AIRBUS - 2020 Universal Registration Document

1. Information on the Company’s Activities / 1.2 Non-Financial Information

Conscious that a business cannot be sustainable without creating shared long-term value for all of its stakeholders, dialogue is an important part of the Company’s approach to sustainability. The responsibility for stakeholder engagement, as a general rule, is decentralised and employees are encouraged to initiate, develop and maintain relationships and dialogue with their respective stakeholders. However, at a more strategic level the 2019 materiality assessment was a critical exercise in capturing the voice of 12 of its most important stakeholder groups, helping the Company identify which ESG issues were most material to them, and integrating this into its strategy. These key stakeholder groups included customers, suppliers, partners, NGOs, investors, employees, authorities, governments, industry associations, MRO providers, airports and the community at large. The materiality viewpoint of stakeholders was compared with that of the Company, in addition to an analysis of which ESG issues it had, or could have, the most impact on. This led to the following three-dimensional materiality matrix, fundamental in establishing the Company’s four commitments.

The process of constructing and selecting these four commitments was a multi-functional ef for t, led by the Sustainability & Environment and Strategy teams, with the support of Corporate Affairs and of members of the Sustainability Network (formerly known as the R&S Network) regrouping representatives across numerous functions of the Company. The objective is to set clear ambitions across each commitment with agreed key performance indicators (“ KPIs ”) and targets enabling the Company to monitor progress towards these ambitions. This process has begun in 2020 and will continue to mature over 2021. Several sources were essential in deciding on the four commitments, including the 2019 materiality assessment, a thorough benchmark, an analysis of market and regulatory trends, an evaluation of ESG risks in the Company’s risk report, a gap analysis and the consideration of the Company’s values.

Materiality matrix 2020

Materiality Matrix

Technology & Innovation

Environmentally responsible products

Product quality & Responsibility

Security

Health & Safety

HIGH HIGHEST HIGHER

Environmental management of operations

Business culture & Leadership

Responsible employer

Economic

Stakeholder engagement

Community impact

Responsible supply chains

INCREASING MATERIALITY TO STAKEHOLDERS

HIGH

HIGHER

HIGHEST

INCREASING IMPACT ON AIRBUS

Bubble size : Impact OF Airbus

Environment

Safety & Quality

Human rights

Business integrity

Other

Source: Datamaran.

Governance and Organisation 2020 was also a year when the Company strengthened its governance around sustainability. The former Ethics & Compliance Committee of the Board of Directors was expanded to include sustainability as a whole, with the first meeting of the Ethics, Compliance and Sustainability Committee (“ ECSC ”) taking place in October 2020. For further information about the ECSC, see “– Corporate Governance – 4.1.1 Corporate Governance Arrangements”.

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

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Airbus / Registration Document 2020