AIRBUS - 2020 Universal Registration Document

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

3. Supplier Engagement Contractual Requirements

At the Company’s Defence and Space Division, Procurement col leagues received mandatory training in sustainabi l ity throughout 2020. 5. Policies and Tools The Company is currently assessing all Procurement processes and tools in order to integrate sustainability-related requirements, where relevant, on top of environmental requirements, which are already largely considered. This will lead over the next years to the adaptation of the Procurement processes and tools managed by the Procurement strategy teams and creation of specific guidelines and/or commodity awareness. 6. Grievance Mechanism From 2019, the Company OpenLine has been accessible to external stakeholders, such as suppliers and their employees, as a secure and confidential channel through which they may, on a voluntary basis, raise alerts related to the Company in the areas of bribery, human rights, environment and health and safety. This medium is available through the Company’s OpenLine website ( www.airbusopenline.com ) in 13 languages. For further information on OpenLine, see “– 1.2.5 Ethical Business Practices”. In addition to OpenLine, the Company’s Sustainable Supply Chain Roadmap may receive alerts from other sources including through the supplier onboarding process, media or directly from employees. During 2020, the Sustainable Supply Chain Roadmap received alerts on five potential allegations relating to forced labour or labour rights in its supply chain. Analysis and/or investigations of those alerts have been completed or are in progress. 7. Work with External Stakeholders As mentioned under “Environment” in Section 1.2.2, the Company is a founding member of IAEG, which is working on common aerospace industry standards and tools to manage environmental obligations. More specifically, for the supply chain, IAEG has developed: – – a supply chain environmental survey, which the Company implemented in 2019 and which wi l l be used as the environmental assessment module as mentioned in paragraph 2 above; – – an EMS implementation guideline to encourage a wider up- take of EMSs as appropriate for each supplier in a phased approach and cost ef fective, consistent and supportive manner; – – the definition of an Environmental Qualification Program to assess and develop the environmental maturity of suppliers. IAEG is currently reviewing the opportunity to extend this qualification programme for the other sustainability topics. As a co-founder of the International Forum on Business Ethical Conduct (“ IFBEC ”), the Company is supporting the application 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 and defence 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. During 2020, the Company worked with IFBEC to update and strengthen the IFBEC Model Supplier

The Company’s standard procurement contract templates have evolved over the last few years to reinforce clauses relating to sustainabi l i ty and envi ronment that requi re suppliers to: – – comply with all applicable laws and regulations relating to production, products and services; – – provide information on substances used in manufacturing processes and contained in the product itself; – – 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 – – comply with 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. In addition, in 2020, the Company’s Defence and Space Division implemented criteria on sustainability and environment in the call-for-tender procurement process. Only those suppliers which meet criteria, including in par ticular agreement to comply with the Company’s Supplier Code of Conduct, can continue with the call for tender procurement process. Positive answers to additional criteria, such as commitment to the SDGs, sustainable projects, life-cycle assessment, waste and packaging reduction, will prioritise suppliers for further selection. Consideration will be given during 2021 to extend this process throughout the Company. In 2019, the full scope of clauses relating to sustainability and environment criteria were included in new contracts and implementation into existing contracts has star ted according to the contractual roadmap of each purchasing commodity. During 2020, following a review of processes to make them more efficient, the process to obtain from the Company’s suppliers a commitment to apply the principles of the Company’s Supplier Code of Conduct was reviewed. A target to reach 80% of the Company’s sourcing volume committing to apply its principles by 2022 was approved. In 2020, the physical Annual Supplier Conference for the Company’s commercial aircraf t business was cancel led due to COVID-19. However, discussions with suppliers on sustainability continued during various supplier meetings or virtual supplier conferences for specific commodities. 4. Training & Awareness Throughout 2020, the Procurement Responsibi l i t y & Sustainability department supported both internal awareness sessions and workshops as well as external supplier meetings on sustainability topics in the supply chain. The Company’s internal Procurement Academy provides training on core competencies and skills to develop procurement expertise and prepare employees within the Procurement department for the challenges of the future. Sustainability modules are embedded in Procurement’s newcomer induction path and manager development programme. This training targets supply chain quality managers, ordering officers and buyers.

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Airbus / Registration Document 2020