ESG Impact in Aerospace & Defence
Trends, Challenges, and Opportunities for a Sustainable Future
Summary
The aerospace and defence sector, valued at ~$885 billion in 2024 and projected to exceed $2 trillion by 2034, sits at a strategic crossroads. It must balance national security demands with mounting pressure to decarbonise, as the industry contributes nearly 10% of global GHG emissions.
Military emissions remain a critical blind spot, with less than 10% reported to the UNFCCC despite estimated activity of 5.5% of global GHG. Talent shortages, critical mineral dependency on China and the DRC, and a defence sector excluded from the EU Green Taxonomy compound governance risk.
This white paper covers emissions accounting, supply chain and talent vulnerabilities, safety and human rights due diligence, the regulatory landscape across the EU, US and India, company case studies from Airbus, BAE Systems, Safran, Northrop Grumman and Embraer, financial performance links, and a 2024-2030 implementation roadmap.
Emissions and environmental challenges: the outsized climate footprint of aviation and military activity, and the unquantified risk of Scope 3+ warfighting emissions.
Supply chain and talent issues: critical mineral dependency on China and the DRC, a looming 1 million-person talent gap, and persistent DEI shortfalls.
Regulatory environment and governance: the EU's CSRD and ReFuelEU mandates, the defence sector's taxonomy paradox, and SBTi-validated net-zero commitments.
Financial impact, company case studies, and a 2024-2030 implementation roadmap covering SAF strategy, supplier due diligence, and full ESG disclosure.
Full Whitepaper
Read the complete methodology, frameworks and findings in the PDF.
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