EPGP IIMK CSR Aaerospace Industry

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AEROSPACE

INDUSTRY
CS AND CSR INITIATIVE
CHOSEN COMPANIES

HAL
GE Aviation An Indian state- BrahMos
GE Aviation, a owned aerospace and
subsidiary of General An India Russia Joint
defence company Venture
Electric

Dassault
Boeing Airbus
A French company
An American A European supplying Rafale to
multinational multinational IAF
corporation aerospace corporation
Military and Jet
aviation specialists

page 2
WHY DID WE CHOSE
AEROSPACE
INDUSTRY?
• THE INDUSTRY HAS SET AMBITIOUS TARGETS TO REDUCE
GREENHOUSE GAS EMISSIONS BY 2050, BUT IT DOESN’T
CURRENTLY SEEM ON TRACK TO ACHIEVE THEM.

• CORPORATE SUSTAINABILITY IS A STRATEGIC INITIATIVE THAT


CAN COMPENSATE FOR SOME OF THE NEGATIVE TRANSACTS
FROM THE INDUSTRY LIKE CO2 EMISSIONS, NOISE AND
POLLUTION.

• AS PEOPLE AROUND THE GLOBE ARE GETTING MORE AWARE OF


THE ENVIRONMENTAL IMPACT OF AIR TRAVEL, THERE MIGHT BE
A BEHAVORIAL SHIFT OF CONSUMER PREFERENCES, ULTIMATELY
BRINGING THE INDUSTRY’S PROFIT POOL AT STAKE.
BCG ANALYSIS – INTERNATIONAL CIVIL AVIATION ON CLEAN TRANSPORTATION
General Electric has a three-pronged strategy to fulfil its corporate social responsibilities

• Social (employees, customers and communities)


• Environmental (natural environment and resources)
• Governance (investors and government)

This approach covers the most pressing issues in GE’s business, based on prevailing
corporate citizenship principles. In this regard, General Electric satisfies the most notable
of stakeholders’ interests. The company’s strategies, programs, organizational structure
and culture, and other areas of business are developed accordingly.

GE has adopted following operational area under the above listed strategies under CS

• Human Rights
• Supply Chain
• Environment, Health & Safety
• Public Policy and Lobbying
HUMAN RIGHTS
GE has developed human rights “implementing procedures” that help our businesses
incorporate human rights considerations in all aspects of their operations.

Human Rights
GE promotes respect for fundamental human rights.

GE’s human rights efforts include working to prevent forced labor through its Ethical Supply
Chain program; collaborating with organizations and governments to improve human rights
where it operates ; and using its training, and employment opportunities to provide
opportunities to those in challenging environments
Modern Slavery
GE has strong policies prohibiting forced or child labor in its operations
and in those of its suppliers.
GE conducts thousands of human rights audits of its suppliers in high risk
countries annually.
In 2017 GE joined the Leadership Group for Responsible Recruitment to
help end the charging of recruitment fees.
ENVIRONMENT, HEALTH & SAFETY
GE’s strong EHS program comes from a robust network of systems and professionals supporting our sites,
services, and projects across the globe. Our excellence stems from our shared commitment across the businesses
and by Company leadership and our standardized risk-based program, which specifies common high
expectations and key methodologies to be used across the globe.
Greenhouse Gas Inventory Methodology
GE is committed to being carbon neutral in its facilities and operations by
2030.
Since 2011, GE has reduced operational greenhouse gas emissions by
nearly 0.62 million metric ton CO2 -equivalents.
GE exceeded its 2020 greenhouse gas emissions goal early, delivering a
21% reduction between 2011 to 2019.
Water Inventory Methodology
GE’s water-use inventory process follows the principles
articulated by the World Resources Institute/World
Business Council for Sustainable Development (WRI/
WBCSD) in its Greenhouse Gas Protocol

Since 2011, GE has reduced freshwater use by about .72


billion gallons of freshwater per year
SUPPLY CHAIN
Ethical Supply Chain Program
Our Supplier Integrity Guide (SIG) governs all facets of our relationships with suppliers, and includes
specific prohibitions against forced, prison, or indentured labor, and prohibitions against subjecting
workers to any form of compulsion, coercion, or human trafficking.
Conflict Minerals
Virtually all of GE’s products contain one or more of the minerals tin, tantalum, tungsten and gold (3TG). The
mining and trade of these materials from the Democratic Republic of Congo (DRC) and surrounding countries have
gained international attention for the role that they can play as “conflict minerals,” financing deadly armed groups
in the region. Because of this potential for association with conflict and human rights abuses, GE strives to ensure
that our supply chains are ethical and sustainable, and that we are fulfilling our commitment to respect human
rights through responsible sourcing practices.

PUBLIC POLICY AND LOBBYING


GE works to promote public policy issues in areas such as aviation, energy, healthcare, international trade and
investment, tax, data governance, rule of law, and government procurement. We are committed to engaging
with governments—globally, nationally, and locally—through constructive dialogue, promotion of innovative
public policy ideas, formation of novel public-private partnerships, and investments in solutions that help address
the fundamental challenges that confront societies. Globally, we support public policies that promote open
markets, technology, and innovation.
HINDUSTAN AERONAUTICS LIMITED (HAL)
CSR FOCUS AREA – ENVIRONMENTAL, SKILL BUILDING & SPORTS

Education – Building & Infrastructure support Budget for year 2020- 2021 = 100 crores

Renewable energy Sources - Massive solar


plants and wind mills

Sports – Encouraging physical fitness


through building Sports facilities

HAL-IISC skill development centre- Bridging


Skill gap through unconventional means

Rural Health infrastructure – Building hospitals


and health care

Basic Amenities for underprivileged – Mid Day meals,


drinking water & sanitation
Corporate Social Responsibility

• Hindustan Aeronautics Limited (HAL) to address the concerns of economic status, environment and well being of
the society through CSR initiatives

• HAL have started as ‘a call from within’ and not as a compulsion.

• HAL has been undertaking CSR Projects / Programs in the local areas of its Operations.

• HAL has been meeting the needs of the people through various community developmental activities.

• To integrate the core values of the company with the philosophy of corporate social responsibility (CSR) and
Sustainability

• To incorporate the spirit of CSR and Sustainability to the employees at all levels and to infuse into all the activities,
processes, operations and transactions of the company
HAL - SUSTAINABILITY

• HAL focused on environment protection, conservation of natural resources, welfare of employees


and the society at large

• HAL has been demonstrating its sense of responsibility towards both the community and the
environment through various initiatives over the years, proactively nurturing community growth and
development.

• Several initiatives and measures have been undertaken over the past few years to reduce the impact
of HAL’s operations on environment.
• A 3.5 MW Solar Power Plant is installed at HAL Airport, Bangalore during 2015-16. The power
plant has a single-axis tracking mechanism which enhances the power generation

• A 6.3 MW Wind Power Plant located at Harapanahalli in Davangere District of Karnataka was
commissioned in YR 2016

• HAL is committed to replace the conventional type Light Fittings with LED Light Fittings at all its
locations

• Installation of Variable Frequency Drives (VFD) in Air Compressors, Ventilation Systems etc.
HAL’S SUSTAINABILITY PROJECTS - WATER

• HAL has received many national level awards on CS projects

• The company has installed Rain Water Harvesting (RWH) systems


at all its locations.

• HAL promotes water conservation by taking effective measures


like arresting of leakages, spreading awareness etc.

• HAL ensures that its operations do not pollute the environment.


They installed the Sewage treatment plant.

• Plantation of tree saplings is a continuous activity.

• About 25000 saplings have been planted in the catchment area to


increase the water retention.
HAL’S SUSTAINABILITY PROJECTS - WASTE

• They installed the Organic Waste Converters (OWCs) to


converts kitchen and other organic waste into garden manure
to achieve zero waste disposals in the townships.

• The initiative towards Solid Waste Management, two units of


Biogas Plants with a capacity of 500kg/day and 1000kg/day
each were installed at HAL, Bangalore

• HAL also operates a Paper Recycling Unit at Bangalore to


process the waste paper from Offices for making Files,
Folders and other Stationery Items.

• The Company has received a Certificate of Appreciation from


the National Productivity Council for its efforts in Reduce,
Reuse & Recycle.
Boeing has a corporate citizenship program centered on
charitable contributions in five areas:
Education, Health, Human Services, Environment, The Arts,
Culture, Civic Engagement. Boeings Spending on CS
• The company releases a dedicated annual public report on
Environment to summarize its actions we achieved each
year towards environmental aspirations: clean air, water
and land, achieved through renewed focus on product
performance, operations resource conservation and
collaboration with nongovernmental organizations,
communities and industry associations.
• With focus on stakeholder responsiveness and data
transparency, Boeing intends to release its first annual
Sustainability Report in 2021, measuring progress around
its four pillars of people, products and services,
communities and operations.
CORPORATE SOCIAL RESPONSIBILITY SUSTAINABILITY
• Over $230million + 750,000 volunteer hours in corporate giving • Boeing’s New Environment Strategy 2025, states goals to innovate
including charities, company business contributions, employee products for environmental performance, reduce emissions, waste,
giving and employee gift match. water and energy consumption at work sites, and to work with
communities around the globe.
• Charitable grants package include $8 million towards science, • Powering Boeing’s primary data center with renewable energy, saving
technology, engineering and math (STEM) education and enough electricity to power 4,000+ homes yearly. Designing new
workforce programs aimed at developing a robust talent energy-efficient facilities around the world, like the 737 Completion and
pipeline of civil aviation pilots and maintenance technicians. Delivery Center in Zhoushan, China.
Additional funding towards the Newton Flight Academy for • Catalyzing development of sustainable aviation fuel and offering
secondary school students, to build permanent, experiential customers the option of using biofuel on delivery flights.
classrooms that include full-motion Boeing flight simulators.
• Target flying the 787 Dreamliner powered partially by biofuel made
• Veteran recovery and rehabilitation programs and workforce from desert plants irrigated with seawater, in collaboration with Etihad
transition services to the tune of $10 million. Airways.
• $50 million including Boeing employee contributions as part of • Reducing greenhouse gas emissions at work sites by up to 7.3% & upto
the One Boeing Support Fund, towards supporting the families 2million pounds of excess carbon fiber being dumped in landfills,
affected by the 737 MAX tragedies. coming from Boeing factories.
CORPORATE SUSTAINABILITY INITIATIVES OF AIRBUS
Airbus is a European multinational aerospace corporation. It manufactures civil & military aircrafts including
helicopters & aerospace products. It is presently world’s largest airliner manufacturer.

Climate Action Initiatives :- Other notable CS initiatives :-

1. Committed to leading decarbonisation in aerospace sector. 1. Airbus partners with many Govts as well as local communities
to contribute & sponsor projects on issues like poverty, hunger,
2. Cap CO2 emissions by launching programme in 2005 to reduce it inequality, human rights.
to 50% by year 2050.
2. Airbus Bizlabs are established at 4 different places across the
3. Airbus has been involved in launching 50 earth observation world, in France, Spain, Germany & India (Bangalore) to transform
satellites since 1986. innovative ideas in valuable businesses.
4. Airbus has been pioneer in making innovative initiatives for
cleaning up space by tracking & removing debris in space using 3. Partner with universities, schools & NGOs to increase access to
different methods like space harpoons, search telescopes, space net education, help, inspire & prepare youngsters to fulfil their
etc. potentials.
5. Manufacturing fuel efficient aircrafts, sourcing required materials
ethically with minimal impact on environment, maximising reuses & 4. Airbus Foundation is formed, which helps in disaster relief,
recycling. urgent humanitarian aid across the world particularly in Europe,
6. 5000 Airbus employees are involved in nearly 100 volunteering Asia, Americas, Africa & middle east.
social & environmental initiatives around the world
7. Electric Flights - Innovative products like `Vahana’, which is all 5. Preventing, mitigating risk of modern slavery in Airbus & its
electric, taking vertical take off & landing . supply chain.
Respect human rights
& foster inclusion

INCLUSION AND DIVERSITY :


“ At Airbus, We Believe There Is Power In Being Different. Every
Day, Our People Express Their Unique Voices And Draw From Their
Rich Experiences To Bring Fresh Ideas To Our Company. This Is Why
We Are Committed To Fostering Inclusion And Diversity In The
Workplace—one That Welcomes Every One Of Us. “

HUMAN RIGHTS :
“ Human Rights Are The Basic Rights That Belong To Every Person
No Matter Where They Live, Their Nationality, Color, Religion Or
Other Personal Characteristics. Being Part Of A Global Industry
Employing More Than 65 Million People Across The World, We Have
A Responsibility To Respect Human Rights And Ensure That People
Are Treated With Dignity. “
 
HEALTH & SAFETY AND PRODUCT SAFETY
Every Employee Has The Right To A Safe And Healthy Working
Environment. At Airbus, We Believe Employee Health And Safety Is
Our Social Responsibility And A Critical Driver Of Our Success. We
Strive To Achieve A Zero-harm Culture In The Way We Conduct Our
Business—from Our Day-to-day Work To Our Actions In The
Communities In Which We Operate. “
SOCIAL SUSTAINABILITY STRATEGY
• Sustainability Strategy Mission Statement Of AIRBUS

“Sustainability At Airbus Means Uniting And Safeguarding The World In A Safe, Ethical, And Socially And
Environmentally Responsible Way. We Have A Comprehensive Sustainability Strategy Built On Four Core
Commitments, Which Guide Our Approach To The Way We Do Business And How We Design Our
Products And Services “

DECARBONISATION

• A Major Focus Is Reducing The CO2 Emissions Of Our Aircraft

PRODUCT RESPONSIBILITY
• After Aircraft Delivery Airbus will Continue To Take Into Account The Environment By Optimizing
Aircraft Operations And Recycling End-of-life Aircraft.

Sustainable Supply Chain


• Industrial Environmental Footprint At Sites Worldwide And Throughout Our Supply Chain.
• Suppliers To Comply With All Regulations That Relate To The Safe Handling Of Regulated
Substances, And To Find Suitable Replacements For Those That Have Been Banned From Use.
Following Regulations:

REACH (Registration, Evaluation, Authorization And Restriction Of Chemicals)

TSCA (Toxic Substances Control Act)

F-GHG (Fluorinated Greenhouse Gases)

ODS (Ozone-depleting Substances)

Zero-emission Technology
• Focused On Delivering World’s First Zero-emission Commercial Aircraft To Market By 2035.
• Zero-emission Flight Is Closer To Reality. Airbus Is Committed To Developing, Building And Testing
Alternative-propulsion Systems – Powered By Electric, Hydrogen And/Or Solar Technology – To
Enable The Aviation Industry To Disruptively Reduce The CO2 Emissions Of Commercial Aircraft,
Helicopters, Satellites And Future Urban Air Mobility Vehicles.
Resource : https://www.airbus.com/company/sustainability/sustainability-strategy.html
BRAHMOS AEROSPACE
Venturing into Hypersonic world
CSR FOCUS AREA – TOTAL INDIAN CONTEXT - ENSURING BASIC LIVING STANDARDS

Education – Building Gurukul Concept &


Infrastructure support

Rural women empowerment – Financial


Independence & vocational training

Basic water facilities for deprived- Filtered


water infrastructures for drought area

Solar based electricity – Infrastructure for


villages at low cost operations

Rural Health infrastructure – Building hospitals


and health care

Environmental care – Horticulture and tree plantation


drives
CSR Focus Area – Total Indian Context Ensuring Basic living standards
CONTRIBUTINGTOASUSTAINABLEENVIRONMENT

Climate action
• Dassault support the Corsica Carbon Offset and Reduction
Scheme for International Aviation.
• Promote the use of Sustainable Alternative
Fuel (SAF) to replace conventional kerosene.

All of Falcon aircraft are already sustainable fuel compatible.


Our best practice guide, as well as the development of flight
path optimization technology, also offer quick solutions for
reducing carbon emissions.
77% of waste recycled
CONTRIBUTINGTOASUSTAINABLEENVIRONMENT

Integrated environmental criteria :


Reducing
The modernization of production facilities addresses Lowering Fuel
Carbon
environmental criteria such as resource consumption, the use of Consumption
chemical substances, atmospheric and aqueous releases, and the Emission
generation of waste. Accordingly, in 2019, Dassault Aviation
switched from chemical machining to robotic mechanical
machining. Integrated
Energy
environmental
Efficiency
Over the last five years ,have decreased emissions of volatile policy
organic compounds (VOC) by 17%, by using industrial
processes that require fewer solvents.

Furthermore, reduction of waste at source has resulted in a Waste


decrease of 8%, by weight, over five years. In 2019, we were Management
also able to recover 77% of the Group’s waste.
CSR

• Thanks to a healthy social dialogue, 25 agreements and


Fair practices Ethical
amendments particularly with regard to wellbeing at work,
compensation policy, incentive schemes, profit sharing, the agreement Principals
collective retirement savings plan and the election of employee
representatives

• Dassault Aviation applies very strict business ethics, in Healthy Social Diversity
compliance with national laws and international agreements. Dialogue Inclusion
• Dassault Aviation has signed international agreements on fair
competition practices (Common Industry Standards, Global
Principles) and the United Nations Global Compact, which Social
promotes ten fundamental principles concerning basic human
rights, labor and environmental standards, and the fight against Assistance
corruption.
COMPARATIVE STUDY ( TOPFOURKEYFOCALAREA)

HAL Brahmos GE Airbus Dassault Boeing


Education - Education- kids Human Rights Climate actions – Climate Action – Targeted &
Technical and rural women emission control carbon emission measured
Training control practice on
Environmental
care.

Sports Basic necessities Environment, Fair practices Integrated Charity – as a


infrastructure for for under health & safety inside company environmental company, as a
the country privileged policy culture-
employees

Solar energy for Environmental Public policy Human rights Fair practices- Veteran care
villages care- tree Lobbying Ethical principles
plantation

Social support for Solar Energy for Supply Chain Health- equality- Diversity & Waste
under privileged villages Justice - ethical Inclusion management
INDIANCS PRACTICES VS GLOBAL CS PRACTICES
& PERCEPTION

• Corporate should give back to • Corporate should pay


society in health, sanitation attention to the ethical social
and poverty care. practices in its own
operations.
• Corporate should spend on
under privileged and skill • CS- Corporate should target
building of rural population. Because in
and achieve quantifiable
developed
environment based missions
• Corporate should contribute countries, the
through their business
towards basic infrastructure basic
structure.
facilities of the country amenities &
infrastructure
• CS- Corporate should create awareness on • Human Right practices,
for country
environment and climate change and contribute equality Justice & fair
citizen are
towards building awareness and basic practices should not be
taken care by
infrastructure in this regard compromised
the govt

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