Document summary
The Aerospace & Defence (A&D) industry is part of the industrial sector and can be considered a high-technology industry. It covers a diverse set of companies providing products and services to civil and military customers. The industry’s operations and product offerings are associated with various sustainability impacts. The key ESG issues identified in this report include Bribery and Corruption, Product Quality and Safety, Energy Use and GHG emissions, Supply Chain, Human Capital and Sustainable Products and Services. The fundamental perspectives for the industry are rather mixed. While aircraft manufacturers benefit from continued growth in global demand fueled by emerging market prosperity, defence companies are dependent on government expenditures and have come under some pressure lately due to budget cuts in the US and Europe. Going forward, competitive advantage in the industry will also be driven by companies’ ability to manage their key ESG exposures. In this report, Sustainalytics' research team discusses whether the industry overall and whether individual companies in particular appear to be 'ready for takeoff'.