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Sharing requirements and objectives with the supply chain

Requirements and objectives - Company

Responsible Supply Chain

As part of its sustainability strategy, Leonardo promotes a responsible supply chain built on the protection and development of people.

The company operates in full respect of human rights, which are key principles integrated into its Code of Ethics, Charter of Values and Group Policy. To this end, Leonardo has introduced dedicated processes to prevent potential violations, fostering a culture of integrity beyond its organisational boundaries and continuously strengthening its business and trade compliance systems.

Leonardo requires its suppliers to comply with its Code of Ethics, Organisation, Management and Control Model, and its Code of Conduct for Suppliers, which include commitments relating to:

Safeguarding human rights, equal opportunities, freedom of association and collective bargaining

Promoting the dignity, health, freedom and equality of all workers, and by actively opposingand rejecting any form of discrimination, harassment or abuseWe ensure respect for freedom of association, the right to join  trade union organizations, and the right to collective bargaining, in compliance with applicable laws and regulations.

Non-involvement in forced and child labour practices

By opposing all forms of modern slavery, human trafficking, forced labour , child labor and child exploitation. We ensure compliance with the minimum working age requirements set forth by applicable laws and international standards.

Fair working conditions, wages and working hours

By ensuring decent working conditions in compliance with applicable laws, and by providing wages, benefits and working hours consistent with relevant regulatory requirements, while safeguarding the physical and mental well-being of workers.

Health, safety and worker protection

By promoting safe and healthy working environments, and by adopting measures aimed at preventing accidents, safeguarding health, and ensuring the responsible management of risks to workers.

Environmental protection, pollution prevention and resource efficiency

By promoting pollution prevention, waste reduction and responsible waste management, the efficient use of energy, water and raw materials, the reduction of greenhouse gas emissions, and the protection of biodiversity and ecosystems.

Corporate integrity, fair competition and anti-corruption

By operating in accordance with the principles of ethics, transparency and legality, and by opposing and rejecting all forms of corruption, conflicts of interest and anti-competitive behavior, while promoting fair and responsible business practices.

Leonardo also conducts reputational checks on third parties with whom it intends to establish contractual relationships and includes safeguarding clauses to protect workers in the event of contract changes.

The key suppliers are required to undergo a more in-depth assessment of their ESG performance, carried out in particular through EcoVadis, the provider selected to evaluate supply chain sustainability under the ESG initiative for the AD&S sector promoted by the IAEG association.

 

The Supply Chain Sustainability Manifesto

A strong focus on sustainability issues has been embedded in all stages of collaboration with suppliers, to build a competitive, innovative and sustainable ecosystem. To this end, in 2021, Leonardo published the Supply Chain Sustainability Manifesto, which addresses three main areas:

DIGITAL TRANSFORMATION

DIGITAL TRANSFORMATION

Increasing digital collaboration within the supply chain, leveraging new technologies to accelerate the development of new products, improve the synchronisation of operations and enhance the range of services offered to customers

CYBERSECURITY

CYBERSECURITY

Ensuring adequate security standards in the supply chain to meet the future requirements of Defence programmes

PEOPLE & PLANET

PEOPLE & PLANET

Social and environmental responsibility to reduce risks, mobilise resources and create value

Decarbonising the Supply Chain

Leonardo is pursuing a highly ambitious plan to reduce its climate footprint: a decarbonisation commitment integrated with the Industrial Plan that translates the Group's sustainability vision and objectives into specific initiatives and projects.

This sets ambitious targets for the Group and its suppliers, aimed at jointly contributing to the fight against climate change and addressing stakeholder expectations.

Leonardo’s decarbonisation targets, validated by the Science Based Targets initiative (SBTi), are designed to reduce internal emissions by engaging suppliers and reducing the impact of the use of its products by customers.

To achieve the Near-Term target for the supply chain, set by the Group and approved by SBTi, Leonardo will involve its main suppliers, which together account for at least 58% of total supply chain CO₂ emissions. These suppliers must set Science Based Targets and define decarbonisation actions to be implemented by 2028.

SBTi's approval of the targets demonstrates Leonardo’s willingness and ability to act and to engage its entire value chain in achieving ambitious quantitative objectives.

 

Engaging, enhancing, growing: Leonardo’s commitments to supply chain sustainability

To strengthen its commitment to a sustainable supply chain, Leonardo aims to engage suppliers more closely, recognising and rewarding their results through specific incentive mechanisms. In this regard, the company has identified three key objectives:

Target
Unit
Target year
2025
% of suppliers with science-based emission reduction targets
58%
2028
16%
Number of key suppliers to receive sustainability training
≥ 500
2027
306
% (by value) of main new tenders awarded that include ESG criteria or requests
70%
2028
34%
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