Main messages of Leonardo's first ESG Investor Day
Leonardo's first Investor Day dedicated to ESG (Environmental, Social and Governance) topics took place today. The event showed how ESG commitment and priorities underpin the Business Plan, supporting long-term growth, and how the company contributes to progress and safety in a responsible and innovative way.
Luciano Carta, Chairman of Leonardo, declared “Governance and rules are key factors in determining our future as a company in the medium and long term. Leonardo's governance model is geared towards achieving the main ESG objectives. We are aware of the fundamental importance of these issues and for this reason we have integrated sustainability throughout our organization, from top to bottom. We are firmly convinced that we have taken the right path in pursuing a sustainable future ".
Alessandro Profumo, CEO of Leonardo, declared “Today we present Leonardo under a new lens: ESG. We have a clear and very important purpose and we are implementing our Business Plan keeping in mind how ESG priorities are the basis of growth, competitiveness, profitability and returns in the long term. We have already achieved significant results and are aiming to achieve much more. The commitment on ESG issues is fundamental to seize business opportunities in the future, in compliance with all the rules and in every geographic area ".
Leonardo, as an industrial and technological leader, has a clear and important purpose: to protect people and the planet, guaranteeing defense and security, with long-term benefits in terms of technological development, innovation and progress. Our commitment to ESG issues is at the heart of Leonardo's business model.
Significant results have been achieved to date on decarbonisation, sustainable innovation, diversity and inclusion, talent attraction and people enhancement, integrity and responsible business conduct.
Leonardo is accelerating his path and has defined clear objectives, some of them already achieved, such as:
Environment and Climate Change
- Reduce Scope 1 & 2 emissions by 40% by 2030 (market based)
- Reduce the consumption of electricity taken from the external network by 10% by 2025 (intensity calculated on revenues)
- Reduce the amount of waste produced by 10% by 2025 (intensity calculated on revenues)
Diversity and inclusion
- 20% of total employees will be women by 2025
- 20% of women in executive positions out of total executives by 2025
- 27% of women in succession plans by 2025
Attract and strengthen skills for the future
- Hiring 40% of under 30s by 2022 and 32% of women by 2025 of the total hires
- Hire 30% of women with STEM degrees out of total STEM hires by 2025
- Provide more than 100 hours of training per employee in the period 2018-2022
Responsible conduct
- Update of the guidelines on Trade Compliance and issue of the Human Rights Impact Assessment
- Renewal and maintenance of the ISO 37001: 2016 "Anti-corruption system" certification
Sustainable finance
- 50% of investments in line with the Sustainable Development Goals (SDG) in the period 2021-2023
- 50% of funding sources linked to ESG parameters
The future of the Aerospace, Defense and Security sector is linked to technological innovation, driven in turn by digitization, safety and sustainability.
For this reason, Leonardo has accelerated the technological focus of its research and development activities and integrated sustainability into industrial processes, products and systems, leveraging on digitization and cutting-edge enabling technologies, such as HPC da vinci-1.
The transformation that Leonardo has undertaken drives its competitiveness, strengthening the ability to respond and anticipate customer needs and also supports the decarbonisation process by involving the entire value chain. To this end, Leonardo proactively collaborates with its suppliers and customers to develop enabling solutions, from the virtualization of training systems to the study of new propulsion systems.
Leonardo is committed to proactively managing its people and attracting the skills necessary for the future, strengthening itself as a resilient, sustainable and inclusive company.
Transparency and integrity are at the heart of responsible business conduct. For this reason, Leonardo rigorously applies the Trade and Business compliance programs, in support of all commercial campaigns and with a view to managing and mitigating exposure to related risks.
From a financial point of view, Leonardo has fully integrated the financial strategy and the ESG strategy: examples are the Integrated Report and the approach used to measure ESG performance, the same used for financial reporting, which made it possible to obtain in 2021 the reasonable assurance of the main non-financial metrics.
In Leonardo, ESG aspects are at the basis of decisions regarding the optimal allocation of capital and returns in the long term. Today 50% of annual investments contribute to the achievement of the SDGs, mainly SDGs 8, 9 and 11, and, in the same way, 50% of the funding sources are linked to ESG parameters, also allowing a reduction in the cost of capital.
All this places Leonardo in an excellent position to successfully reach the commercial and industrial objectives set.
The presentation of the Investor Day ESG and the replay of the event are available on the Leonardo website at the following link https://www.leonardo.com/it/investors