Airbus // Universal Registration Document 2021

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

Physical Risks The foreseen consequences of climate change include harsher average weather conditions and more frequent extreme weather events, such as hurricanes, hail storms, heat waves or extreme cold spells. To cope with degraded operational conditions, costly, time-consuming and more frequent redesigns may be required by the Company to improve its products to meet more stringent regulation and certification criteria or standards. The effects of climate change on weather conditions may impact operating conditions of the Company’s industrial activities (including the activities of its supply chain) with higher occurrence and severity of, for instance, hurricanes, hail storms or floods. As a consequence, industrial activities may be disrupted or interrupted if a part of the Company’s industrial system or its supply chain is affected or impaired by such events. The Company’s future installations may require more stringent requirements and planning to withstand more intense weather events.

Reputation : Reputational risks could be divided in several categories. Firstly, there is a risk that misperceptions about the Company’s environmental performance is used as a 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 zero-emission aircraft to the market. If the ambition is perceived as unattainable or if the Company is not able to deliver on its ambition it could result in reputational damage leading to reduced 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

In order to reduce the use of targeted substances and mitigate the risk of disruption in its operations and supply chain, the Company’s policy is the development of alternative technologies that use substances of less concern and substitution of these when suitable alternatives meeting stringent certification and airworthiness 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 Evolution of the chemicals’ regulatory framework may lead to short- and long-term potential bans and restrictions, 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. 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 the world. The Company therefore incurs, and expects to continue to incur, significant capital expenditure and other 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. Health and safety expenditures include investments in the identification and the prevention, elimination or control of physical and psychological risks to people arising from work, including chemical, biological, mechanical and physical agents. Risks that could arise from work activities include the possibility of injury, physical and mental ill-health, damage to equipment, business interruption and regulatory action. Any reputational risk and claims against the Company that may result will also need to be managed and may lead to additional health and safety

expenditure being required. In 2021, the Company maintained its stringent COVID-19 risk management measures in the workplace. However, the Company recognises that its employees continue to face physical and mental ill-health risks due to the COVID-19 associated public health controls, combined with the Company adaptation plans. 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 the environmental footprint of industry is steadily growing (circular economy and resources efficiency, energy transition and climate change engagement, air and water quality improvement). Moreover, new laws and regulations, the imposition of tougher license requirements, increasingly strict enforcement or new interpretations of existing laws and regulations may cause the Company to incur increased capital expenditure and operating costs in the future in relation to the above, which could have a negative effect on the Company’s business, results of operations and financial condition.

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Airbus / Registration Document 2021