The Spirit of Corporate and Social Responsibility: Environment

We aim to reduce our greenhouse gas emissions in support of the recommendations made by the Intergovernmental Panel on Climate Change (IPCC) to avert catastrophic climate impacts and to do our part to help reduce air pollution in communities. Spirit’s global Scope 1 and Scope 2 greenhouse gas emissions show an overall decrease of 11% from the 2015 baseline.

We have set a provisional target to achieve a 30% absolute reduction in Scope 1 and 2 emissions from 2019-2030.

This 2030 target is based on a decarbonization pathway in the excess of the 2.5% annual decreases expected for alignment with the 2-degree Celsius level of ambition for science-based targets using the Science-Based Targets initiative’s absolute-based contraction approach.

The procurement of renewable energy is central to executing our 2030 greenhouse gas target. We also aim to source 100% renewable energy by 2030.

Additionally, we aim to reduce Scope 3 emissions within our value chain through targeted engagement with our suppliers and customers. We aim to ensure that 100% of our Tier 1 will have also set science-based targets. We will also continue to partner with customers to help reduce the life cycle emissions of aircraft.

We also aim to reduce our significant air emissions as part of our environmental policy. We currently track oxides of nitrogen not including N²O (NO^X); oxides of sulfur (SO^X), and non-methane volatile organic compounds (VOCs).

Our VOC emissions have seen a 10% reduction from 2015 baseline emissions, and SO^X emissions remain very low. NO^X emissions have seen an increase due to the increase in global production rates from the 2015 baseline.

To reduce our greenhouse gas emissions, we will actively invest in energy efficiency measures such as upgrades to equipment and operational improvements. Spirit’s overall global electricity usage has increased steadily from the 2015 baseline, and the portion of that usage that comes from renewable sources has increased from 8% to 19%.

For the 2019 calendar year, our Wichita, Kansas facility (Spirit’s largest facility) used approximately 5% of the local grid capacity of nonrenewable electricity. In 2020, Spirit made an investment decision that will enable this facility to be 100% powered by renewable electricity. We will now be switching to electricity generated by a Kansas wind farm to power our Wichita, Kansas facility. Once completed, the wind farm is expected to generate about 130 megawatts of power.

Spirit worked closely with Kansas public utility regulators to clear a path for the company’s complete conversion to renewable wind-generated electricity at the facility, which is 12.8 million square-feet and represents more than 75% of the total square footage across all of our production facilities. Utility regulators at the Kansas Corporation Commission approved a 10-year agreement filed jointly by the company and Evergy, Inc. that provides an updated electric rate structure. In return, Spirit has agreed to purchase Kansas wind-generated electricity, continue investing in capital improvements and make efforts to maintain stable or expanded operations in Wichita.

The choice of wind energy was a natural fit because the state of Kansas is known for providing strong and reliable wind supply. The new electric rates that Spirit will be paying address price disadvantages for electric service Spirit has experienced in Kansas compared to our operations in other states. We will also be supporting local economic development because the wind farm is located approximately 50 miles from our corporate headquarters.

In addition to providing renewable energy, we continue to invest in energy efficiency projects at our facilities around the world. Examples include LED lighting and upgrades to HVAC systems. We take advantage of rebates whenever available and applicable.

In 2019, we purchased nearly 1.4 million megawatt hours of energy. Approximately 55% of energy consumption was directly used onsite, primarily in the form of pipeline natural gas to produce heat and steam. Other non-renewable energy sources were used for on-site vehicle fleet fuel. The remaining 45% energy consumption was from purchased electricity.

By increasing the energy efficiency of our production and distribution processes, we have the opportunity to reduce our annual spend on natural gas, diesel, propane, gasoline and electricity.

We believe that access to clean, potable water for health and hygiene is a basic human right for all. As such, we will integrate systems and adopt practices to minimize water consumption and improve water efficiency. In 2019, Spirit recycled more than 1 billion gallons of water and purchased 241 million gallons of grey water—dramatically reducing our potable water usage from local treatment plants.

We will increase our efforts to reduce the amount of waste we send to landfill, and ensure that hazardous waste is responsibly treated. In 2019, we manifested 4,667 tons of hazardous waste globally which includes 4,572 tons from the US Region, 11 tons from the Europe Region, and 84 tons from the Asia region. We maintain an annual target of 5% reduction in the weight of bulk solid hazardous waste generated per production unit.

Our business waste management program recycles electronic waste, printer cartridges, and cardboard and paper.

• Electronic waste is cleaned and sold in bid sales. Approximately 98% of our electronic waste is recycled.
• Used printer ink and toner cartridges are returned to the original suppler for refill and reuse. Approximately 98% of our printer cartridges are reused.
• Cardboard and paper is collected and sent to recyclers. Approximately 75% of the paper cardboard and paper generated is recycled.
• Our production waste management program recycles metal chips, scrap parts, and floor sweepings.
• Metal chips and scrap parts are sent to several recyclers that specialize in aerospace metals. Approximately 95% of our metal chips and scrap parts are recycled.
• Floor sweepings include metal material such as drill shavings and dropped fasteners. This material is collected, sorted, and sent to a recycler. Approximately 75% of this material is recycled.

Our consumer waste recycling program recycles aluminum beverage cans and plastic
beverage bottles.

• Aluminum beverage cans used by employees are collected throughout our facilities in specially-labeled bins, collected from these bins and sent to aluminum recyclers. Approximately 90% of aluminum beverage cans at our facilities are recycled.
• Plastic beverage bottles used by employees are collected throughout our facilities in specially-labeled bins, collected from these bins, and sent to recyclers Approximately 65% of plastic beverage bottles at our facilities are recycled.

Our packaging waste program recycles/reuses wood crates, pallets, paper packaging materials, and drums.

• Re-usable wood crates and pallets are sent back to vendor for reuse whenever
  possible. Approximately 35% of the wood packaging material is reused.
• Wood packaging materials that are not able to be reused are chipped and sent to a wood recycle center. Approximately 65% of our wood packaging material is recycled in this manner.
• Paper packaging materials are baled and sent to paper recyclers. Approximately 25% of our paper packaging material is recycled.
• Empty drums and bulk chemical totes are returned to the vendor for reuse whenever possible. Approximately 55% of our used drums and totes are reused.

Our chemical waste program recycles/reuses process water, degreasing and maskant solvents, and used oil.

• Process water is recycled through the industrial wastewater plant and reverse osmosis process at our Wichita facility for reuse. Approximately 70% of the process water at the Wichita facility is treated and reused.
• Maskant solvent at the Wichita facility is captured using a carbon adsorption system. This captured solvent is sent back to the maskant vendor for treatment and reuse. Approximately 90% of the maskant solvent is reused.
• Closed-loop degreasers are used where feasible in our manufacturing processes. The solvent is treated and recycled though the degreaser system to minimize that amount of solvent taken from the equipment when the degreaser soils are removed. Approximately 70% of the degreaser solvents are recycled in this manner.
• Used oil from facility equipment and fleet vehicles is collected in tanks on-site and sent to oil recyclers. Approximately 80% of our used oil is recycled.

We are focused on the efficient use of the natural resources and raw materials, including titanium, aluminum, steel, and carbon fiber, used in the manufacturing of our products. We will consider the full life cycle of their products including sourcing, design, transportation, use and end-of life to increase resource efficiency. We also will identify opportunities to participate in the circular economy.

We are committed to mitigating any potential adverse impacts to biodiversity in the ecosystems where we operate.

We will continue to increase the resilience of our business operations against acute climate risks, such as hurricanes and wildfires, and chronic climate risks, including extreme heat, extreme cold and rising sea levels.