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:

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:

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

The decarbonisation process will require renewed momentum in relations between Leonardo and its supply chain, creating opportunities to establish medium- to long-term partnerships that enable all parties to invest and successfully meet the new challenges of international markets. 

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: