Financial Statements 2023

2. Notes to the IFRS Consolidated Financial Statements 2.1 Basis of Preparation

Scope 1 & 2 represent around 0.2% of total emissions each. The Company’s Scope 3 category 11 – Use of sold products – has been identified as highly material for the Company, representing above 90% of total emissions. The second most material was Category 1 – Purchased goods and services, representing around 2.5% of total emissions. CO emissions from commercial aircraft in operation appear to be the most material category. In order to address the Company’s carbon footprint, five strategic pathways that are part of the transition plan have been established. The strategic pathways focus on the following (i) renew current fleet with best ‑ in ‑ class aircraft (ii) developing and deploying SAF (all aircraft types compatible with up to 100% SAF by 2030) (iii) investing in technologies to reduce product emissions (iv) investing in smart air traffic management (ATM) solutions and optimised operations and (v) encouraging temporary CO emission compensation schemes. As of 31 December 2023, the impacts of the transition plan were included in the Financial Statements as well as the Company’s Operative Plan. Accordingly, research and development expenditures mostly relate to the latest generation commercial aircraft programmes which are more fuel ‑ efficient than the previous generation, therefore offering an immediate potential for aviation decarbonisation when replacing a previous generation aircraft. Research and development costs also included significant expenses related to “zero direct tailpipe CO emissions” technologies alongside research activities and technical work in order to reach the goal of obtaining certification for operating with up to 100% SAF for all current aircraft programmes before the end of the decade. Furthermore, the Company invests in decarbonising its stationary sources (ground fixed assets) and mobile sources (“Beluga” air transport, flight operations and sea vessels). In 2023 above €30 million was invested in renewable energy, energy efficiency, biomass and industrial improvements, all of which are part of the Company’s industrial decarbonisation roadmap. The internal carbon price, set at €150 per tonne of CO, is used to support decision making of the Company’s capital expenditures investment taking into account CO reduction impacts on operations. The Company estimates that there is no impact on the useful life of capitalised development costs as it believes that its latest generation commercial aircraft programmes, which represent a majority of its capitalised development costs, will play a pivotal role in achieving near term decarbonisation targets. This will be supported by the fleet renewal with latest generation aircraft which deliver significant CO emissions savings when compared to previous generation aircraft. The Company’s goal of obtaining certification for operating with up to 100% SAF for all current aircraft programmes before the end of the decade will further substantiate their useful life. The Company’s order book is composed almost entirely of these more fuel ‑ efficient aircraft. Net orders, strengthening the 2 2 2 2 2 2 Capitalised development costs

In 2023 the Company invested more than €40 million in companies and partnerships ( e.g. DG Fuel, JetZero, ZeroAvia and Hy24) in order to foster the hydrogen and SAF ecosystem readiness. According to the assessment performed for both acute and chronic physical risk using the TCFD recommendations ( e.g. extreme temperatures, flood sea level rise or water stress), medium or high probability of these risks materialising is seen around 2050 in the well below 2°C (WB2°C) scenario. In this scenario societies gradually adopt practices to enable the required levels of reduction of emissions, including increasing investment in and development of technologies that could reduce emissions of the transport sector and limit emissions growth. For the comprehensive list of climate ‑ related risks considered and a full description of the climate scenarios, please refer to the Risk Factors section in the “Report of the Board of Directors – 4.6.4 Environment, human rights, health & safety risks – Climate ‑ related risks”. Policies to decarbonise are progressively introduced. The weighted average remaining useful life for the predominant portion of depreciable assets in France, Germany, UK, Spain, United States and Canada collectively constituting the majority of the Company’s Property, Plant, and Equipment is approximately 14 years. As a result, the Company did not identify a need to change the assumption on the useful life of its Property, Plant and Equipment as the largest share of the assets will fully depreciate before 2050. In January 2023, the Company received approval from the Science Based Targets initiative (SBTi) for its greenhouse gas emission (GHG) reduction near ‑ term targets. These targets, in line with the Paris Agreement’s objectives, are based on climate science and cover the full set of the Company’s emissions. The Company intends to reduce its Scope 1 and Scope 2 industrial emissions by up to 63% by 2030, in line with a 1.5°C pathway. The Company also committed to reducing by 46% the greenhouse gas emissions intensity generated by its commercial aircraft in service (Scope 3 – Use of Sold Product) by 2035. Both targets are based on the 2015 year as a baseline. In 2023, scope 1 & 2 GHG emissions have decreased by around 15% vs. 2022, and 42% vs. baseline 2015 year. In addition, verified carbon compensation schemes were purchased voluntarily in order to compensate for its residual Scope 1 and 2 emissions – around 725k tons of CO e. order book in 2023, further demonstrate continuous demand for fuel efficient aircraft and their role in supporting the sector’s decarbonisation ambitions. The remaining portion of capitalised development costs relate to helicopter programmes that in 2023 saw strong demand and are planned to be capable of being operated with 100% SAF by 2030, satellite programmes as well as technologies such as High ‑ Altitude Platform systems (HAPS). A significant share of these products plays an important role in supporting climate change monitoring and adaptation ( e.g. earth observation satellites, search and rescue and firefighting helicopters as well as wildlife or environmental monitoring). 2

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Airbus

Financial Statements 2023