in Procurement’s newcomer induction path and Procurement Manager
Development Programme (development programme for future leaders in procurement function).
Communication
During 2022, the Company has continued to implement its communication to raise awareness on the different pillars of its
sustainability ambition amongst its employees, suppliers, and customers. In particular:● Awareness sessions have been carried out in relation to the initiatives of the supply chain roadmap: for instanceaccompanying the deployment of the new sustainability questionnaire in calls for tender, or developing the ability ofprocurement operation teams to identify sustainability issues when visiting suppliers on-site.
● Communication activities in 2022 spread the key messages about the importance of sustainability. Internally, forinstance, there was a presentation of the SSCR progress during the procurement annual roadshow, and a SSCR
“marketplace” during the annual sustainability town hall. Externally, the Company’s CPO participated in the IAEG
sponsor meeting about supplier assessment and development, as well as the Bundesverband für Materialwirtschaft,Einkaufe & Logistik (“BME”) conference in Berlin.
● The toolkit presenting sustainability in the supply chain, deployed in 2021, targeting internal and external population, isregularly updated.
● Different additional communication means are being used such as: posters, kakemonos, a dedicated intranet website,
participation in internal events promoting sustainability initiatives.
Gemba walk
In 2019, the Company introduced Supplier Factory Visits called “the Gemba Walk” pocketbook, applicable to commercial
aircraft activities, which is a practical and visual guide for the Company’s employees when visiting the shop floor of a
supplier, supporting the identification and reporting of risks or improvement opportunities observed during factory visits.
Work with external stakeholders
The Company is a founding member of IAEG, which is working on common aerospace industry standards and tools tomanage environmental obligations. More specifically, for the supply chain, IAEG has developed:● a supply chain environmental survey, which the Company implemented in 2019 and which will be used as environmental
assessment module, as mentioned in the section Assessment above;● an EMS implementation guideline to encourage a wider uptake of EMSs as appropriate for each supplier in a phased
approach and cost effective, consistent and supportive manner;● the definition of an Environmental Qualification Program to assess and develop the environmental maturity of suppliers.
Under Company’s leadership, the IAEG (initially focused on environment) extended its scope of actions to environmental,social and governance topics. In 2022, and co-led by the Company, a contract has been established between IAEG and theselected service provider to build a sectoral approach for supplier engagement and 2023 will be the year of deployment.
As a co-founder of the International Forum on Business Ethical Conduct (“IFBEC”), the Company is supporting theapplication of global standards for business ethics and compliance. IFBEC members have established a Model Supplier
Code of Conduct which expresses the minimum ethical standards to be applied by suppliers throughout the aerospace anddefence industries. It also encourages suppliers to go beyond legal compliance, drawing upon internationally recognised
standards in order to advance in social and environmental responsibility and business ethics.
All suppliers are now being asked to sign a confirmation of compliance with the principles of the latest version of the
Supplier Code of Conduct (or to confirm their own practices are aligned with the principles set out in this Code), and tocascade these principles throughout their own supply chains. The Company is committed to support suppliers, where
necessary, to improve their own human rights due diligence.
In 2019, the Company joined the Responsible Business Alliance’s Responsible Mineral Initiative (“RMI”), in order to further
enforce activities of responsible sourcing while applying industry standards for supplier due diligence and data management

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in accordance with the OECD framework. In 2022, it decided to extend its membership to the whole Responsible Business
Alliance (“RBA”) initiative.
4. Other initiatives
Promoting disability-friendly companies
Since 2011, the Company has been promoting employment of disabled people by its suppliers starting with a particular focus
on France. Disability-friendly companies often take part in the call for tender process either through direct offer orpartnership. The procurement volume with disability-friendly companies has been multiplied by five over the decade goingalong with the development of the disability-friendly companies’ ecosystem.
In 2020 and 2021, the Company’s global volume of business was drastically reduced by the pandemic impacts. It has also
resulted in a significant reduction of the volume with disability-friendly companies. In 2022, the volume with disability-friendly
companies is back to pre-pandemic levels: more than €50 million of annual turnover which represents a 20% increase
compared to 2021. Around 60 disability-friendly companies are working with the Company to date.
The Company’s ambition is now to reach €100 million annual turnover with disability-friendly companies in 2025. The
Company will continue to develop business with the disability-friendly companies through direct contracting or partnerships,
primarily in France and also in Spain and Germany. In addition, the Company is actively developing inclusion awareness.
For instance, in October 2022, the Company organised a (Dis)Ability forum in Toulouse with 45 disability friendly companies
and 250 participants. The Company also decided in 2021 to be the sponsor of the Digital Consortium, created by the UNEA
(Union Nationale des Entreprises Adaptées) and composed of 80 French disability-friendly companies. The first contracts
with this consortium are about to be signed.
Plastic-free supply chain
Based on the UN SDGs, specifically SDG 12 (responsible consumption and production), a plastic-free supply chain project
was launched in 2019 within the Company’s Defence and Space Division with the aim of reducing, reusing and recycling
single-use plastic waste and packaging in the Division’s scope of involvement by 2025. The Division achieved a single-use
plastic reduction of 24,5% in the logistics area at all sites in 2022 versus a 2020 baseline. This achievement has beenpossible through different actions: implementation of plastic-free packaging alternatives, improved plastic-reduced
processes, introduction of the packaging clause in the Airbus Supplier Code of Conduct and in the Division's contractual
Environmental Annex, and an increased awareness on plastic consumption and waste among employees. The target is toprogressively move to a more circular approach to the use of plastic.
5. CO2 emissions - see “- 6.1.2 Climate change” / IV. Transition plan / Supplier engagement, “- 6.1.17 ESG data board”.

V. Outlook
The Sustainable Supply Chain Roadmap (SSCR) is constantly evolving to actively endeavour to mitigate sustainability risks
in the supply chain, adapt to progressing sustainability requirements and support the Company’s ambition to be moresustainable.
The SSCR is building up on its installed initiatives to deploy them. The SSCR is as well continuously enlarging its impact. In
2023, notably this includes:● reinforcing the risk identification and risk assessment of the Company’s supply chain due diligence plan with enlarged
targets;● continuing to ensure the adherence of the Company’s Supplier Code of Conduct principles throughout the Company’s
supply base;● extending the scope of supplier sustainability assessments by requesting new suppliers to perform such an assessment
and by extending to existing contracts in order to reach 80% of the spend volume in 2025;● engaging with suppliers based on the assessment outcomes and developing action plans when required;● becoming a member of the Responsible Business Alliance;● for the Scope 3 PGS calculation, the Company has engaged in some work to launch a transition from a spend based
methodology to a hybrid (i.e. spend based mixed with mass based) methodology. The target is to be able to start
reporting on hybrid approach in 2024 on 2023 data;● developing the collaboration within the supply chain in the frame of the Airbus Supplier Sustainability Council throughconcrete activities notably on decarbonisation and transparency ambitions and roadmaps;● To support people upskilling, on top of existing Company trainings on sustainability, the Company’s Procurement isdeveloping an awareness on the contractual Environmental Clause with pilots in 2022 for a 2023 deployment, and a
specific training on Human Rights with pilots in 2022 for a 2023 deployment.
Airbus SE/ Report of the Board of Directors 2022

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6.1.16 Community Impact
I. Introduction
The Company takes global collective action to support communities with a focus on the most vulnerable, the environment,
and young people throughout the world where the Company operates. Products, services and employees are mobilised withfocus on equitable and measurable solutions, in line with the Company Purpose.
Community Impact

GRI

SDGs

413 Local communities

All 17 SDGs with a focus on 1,2,3,4,5,13, 14, 15 and 17

Highest governance body(ies)involved

Board of Directors / ECSC
Airbus Foundation Board of Directors
Airbus Foundation Endowment Fund Board of Directors

Related Corporate Reference
Documents

A42 Community Impact Policy
A1133 Directive on Sponsorships, Corporate Donations & Corporate Membership
The bylaws of the Airbus Corporate Foundation and the Airbus Foundation Endowment Fund

Key metrics

2021

2022

Number of Sustainability Ambassadors

207

448

0

4%

% of employees onboarded to the +impact platform
Additional resources

Community impact on Airbus.com; Airbus Foundation on Airbus.com, including its annual reports

II. Governance
The Sustainability - Develop & Engage department manages the global strategy and framework for community impact in the
Company and supports the operations of the Airbus Foundation. A global network of community impact focal points
representing the major markets where the Company operates has been established, as welI as a committee of specific topic
experts who provide guidance, assessment and recommendations according to the Community impact priority themes.
Community Impact has been integrated into the business at policy, directive and operational levels with a formalised
assessment and decision process now in place for corporate donation requests submitted by business lines. Awareness andadoption of the policy is supported by the Sustainability Networks, including the Sustainability Ambassador network whichgrew by 116% in 2022. In addition, there are standard reporting lines to the Sustainability & Environment organisation with
top level oversight provided by the ECSC at the Company’s Board of Director level.
The Airbus Foundation and Airbus Foundation Endowment Funds are registered as non-profit entities of general interest
under French law, with specific Articles of Association that define their respective mission and remit. Their strategy andoperations are led by the Managing Director and each entity has formal governance with its own Board of Directors
comprised of membership from across the founding companies, employee representatives and external experts. The Airbus
Foundation and Airbus Foundation Endowment Fund annual reports and accounts are submitted annually to the Frenchauthorities.

III. Implementation / activities
2022 focused on strengthening the Company’s collective approach to community impact, bringing together the various
business, non-profit, and employee engagement channels under a collective mission with integrated processes and tools to
support the deployment across the business. Having a consolidated, focused strategy proved vital during a year which saw
a compound of societal challenges - communities continued to cope with or recover from the COVID-19 pandemic; climate
related disasters; and conflict. All of which not only generated an immediate emergency response need, but also thelonger-term impact on the global economy.
During 2022, as part of the development of the Airbus Community Impact policy, the Community Impact network
implemented 22 pilot projects across 15 countries to test the new strategy and inform the future impact measurement
methodology. In November this year, the Company in cooperation with the Airbus Foundation, also launched the +impact
digital platform globally across the Company, providing employees with a dedicated online space to learn about the new
Airbus SE/ Report of the Board of Directors 2022

166

policy and partnerships, create and coordinate volunteering opportunities, fundraise, donate and take positive action onsustainability topics.
Supporting vulnerable communities
During 2022, the Company continued to focus on supporting vulnerable communities through disaster response, innovationor fundraising to tackle topics such as poverty, hunger and access to essential services.
In addition to the COVID-19 and Ukraine response, partnerships were developed in several regions to support vulnerable
community needs. In Asia Pacific, the Company partnered with the Manila Water Foundation to install a clean water station
in a school located in a remote province in the Philippines that previously lacked access to a safe water supply. In Latin
America, the Company partnered with TECHO, a non-profit organisation that mobilises youth volunteers to fight extreme
poverty, to construct transitional housing and implement social inclusion programs. This partnership resulted in theconstruction of four homes for four vulnerable families in Santiago de Chile, Mexico City and Sao Paulo, with theparticipation of Company’s employees. These homes were built following full consultation with the families and wider
communities as well as assessment of the broader ecosystem to ensure that a network of support exists for the longer term.
Company’s employees also worked together to show their support for vulnerable communities. In the United States,
employees from all divisions participated in the Make a Difference fundraising initiative in aid of World Central Kitchen. In
Spain, a group of volunteers prepared humanitarian kits for the Spanish Red Cross; and across our sites, employees rallied
to fundraise and collect goods for organisations supporting the immediate needs of Ukrainian refugees. For the second year
running, the Airbus Foundation also participated in the Action Against Hunger global wellbeing challenge, Connected
Against Hunger, with nearly 1,800 Company’s employee participants.
The Airbus Foundation continued to support its partners in disaster response by coordinating relief and goodwill flights
carrying more than 138 tons of aid to Madagascar, Moldova, Poland, Pakistan, and Ethiopia. Aid transported included
emergency shelter, medical and hygiene supplies, food and kitchen equipment. Additionally, 209 helicopter flight hours werechartered to Kenya, Madagascar, Philippines and the Democratic Republic of Congo to respond to flooding, malnutrition anddisplacement of populations. The Foundation also responded to 75 satellite imagery requests from partners representing
around 21,700 km2 for disaster assessment and response plans, to monitor displacement and flooding, and plan medical
activities in Yemen, Chad, Iraq and Sudan amongst others.
In Kenya, the ongoing project to install innovative water units in under-served locations reached a new level of maturity withthe upgrade of four existing units and installation of three new units. To date, 8,350 students have been given access to safe
water and educated on good hygiene practices. The communities around these seven schools in Mukuru are also benefitingfrom the safe drinking water.
In addition, bespoke satellite imagery training was provided to several humanitarian partners to increase their capacity insatellite imagery analysis and interpretation, as well as leadership training via the Airbus Leadership University. Via its
partner, the French Foundation of the Academy of Medicine, the Foundation helped deliver Helicopter Emergency Medical
Services (HEMS). A total of 300 medical personnel in Thailand and Mexico were upskilled in emergency and disastermedicine techniques.
Supporting the future generation
It is crucial that the Company inspires and engages young people, particularly by playing an active roIe in fostering inclusion,
diversity and community values at an early age. Across its Community Impact channels, the Company collectively reachedover 23,000 young people directly through mentorship, education initiatives and workshops during 2022.
Corporate partnerships and STEM outreach programmes focused on using the expertise and knowledge of Company’s
employees to inspire interest in science, technology, engineering and mathematics (STEM) and engaged more than 8,700
young people from underserved communities to develop their awareness and confidence to make decisions about their
future education and career choices.
In the Asia Pacific region, five youth projects were developed in collaboration with partners including local and national
ministries, non-profit organisations, and public sector structures. For example, in Indonesia, the Company worked with the
Ministry of Education to reach 120 students from rural schools to run workshops with Company's volunteers on STEM and
STEM careers. In the Philippines, the Company partnered with MoveEd, an organisation which provides early childhoodcare and development programs for children aged 3-6 years, to increase access to formal and informal education
opportunities, also working with the families to raise awareness about the long-term value of education. In China, the
FUTURE by the Company project partnered with the Civil Aviation Museum in Beijing to boost quality education access.
Airbus SE/ Report of the Board of Directors 2022

167

Following a series of workshops hosted by Company’s volunteers, the Company and the museum established an educationbase in the museum for future cooperation.
The Airbus Foundation enriched its Airbus Foundation Discovery Space content with 19 new videos and booklets to practiceexperiments at home or in the classroom. The content explains some of the science behind aerospace, including
sustainability and girls in science topics. The Foundation’s partnerships for its youth programmes span 17 locations in
Europe, Africa, the Middle East, Asia, and the Americas. Working with local partners, each programme was built on specificlocal needs. During 2022, over 250 Company’s volunteers participated, and the programmes directly reached around 9,000
young students, with a specific attention given to gender balance and underserved communities, also including a pilot
project for children living in a refugee camp. The fourth edition of the Moon Camp Challenge built on the success of previous
years with 2,597 projects submitted from 53 countries by over 5,600 students supported by nearly 600 teachers.
Protecting the future of our planet
During 2022, the community impact pilot projects focused primarily on employee awareness and action to preserve andrestore local biodiversity. For example, in the UK and India, the Company partnered with local non-profit organisations to
restore three water bodies which had fallen into disrepair and neglect. In India, educational sessions were also carried out
with surrounding communities to increase awareness about the ecological importance of the water bodies, avoiding using
them to dispose of waste, and engaging the communities in the longer-term maintenance and protection.
Through an innovation project driven by employee volunteers, the Company cooperated with two universities (Toulouse andColombia) and a local non-profit organisation to bring renewable energy to off-grid households in Peru and Colombia.
Situated in the highlands of Peru, one of the affected communities includes 40 households, nine of which lack access toelectricity. The Company supported the placement of two students who dedicated their first month to build two domestic windturbines and install them for two households plus complete the associated knowledge transfer to enable the families tomaintain them. One of the families makes and sells bread to surrounding communities - thanks to the wind turbine, they areable to increase their production as well as reduce their expenditure on expensive batteries and generator fuel. In Colombia,
a third wind turbine was installed for a rural school with around 30 children. The school now has a stable and clean source ofelectricity and has been connected to the internet which is enabling access to quality education materials as well as
refrigeration to store food for the children.
The Airbus Foundation continued to develop its environment partnerships, focusing on climate change mitigation andmonitoring, climate change adaptation and disaster prevention and protecting biodiversity. This included continuing thecollaboration with Connected Conservation Foundation to support the preservation of wildlife and natural ecosystems inSouth Africa and Kenya through the use of satellite imagery. The Airbus Foundation also completed the first phase of its
3-year project with IUCN, providing technical data, satellite images and project management to contribute to the validation of
IUCN’s forest restoration barometer. Project objectives are to assess tree canopy changes over a temporal range,
characterization of tree canopy changes and assessment of the sufficiency of restoration activity.

V. Outlook
In addition to enhancing the methods to capture and measure impact, the Company intends to study and progress onopportunities for integrating community impact into business operations. One example is social procurement wherecompanies can use their purchasing power to create sustainable social value through procuring from social benefit
suppliers.
The Airbus Foundation is currently reviewing its global portfolio of activities for improvement and development. Near-termplans involve developing the product portfolio to be offered to partners, initiating Youth programmes in 10 additional
locations, including Tunisia and Morocco, and formalising a new environmental partnership.

Airbus SE/ Report of the Board of Directors 2022

168

6.1.17 ESG Data Board
ENVIRONMENTAL PERFORMANCEGRIEnergy

KPI

Unit

2022

2021

2020

2019

2018

Total energy consumption (excl. electricity generated by CHP on site for own use) ✔

GWh

3,717

3,762

3,815

4,624

4,679

Energy intensity (per Total Revenues) ✔

GWh/bEUR

62.4

71.2

75.8

64.3

-

Energy consumption from stationary sources and electricity ✔

GWh

2,594

2,717

2,672

2,987

3,062

Energy consumption from stationary sources ✔

GWh

1,190

1,351

1,274

1,391

1,403

・ natural gas

GWh

1,108

1,307

1,235

1,347

1,366

・・ of which bio-methane

GWh

23

11

0

0

0

・ heat generated from biomass

GWh

37

25

24

27

17

・ other fuels

GWh

44

19

16

17

20

Energy consumption from electricity, heat and steam ✔

GWh

1,404

1,366

1,397

1,595

1,659
1,472

・ purchased electricity (incl. renewable or low carbon sources from grid)

GWh

1,280

1,232

1,274

1,460

EN3

・・ of which purchased electricity with REC/GoO*

GWh

534

416

251

163

0

EN4

・ purchased electricity from renewable sources PPA*

GWh

0.1

0.0

0.0

0.0

0.0

・ self-generated electricity from renewable sources

GWh・ percentage renewable electricity%

・ heat and steam

GWh

123

133

123

135

187

Energy consumption from mobile sources ✔

GWh

1,123

1,045

1,144

1,638

1,617

・ kerosene

GWh

711

681

711

1,061

1,068

・・ of which Sustainable Aviation Fuel

GWh

22

4

1

0

0

・・ of which used in Beluga Transport

GWh

330

298

290

421

413

・・ of which used in flight test

GWh

381

382

421

640

654

・ road & maritime fuel used in Oversize Surface Transportation

GWh

365

335

405

540

509

Energy consumption from renewable or low-carbon sources ✔

GWh

619

456

277

191

18

Percentage energy from renewable or low-carbon sources

%

16.6%

12.1%

7.3%

4.1%

0.4%

Air

Total Scope 1 + Scope 2 CO2 emissions (location based) ✔

ktons CO2e

857

889

935

1,139

1,163

emissions

Total Scope 1 + Scope 2 CO2 emissions "market-based" (location based net of REC)* ktons CO2e

762

809

880

1,104

1,162

gCO2e/EUR

14.4

16.8

18.6

15.8

-

ktons CO2e

555

570

585

744

739

EN15 Scope 1&2 GHG intensity (per Total Revenues) ✔
Scope 1 & 2 EN16 Total Scope 1 GHG emissions (1) ✔
EN18 ・・ of which from flight test

1.2

0.8

0.9

0.2

0.2

41.8%

33.8%

19.8%

11.2%

0.0%

ktons CO2e

98

99

108

165

169

Total Scope 2 GHG emissions - location based ✔

ktons CO2e

302

319

350

395

424

Total Scope 2 GHG emissions - "market-based" (location based net of REC)✔

ktons CO2e

207

240

295

360

424

・ Commercial aircraft IEA-SDS SAF uptake * ✔

ktons CO2e425,454400,611383,266

650,366

623,215・ GHG efficiency for delivered commercial aircraft (as per SBTi-validated target)*✔

gCO2/pax.km

64.4

66.3

67.7

72.2

75.9

494,893458,738

432,245

723,110

683,774

Indirect GHG emissions - Category 11 - Use of Sold Products: *Scope 3

EN17 ・ Commercial aircraft - ("no SAF" scenario) * ✔

ktons CO2e

EN18 ・ GHG efficiency for delivered commercial aircraft ("no SAF" scenario )*✔

gCO2/pax.km

74.9

75.9

76.4

80.3

83.3

・ Other products * ✔

ktons CO2e

10,703

9,343

NA

NA

NA

Indirect GHG emissions - Category 1 - Purchased Goods and Services* ✔

ktons CO2e

NA

8,439

9,940

NA

NA

Indirect GHG emissions - Category 6 - Business Travel* ✔

ktons CO2e

47

17

22

109

112
1,518

VOC

EN20 Total VOC emissions* ✔

tons

1,120

1,042

1,048

1,462

SOx

Total SOx emissions

tons

16

14

13

14

15

NOx

Total NOx emissions

tons

207

226

210

234

217

Other

Internal Carbon Pricing

EUR/ton

150

150

30

30

-

Information

CDP Rating (based on previous year disclosure)

Score

A-

A-

A-

B

-

Water

Total water withdrawal (note: formerly reported as “consumption”) ✔

m3

・・ of which percentage purchased

%

79%

79%

78%

80%

%

4%

5%

5%

4%

5%

・・ of which percentage from ground water sources

%

16%

16%

17%

15%

16%

・・ of which percentage from all areas with high water stress*

%

30%

34%

34%

35%

33%

EN8 ・・ of which percentage from surface water sources and collected rainwater

EN22 Total water discharge
Waste

Total waste production, excluding exceptional waste ✔

m3

3,672,217 3,345,261 3,681,009 4,529,665 4,186,553
79%

2,956,333 2,887,442 3,097,733 3,728,505 3,335,213

tons

73,751

71,15274,89899,042

100,389

%

25%

26%

29%

27%

28%

・・ Material recovery rate* ✔

%

60%

55%

51%

54%

57%

・・ Energy recovery rate

%

16%

20%

21%

21%

20%

・・ Landfill and incineration without energy recovery rate

%

23%

25%

28%

25%

23%

EMS

Percentage of operations with ISO 14001 / EMAS certification (in % workforce)

%

88%

88%

88%

87%

certification

Percentage of operations covered by reporting (in % workforce)

%

92%

92%

92%

92%

EN23 ・・ of which percentage hazardous waste*✔ : 2022 data verified by EY®, based on limited assurance.
Scope of reporting: Reported data covers 84 sites. Company’s environmental reporting guidelines include sites worldwide with a workforce on-site higher or
equal to 100 employees. Note that only 100% consolidated entities are taken into account with the exception of ATR and Tianjin operations. 2018-2021 figures
were refined to rectify actuals for some entities.
2021 restatements: some 2021 figures were restated to reflect changes in reporting perimeter and to integrate information received post-closing 2021.

Airbus SE/ Report of the Board of Directors 2022

169

* Methodology and assumptions:
Energy - Purchased electricity from renewable sources: Power Purchase Agreements (“PPA”) - it is a contract under which a legal entity agrees topurchase renewable electricity directly from an electricity producer. For the Company this means purchase of electricity from predefined renewableproduction facilities and/or purchase of electricity from renewable electricity generation facilities that can be built near to a Company site and that isconnected to the site via and the direct wire.
Energy - Purchased electricity from renewable sources REC/GoO: Renewable Electricity Certificates (“REC”) or Guarantees of Origin (“GoO”) - isan energy certificate representing 1MWh which has the sole function of providing evidence to a final customer that a given share or quantity of energy
was produced from renewable sources. For the Company, this represents the electricity bought from the grid with energy certificates evidencing that agiven share or quantity of energy was produced from renewable sources.
Air Emissions - Scope 1 & 2 - SAF emissions were computed according to the formula set by the ICAO.
Air Emissions - Scope 1 & 2 - "market-based" (location based net of REC): location based with purchased guarantees of origin deduced. The
Company is working towards improving data collection and market-based methodology implementation. Meanwhile, this metric is used by theCompany to measure its progress towards its 2030 target, in order to be able to take into account the contribution of its electricity sourcing on its
industrial decarbonisation target. However, this refining of methodology is expected to trigger restatements in the coming years, including of the 2015baseline).
Air Emissions - Scope 3 - Use of sold products. The main contribution of the Company’s value chain on climate change comes from the use of soldproducts, especially related to its commercial aircraft activities. In order to provide the level of transparency, the Company reports in-use emissions of
the products it delivers (Scope 3 – Use of sold products). This started in 2020 with the disclosure of emissions from commercial aircraft products, andwas extended to other products in 2021, namely civil helicopters initially and further complemented by military aircraft and helicopters in 2022. The
Company will continue to progressively extend the scope of reporting to other families of products, for which the calculation methodologies are still
under development. Nevertheless, current results and advanced estimations have shown that the vast majority (over 90%) of the Scope 3 - Use of Sold
Product impact of the Company’s products is due to the commercial aircraft family of products, and that this situation is unlikely to change once all the
product families will have been assessed.
Additional methodology information:●The Company’s emission calculation methodology was developed by a team consisting of key personnel from the engineering and environment
departments and is aligned with the guidance provided by the Greenhouse Gas Protocol. The external auditor performed a review of the calculation
methodology applied by the Company and assessed the reasonableness of the supporting assumptions.
●The Company has used a number of assumptions based on internal and external information including assumptions based on publicly-available data.
○ For all products:●
The estimation includes CO2 emissions only. Emissions related to CH4 and N2O were excluded given the very low levels produced bymodern aircraft engines. Emissions related to NOx were estimated and excluded given the uncertainty related to the NOx emission factors
and the relatively low contribution of this emission stream.
●
CO2 emission factors for kerosene are the ICAO internationally recognized lifecycle emission factor to be used for baseline fossil jet fuels(3.846 kg CO2e per kg of fuel for fossil Jet-A /Jet-A1). This factor represents a “well to wake” life cycle analysis to assess the overall
greenhouse gas (GHG) impacts of a fuel including each stage of its production and use.
○ For commercial aircraft: assumptions include the aircraft load factor, aircraft operational usage and average in-service lifetime. Primary datacollected within the Company was also used, such as aircraft performance and configuration parameters. Emissions related to commercial aircraft
engine start and taxing have been included, however, emissions from the Auxiliary Power Units (APU) and ground handling equipment have been
excluded. For the purpose of this calculation, the Company integrated into commercial aircraft Scope 3 the likely usage of SAF over the productlifetime, as per the IEA-SDS assumptions. Other operating conditions of the aircraft were considered to be static over the whole service life. In
addition, the Company reports for reference an indicative figure based on a zero SAF usage. A330-200 deliveries destined to A330-MRTT
conversion were excluded from the commercial aircraft perimeter and included in the military aircraft perimeter as part of the “other products”
category.
○ For other products:●
Helicopters: assumptions include activity data from Company’s customer services of helicopter operations such as flight hours per year andregion where the helicopter is operated. Direct emissions and indirect emissions from jet fuel production are included over the product’s
entire service life. Impact of SAF is not considered.
●
Military aircraft: flight hours and mission profiles vary significantly depending on conflicts and humanitarian crises. The estimation assumes
the largest number of flight hours each aircraft has been designed for in its lifetime. Impact of SAF is not considered.
Air Emissions - Scope 3 GHG efficiency for delivered commercial aircraft (as per SBTi-validated target). In 2022, the Company updated thedefinition and methodology of its efficiency metrics in order to align with the SBTi methodology and leading to a restatement of past years. Namely, theevolution can be explained by changes in the following two assumptions: the integration in the emissions related to the upstream fuel production andthe consideration of the likely usage of SAF over the product lifetime, as per the IEA-SDS assumption.
Air Emissions - Scope 3 Purchased Goods and Services. This evaluation was performed using a dedicated tool developed by the International
Aerospace Environmental Group (IAEG) offering a choice between two approaches: a “spend based” approach, allocating emissions to each amountspent in specific commodities and a “mass based” approach, allocating emissions to quantities of materials purchased. For this first evaluation, theCompany has used the “spend based” approach. While this method embeds a certain degree of uncertainty, considered high by the IAEG on a certain
number of emissions factors used in the methodology, it provides a relevant view of the sources of GHG emissions in the Company's supply chain andenables comparison of the various Company’s scopes throughout its value chain. The calculation will be refined in future years as better quality data
becomes available. In 2022, the Company improved the accuracy of some spent-based assumptions leading to a restatement of 2020 figures. In
addition, the use average emission factors decreased from 6% of spent in 2020 to 2.5% in 2021 thanks to refined data allocation. Adjustments can be
expected in future disclosures as the Company intends to further refine its computation, especially integrating mass-based information as data
becomes available.
Air Emissions - Scope 3 Indirect GHG emissions Business Travel: Worldwide air travels of Europe-based employees.
Air Emissions - VOC: 2022 VOC emissions data is estimated. 2022 actuals will be consolidated in April 2023.
Water - Areas with high water stress: areas identified with high or extremely high water stress. Water stress level as defined per the Aqueduct Water
Risk Atlas (medium scenario for 2030).
Waste - Hazardous waste: waste displays one or more of the hazardous properties listed: “Explosive”; “Oxidising”; “Highly flammable”; “Flammable”;“Irritant”; “Harmful”; “Toxic”; “Carcinogenic”; “Corrosive”; “Infectious”; “Toxic for reproduction”; “Mutagenic”; “Sensitizing”; “Ecotoxic”, “Pressurised gas”.
Waste - Material recovery: any operation wherein products, components of products, or materials that have become waste are prepared to fulfil apurpose in place of new products, components, or materials that would otherwise have been used for that purpose. 2022 material and energy recovery
rates will be refined when final waste treatment information of year-end waste - representing about 9.5% of total - will be provided by waste collector
companies. Meanwhile, unavailable information was estimated using 2022 actual breakdown ratios of the 90.5% available data.

Airbus SE/ Report of the Board of Directors 2022

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SOCIAL PERFORMANCEWORKFORCE
Total number of employees ✔

2022

2021

2020

2019

2022

2021

2020

2019

3.99%

4.34

4.36

4.43

134,267 126,495 131,349 134,931

By business segment ✔

% Part time employees

・ Commercial aircraft activities

79,13473,56078,48780,985

By contract type・ Airbus Helicopters

20,803

20,12620,02620,024・ Unlimited

・ Airbus Defence and Space

34,33032,80932,83633,922・ Limited contract > 3 months

・ France

48,23845,931

48,23149,143・ Germany

44,89842,97245,56845,638・ Spain

12,89911,881

11,828

・ UK

9,858

9,368

・ US

3,751

・ Canada
・ China

131,307 122,950 128,151 130,591
2,960

3,156

・ French

35.0%

35.4

・ German

30.7%

31.5

12,637・ Spanish

10.7%

10.3

9,846

11,109・ British

7.4%

7.7

3,150

2,980

3,151

・ From other countries

16.2%

15.1

4,287

3,788

3,634

3,668

762

698

613

653

147

138

・ Other countries

9,574

8,707

8,649

8,932

% of active workforce employees
located in Europe

88.6%

89.1
Newcomers

13,946・ <30 years old

13,171

11,12012,135

13,862・ Core Divisions

8,231

・ 30-50 years old

83,964

79,98581,70982,552・ Subsidiaries

・ >50 years old

37,13235,39037,50538,517

By geographic area ✔

3,198

4,340

5,655

5,463

11,270

2,817

2,413

6,643

5,715

2,838

3,050

4,627

Leavers (incl. partial retirement)

6,428

9,394

7,796

5,842

・ Core Divisions

3,365

5,632

4,675

2,902

・ Subsidiaries

3,063

3,762

3,121

2,940

By nationality in %*By age ✔

Total number of nationalities

Attrition Rate・ Core Divisions

3.8%

5.9%

4.6%

2.9%

・ Subsidiaries

7.8%

12.2%

9.4%

8.4%

・ Total

5.0%

7.4%

5.8%

4.3%

2022

2021

2020

GENDER DIVERSITY

2022

2021

2020

% Women in total active
workforce ✔

20%

19%

18%

・ France

21.4%

21.2%

20.5%

・ Board of Directors

33%

25%

25%

・ Germany

16.2%

16.4%

15.3%

・ Executive Committee

25%

25%

16%

・ Spain

24.0%

22.7%

22.3%

・ Senior mgmt - Executives

16%

14%

13%

・ UK

14.0%

12.9%

13.5%

・ "Level IV" managers

17%

16%

14%

・ US

22.5%

22.4%

22.4%

・ Newcomers

27%

22%

26%

・ Other countries

22.4%

21.0%

20.9%

LABOUR RELATIONS

2022

2021

2020

7

12

8

~ 80%

~ 80%

Per category

PEOPLE DEVELOPMENT

By geographic area

2022

2021

2020

Number of classroom training ✔

116,363

78,98478,443

Number of meetings with SE-WC

Number of digital training ✔

1645816

967,495 752,702

Workforce covered by collective

Total training hours ✔

1.7mn

1.2mn

1million

Average training hours per
employee

15

11

11

・ for women

14

9

8

・ for men

16

11

10

・ for production employees

19

15

14

・ for non-production employees

14

10

8

11,460>10,400>7,000Internal mobilities

・bargaining agreements

Note: figures are based on the active workforce, i.e. the number of permanent and short-term employees, irrespective of their individual working times,
and having worked in the last 30 days. The headcount is calculated according to the consolidation quota of the respective companies. The scope for
HR structure reporting covers 100% of the Company’s total active workforce from consolidated companies. Workforce and breakdowns metrics are
figures at year-end. Other metrics cover civil year periods, except for training related metrics with reporting periods going from October 1st to
September 30th.

✔ : 2022 data verified by EY®, based on limited assurance.

Airbus SE/ Report of the Board of Directors 2022

171

PRODUCT SAFETY

2022

2021

2020

2019

Fatal accident rate industry-wide Gen4✔

0.05

0.03

0.04

0.05

% SMS officers nominated ✔

100%

100%

100%

-

% SMS officers trained ✔

100%

100%

92%

-

CYBER SECURITY

2022

2021

2020

2019

Number of data breaches reported to data authorities

0

1

1

-

Percentage involving confidential information

-

100%

100%

-

107,808

67,475

10,328-

Corporate & IM Cyber Security headcount

437

290

216.5

-

HEALTH & SAFETY

2022

2021

2020

2019

Lost Time Injury Frequency Rate - excl. Airbus Atlantic and Airbus Aerostructures entities

1.60

3.21

3.81

5.58

Lost Time Injury Frequency Rate - incl. Airbus Atlantic and Airbus Aerostructures entities ✔

2.23

3.29

Cyber security awareness training e-learning participation

Lost Time Injury Frequency Rate - commercial aircraft business

2.25

4.31

5.12

-

Near-miss - commercial aircraft business

28,925

19,305--

Severity rate (FISH scope) ✔

0.046

-

-

-

Health & Safety training hours delivered ✔

286,815

128,795

103,070

148,000

Number of employees who received Health & Safety training ✔

90,49028,14437,59920,900

Number of employees having attended "EH&S Certificate" modules 1 & 2 ✔

2,214

1,309

418

-

~one third ~one third--

Core entities with ISO 45001 or similar certification% of the company-wide workforce covered

25%

25%

-

-

HUMAN RIGHTS

2022

2021

2020

2019

% of investigations completed or in progress - following reports of concerns linked to human rights, including forced
and child labour and other labour rights.

100%

100%

100%

-

% of sites having undertaken a social assessment - % of the Company’s with over 100 employees, cumulative since2020, undergoing a social assessment including human and labour rights.

29

10

6

-

% of findings closed within 18-months (following social assessments including human and labour rights, carried out
on the Company's sites)

100%

100%

100%

-

Number of participants to human rights trainings (Cumulative number of participants who have completed e-learning
modules on human rights and modern slavery; reporting period: 1 Oct - 30 Sep ) ✔

6,955

5,789

4,943

-

28

4

5

-

BUSINESS INTEGRITY

2022

2021

2020

2019

Number of employees per appointed Ethics & Compliance Representatives

360

372

390

-

Number of employees per appointed Export Control Point of Contact

236

-

-

-

% of employees (non-Exec) who have completed the E&C training objective

96%

90%

80%

-

290,178

284,774

309,682

-

3,181

9,327

35,073-

Investigative requests received during the year

847

-

-

-

・ of which Compliance-related investigative requests

323

-

-

-

・ of which HR-related investigative requests

524

-

-

-

2022

2021

2020

2019

For definitions, see "- 6.1.9 Health and safety"

Number of alerts of human rights concerns (including forced labour and labour rights (received via OpenLine andother means) from internal sources or through the Company’s supply chain)

Number of E&C e-learning sessions delivered to employees ✔
Number of privacy e-learning sessions delivered to employees (Reporting period: from 1 Oct to 30 Sep.)

SUPPLY CHAIN

2022

2021

2020

2019

Sourcing volume (m€)~44,000

37,906

40,71253,400Split by region

Number of suppliers

18,00018,00021,00023,000

・ EU

69%

74%

74%

59%

・ North America

24%

19%

19%

27%
8%

Split by Division (%)
・ Commercial aircraft activities

77%

77%

76%

84%

・ Asia pacific

6%

6%

6%

・ Airbus Helicopters

9%

8%

8%

6%

・ Other regions

<1%

<1%

<1%

6%

・ Airbus Defence and Space

14%

15%

15%

10%

Number of countries

90

90

88

>100

Percentage of sourcing volume covered by supplier commitment to the Supplier Code of Conduct

86%

79%

NA

-

Percentage of sourcing volume of suppliers invited to CDP who have responded

78%

68%

56%

-

Percentage of responding suppliers to the CDP scoring A or B

66%

53%

56%

-

99.5%

95%

63%

-

Percentage of assessed suppliers not meeting Company's sustainability expectations

16%

13%

12%

-

Percentage of action plans defined for suppliers not meeting Company's sustainability expectations

31%

15%

NA

-

Number of sustainability alerts

44

12

5

-

Number of suppliers registered into Digitalization of Supplier Substance data collection tool

298

-

-

-

COMMUNITY IMPACT

2022

2021

2020

Number of Sustainability Ambassadors

448

207

-

% of employees onboarded to the +impact platform

4%

Percentage of identified high risk suppliers, who have undergone a sustainability assessment ✔

Note: Metrics cover civil year periods, except for training related metrics with reporting periods going from October 1st to September 30th.

✔ : 2022 data verified by EY®, based on limited assurance.
Airbus SE/ Report of the Board of Directors 2022

172

GOVERNANCE
BOARD OF DIRECTORS
Number of independent directors
Number of executive directors
Number of women
Number of men
Average age
Number of nationalities
Average tenure
EXECUTIVE COMMITTEE
Number of women
Number of men
Executive Committee meetings

SUSTAINABILITY-LINKEDREMUNERATION

2022

2021

2020

2019

11
1
4
8
60
7
4.9

11
1
3
9
60
7
4.5

11
1
3
9
59
7
3.5

11
1
3
9
59
7
4

2022

2021

2020

2019

3
9
4

3
4

2
4

2
4

2022

2021

2020

2022

2021

2020

2019

Number of Board meetings% average attendance
Number of Audit Committee
Number of RNGC
Number of ECC/ECSC

13
96%
5
5
4

7
98%
5
5
6

13
97%
5
4
4

11
91%
7
7
6

SHAREHOLDING

2022

2021

2020

2019

74.06%
10.87%
4.10%
10.89%

74.01%
10.90%
4.11%
10.92%

73.97%
10.93%
4.12%
10.95%

73.94%
10.94%
4.13%
10.96%

Free Float
GZBV(German State)
SEPI(Spanish State)
SOGEPA (French State)

CEO and Executives variable remuneration - common collective
component, paid following the end of financial year
R&S KPI 1
WeightR&S KPI 2
WeightLTIFR110%CO2
10%LTIFR1 LTIFR1
10%
20%
CO2
10%
-

6.1.18 TCFD correspondence table
See Company’s reportsections
Governance
Describe the board’s oversight of climate-related risks and opportunities.
Describe management’s role in assessing and managing climate-relatedrisks and opportunities
Strategy
Describe the climate-related risks and opportunities the organisation has
identified over the short, medium, and long term
Describe the impact of climate-related risks and opportunities on theorganisation’s businesses, strategy, and financial planning.
Describe the resilience of the organisation’s strategy, taking into
consideration different climate-related scenarios, including a 2°C or lower
scenario
Risk management
Describe the organisation’s processes for identifying and assessing
climate-related risks.
Describe the organisation’s processes for managing climate-related risks.
Describe how processes for identifying, assessing, and managing
climate-related risks are integrated into the organisation’s overall risk
management.
Metrics & targets
Disclosure of the metrics used by the organisation to assess climate-relatedrisks and opportunities in line with its strategy and risk management process.
Disclose Scope 1, Scope 2, and if appropriate, Scope 3 greenhouse gas(GHG) emissions, and the related risks.

See CDP Climate
Change Questionnaire*items– 6.1.1 the Company’s
approach to sustainability

C1.1a, C1.1b– 6.1.2 Climate change

C1.2, C1.2a– 4.6 Risk Factors –Environment, Human Rights,
Health & Safety Risks– 6.1.2 Climate Change– see the “Notes to the IFRS
Consolidated Financial
Statements” (Note 7: Climate
impacts)

C2.3, C2.3a, C2.4, C2.4a– 4.5 Enterprise Risk
Management System

C2.1, C2.1a, C2.1b,C2.2, C2.2a– 6.1.1 the Company’s
approach to sustainability– 6.1.2 Climate change

C2.3a, C2.4a, C3.1,
C3.3, C3.4
C3.2, C3.2a, C3.2b

C2.1, C2.2
C2.1, C2;1b, C2.2

C1.3, C1.3a, C4.2, C9.1
– 6.1.2 Climate change– 6.1.17 ESG data board,
section Environmental
performance / Emissions

Describe the targets used by the organisation to manage climate-relatedrisks and opportunities and performance against targets.
* CDP Climate Change Questionnaire is available on Airbus website and CDP website⇲.

C5, C5.1, C5.1a, C5.1b,
C5.1c, C5.2, C5.3, C6.1,
C6.2, C6.3, C6.4, C6.5,
C6.5a, C6.10, C7.1,
C7.1a, C7.2, C7.3,
C7.3a, C7.5, C7.6, C7.6a
C4.1, C4.1a, C4.1b,C4.2aAirbus SE/ Report of the Board of Directors 2022

173

6.1.19 EU Taxonomy
The EU taxonomy is a classification system establishing a list of environmentally sustainable economic activities defined by
the EU Taxonomy Regulation1. The EU Taxonomy Regulation focuses on six environmental objectives and defines
overarching conditions that an economic activity must meet to be considered environmentally sustainable. The EU
Taxonomy aims to direct investments towards sustainable projects and activities in order to meet the EU’s climate andenergy targets for 2030 and reach the objectives of the European Green Deal.
As the Company is obligated to report on non-financial information pursuant to the Non-Financial Reporting Directive, theEU Taxonomy Regulation is also applicable to the Company, and therefore we must disclose information on the extent towhich our activities can be considered environmentally sustainable economic activities within the meaning of the EU
Taxonomy.
Technical screening criteria for two of the six environmental objectives have been laid down in the Climate Delegated Act2
which entered into force on 1 January 2022 and the Complementary Climate Delegated Act3 which entered into force on 1
January 2023. Recommended criteria for the four remaining environmental objectives were published in March 2022 (Annex
to the Platform on Sustainable Finance’s report with recommendations on technical screening criteria for the four remaining
environmental objectives of the EU taxonomy) and complemented with additional criteria in November 2022 (Platform on
Sustainable Finance’s report with supplementary advice on methodology and technical screening criteria for the climate andenvironmental objectives of the EU Taxonomy) (‘‘Draft Recommendations’’). Aviation related activities have not been
included in the Climate Delegated Act and the Complementary Climate Delegated Act, but, based on the Draft
Recommendations, aviation is proposed to be included as a transition activity in the EU Taxonomy, which acknowledges its
potential transition to a climate-neutral economy consistent with a pathway to limit the temperature increase to 1.5°C above
pre-industrial level.
For the reporting period FY 2021, only qualitative information and information on the proportion of taxonomy-eligible
activities in relation to total activities set out in the Delegated Act had to be disclosed. For the reporting over FY 2022, theDelegated Act applies fully, meaning that the Company has to disclose its alignment to the EU Taxonomy as well. In order tobe aligned with the EU Taxonomy, an eligible activity has to i) comply with the Technical Screening Criteria (TSC); ii) the Do
No Significant Harm (DNSH) Criteria; and the company has to fulfil Minimum Social Safeguards.

EU taxonomy assessment over FY 2022
The Company performed an analysis of its exposure to taxonomy-eligible activities referenced in the Climate Delegated Act
and the Complementary Climate Delegated Act and has conducted an assessment of compliance with the relevant TSC, the
DNSH-criteria and the Minimum Safeguards. The results of this assessment have been included in the following sections(EU taxonomy KPIs and EU Taxonomy KPIs accompanying information). The Company has performed these calculations
based on consolidated information while it is still working on further improving financial data tagging to enable improved
reporting in upcoming disclosures. The Company's assessment will be refined as additional official guidance on EU
taxonomy implementation and interpretation becomes available. The main activities carried out by the Company are not yet
covered by the EU taxonomy delegated acts.

1

Regulation (EU) 2020/852 of the European Parliament and of the council of 18 June 2020 on the establishment of a framework to facilitatesustainable investment and amending Regulation (EU) 2019/2088.
2

COMMISSION DELEGATED REGULATION (EU) 2021/2139 of 4 June 2021 supplementing Regulation (EU) 2020/852 of the European
Parliament and of the Council by establishing the technical screening criteria for determining the conditions under which an economic activity
qualifies as contributing substantially to climate change mitigation or climate change adaptation and for determining whether that economic
activity causes no significant harm to any of the other environmental objectives.
3

COMMISSION DELEGATED REGULATION (EU) 2022/1214 of 9 March 2022 amending Delegated Regulation (EU) 2021/2139 as regards
economic activities in certain energy sectors and Delegated Regulation (EU) 2021/2178 as regards specific public disclosures for thoseeconomic activities.

Airbus SE/ Report of the Board of Directors 2022

174

EU taxonomy KPIs Proportion of turnover from products or services associated with Taxonomy-aligned economic
activities - disclosure covering year 2022
Substantial contribution criteria
(1)

(2)

Economic activities

Code
(s)

(3)
Absolute
turnover

(4)

(5)

(6)

ProportionofSC5
turnoverIn m€%

A. TAXONOMY-ELIGIBLE ACTIVITIES

(7)

(8)

(9)

(10)

DNSH criteria (‘Does Not Significantly Harm’)
(11)

(12)

(13)

(14)

(15)

(16)

(17)

SC6

SC7

SC8 SC9 SC10 DN11 DN12 DN13 DN14 DN15

DN16 MS17

%

%

%

Y/N

Percent

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

(19)

(18)
%Aligned
18

(20)

(21)

%Aligned
prev. year Cat20 Cat21
19
Percent

E

T%

A.1. Environmentally sustainable
activities (Taxonomy-aligned)

N/A

Turnover of environmentally
sustainable
activities (Taxonomy-aligned) (A.1)

0

0%

0%
N/A

A.2 Taxonomy-Eligible but notenvironmentally sustainable activities(not Taxonomy-aligned activities)

N/A

Turnover of Taxonomy-eligible but notenvironmentally sustainable activities(not Taxonomy-aligned activities) (A.2)

00%Total (A.1 + A.2)

0

0%

N/A
0%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible
activities (B)58 763100%

Total (A + B)

58 763100%

SC5 - Climate change mitigation
SC6 - Climate change adaptation
SC7 - Water and marine resources
SC8 - Circular economy
SC9 - Pollution
SC10 - Biodiversity and ecosystems

DN11 - Climate change mitigation
DN12 - Climate change adaptation
DN13 - Water and marine resources
DN14 - Circular economy
DN15 - Pollution
DN16 - Biodiversity and ecosystems

N/A

MS17 - Minimum safeguards%Aligned18 - Taxonomy-aligned proportion of
turnover%Aligned prev. year 19 - Taxonomy- aligned
proportion of turnover, previous year
Cat20 - Category (enabling activity or)
Cat21 - Category ‘(transitional activity)’

Column 21 should be filled in for transitional activities contributing to the climate change mitigation.
For activities listed under A2, columns 5 to 17 may be filled in on a voluntary basis by non-financial undertakings

EU taxonomy KPIs Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities- disclosure covering year 2022
Substantial contribution criteria(1)

Economic activities(2)

Code(s)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

DNSH criteria (‘Does Not Significantly Harm’)
(10)

(11)

(12)

(13)

(14)

(15)

(16)

(17)

(18)

(19)

(20)

(21)

Abso Propor-lute tion of
CapEx CapEx

SC5

SC6

SC7

SC8

SC9

SC10

DN11

DN12

DN13

DN14 DN15 DN16

MS17

%Aligned
18%Aligned
prev. year Cat20 Cat21
19

In m€

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Percent

Percent

%

Y/N

Y/N

E

T

A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable
activities (Taxonomy-aligned)

N/A

CapEx of environmentally
sustainable
activities (Taxonomy-aligned) (A.1)

0

0%

0%

A.2 Taxonomy-Eligible but notenvironmentally sustainable activities(not Taxonomy-aligned activities)

N/A

N/A

4.24 Production of heat/cool frombioenergy

D35.3014

0.6%

7.3 Installation, maintenance andrepair of energy efficiency
equipment

F42, F43,
M71, C16,
C17, C22,
C23, C25,
C27, C28,
S95.21,
S95.22,
C33.1217

0.7%

8.1 Data processing, hosting andrelated activities

J63.1121

0.8%

CapEx of Taxonomy-eligible but notenvironmentally sustainable activities(not Taxonomy-aligned activities)(A.2)

52

2.1%

Total (A.1 + A.2)

52

2.1%

CapEx of Taxonomy-non-eligible
activities (B)2412

Total (A + B)

2464

SC5 - Climate change mitigation
SC6 - Climate change adaptation
97.9% SC7 - Water and marine resources
SC8 - Circular economy
SC9 - Pollution
100%
SC10 - Biodiversity and ecosystems

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

N/A
0%
DN11 - Climate change mitigation
DN12 - Climate change adaptation
DN13 - Water and marine resources
DN14 - Circular economy
DN15 - Pollution
DN16 - Biodiversity and ecosystems

N/A

MS17 - Minimum safeguards%Aligned18 - Taxonomy-aligned proportion of
Capex%Aligned prev. year 19 - Taxonomy- aligned
proportion of CapEx, previous year
Cat20 - Category (enabling activity or)
Cat21 - Category ‘(transitional activity)’

For activities listed under A2, columns 5 to 17 may be filled in on a voluntary basis by non-financial undertakings.

Airbus SE/ Report of the Board of Directors 2022

175

EU taxonomy KPIs Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities disclosure covering year 2022
Substantial contribution criteria(1)

Economic activities

(2)

(3)

(4)

(5)

ProporAbsolut
Code e OpEx tion of SC5
OpEx
(s)
In m€

%

%

(6)

(7)

(8)

(9)

(10)

DNSH criteria (‘Does Not Significantly Harm’)
(11)

(12)

(13)

(14)

(15)

(16)

(17)

(18)

(19)

(20)

(21)

%Aligned
prev. year
19

Cat20

Cat21

Percent

E

T

SC6

SC7

SC8 SC9 SC10 DN11

DN12

DN13

DN14

DN15 DN16

MS17%Aligned
18

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Percent

%

%

Y/N

Y/N

A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable
activities (Taxonomy-aligned)
OpEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1)

N/A
0

0%

0%

A.2 Taxonomy-Eligible but notenvironmentally sustainable activities(not Taxonomy-aligned activities)

N/A

N/A

OpEx of Taxonomy-eligible but notenvironmentally sustainable activities(not Taxonomy-aligned activities) (A.2)

0Total (A.1 + A.2)

0

0%
N/A

B. TAXONOMY-NON-ELIGIBLE ACTIVITIESOpEx of Taxonomy-non-eligible
activities (B)3 079

Total (A + B)

3 079

0%

0%
SC5 - Climate change mitigation
SC6 - Climate change adaptation
100% SC7 - Water and marine resources
SC8 - Circular economy
SC9 - Pollution
100%
SC10 - Biodiversity and ecosystems

DN11 - Climate change mitigation
DN12 - Climate change adaptation
DN13 - Water and marine resources
DN14 - Circular economy
DN15 - Pollution
DN16 - Biodiversity and ecosystems

N/A

MS17 - Minimum safeguards%Aligned18 - Taxonomy-aligned proportion of Opex
%Aligned prev. year 19 - Taxonomy- aligned
proportion of OpEx, previous year
Cat20 - Category (enabling activity or)
Cat21 - Category ‘(transitional activity)’(1) Activity 1 is Taxonomy-eligible in its entirety. However, only a proportion of it is Taxonomy-aligned. Therefore, Activity 1 may be reported under both A1 and A2. However, only the proportion reported under A1
may be counted as Taxonomy-aligned in the OpEx KPI of the non-financial undertaking. For activities listed under A2, columns 5 to 17 may be filled in on a voluntary basis by non-financial undertakings.

EU taxonomy KPIs accompanying information
1. Accounting policy
The Company's EU taxonomy disclosure covers the following scope: EU Taxonomy-compliant share of turnover, Capital expenditure(CapEx) aligned with the EU Taxonomy and operational expenditure (OpEx) aligned with the EU Taxonomy of the Company
consolidated that, for the purpose of EU taxonomy disclosure, are split per economic activity according to the Climate Delegated Act
and the Complementary Climate Delegated Act of the EU Taxonomy. Please refer to the “Notes to the IFRS Consolidated Financial
Statements” (Note 4: Significant Accounting Policies).
In the context of EU taxonomy disclosure, the Company assessed any economic activity that in aggregate exceeds 1% of the total
turnover, CapEx or OpEx. The materiality threshold has been set at 1%, as the Company expects economic activities that inaggregate do not exceed 1% of the total turnover, CapEx or OpEx to have no material influence on the reporting. However, should
there be availability of data, the Company may choose to disclose such activities.
Turnover, CapEx and OpEx were determined and allocated to the numerator by performing a mapping between the description ofactivities in the EU taxonomy and the Company’s portfolio of sources of revenues, investments and expenses.
As the EU taxonomy KPIs are published for the first time in the reporting over FY 2022, prior-year figures are not provided. Nomaterial changes to the CapEx plan have occurred in FY 2022. The capital expenditures disclosed under the CapEx KPI are not partof a CapEx Plan meeting the conditions specified under the EU taxonomy regulation.
2. Assessment of compliance with EU taxonomy Regulation
2.1. Information on assessment of compliance with the EU Taxonomy Regulation
The assessment of compliance with the EU Taxonomy Regulation has been carried out in four steps:●
Determination of EU taxonomy eligibility: screening of the Company’s turnover, CapEx and OpEx versus the activities
described in the currently adopted Climate Delegated Act and Complementary Climate Delegated Act and allocation on the basis of
the activity description, resulting in a list of eligible activities.
●
Determination of EU taxonomy alignment with technical screening criteria: for the eligible activities which exceed themateriality threshold of 1%, applicable substantial contribution and do no significant harm criteria have been identified and analysed,
gathering the available and relevant information and evidence.
●
Determination of EU taxonomy alignment with the minimum safeguards: following the guidance provided by the Platformon Sustainable Finance in its ‘Final Report on Minimum Safeguards’ published in October 20224, and more specifically by analysing
the non-compliance criteria proposed in the aforementioned report concerning human rights, taxation, fair competition andcorruption & bribery areas at Company level.
4

Platform on Sustainable Finance - Final report on Minimum Safeguards, October 2022
Airbus SE/ Report of the Board of Directors 2022

176

This exercise has been conducted by a dedicated team involving experts from different functions and Divisions through a number ofinterviews and working sessions during the year.
In 2022, taxonomy eligible activities related to “4.24 Production of heat/cool from bioenergy” and “7.3 Installation, maintenance andrepair of energy efficiency equipment”, were related to projects aiming to improve energy efficiency and reduce CO2 emissions that
could make a substantial contribution to the climate change mitigation objective while eligible activities related to “8.1 Data
processing, hosting and related activities” also met activity description . They have been allocated to one taxonomy activity and one
environmental objective, avoiding the risk of double counting.
In 2022, the results of the self-assessment of Minimum Safeguards criteria was positive taking into account the non-compliancecriteria recommended in the Final Report on Minimum Safeguards.
2.2. Contribution to multiple objectives
Due to the nature of the projects linked to taxonomy eligible activities in 2022, substantial contribution has been assessed against
the climate change mitigation objective only and its relevant criteria.
2.3. Disaggregation of KPIs
In 2022, the preparation and disclosure of figures as per Taxonomy requirements did not require any disaggregation.
3. Contextual information
3.1. Contextual information about turnover KPI
Turnover KPI has been assessed as not material and therefore reported as 0%.
3.2. Contextual information about CapEx KPIAll CapEx identified as eligible were added to property, plant and equipment during the year 2022. In 2022, taxonomy eligible
activities were related to projects aiming to improve energy efficiency and reduce CO2 emissions that could make a substantial
contribution to the climate change mitigation objective, while data processing related CapEx (e.g. data centres) met activity
description.
In light of the complexity and granularity of the applicable criteria, the investments could not be assessed as aligned by theCompany in 2022. The Company took a cautious approach to assessing Appendix C criteria and compliance could not be confirmed
in 2022.
In addition, some of the CapEx contributing to the Company’s decarbonization plan as presented in section “- 6.1.2 Climate change”
could not be assessed as eligible.
The capital expenditures disclosed under the CapEx KPI are not part of a CapEx Plan meeting the conditions specified under the
EU taxonomy Regulation.
3.3. Contextual information about the OpEx KPIThe Company’s OpEx definition differs from the EU taxonomy OpEx definition. For the purpose of the EU taxonomy disclosure, only
research and development costs are considered.
Future Developments
In the coming years, the Company will continue to report under the EU Taxonomy with regard to its Taxonomy‐eligible economic
activities as well as its Taxonomy‐aligned economic activities. This entails a further and continuous review of our economic
activities. Future guidance on the EU Taxonomy could result in updated definitions and other decision‐making in meeting reporting
obligations that may come into force. The Company expects that its reporting will evolve over time as more insights will be gained on
how best to comply with the EU Taxonomy. If the delegated act related to the manufacturing of aircraft is adopted under the EU
taxonomy regulation, the turnover generated by sales of commercial aircraft may then become eligible.
Estimated eligibility and alignment if aviation-related technical screening criteria were to be adopted as per draft
recommendation: Pursuant to the Draft Recommendations, aviation-related activities are included in the EU taxonomy by means ofdelegated act(s) to be adopted in 2023. The Company’s commercial aircraft activity corresponding to NACE code 30.3 is describedunder section 7.2 Manufacturing of aircraft of the Draft Recommendations5. According to the Draft Recommendations, a majority of
the Company's 2022 turnover would be eligible, mainly including the turnover generated by sales of commercial aircraft. Based on
the same information, the Company estimates that a significant portion of this eligible turnover could be taxonomy-aligned, subject
to Do-No-Significant-Harm criteria and minimum safeguards criteria assessment. As per the technical screening criteria of section
7.2 of the Draft Recommendations, the alignment would correspond to the proportion of new aircraft sold that will replace lessefficient older generation aircraft, and therefore contributing to reducing the overall carbon footprint of aviation -as described in
section “- 6.1.2 Climate change” / IV. Transition plan / 2. Product stewardship -. Activities from the Company’s two Divisions may becovered to some extent in future developments of the EU taxonomy, while current level of information available does not enable theCompany to provide an estimate. Accordingly, ‘best-in-class’ aircraft program related Capital Expenditures ("CapEx"), and R&D(Operating Expenses ("OpEx") should be respectively eligible and aligned at least in proportions similar to turnover ones.
5“PLATFORM ON SUSTAINABLE FINANCE: TECHNICAL WORKING GROUP / PART B – Annex: Full list of Technical Screening Criteria March 2022.

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6.2 Other corporate activities
6.2.1 Digital and information management
Digital and information management at Airbus, overview
Digital and Information Management has been a core discipline for Airbus over a number of years. 2022
saw the continuation of the previously initiated digital transformation, together with new developments andfurther rationalisations.
Digital continued to answer Company challenges and to enable Airbus to be a sustainable aerospace anddefence leader. This included:●

A more efficient and simplified digital ecosystem to increase capacity to invest for the future. Thiswas possible with the single aisle family production ramp up assistance via the PLM upgrades,
data quality improvements, reworking of the resources planning for Operations and technical debt
eradication.

●

New digital design, manufacturing and services deployments. These are now running forEurodrone and the A350 freighter, establishing a solid groundwork for future programmes toenable the kick start of aerospace industry decarbonation transformation.

●

An initiation of seamless digital user experience to better engage with our employees andcustomers with innovation and acceleration over the digital journey.

●

People career development paths creation, including the opening of the Airbus Digital School andits first cybersecurity diploma class to make our Company attractive worldwide for digital talents
acquisition.

This year showed once again the uncertainty and complexity of the world we operate in. In response tothis, Digital aims to make Airbus both robust and flexible. This was implemented with high industrial grade
cybersecurity capabilities and technology shifts like modern devices management. This resilience also
went beyond compliance to include export control and more generally quality requirements.
Digitally enabled end-to-end processes
Digital design, manufacturing and services (“DDMS”)
DDMS is a group-wide transformation programme aimed at creating a digital environment where our future
generation aerospace products and their industrial and support / services systems will be virtually designed
and qualified in a connected way for greater speed, efficiency and quality.
It is enabled by the definition of collaborative development processes, digital continuity and digital twins
across the entire programme lifecycle. It also relies on the use of model-based system engineering and theapplication of a flexible and modular architecture approach to the co-development of our products, industrial
and support / services systems.
The mandate is to be launch-ready for the next aircraft programme, while securing early benefits byprogressively deploying the developed processes and capabilities on early adopter programmes in all theDivisions.

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The major achievements this year were:●

People: transformation & competences

One more step was taken into the overall DDMS transformation with a steep ramp-up of change
management and upskilling plans implementation. A special focus was put on Single Aisle and Eurodrone
with the deployment of the Lean Product Life cycle management capabilities, Systems Engineering / Model
Based Systems Engineering (MBSE). More than 20,000 people have started their upskilling journey either
through digital or classroom training sessions.
●

New co-development processes, digital continuity and digital twin technologies progressive
deployment on key programmes across the three Divisions and the Aerostructure AssemblyCompanies:

Single Aisle:
Major achievements include increased availability of 3D-configured Digital Mock Up (DMU), a sharp
reduction in the lead-time of the heads of version design and improved quality thanks to the implementationof a digital continuity on the associated processes from offer to services. The new information system
upgrade for the single aisle programme (so-called Lean PLM) has been deployed as planned. The savings
provided by the DDMS capabilities have materialised. Lastly, key contributions have been made to secure
the solution development of the A321 XLR programme.
A350 Freighter:
Key contributions have been made with the deployment of new ways of working and digital solutions forairframe sizing, system design, virtual testing, and industrial assembly design and simulation. Further digitalsolutions ensuring full digital continuity between design and shop floor execution are being deployed for the
new main deck cargo door and the fuselage assembly at the major component and final assembly line level.
Eurodrone & FCAS:
The common working environment with integrated digital solutions was deployed from the beginning for theEurodrone development. More than 2,000 users have been upskilled and onboarded in this digital way ofworking.
The Future Combat Air System (FCAS) Phase 1B development will rely on the same platform enhancedwith additional capabilities under development.
H175, H225 and LH (Light Helicopter) programmes:
The deployment of new digital continuity solutions between the design and the shop floor execution for the
new gear box assembly facility have resulted in higher quality and speed of execution.
The developed and validated model based system engineering capabilities have been deployed on Tiger
Mk3, H160 & NH90 (50 system engineers trained).
In addition, the development of capabilities for end-to-end maintenance engineering has been initiated.
Sustainable next generation Airbus commercial aircrafts:
We improved and continued the implementation of system of systems (SOS) trade capabilities to support
business model convergence and multi scenarios for business context. The MBSE based on mission

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operation function logical (MOFL) modelling methodology was implemented, enabling for example a clearer
definition of dihydrogen (H2) storage system development.
Ecodesign capabilities enabled by digital have been developed and life cycle analysis (LCA) models havebeen created to support sustainability assessment of our future products.
We also made good progress in the validation and implementation of processes, methods and tools
supporting the new co-development logic for the early programme development phase, reducing risks forlate changes and development costs. Our existing disconnected product functional and physicalarchitecture design tools started being connected through our developed model based system engineering
framework. New industrial system static and dynamic modelling capabilities were developed and started
showing improvements in our ability to predict our future industrial system and supply chain ramp up
readiness.
Digital continuity with a network of platforms:
In 2022, we have started to define and experiment the new concepts of “network of platforms”. The networkof platforms is set to enable our end-to-end value chain digital continuity and performance, e.g. ensuring
data flows across our processes and platforms internally and with our partners in the supply chain whilst
ensuring better data quality, consistency and ease of access. The concepts of data products and dataservice layer have been successfully piloted on different end-to-end business process flows with adeployment at scale starting in 2023.
Airline sciences
The aim of the airline sciences team is to provide an operational digital representation of an airline in all its
complexities and business models. Having a bottom-up approach enables the company to test out different
aircraft technologies and concepts, validate product strategy, assist in sales campaigns, develop newservices and, more importantly, understand the customers' perspective across all layers of the Company.
Airbus has set sustainability at the heart of the Company’s purpose and is willing to lead thedecarbonisation of the aviation industry. Accurate monitoring of aircraft operational data is a core elementof its decarbonisation strategy. As such, the Airline Digital Twin capability is being used heavily in order toassess CO2 effects, including comprehensive emissions calculations as well as operational sensitivities.
We have delivered the first CO2 airline monitoring tool, AirScout, based on the Skywise platform. Using
actual flight trajectories of the entire Airbus fleet, and assessing extremely granular effects, we are able tohave accurate aggregate numbers on aircraft trajectory, city pairs, Airline network, aircraft to aircraft, andairline to airline views. Our intent is to include other effects in the near future, such as non-CO2 and climate
impact effects, and beyond this to develop a scenario of ‘what-if’ capability to support Airbus’s achievementof its science-based climate targets. Airscout has been recognized in 2022 by a Digital Engineering award
for “Top Sustainability Initiative” in a cross-industry jury panel.
Finally, in the context of aircraft sales campaigns, the airline digital twin was used in supporting ultra-longhaul A350 studies for various potential customers. A comprehensive market assessment was carried out,
including building an optimal airline fleet and product strategy to maximise airline profitability.
Artificial intelligence (“AI”)
After successfully applying specific AI solutions across the business domains, the Company is now
accelerating and maturing its industrial setup to deliver AI at scale. This includes a focus on delivering an
AI services catalogue making available reusable and accessible core AI technology capabilities andpatterns. These capabilities include:●

Computer vision to enable visual quality inspection and improve the safety and quality of ourmanufacturing environment;
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●

Pattern recognition and time series analysis to detect anomalies and avoid failure in our industrial
machines and aircraft;●

Natural language understanding and processing to classify data (e.g. export control) and secure
our compliance;●

Optimisation to improve scheduling and planning activities; and●Hybrid modelling through machine learning to build surrogate models of physical systems,
accelerating design activities and increasing potential design space.

One of the AI projects called “Prometheus A380”, aiming at optimising spare parts management for theA380, was recognized this year by a Digital Engineering award for “Value Realisation” in a cross-Industry
jury panel.
These are being complemented with a central governance and life cycle management of a wide range of
operationalised AI and decision models (ModelOps) framework. First versions were released in 2022,
demonstrating the great value of AI models for key projects. These are paving the way to ensurecompliance for using AI in safety relevant systems in line with upcoming regulations.
Internet of Things and mixed reality
A standard IoT platform is now fully operational, which will support sustainability use cases. The objective
is to have data of different consumptions (water, electricity, raw materials, etc.) to better optimise it in the
future.
A mixed reality (augmented reality and virtual reality) platform is also now fully operational and several use
cases are planned for 2023, as cabin configuration or product showcases, especially for XLR and the single
aisle family.
Robotics and automation transformation
In 2022, we have kickstarted our integrated robotics and automation transformation programme to secure
the deployment of our ambitious robotics and automation roadmap. The Airbus roadmap is organised
around five major streams covering key areas of our industrial system: Assembly, Paint, Composite,
Logistics and Inspection.
For these five streams we are running ambitious flagship projects to develop and adapt complex robotics
technologies to the very specific requirements of the aerospace industry. We are doing this by a mix ofinternal developments and strategic industrial partnerships. In 2022 we have successfully establishedseveral test benches and passed major milestones on the various core technologies.
We have decided to internalise the industrial integration knowledge to secure our ability to turn complex
aerospace functional requirements into industry generic understandable by a large community ofintegrators working for multiple industries. Our goal is to reduce our dependence and extend our networkof partners.
Cyber security
Our transformation journey continued with the extension of our core services across regions and affiliates,
the reinforcing of our connectivity model with our extended enterprise and further strengthening of core
controls for the Airbus Commercial environment. In line with our ambition, we saw a further step change inthe volume of active running services now in place to protect our business.

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As we continue to develop and reinforce our re-insourcing strategy, we were pleased to welcome the adventof Airbus Protect. The experience brought by the creation of this strategic partner will be key to deliver on
our commitments for the years to come.
In 2023 we need to continue to develop and reinforce our federated cyber security model; strengthening
security by design, collectively we will adopt a stronger and more resilient approach to enable and protect
our business. As we continue to reinforce our teams in Europe, India and within the regions, we must
continue to ensure the development and maintenance of our key skills through a robust competence
strategy.
The recruitment and the development of key skills and competences remains a top challenge. With thisregard, the creation and implementation of the Airbus Cyber Security Diploma is a great achievement for
all those involved. We now have a solid platform to develop ‘home-grown’ Cyber Security expertise tosupport our talent pipeline for the years to come. As an Airbus-designed programme, we have been able
to tailor the content and delivery to match the exact needs of the business. This programme is a key addition
to our existing portfolio of early career programmes which over many years have been successful inproviding high potential individuals embedded in our teams across Europe.
Digital transformation at Defence and Space
2022 has been a year of consolidation and optimization for Airbus Defence and Space. In addition to
enabling key programmes like Eurodrone and FCAS with their common working environments fordevelopment between all involved partners as already mentioned above, the ERP consolidation that isclosely linked to it has been progressing in the background. This goes hand in hand with the newly launchedinitiative “Fixing the digital foundation” which has been kicked off in 2022 with the goal to streamline andoptimise the complex IT architecture. All this is to reinforce the division’s digital security, improve user
experience and be able to adapt to technological changes quicker.
Digitally-enabled products and services
SkywiseAt its origin in 2015, Skywise was launched to unlock the data from our discrete legacy systems to make it
accessible and actionable by those needing it for their day-to-day operations. Now fully industrialised,Skywise is in 2022 adopted by more than 29,000 Airbus employees across all functions and divisions. It
proved how the Company's strategy to place data at the heart of the transformation was a successful
decision. With data unlocked from previous silos, a virtuous circle has been created: with in-service data
flowing back into operations and aircraft design, delivering incremental product, support and services
improvements and transforming the Company into a more agile, empowered and data-driven organisation.
This success has been recognized in 2022 by a Digital Engineering awards for “Digital Transformation of
the Year” in a cross-Industry jury panel.
Skywise data architecture ensures that data becomes the single source of truth powering the Company's
operations and products. Building on the successful industrial use cases, Airbus initiated theimplementation of its Data Product strategy that aims at supporting end-to-end business processes with an
integrated data flow, enabling digital continuity for Airbus legacy programmes. This effort is paving the way
for DDMS digital continuity framework.

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Furthermore, Skywise is the flagship platform of the aerospace industry's digital transformation, connecting
Airbus, airline customers and some key aerospace suppliers. With Skywise directly supporting theoperations & maintenance of more than 10,300 (Airbus and other OEMs) commercial aircraft, we estimatethat it has saved the airline industry at least US$ 200 million a year and has accelerated their overall aircraft
operational availability and post-crisis aircraft return-to-service. 2022 was also the year of the launch of
Skywise Core [X] packages built on a subscription-based business model with four early adopters.
Skywise was designed from the start with the right security framework, a strict data governanceimplementation and industrial scalability. This made it possible to start small and then scale up. The
technology partner's world-leading capabilities in data integration played a key role in the adoption; yet thiscontinuous growth was driven by the focus on value creation, engagement with the business andemployees' digital skills upskilling, more than by the technology itself.
Digital services for helicopters
Launched in 2020, AirbusWorld, Customer Collaborative platform, pursues its goal of becoming the Airbus
helicopters Digital Front Office. Available 24/7, Worldwide, easy to use, AirbusWorld's primary mission isto enable our customers to quickly find relevant information and perform first level support activities
autonomously.
With a growing community of 42.000 users, AirbusWorld is continuously proposing new functionalities on
key support activities such as logistics or technical support. Besides, innovative services are proposed toenrich the overall experience with Airbus Helicopters.
Many other improvements are on the way to be deployed in 2023 to enrich our digital front Office andpropose best in class support.
Digitally-enabled people
Google Workspace deployment
Google and Airbus continue to partner to further improve the functionalities of Google Workspace. 2022
has been key for the enhancement of security with the deployment of Flowcrypt and Meet CSE (Client Side
Encryption, allowing end users to encrypt their most sensitive meetings with Airbus encryption keys). Datatagging drastically increased and the new secure email platform has been delivered for military mailboxes.
2023 will bring more autonomy to each employee with the Low code / No code features being now available
to all. 2023 will also see further deployments in Airbus Helicopters, Airbus Defence and Space and Airbus
Atlantic.
Modern workplace
Airbus started to roll out a more efficient and resilient workplace improving employee productivity fromanywhere, anytime from any device thanks to the modern devices management program.
Also, the modern workplace is now even further improved with smartphone deployment initiated in 2022,
to enable each and every employee seamless communication and collaboration. This deployment willcontinue in 2023.
IM eXperts Career Path
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Starting in 2021, we have been actively developing the IM eXpert career path together with the Airbus
College of eXperts. Why?
●

Because we strongly believe our digital technical expertise is making the difference for the futureof Airbus. A future where digitalisation, cyber security risks, automation, cloud technology, powerof data, connectivity, artificial intelligence and much more have become not only a business enabler
but a competitive advantage of our aerospace industry;●

To officially recognize the tremendous technical know-how of our employees and offer them moredevelopment opportunities in what they love doing every day at & for Airbus; and●With the IM eXpert career path we aim to secure key competencies for Airbus top line strategic
priorities, while providing meaningful development and career opportunities to the talents interested
in further expanding and deepening their technical and relational expertise.

Digital academy services for all
Since 2018, the Digital academy team has identified, both at Airbus Group and at worldwide levels, allnecessary skills, competences and people development means to use all the opportunities of our digitaltransformation. In 2022, some significant steps were delivered to boost our digital profiles attraction andnatural retention within whole Airbus:●

5,000 employees across Airbus have a digital job and 60,000 employees have at least acompetence in their position supporting our digital transformation;●

300 employees certified this on data analysts and data scientists skills, so far raising up to 1,200
certified colleagues since 2019;●new certifications are now live: 30 employees graduated in Amazon Web Services or Google
Cloud Platform and 20 architects obtained the Archim@te certification;●

career paths were designed and started to be implemented for architects (526 employees) andtechnology specialists (400 employees);●

15,000 employees trained on digital upskilling solutions (Pluralsight and other platforms); and●4,000 active members in communities of practice (social learning) related to our digital jobs,
exchanging best practices, pain points, getting technical mentorship, participating in

events and seminars, etc.
Concluding remarks and 2023 challenges
This year once more demonstrated through the above achievements the great collaboration among all
participants from all the Divisions. Digital contributed to the success of the Company, delivering even further
the expected added value from Airbus, partners and its customers.

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Digital will continue next year to be the digital engine of sustainable aerospace for a safe, united world andbeyond. Data boundaries will vanish to open the seamless data driven world, enabling end-to-end decision
making and supporting the ramp up of our production rates.
Past years showed how resilience is paramount. Digital will give its best to make Airbus digitally adaptable
and strong with cybersecurity capabilities at the centre, but also unleashing the cloud and sovereign
capabilities.
The journey shall be decarbonised: making aviation ‘greener’ is one duty of Digital and efforts continue togive the means to reach emissions targets with new monitoring systems, material traceability and newsustainable aviation solutions for our customers.

6.2.2 Research and technology
The Airbus Technology and Engineering Department is led by the Chief Technical Officer (CTO). Part of its
responsibility is to define, deliver and protect all the Company’s research and technology (R&T), enable
technology synergies across the group, federate the Company’s innovation activities and ensure expertisein breakthrough technologies. The R&T Programme department applies a lean project-based approach,tracked and managed using earned value management, technology readiness levels and figures of merit.
Technological collaboration with external research communities and partners is encouraged andcoordinated through the department with technical and scientific experts. These duties are delivered
through the capabilities outlined here below.
The Company-wide integration of R&T technology and alignment with institutional research partners isachieved through cross-portfolio technology planning and road mapping, giving an exhaustive view oftechnology targets and investments. In addition, Company-wide engagement for joint funding with publicagencies is achieved through a common R&T Funding contract management.
Specific cross divisional activities are delivered through the Disruptive R&T department consisting of:-Central R&T (CRT): the cross-divisional R&T organisation that prepares the Company’s long-term
technological capabilities. CRT leads specific investigations in emerging areas of research andconducts ambitious research projects while leveraging leading academic, scientific and research
institutions to best utilise their expertise for achieving the Company’s ambitions.

-

Demonstrators (UpNext): development of selected breakthrough technologies is accelerated
through Airbus demonstrators, by employing rapid maturation methods. This function delivers,
thanks to its fully owned Airbus UpNext subsidiary, flight and ground demonstrator projects thatdrive collaborative new ways of working, provide the highest level of transparency and challenge
the status quo by embedding Airbus’ technology DNA in a highly dynamic environment.

-

X-Labs: providing test and rapid prototyping facilities for the full R&T portfolio and the Engineering
Centres, especially addressing capabilities that do not exist within the company or external
ecosystem, e.g. electrification. X-Labs also provides external access to these facilities.

-

Acubed: technological innovation and outreach to expertise in specific regions is delivered throughAcubed in Silicon Valley.

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-

Airbus Innovation Centre in China: accelerate the delivery of innovation projects building on thelocal ecosystem.

-

Airbus InnovationX: bringing together corporate innovation, start-up engagement and company
building activities.

Each Division has its own R&T function, defining and delivering the Divisional projects. The Divisional R&T
functions are primarily planning and technical arbitration teams within their perimeters and accountable toboth Technology, Divisional Engineering and Product Strategy. Their responsibilities include securingcontinuous improvement in divisional competitiveness and the ability to develop business. Within the
Company, specific priority is given to technologies for sustainable next-generation aircraft, bringing together
product, production system and services.
In order to maximise the Company’s R&T activities, the Divisions leverage the external ecosystem, utilising
the portfolio of projects for funding opportunities and engagement with global partnerships, research
institutes and universities. This ensures efficient R&T portfolio execution, and benefits from new ways ofworking including but not limited to agile methodology and minimum viable product demonstration strategy.
Responsibilities include securing continuous improvement in divisional competitiveness and the ability todevelop business by establishing and driving the Company’s R&T ambitions.
Fast-track roadmap owners serve as principal advisors to the CTO on technical vision and roadmaps for
associated technology areas. Fast-track roadmaps ensure coherency in the portfolio of activities and forthe rapid advance of strategic priorities across the Divisions. Current fast-track roadmaps cover:- Electrification- Industrial systems and manufacturing- Connectivity- Autonomy- Materials- Artificial intelligence
The Company’s intellectual property is protected, secured and defended through a central intellectual
property function responsible for patent applications, portfolio investigations and portfolio defence.
Key progress in 2022
Central Research and Technology (CRT)CRT pioneers the future of aerospace by exploring and delivering ambitious new technologies of maximum
potential impact on Airbus’ future products and services. CRT operates at the junction of the Airbus coreand global research excellence with two main objectives:●

Be a technical trailblazer: explore and deliver relevant new technologies, as well as de-risk andcreate new opportunities.

●

Prepare the skills of the Airbus of tomorrow: build internal capabilities in strategic emerging
technologies and provide the relevant expertise to internal customers for technical support anddecision-making.

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In 2022, CRT had more than 30 projects running concurrently across its domains. Highlights from these
activities include the following.
Materials technology: 2022 has seen significant advancements in the fields of materials sustainability andcircularity, materials informatics, functional and high-performance materials towards overall sustainability
targets, product mission performance and competitiveness. The perimeter continues to range from organic
to inorganic materials, including ceramics and respective surface technologies.
-

In the area of sustainability and circularity the first bio-based carbon fibres have been tested at highperformance - matching aerospace requirements. Enzymatic technologies for recycling of polymers
have been further analysed and show further opportunities, including catalyst development for fullbio-based-resin formulations. Titanium chips to powder for additive manufacturing technologies
have shown promising results, opening new opportunities for future circular process chain thinking.

-

Digitalisation of materials (from materials definition, to characterisation and analytics) is seeing afurther increase in opportunities. For example, AI in polymer formulations is being investigated, inorder to identify opportunities e.g. for the faster replacement of substances.
In the area of functional and high-performance materials, high robustness of printed electronics(wires, antennas, sensors) was demonstrated, enabling application opportunities which were notpossible before.

-

Electrification technology: During 2022, the team has made significant progress on several aspects ofelectrification and electric propulsion techno bricks. For example, demonstrating active filtering ofelectromagnetic interference of power modules. This technology, when applied to dedicated functions,
could result in a significant weight reduction when compared to classical passive filtering.
Artificial intelligence: In the scope of trustworthy AI, the most impactful outcome was providing formal
proofs of neural networks’ robustness supporting the certification of systems, embedding machine learningcomponents with several successful applications on existing neural networks. Research will continue on AI
in complex environments, such as AI in the cockpit, with robust and explainable decision making.
Virtual product engineering: The team has investigated advanced model based systems engineering
technology bricks to support co-development of product and industrial systems, and has successfully
demonstrated approaches to be handed over to the DDMS (Digital Design Manufacturing and Services)
programme for industrialisation. In addition, projects are running to support modelling and simulation needs
for future sustainable aircraft, including the use of hybrid AI techniques to support traditional computational
approaches. In the field of aeroacoustics the team has developed a methodology for coupling
Computational Fluid Dynamics (CFD) with Computational Aeroacoustic (CAA) methods. Finally, a
collaborative project has been set up between CRT, Inria and Cerfacs in France to enhance our key
capabilities in applied mathematics for modelling and simulation. The initiative called ‘CONCASE’ includes
research into hybrid modelling linked to HPC - a key enabler for the next generation of modelling andsimulation.
Communication technology: The team is trailblazing new communication system architectures andtechnologies enabling resilient, pervasive and secure connectivity for our airborne platforms. Major
demonstrations of advanced technological capabilities were performed in the field of free-space QuantumKey-Distribution and Post-Quantum-Cryptography to provide a maximum level of security for ourcommunication links. Other outstanding project results are paving the way for more autonomous flight
operations with demonstrations on very highly-available communication links and a many-core processor
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implementation for highly-critical applications. New research initiatives to explore quantum networks andfree-space power beaming for alternative energy sources were started.
Quantum technology: Implications of quantum technologies for aerospace and defence are extensive andinclude important applications in the fields of computing, communication, and sensing. The objective is to
explore this new emerging technology for our company and to prepare Airbus for the early adoption of its
portfolio. In 2022 a new partnership was set-up with one of the leading quantum computing companies
IonQ in the project QUASA (QUAntum enabled Services for Aerospace). Airbus will work with IonQ on
specialised quantum algorithms to tackle combinatorial optimisation, where quantum computing could
provide an enormous speed-up compared to classical approaches. The two companies will explore cargoloading optimization as a benchmark use case and use one of the world’s most powerful quantum
computers for demonstration in 2023.
Blue sky research: Explores, validates and pushes more efficient early upstream technologies, which are
new to Airbus, of strategic nature, high risk and high rewards, that will push the boundaries of aerospace
and will lead to high business and societal impact. The activity is driven by three clusters: Future Energies(new ways to generate, convey and manage energy), Future Transportation (novel ways to transport
people, goods and data), and Future Society (design for societal change). Key technologies that have been
explored are Power Beaming (transfer energy over the air and space), the Metaverse and its applications
across the aviation value chain, and Project 42, a model of societal reaction to future Airbus products.
Airbus demonstrators – Airbus UpNext
Airbus UpNext is actively shaping the future of the aerospace industry as part of the Airbus innovation
ecosystem by building demonstrators at speed and scale, in order to evaluate, mature and validate potential
new products and services that embody radical technological breakthroughs.
In 2022 the team increased its presence in Spain with the launch of Airbus UpNext Spain, a wholly-owned
innovation subsidiary. As announced in Farnborough in 2022, the team is working on a demonstrator called
Auto’mate on autonomous air-to-air refuelling operations applying advancements in vision-based
technology.
Throughout 2022, Airbus UpNext progressed with the extra-performance wing demonstrator projectfocused on accelerating and validating technologies that will improve and optimise wing aerodynamics andperformance for any future aircraft. This scaled demonstrator will integrate and fly breakthrough wingtechnologies on a Cessna Citation VII business jet platform in representative flight conditions. The
applications of the extra-performance wing - compatible with any propulsion solution and aircraft
configuration - would reduce CO₂ emissions, thus contributing significantly to Airbus’ decarbonisation
roadmap.
Another demonstrator in the pipe, VERTEX aims to simplify helicopter mission preparation andmanagement, reduce helicopter pilot workload, and further increase in safety. The team has completed thesoftware stack and will flight-test this solution in 2023.
Supporting the Airbus sustainability ambition, Airbus UpNext demonstrated technology readiness on keyhydrogen propulsion solutions, enabling the launch of the ZEROe demonstrator in 2022 to mature hydrogen
combustion technology on an A380 flight test platform. The team is also investigating contrails formed via
hydrogen direct-burn with the Blue Condor demonstrator using two glider aircraft.
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ASCEND, the “Advanced Superconducting and Cryogenic Experimental powertraiN Demonstrator” whichinvestigates performance of electric propulsion systems using superconducting materials and cryogenic
temperatures has produced the first physical components for testing. In this field, Airbus and CERN(European Organization for Nuclear Research) have signed a partnership to investigate the use of first
generation cryo-cables for aircraft via a sub-scale demonstration.
AcubedSituated in Silicon Valley, an epicentre of tech talent and investment, Acubed is a fast-paced machine thatdevelops and delivers technological breakthroughs at the intersection of software and hardware. Acubed’s
mission is to accelerate the digital transformation of the aerospace industry and build the future of flight
now. In operation since 2015, Acubed delivers valuable digital technologies and solutions into Airbus,
leveraging strong AI, software and simulation capabilities synonymous with Silicon Valley’s strengths.
Acubed’s agile, highly collaborative model ensures it injects lasting value and expertise into Airbus while
keeping a finger on the pulse of emerging technologies that have the power to transform the aviationindustry.
Acubed’s current areas of exploration and maturation are closely aligned to Airbus’ strategic priorities andaim to help Airbus secure and maintain leading positions across nascent and established aerospacemarkets. Beyond its current portfolio, Acubed continues to explore new areas of research where it candevelop additional value for Airbus and the industry.
AI and autonomy
The Wayfinder team is developing certifiable autonomous flight and machine learning solutions to help
Airbus bring about a significant increase in safety and efficiency in the next generation of commercial
aircraft. Wayfinder’s team of experts is working hand-in-hand with Airbus’ teams in Europe to continue toimprove and iterate on their computer vision-based autonomous systems and data-driven development inorder to support Airbus' wider autonomy goals.
Digital design and manufacturing
The Advanced Digital Design and Manufacturing (ADAM) team seeks to transform the aerospace industry
through the application of digital innovation across design and manufacturing. Whether adapting
manufacturing processes to gain efficiencies or to cope with disruptions, such as supply chain issues,
ADAM develops solutions to reduce lead times, production costs and improve workflows dynamically,
blending its software and hardware expertise.
Digital airspace
The Unmanned Traffic Management (UTM) team’s work aims to enable autonomous and digital air traffic
operations that ensure a safe, fair and efficient airspace. The team is doing this through research,
simulations, operational services and industry collaborations. Pioneered out of Acubed, these activities are
an integral part of the global Airbus UTM program located across Europe and Singapore. The team delivers
a suite of products for an extensible UTM ecosystem that includes essential core services such as safety
briefings, risk analysis and airspace authorization as well as digital airspace twin simulation capabilities.
Quantum
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Acubed is accelerating research on the application of quantum computing and sensing on aviation use
cases to further Airbus’ understanding of the potential of these technologies and how they may be leveraged
to improve operational sustainability.
Airbus China Innovation Centre ("ACIC")
ACIC, based in Shenzhen, is the first innovation centre set up by Airbus in China. Its mission is to fully
leverage China’s local innovation ecosystem including talents, partners and resources, combined with theCompany’s expertise in aerospace, to discover promising technologies, to identify solutions enabling newservices, and to accelerate the delivery of innovation projects.
●

The manufacturing innovation team is tasked to explore industry 4.0 technologies to improve
efficiency and safety on the shop floor, as well as to leverage Airbus’ industrial sites in China for
accelerated local testing and global dissemination. The team is working on computer vision, AGV(automated guided vehicles), 5G industrial connectivity, smart tooling, remote inspection, green
factory and IoT (Internet of Things). Various applications are handed over to business andimplemented in daily operation.

●

The cabin experience team is tasked with providing innovation for the cabin and cargo oftomorrow, to enhance Airbus’ local cabin offering (local to local) and to increase value for Airbus
global cabin products (from local to global). The team is working on broadband connectivity with
5G, a smart cabin operation system contributing to Airspace Link, flexible displays, IoT based smart
applications and sustainable cabin solutions.

●

The tech lab team is working on computer vision algorithm development, battery scouting andtesting, various types of sensors fit to different scenarios and fast electronics prototypes building.
The team is also starting to engage with certain industry standard making organisations, toinfluence standards with aeronautic requirements.

Airbus InnovationX
Airbus InnovationX focuses on active innovation delivery and operates on four different levels all integrated
under one “roof” and with a proper innovation governance at Airbus level:●

Global technology intelligence: Explores technology trends across geographies to support
Airbus future challenges while detecting the right start-ups, SMEs and companies to partner with.

●

Start-up engagement: Understanding the essence of the needs of Airbus that could be addressedto high maturity start-ups with the objective to speed-up the solution making and generating positive
impact for Airbus.

●

Company building: To anticipate the trends that could disrupt the future of the aerospace industry
and evaluate them to identify and incubate potential new businesses preparing to be accelerated
within Airbus.

●

Corporate innovation: To support and guide the internal and external innovation ecosystem in its
development, with the objective to increase the impact and visibility of Airbus as an innovative andAirbus SE/ Report of the Board of Directors 2022

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sustainable company. Supported by the innovation governance and operations while fostering
entrepreneurship and out-of-the-box thinking within Airbus’ own culture.
Airbus Commercial Aircraft
Airbus Commercial’s R&T activity continues to progress along the axes of safety, decarbonization,
operational efficiency for our customers, Airbus industrial efficiency and resilience and passengers’
experience. Technologies are delivered to current programs, providing options to improve the products andthe industrial system.
Technology bricks for future programmes are also investigated and matured: propulsion, wing, aircraft
systems, fuselage, empennage, cabin, industrial, maintenance and engineering capabilities are examplesof domains of interest. These technology bricks will provide part of the solution for our future licence tooperate and our future efficiency and resilience. Their maturation is the object of a multi-year effort.
To give some examples of last year’s achievements:●

The Open Fan engine project was announced during the Farnborough airshow to study the concept
in partnership with engine manufacturer CFM.

●

The emissions coming out of engines using SAF measured in flight are providing valuable data forclimate science and the design of future engines.

●

The Fello’Fly demonstrator project, looking at reducing CO2 through wake energy retrieval, wasnamed Grand Winner of Aviation Week’s most prestigious Laureate Awards for extraordinary
achievements in commercial aviation.

Low carbon technologies continue to be a strong focus. As part of its ambition to lead the decarbonisationof our industry, Airbus will continue to develop hydrogen technologies around the propulsion and liquidhydrogen storage and distribution systems. Airbus has disclosed in 2022 its H2 combustion propulsion
system flight test demonstrator with CFM (also mentioned above in the UpNext section) as well as its
technology roadmap for the development of a fuel cell propulsion system. Airbus has also engaged in many
strategic partnerships around the world in understanding and exploring the hydrogen ecosystem to support
the successful Entry into Service of a hydrogen fuelled aircraft. This will accelerate in 2023 with more
integrated ground testing, as well as the preparation of the forthcoming flight demonstrations. In parallel tothis, different aircraft configurations will be explored and matured in 2023, to assess the most efficient way
to integrate those technologies inside the aircraft. The Company will also continue its effort to support its
customers to build their route-to-lower carbon operations, and to grow its partnership landscape for criticaltechnology bricks and related ecosystems.

Airbus Helicopters
Significant steps forward were made in 2022 in the Research and Innovation department, with activities
focused on the main demonstrators and techno-bricks.
The FlightLab, the Airbus Helicopters’ techno bricks demonstrator, performed several tests in 2022:-

Engine Back-Up System function completed its demonstration on a single engine helicopter.
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-

Cable detection function using LIDAR and image processing operations was demonstrated.

-

Eye for Autonomous Guidance Landing Extension (EAGLE), based on a gyro-stabilised camera,using an artificial intelligence image processing software completed its functional demonstration.

-

Health function for Light Helicopters using wireless set-up was completely validated for further
deployment.

The RACER assembly significantly progressed. Shake tests were successfully run and power on of thedemonstrator was done. Main remaining component to be received to finalise assembly is the main gearbox. With the remaining flight clearance tests, the first flight is now planned for the second half of 2023.
The DisruptiveLab demonstrator and its first techno-bricks were unveiled at the Airbus Summit. Groundtests were successfully run at the end of 2022 and the flight testing started in January 2023.
Airbus Defence and Space
2022 offered us the opportunity to balance the short and long-term technologies in order to ring fence our
R&T portfolio. This has allowed us to secure the activities focussing on strategic technologies, under theassumption that mastering those technologies will be key to maintain Airbus’ competitive positioning in the
mid-to-long-term (e.g., Quantum, advanced AI applications).
It is worth mentioning the Zero Base Budgeting exercise, which took place in 2022 with the aim of
ensuring the alignment between the R&T portfolio and our future challenges.
The technology flagships have been updated to align with the strategy and the business ambition.
Currently six different Technology Flagships define the main capabilities and competences required in the
Division while maintaining a full alignment across the programme lines and product portfolio: “Sustainable
Aerospace”, “The future of Warfare”, “Next Generation Aerospace Vehicles”, “High Performance Payloads& On board-computers”, End to End Information superiority” and “Industrial Competitiveness”.
This optimisation of the technology landscape also took into account the reinforcement of links between
R&T and R&D, and emphasised technologies reaching an “adoption at the right time and with the rightspeed” by the business and the programme lines, once the technologies reach a maturity level that allow
their industrialisation and insertion into a product.
In terms of the main technology achievements, we achieved significant progress across all flagships.
End-to-end information superiority: we have focused on enhancing data management for decision
support. As an example, the TWIN project (Pléiades Neo Super Resolution Images) has opened the door
to negotiations with Google and Apple.
Next generation spacecraft vehicles: we continued working on Advanced materials and Structures
Human -Machine interaction and autonomy among others. As an example, we achieved the handover ofC295 Ergonomic Cockpit, with a cost reduction of 500€ per flight hour.

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High performance payloads & on-board computers: activities continue centred on increasing computing
performance and increasing high throughput communication capabilities. As an example, the project Space
Optical NAOMI has reduced by -50% the lead time of the NAOMI instrument automatic optical alignment.
Industrial competitiveness: specially linked to industrial performance improvement and deploying
technologies related to the Factory of the Future. As an example, the AMANDA project has developed aDigital Assistant for blue collars to interact by voice with Manufacturing systems, or the MFOP project hasdeveloped a digital framework for aircraft diagnosis and prognosis to increase 15% fleet availability andreduce 20% operating costs.
Future of warfare and sustainable aerospace are two new flagships that will guide the ambition for thefollowing years. We have already good achievements in these fields like the development of algorithms forflexible coordinated formation flight (it will pave the way for FCAS) or the successful flight test of C295
semi-morphing wing that reduces -43% CO2, and -45% lower noise and reduction of fuel consumption.
Finally, strong efforts were placed on defining the technology national plans for the home countries, which
will be key for the eco-systems footprint in the core nations, maximising the public-private collaborationand especially focusing on the national customer priorities.

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7. Airbus strategy
7.1 Commercial leadership, value creation and profitability
Airbus emerged from the turmoil of the COVID-19 pandemic in a relatively strong competitive position andwell placed to capitalise on a recovery in demand for commercial aviation. Overall, however, 2022 turned
out to be a challenging year, with Airbus facing overlapping geopolitical and economic crises.
Russia’s invasion of Ukraine on 24th February, has resulted in large-scale human suffering, and saw the
Company close all business activities in Russia (in line with all applicable sanctions), spanning civil aviation,commercial space, and helicopters. Airbus also suspended its ArianeGroup rocket venture, due to its
reliance on Russian Soyuz launchers, while further sanctions on Russia led to the direct cancellation ofdeliveries as well as the loss of critical equipment and products.
As a result of the war in Ukraine, Airbus faced major difficulties in procuring parts and equipment for planes,
helicopters, space and military air systems. The disruption to the supply of chips and electronic components
was severe, with engine makers and the majority of Airbus’ sub-systems suppliers affected. Tensions
between China and the US exacerbated these shortages and US export sanctions caused China to impose
its own trade restrictions.
As countries moved to reduce their dependence on Russian oil and gas, the resulting energy crisis caused
severe inflation and triggered a crisis in the day-to-day cost of living. Higher energy costs pushed manybusinesses into bankruptcy, exacerbated by sharply rising interest rates as central banks fought inflation,
further endangering many businesses and organisations with high debt levels after the pandemic. COVID19 continued to cast its long shadow. For much of the year, China persisted with heavy lockdowns amid
fresh outbreaks of the virus, causing major disruption to Airbus China.
Despite this challenging operating environment, Airbus saw many successes in 2022: a strong performancefor its helicopter business; the first flight of the A321XLR; major advances on FCAS (Future Combat Air
System) and Eurodrone; the successful launch of Artemis 1; important sales wins across all business units,
including Qantas’s landmark order for 12 A350-1000s, 20 A220s and 20 A321XLRs; and Airbus setting thesustainability agenda for the aerospace sector, through new partnerships, driving innovation and delivering
hundreds of new aircraft.
While these headwinds will continue into 2023, with a strong balance sheet and demand for more fuelefficient single aisle aircraft remaining strong, Airbus remains in a strong position. Furthermore, there has
been a collective realisation that Europe needs a strong, sovereign defence industry. Airbus was created
to deliver pan-European industrial projects and is well placed to provide leadership of the European defence
and security sector.
In this operating environment, the Airbus purpose “We pioneer sustainable aerospace for a safe and united
world” has never been more relevant. The Airbus strategy focuses on geopolitics, sovereignty, resilienceand sustainability, and remains well placed to enable the Company to create value and remain profitable:
1. Grow Airbus as an aerospace and defence leader;
2. Leverage European roots to pursue global reach;

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3. Increase capacity to invest for the future; and4. Lead the transformation of the aerospace industry.
1. Grow Airbus as an aerospace and defence leader
Leadership today is not a guarantee for leadership tomorrow. The Company believes that its ability to win
business in the future will be earned through continuous innovation, both in and around its current portfolio
as well as when preparing the future generation of products and related services. All activities must be
executed to the highest quality and safety standards possible.
1.1 Keep current portfolio young and competitive
The Company’s financial success is strongly linked to capitalising on its current commercial aircraft portfolio
through incremental improvements. Airbus estimates that its current products have substantial upside
leading to exceptional longevity. This has been demonstrated by the New Engine Option (NEO) versionsof A320 and A330 and stretch versions, such as the A321XLR, but also in smaller, incremental
improvements on every product. The A330neo and the A350 both deliver high levels of fuel efficiency (25%
fuel consumption saving compared to previous generation aircraft), accelerated pilot on boarding (all widebody aircraft benefit from a common type rating making pilot training shorter, smoother and lower cost),
and comfort through the exclusive airspace cabin, setting a modern benchmark in passenger comfort andwellbeing. Incremental improvements will be continued further in the coming years on all Airbus aircraft,with a focus on fuel efficiency, environmental impact, operational improvements, recurring costs, digitalconnectivity and increased automation / autonomy functions. Airbus aircraft are also well suited to serve
freighter and VIP markets. The decision to launch the A350 Freighter version (A350F) in 2021 is a typicalexample, setting a new standard for air freight efficiency, attacking Boeing’s monopoly in this segment witha successful market entry (35 firm orders and 11 options to date).
With the same logic, the helicopter portfolio is expanding through military versions of commerciallysuccessful products. In 2022, the H145M benefitted from the incremental development of its H-Forceweapon system and the military version of H160 (HIL) continued its development path for the threebranches of the French armed forces. The H175M platform was officially launched and marketed to the UK
Ministry of Defence as part of the “New Medium Helicopter” competition to replace the ageing Puma fleet.
2022 also marked the signature of the Tiger Mark III contract between France, Spain and Airbus
Helicopters. This contract (Mid-Life Upgrade) will provide an additional 20 years of unrivalled performancefor the attack helicopter by retrofitting French and Spanish Tiger fleets with new state-of-the-art avionics
and enhanced weapon capability to guarantee its full integration in the future digital and connectedbattlefield.
As part of its efforts to increase its military footprint in Unmanned Aerial Systems (UAS), Airbus Helicopters
successfully conducted the full package of land tests of its VSR700 prototype to pave the way for ademonstration flight above sea in 2023. The VSR700 is a 700kg unmanned helicopter derived from thecivilian Cabri G2 and will be used to answer the French Navy’s need for an Intelligence, Surveillance andReconnaissance (ISR) vehicle to operate from frigates and to patrol beyond line of sight (BLOS). In June
2022, a Memorandum of Understanding (MoU) was signed by all participating MoDs to structure thecooperation and officially launch the next steps of the NATO NGRC (Next Generation Rotorcraft
Capabilities) Concept Phase. This programme aims to prepare the replacement of more than 900 NATOhelicopters in the utility and naval segments between 2035 and 2040. In that context, the grant agreement
was signed with the EU Commission to launch the European Next Generation Rotorcraft Technologies
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(ENGRT) project in partnership with Leonardo to identify Concepts of Operations (CONOPS) andtechnologies to be matured to best answer NATO requirements.
As Airbus military aircraft are also competitive in selected military segments, in 2022, Spain ordered 20
Eurofighter Typhoon combat jets under Project Halcon, highlighting the trust and commitment from the core
nations. Although Airbus and our partners face challenges in the international development programmes of
the Eurofighter (capability enhancement packages), the envisaged Long Term Evolution (LTE) at the endof the decade will significantly improve the connectivity and competitiveness of the aircraft, increasing its
value for European Air Forces, in their mission to protect European security and freedom, and its export
potential.
In February 2022, officials from the Organization for Joint Armament Cooperation (OCCAR) and Airbus
signed the Eurodrone global contract for developing and manufacturing 20 systems and five years of inservice support. The contract sees France, Germany, Italy, and Spain move ahead with development of
the European unmanned aerial vehicle (UAV), also known as the European Medium-Altitude LongEndurance (MALE) Remotely Piloted Aircraft System (RPAS) to work in a partnership with Airbus as Prime
Contractor to the customer, and Leonardo plus Dassault as major subcontractors.
In order to keep the current portfolio competitive and to extend the longevity of its products beyond 2030,
Airbus will continue evolving platform capabilities, such as A330 MRTT automatic air-to-air refuelling andnew standard operating capabilities for the A400M. For Services, new digital business will be addressedbeyond our regular profitable MRO business.
Airbus is also partnering with Lockheed Martin on LMXT as its response to the Air Force’s KC-Y Strategic
Tanker Programme and is participating in opportunities for Airborne Early Warning (AEW) and maritime
patrol aircraft as a single aisle derivative, leveraging its experience acquired through the civil-to-militaryconversion of A330 MRTT.
1.2 Pioneering for the next generation
In preparing the next generation of aircraft, the requirement for improved sustainability will be the catalyst
that allows aviation to continue to meet its larger purpose of uniting the world. The quest for lower carbon
air travel will fundamentally change aerospace. Not since the introduction of the jet engine has the industry
faced such a challenge, in particular around new energy sources. New certification challenges, newmaterials, new designs, new industrial processes and new business models will also be assessed, which
will provide sources of opportunity. In short, the Company aims to set the standards and mature thetechnologies of sustainable aviation for the benefit of the environment and society at large, delivering
products and services that make a step change from our customers while remaining viable and feasible for
AirbusAirbus has already started preparing the enablers for this evolution and has invested in key R&T bricks. In
2022, the Company launched, together with CFM International, a flight test demonstrator for advanced
open fan architecture. In addition, the ZEROe demonstrator development platform has been launched totest hydrogen technologies on the ground and in the air. Airbus’ UpNext demonstrators study potential new
products and services that encompass radical flying technological breakthroughs. Meanwhile Airbus has
demonstrated formation flight missions, through its Fello’fly project, to realise fuel efficiency improvementson aircraft already operating in service.

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Airbus is also leading a European consortium to increase the air mobility capabilities of the armed forcesof EU Member States with the new Future Mid-size Tactical Cargo (FMTC) transport aircraft to complement
the missions of the A400M.
1.3 Build advantages through a broad span of products and services within aerospace and defence
The resilience provided by a broad portfolio of products and services is essential for Airbus today and willcontinue to be in the future. Most aerospace companies nurture a substantial defence and space elementin their portfolio to gain synergies and increase stability. This is also true for Airbus, with commercial aircraft,
helicopters, defence, space, and security activities all part of the portfolio. Governmental, military andcommercial business, products and services, fixed wing and rotary platforms, satellites and launchers, bothself- and customer-funded, are all elements which balance market variations, provide synergies, and help
to smooth investment cycles. Additionally, as digital design, manufacturing & services require similarcapabilities across aerospace segments, owning a broad portfolio delivers flexibility in resource allocationand the reuse of investments in core capabilities. The COVID-19 crisis demonstrated the importance of
having strong and complementary helicopter, defence, space and security businesses alongsidecommercial aviation within the portfolio, enhancing the resilience of the overall group.
1.4 Expand as a leader towards new territories
In commercial aviation, the demand for more fuel-efficient solutions will play out globally and will drive
demand for our products and services. In helicopters, Urban Air Mobility (“UAM”) is at the forefront of arevolution towards more sustainable electric flight for complementary urban transport solutions using thethird dimension. Capturing growth in these new vertical take-off and landing (“VTOL”) and UAM markets,for both platforms and services, is a major driver for the Company’s strategy. Airbus launched its CityAirbus
NextGen eVTOL in 2021 for this purpose. In defence, shaping air and space power integrating aircraft,
unmanned systems and space assets with a cloud structure for command and control, will revolutionise theperformance of Airbus’ defence customers in future and aims to secure the Company’s long-term presence
in defence markets.
2. Leverage European roots to pursue global reach
The ambition of European industrialists to work together towards a common goal of creating one leading
player in commercial aerospace has been decisive to the success of the Company.
2.1 Global reach through local actions
Over the past 50 years, Airbus has grown from being a cooperation of national aerospace companies, infour European countries, to a global leader in commercial aerospace with a strong foothold in helicopters,
defence, space and security. No aerospace and defence company is more culturally diverse. More than
140 nationalities make up the Company’s workforce and over 20 languages are spoken, reflecting thediversity of its employees and customer base. This is a key strength of the Company in addressing global
markets. Airbus has built on its strong European heritage to become truly international, operating acrossmore than 180 locations. The Company has invested in and grown aircraft and helicopter final assemblylines across Asia, Europe and the Americas.
In preparation for the single aisle production ramp-up to 75 aircraft per month (Rate 75), in 2022 Airbus
Commercial launched the transformation of its industrial system across the world. The final assembly lines
in Tianjin, China and Toulouse have been upgraded to make them A321 capable. Furthermore, a second
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assembly line in Mobile, USA is being established to further increase local capacity. To enable this surgeof single aisle rates, major aircraft components assembly lines have been either upgraded (Broughton) or
opened (Saint-Nazaire). In parallel, Airbus expanded its presence in Portugal, to create a new central andspecialised Global Business Service Center, and in India, through the development of its engineering andInformation Management competence centres.
2.2 Aerospace and defence is a sovereign industry
As the war in Ukraine has demonstrated, strong defence capabilities provide nations with physical security
and the means to protect their citizens, values and vital infrastructure. This security is in turn a prerequisiteof peace, the rule of law, political stability, democracy, environmental sustainability, human rights, economic
development and prosperity and scientific progress.
All nations need a certain level of strategic autonomy and Airbus products and services help nations protect
freedom, peace and security. Strongly rooted in all key national markets in Europe, the Company willcontinue to deliver on national needs while acting as a catalyst for broader European sovereignty
requirements. In particular, Airbus is a long-term, trusted partner to France, Germany, the UK and Spain.
Our relationships with these nations have been nurtured over several decades of manufacturing, supplying
and maintaining critical defence systems for their armed forces. Our manufacturing system is a model ofEuropean integration and our growth as a Company owes much to our ability to operate freely acrossborders within Europe.
Our products and services range contribute to safety and security in many different ways. They range fromthe aircraft that allow nations to safeguard their airspace (Eurofighter, military helicopters, A400M) tointelligence capabilities (observation satellites, maritime surveillance), terrestrial space services, cybersecurity and secure satellite communications solutions for government defence departments andorganisations devoted to public safety and emergency responders. All of these help to make the world asafer place.
3. Increase capacity to invest for the futureMarket recovery after the COVID-19 pandemic has varied significantly across different world regions, driven
by the pace of vaccination campaigns and the easing of travel restrictions. Domestic markets were first to
recover, followed by regional and intercontinental markets, with the exception of China where zero-COVID
policies created ongoing volatility throughout 2022. Market recovery unleashed waves of pent-up demand
for air travel which almost all actors in the industry had major difficulties in accommodating, limited by their
human resources and supply chains. The pressure on supply was compounded by the Russian invasion of
Ukraine and its impacts on energy, critical raw materials and economic growth. The demand crisis isrecovering fast but supply, production and ramp-up challenges remain.
3.1 Right combination of growth, profitability and resilience
The Company continues to face a volatile, uncertain, complex and ambiguous market environment. At thesame time the climate imperative for commercial aviation is increasingly recognised together with thecollective drive towards decarbonisation for which Airbus is a leader. 2022 provided another significant
milestone: the Certification and first delivery of the Comac C919, the Chinese competitor to the A320 and
Boeing 737, which no longer compete in a duopoly. Hence the right combination of growth, profitability andresilience is vital to the Company’s long-term competitiveness.
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Aerospace remains a major backbone of the global economy and a vital service to people and businesses.
Airbus is committed to playing its role in ensuring that its sectors consistently deliver on their vital role in
the global economy by building resilience through having sufficient funds available to withstand the shocks;
through close cooperation with stakeholders to ensure the overall travel value chain survives; throughseamless coordination along the supply chain to detect issues rapidly; and through reinforcement of thebalance sheet to continue investing in future competitiveness. To compete successfully, the company
continues to invest in the evolution of its product portfolio and its decarbonisation roadmap, thedevelopment and integration of the latest aircraft technologies, the introduction of new manufacturing
technologies including greater use of automation, the implementation of Digital Design Manufacturing andServices, the restructuring of its industrial set-up including the creation of Airbus Atlantic and Airbus
Aerostructures, as well as the optimisation of its supply chain relationships.
3.2 Protecting investments important for the longer-term
The Company believes that the way to remain attractive to investors, employees and society at large is to
be at the forefront of innovation and to be a leader in the global market. This requires discipline on bothrevenues and the cost base, throughout all Airbus businesses, to gain sufficient volume and profitability tocontinuously drive the industry forward. Having successfully increased revenue and profit in the years
before the COVID-19 crisis, continuous improvement is essential to further support Airbus’ resilience andprepare for future investments. As the Company delivers on its strategy as a leader with European roots
and global reach, the Company is uniquely positioned to pioneer the industry, deepen relations with its
customers, expand its role in defence, space and helicopters, while delivering shareholder value in line withmarket expectations.
4. Lead the transformation of the aerospace industry
Aviation’s licence to grow and operate in the future is inherently linked to sustainability. Improving theenvironmental impact of our day-to-day lives is at the top of agendas throughout the world. While someargue for limiting mobility, the Company believes the solution should not hinder people’s ability to connect
and unite across the world. Making the world a smaller and more transparent place to live makes it safer
and more rewarding. The ability to discover, learn, share and remain safe are basic human needs and a
guiding star for the Company. Air travel brings prosperity through the connections it makes. One in ten jobs
around the world is in the travel and tourism industry, and air travel routes are the arteries of this system.
Sufficient prosperity will be required to deliver the climate neutral transformation of industry that society
demands. Hence, the purpose of the Company is to pioneer sustainable aerospace for a safe and united
world.
The Company does not, however, operate in a vacuum. Social sustainability and good governance areintegral elements in managing the Company’s vision for a sustainable future. Airbus’ business is deeply
connected with environmental, social, and governance (“ESG”) objectives through various international
standards, frameworks and initiatives.
Defence is a crucial component of security and security is the precondition for a responsible and sustainable
world. In this endeavour, Airbus is committed to sustainable and responsible business practices, andmaintaining the strictest legal and highest ethical standards in full compliance with international laws andEuropean and national export control regulations. Our defence capabilities provide countries with themeans to protect their citizens, democratic values and vital infrastructure, which is of incalculable societal
value.
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The capabilities and technologies that the Company develops in this sector will help its customers dominate
the future air domain (teaming, autonomy, digital services, etc.) and protect key space assets. All in a futuresystem-of-systems environment which will bring real operational superiority and will provide synergies tothe civil activities.
The successful launch of FCAS’s Phase 1B paves the way in this direction. The project will see major
European defence partners cooperating to prove the viability of new high-end technologies - Next
Generation Fighter, Remote Carriers (drones) and a Multi Domain Combat Cloud.
Current developments by the Company of future space capabilities and equipment (Low Earth Orbit
Positioning, Navigation and Timing technologies, laser communication for high-speed modern connectivity,
advanced processors and antennas, Very High Resolution earth observation solutions) are also
spearheading future applications for defence or sustainability purposes and information superiority.
4.1 Lead the journey towards clean aerospace
Airbus, and the wider aerospace industry, must ultimately determine ways to eliminate the impact of its
activities on the climate. This must be achieved by the current generation. This is a clear expectation of theflying public and society at large, demonstrated by the announcements and commitments of international
bodies such as IATA and ICAO during 2022. In response, Airbus is striving to lead the industry on a strong
path to the lowest climate impact solutions as part of the industry’s commitment to the Paris Agreement.
A major focus of the Company’s sustainability strategy is reducing the CO2 emissions of its aircraft, as wellas its industrial environmental footprint at its sites worldwide and throughout the supply chain. In 2022, we
submitted to the Science-Based Targets initiative (SBTi) our planned decarbonisation targets for both ourindustrial footprint as well as that of our sold products, whilst also developing scenarios to enable atransparent approach to Task Force on Climate-Related Financial Disclosures (TCFD) requirements. The
Company is investing in and developing viable products and services that are attractive and efficient for its
customers by maturing the technologies related to sustainable aviation fuels, hydrogen, hybridisation,industrial systems, aircraft architectures based on next generation engines, future wing and fuselage design
and automation.
Airbus believes Sustainable Aviation Fuel (SAF) will play a key role in the decarbonisation of in-service andfuture aircraft. Research programmes towards 100% SAF capability have been continued in 2022,
alongside incentivisation and support to assure a rapid growth in the overall SAF ecosystem. Meanwhile
Airbus remains focused on maturing hydrogen ecosystem, transport and refuelling infrastructure to deliveron its ambition to bring the world’s first hydrogen-powered commercial aircraft to market by 2035, known
as ZEROe.
Airbus is also involved in the Single European Sky Air Traffic Management Research (SESAR) initiative to
optimise aircraft operations in Europe. In 2022, Airbus committed to carbon removals, both throughinvestment in the worlds largest direct air carbon capture facility, as well as by purchasing open market
carbon credits.
CO2 is not the only aviation emission known to have an impact on climate. Airbus is engaged at bothinternational and European level with research institutes at the forefront of scientific knowledge on the nonCO2 effects of aviation to better understand and respond to these challenges.

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The Company has implemented its high5+ programme targets - a clear pathway to significantly reduce its
environmental footprint in manufacturing activities with regards to CO2, energy, water, air emissions andwaste. Airbus believes in managing its products' environmental footprint across the entire lifecycle, fromthe design phase, raw material input, through the operational life and up to the end of the product life. This
optimisation of energy and use of finite resources should bring both economic and environmental benefits.
Airbus satellites are today employed in monitoring the effects of climate change, with products, such as
helicopters, also playing a key role supporting communities in tackling disasters.
4.2 Build our business on the foundation of safety and quality
Safety cannot be compromised. That is why the number one priority for the Company is to protect andsafeguard people, suppliers, communities, customers and assets from health and safety risks arising fromthe Company’s activities. Fostering a safety culture which goes beyond regulatory compliance in productsafety and quality, and championing a “zero-harm” mind-set in which the Company takes responsibility foritself and others, is a core commitment of the Company’s sustainability strategy. The Company focuses ondeveloping rigorous safety management guidelines to ensure its long-term competitiveness.
4.3 Respect human rights and foster inclusion
The Company’s respect for human rights is an essential part of responsible business conduct in its businessactivities and throughout the value chain.
Airbus believes that everyone who works either for or with the Company, both within its business operations
and the supply chain, contributes to its continued innovation, creativity, and business success. Therefore,
it is imperative that the Company fosters empowerment, collaborative working, inclusiveness and diversity
to enable a workplace to which people can bring their best selves. The Company ensures that its employees
have access to a wealth of education and employee mobility opportunities to grow their skills because theCompany strongly believes a more educated workforce is a more empowered workforce.
As declared in Airbus’ Human Rights Policy Statement, Airbus commits to embed and advance respect forhuman rights, covering the activities under its full, direct control in its Divisions, affiliates and supply chain.
Airbus has also committed to undertaking ongoing risk-based human rights due diligence on such activities
to identify, address and remedy adverse impacts, to prioritise its most salient human rights issues and to
be transparent in this regard.
4.4 Exemplify business integrity
Business integrity is non-negotiable. As the Company’s operations reach across more than 100 countries
worldwide, it has a clear obligation to comply with laws and regulations wherever it operates. The Company
conducts its business ethically, based on its values, and not only in compliance with laws and regulations.
Furthermore, the Company strives for a culture of integrity in its people, partners and suppliers. In an effort
to improve accountability, the Company is strengthening its current compliance programmes with theintention of becoming a benchmark in this area. To this end, the Company has established a dedicatedEthics & Compliance programme and organisation, ensuring that ethical and compliant behaviour is deeply
embedded throughout the Company.

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7.2 Top Company objectives 2023
Customer●●●Market leadership: confirm Airbus as the partner of choice
Customer relationship: face reality - adapt quickly
Programmes development milestones: achieve on-time and on-quality for A321 XLR and A350
Freighter

Operational performance●●●●

A320 Family & A220 ramp-up: meet 2023 requirements and prepare for years to come for ‘Make’and ‘Buy’
Secure engine availability and maturity
Widebody ramp-up: meet 2023 requirements and prepare for years to comeEnsure product safety and quality

Financial performance●●●

Drive cash generation
Contain cost base
Ensure competitiveness

People●●●●Continue improving safety at work
Foster Inclusion & Diversity in the workplace
Secure resource availability
Comply with applicable export control regulations, notably ITAR (International Traffic in Arms
Regulations)Sustainability●●

Progress on Airbus climate change ambition and decarbonisation plan
Improve our waste and resources monitoring management and strategy

Enable the future●●●●

People: develop our future competencies and a better workplace
Industrial System: deliver our future digital and industrial capabilities
Ecosystem: stimulate Sustainable Aviation Fuel (SAF) global usage
Portfolio: prepare critical decarbonisation technologies for our products

In all we do, we…
●●Keep customers at heart
Treat safety, quality, integrity and compliance as vital to our business
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Optimise and adhere to end-to-end processes
Drive change and transformation for performance and competitiveness
Foster innovation by being open-minded and creative
Protect business from major disruptions and security threats
Instil a culture of inclusiveness, respect, wellbeing and continuous learning
Respect human rights
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The information contained in this Board Report will enable you to form an opinion on the situation of theCompany and the operations, which are submitted to you for approval.
For further information and detail regarding the Company's activities, finances, corporate governance andin particular risk factors, the reader should refer to the Company's website www.airbus.com.
The Board of Directors hereby declares that, to the best of its knowledge:- the financial statements for the year ended 31 December 2022 give a true and fair view of the assets,
liabilities, financial position and profits or losses of the Company and undertakings included in the
consolidation taken as a whole; and- this Board Report gives a true and fair view of the position as per the balance sheet date, and of thedevelopment and performance during the 2022 financial year of the Company and undertakings includedin the consolidation taken as a whole, and the principal risks facing the Company have been describedherein.

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8. Financial targets for 2023
As the basis for its 2023 guidance, the Company assumes:▶ No additional disruptions to the world economy, air traffic, the supply chain, the Company’s internal
operations, and its ability to deliver products and services.

The Company’s 2023 guidance is before M&A.
On that basis, the Company targets to achieve in 2023 around:▶ 720 commercial aircraft deliveries;▶ EBIT Adjusted of € 6.0 billion;▶ Free Cash Flow before M&A and Customer Financing of € 3.0 billion

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The Board of Directors
René Obermann, Chairman of the Board of Directors
Guillaume Faury, Chief Executive Officer
Victor Chu, Director
Jean-Pierre Clamadieu, Director
Ralph D. Crosby, Jr., Director
Mark Dunkerley, Director
Stephan Gemkow, Director
Catherine Guillouard, Director
Amparo Moraleda, Director
Claudia Nemat, Director
Irene Rummelhoff, Director
Antony Wood, Director
Leiden, 15 February 2023

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