Leonardo’s commitment to sustainable growth of the supply chain

26 September 2022

Leonardo’s initiatives supporting the supply chain, such as the LEAP programme, are competitive levers for protecting the country’s technological sovereignty and generating wealth in the nation. The newspaper QN dedicated an in-depth article to the actions Leonardo is implementing to promote and enhance excellence among its suppliers, with a special focus on SMEs

Read the article in QN
 

With a number of actions in support of its supply chain, Leonardo is aiming to reinforce its role as a promoter and leader of industrial policy that can foster the competitiveness and sustainability of suppliers within the country’s AD&S industry.

Leonardo’s supply chain includes 11,000 companies that guarantee their compliance with supply quality and safety requirements and actively collaborate in the management of contracts. They include major players in the international Aerospace, Defence and Security sectors, as well as numerous SMEs whose technological specialisation contributes to the realisation and success of products. 
 

87%

87%

of suppliers are Italian SMEs

72%

72%

of suppliers are UK SMEs

60%

60%

of suppliers are U.S. SMEs

82%

82%

of suppliers are Polish SMEs

In Italy, with 55 principal sites across 12 regions, Leonardo is at the centre of an ecosystem that employs over 126,000 people and generates 10.4 billion euros in added value, enabling the development of local supply chains with a high concentration of know-how and innovation.

The impact on the Italian supply chain

4000

4000

companies of which 87% SMEs

€10,4 bn

€10,4 bn

added value

~200

~200

assessed for inclusion in partnerships

120

120

involved in development projects

>500

>500

key suppliers assessed on the ESG criteria

>126.000

>126.000

people employed

Through LEAP (Leonardo Empowering Advanced Partnerships), a supplier development programme launched in 2019, Leonardo aims to optimise supplier relations while at the same time making the most of the technological capabilities of both players in this new project: the Group and the supply chain. It represents a new model of supply chain management and development to establish more solid, sustainable relations with the chain and to act as a driver and accelerator for the growth of SMEs in the national ecosystem. 

About 200 suppliers have been assessed to establish partnerships under the LEAP programme so far, and for more than 120 suppliers the improvement and development projects being implemented include targeted managerial and specialised technical training programmes, long-term commercial partnership agreements, and the development of skills and competences in specific areas such as digital transformation. 
 

With the goal of improving the assessment of key supplier performance and potential, in 2020 Leonardo introduced LEADS (Leonardo Assessment and Development for Sustainability), a model for evaluating various aspects of sustainability and development and the associated risks. Last year more than 500 key suppliers were assessed in terms of ESG sustainability, identifying the strengths of the supply chain and areas for improvement. Based on this assessment, Leonardo published the “Manifesto for the Sustainability of the Supply Chain”, addressing three main issues that are closely in line with Italy's development guidelines: digital transformation, Cyber Security, People & Planet. These are divided into 18 concrete projects with progressive and measurable milestones to support and accelerate the transformation of Leonardo's supply chain.

Leonardo then launched a specific training and awareness project supporting the preparation of sustainability plans and reports that, by 2023, will involve more than 80% of key suppliers in programmes for the promotion of awareness and education in SDG issues. All partners in the LEAP programme will also be assigned targets and plans in the areas of green energy, the reduction of CO2 emissions, waste recycling and water consumption.