ESG Indices and Ratings

Leonardo’s Environmental, Social and Governance (ESG) performance and transparency in communications are assessed periodically by analysts, specialist ratings agencies and other international organisations. ESG assessments support the financial community’s investment choices and provide information on the risks and opportunities the company is exposed to. In the last year, Leonardo has maintained or improved its position in the ratings and ESG indices, ranking as leader in most sectors.

In 2021, Leonardo was included in the Dow Jones Sustainability Indices (DJSI) for the twelfth year in row, achieving the highest score among the companies in the aerospace and defence sector for the third consecutive year.

Admission to the indices is based on Corporate Sustainability Assessment (CSA) data, managed by S&P Global and updated to 12 November 2021. The assessment analyses the company’s economic, governance, environmental and social performance, which is carried out through a questionnaire featuring over 100 questions and factoring in information that is mainly in the public domain, as well as information from the media and other stakeholders.

The DJSI (launched in 1999) are the stock price indices managed by S&P Global, which include the best-in-class companies in terms of sustainability globally.

Leonardo has been confirmed on the “Climate A List 2021” of the non-profit international organisation CDP, the list that includes world leading companies – out of 13,000-plus companies analysed – in the fight against climate change. The list has been rated by disclosure on impacts, risks, and opportunities that are linked to environmental issues.
The evaluation recognises Leonardo’s commitment to emission reduction, the mitigation of risks linked to climate change, and for the undertaking a careful environmental strategy. 
Leonardo participates since 2008 to the activity evaluation performed by CDP.

TRANSPARENCY INTERNATIONAL

In 2021, Leonardo was included in band A, the highest band in the Defence Companies Index on Anti-Corruption and Corporate Transparency (DCI) drawn up by Transparency International.

After analysing the main players in the defence and security sector worldwide (134 companies in 38 countries), based exclusively on public information, the non-governmental organisation recognised the measures implemented by Leonardo, which has adopted stricter anti-corruption policies and an increased level of transparency.

In 2021 Leonardo was included for the first time in Bloomberg’s Gender Equality Index (GEI), a stock market index that measures the performance of listed companies in terms of transparent reporting of information on gender, inclusion and enhancing diversity. Leonardo obtained the highest score on transparency when reporting data. 380 companies were included in the Index in 2021, including 17 Italian businesses and 17 from the industrial sector.

Leonardo is the highest ranking company in the aerospace and defence sector according to the assessments of Sustainalytics (updated to October 2021) among 91 companies analysed across the sector. Leonardo’s ESG Risk Rating is 23, which is the lowest risk profile. The risk of being affected by financial impacts caused by ESG factors is assessed as medium, on a scale ranging between ‘negligible’ and ‘severe’.

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Leonardo has the third highest ESG ranking among European companies in the sector, according to V.E. (part of Moody’s ESG Solutions). With a score of 57/100, classified as ‘robust’ by the ratings agency, Leonardo’s performance in September 2021 was better than average in the sector for the three assessed elements: environmental, corporate and governance.

Leonardo obtained the highest score in the corporate and environmental categories of the Quality Score of ISS ESG (Institutional Shareholder Services group of companies) in June 2021, which makes it a leader in the related sector’s index.