Leonardo assesses and classifies its suppliers through a structured process based on the following criteria: turnover; supply risk (difficulty in securing an alternative supplier); financial health and dependence on Leonardo; technical and management capabilities; sustainability; and performance (quality and punctuality of deliveries).

In 2024, of the 11,000 suppliers that received orders from Leonardo, 683 Tier-1 suppliers were classified as strategic/critical (together representing 56% of the total ordered value), along with an additional 41 non-Tier-1 suppliers that, although not directly linked to the company, play a significant role within the supply chain.

Risk mitigation measures have been defined for strategic and critical suppliers (those with high turnover and high supply risk), as well as for high ESG-risk suppliers, identified through country-, sector- and commodity-specific risk screening.

To prevent risks relating to the protection of human rights and the health and safety of workers in the supply chain, Leonardo has introduced specific actions across the various stages of the process: from the application to become a supplier to pre-qualification and qualification for inclusion in the register, through to verification audits and supplier development plans. 

In 2024, Leonardo conducted supplier investigations based on ethical and anti-corruption considerations, leading to specific actions. In particular, 26 pre-qualifications were revoked at the renewal stage, and 122 pre-qualifications were denied to new suppliers.

All stages of the selection process and the supplier relationship are managed through the Procurement Web Portal, which ensures transparency and traceability of information.

Supplier ESG performance

In recent years, attention to environmental, social and governance (ESG) factors has progressively increased across all stages of collaboration with suppliers – from the application to become a supplier to pre-qualification and qualification for inclusion in the register, from selection criteria to contractual terms and conditions, through to verification audits and supplier development plans. A key prerequisite for achieving the growth set out in the Industrial Plan is the excellence of the supply chain, which must not only guarantee high operational performance but also address the growing complexity of market challenges, requiring financial solidity, expertise and adaptability.

EcoVadis

Starting in 2023, Leonardo has progressively replaced its proprietary LEADS assessment model with the EcoVadis rating, adopted as the benchmark for assessing the sustainability of the AD&S supply chain within the industry initiative promoted by IAEG.

In 2024, participation in the EcoVadis platform expanded significantly among Leonardo’s suppliers, reaching more than 1,100 companies. This has further strengthened the assessment process, allowing for continuous evaluation of suppliers and their performance on sustainability matters. In cases of negative assessments, this approach has enabled prompt identification of critical areas and the implementation of corrective measures and improvement processes.

In the United Kingdom, Leonardo has also been actively involved in the JOSCAR (Joint Supply Chain Accreditation Register) industry initiative since 2015 to qualify shared suppliers. The aim is to streamline the number of communication channels used and to provide a single point of access for existing Aerospace and Defence suppliers, as well as for new companies seeking to enter the market. Around 800 companies are already registered on the portal.