Airbus - 2022 Universal Registration Document

1. Information on the Company’s Activities /

1.2 Non-Financial Information

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international scholarships, interdisciplinary programme of 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 the entire 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 a constant dialogue with policy makers, directly or through trade associations. Such engagements are performed in compliance with the Ethical business conduct principles described in section “– 1.2.14 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 the International Civil Aviation Organization’s (ICAO) work to define guidance, standards and recommended practices aimed at minimising 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 41 st assembly in October. At European level, the Company has engaged with the European 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 exchange on 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 directly discussed with the European 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 the transformation 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 or partners, and develops projects beyond its immediate core business that could generate meaningful CO 2 savings. Scope 3 commuting – In 2022, in partnership with Toulouse Métropole, Tisséo (the local transport authority) and Sopra 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

Incentivised Remuneration In order to better embed this ambition into the Company’s performance management, CO 2 performance targets have been included in variable remuneration schemes since 2021 (See “– 1.2.1 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 CO 2 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 CO 2 e for 2023 (or -0.9% vs. 2022). In addition, when relevant, 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 required competencies will be decisive, both for the Company to be able to deliver on its commitment and for employees’ skills to be adapted 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 and Sustainable 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 to decarbonisation 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 some pieces of the solution. Achieving this common goal will require all forces from the scientific community to be joined. Hence the Company participates in a number of research programmes 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, the partnership was renewed and adopted the main learnings of prior years all while integrating a more comprehensive environmental engineering approach. The CEDAR Chair is composed of

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Airbus / Universal Registration Document 2022

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