Airbus - 2022 Universal Registration Document

Risk Factors / 4 Environment, Human Rights, Health & Safety Risks

The outcome of the Company’s qualitative analysis is synthesised in the following table: Mitigation actions the Company has engaged, including to address these risks are presented in the section “1.2.2 – Climate change / IV. Transition plan”.

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

Company’s climate-related risks and opportunities mapping

RISKS (see “– Risk Factors” for full description)

1.5°C

2°C

3°C

Transition – Technology Transition – Market Physical – Chronic Physical – Acute OPPORTUNITIES Energy source Market Products and services

: ST –

: MT –

: LT

The Company identified the following complementary climate-related risks presented below as per TCFD categories: 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 other transport modes could decrease the demand for the Company’s current and future generation of products, causing a loss of revenues.

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 (such as the EU zero-pollution communications) and regulatory frameworks (CO 2 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 a negative impact on the competitive conditions for manufacturers and aircraft operators. This could result in 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 is damaged by growing societal concerns about the climate change impact of aviation or by the lack of transparency on progress made to address climate-related issues. As an example, the Company was the first manufacturer to disclose its ambition to bring a hydrogen-powered aircraft to the market. If the ambition is 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.

The development of future products based on the ZEROe concepts will require significant investments in both 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 the evolution 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 and competitive 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 future commercial aircraft products.

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Airbus / Universal Registration Document 2022