Boeing : 2020 Companion Summary

GLOBAL

ENVIRONMENT REPORT 2020

COMPANION SUMMARY

BOEING'S APPROACH TO ENVIRONMENTAL SUSTAINABILITY

Climate change is one of the fundamental global challenges of our time. At Boeing, we are reducing carbon emissions and driving efficiency in everything we do to help protect our climate and enable air travel without harm to the environment.

Flying can be as energy efficient as other transportation modes and is often the only practical option for travelers, with 80% of aviation emissions coming from flights where no practical transportation alternative exists. The global aviation industry produces around 2% of all human-induced carbon dioxide emissions. Boeing will continue to lead in reducing emissions by developing evermore efficient airplanes, investing in the development and use of sustainable fuels, and working with our customers to improve the global fleet's operational efficiency.

We are dedicated to reducing emissions not only via our products and services but also in our operations. We bring our spirit of innovation to our manufacturing sites throughout the world. In addition to our goal to reduce emissions of greenhouse gases,

we have absolute targets to reduce waste, water use, and energy use.

This document contains key information about Boeing's efforts in environmental sustainability, and the content aligns with the core elements of the Task Force for Climate-related Financial Disclosure (TCFD) recommendations. The CDP (formerly called the Carbon Disclosure Project), the industry standard for environmental reporting, recognized Boeing with a B rating in 2019 for our CO2 emissions reduction and transparent reporting.

We will continue to work towards our environmental aspirations to reduce our environmental footprint and help give all of our stakeholders what they deserve: clean air, water and land. Our 2019 environmental sustainability achievements are based on commitments to the following:

Products	Operations	Collaboration	Governance
Providing	Sustainable	Collaborating with	Comprehensive
innovative	operations to	partners globally to	review and
products	improve the	advance innovative	assessment of the
and services	environmental	environmental	most significant
to improve	performance of our	solutions.	environmental
environmental	factories, work sites		challenges
performance.	and supply chain.		and risks.

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PRIORITIES

Internal and external stakeholders help shape Boeing's most significant environmental priorities.

The results are shown below, in order of importance and influence on business strategy.

Stakeholder Environmental Priorities

• CO2 emissions from products
• • Fuel efficiency
  • Operational efficiency
  • Sustainable aviation fuel
• Operations greenhouse gas emissions
• • Energy conservation
• Climate adaptation
• Operations water management
• Operations solid waste management and landfill
• Chemicals and hazardous material management
• Materials innovation and sustainable building
• Supply chain environmental standards, practices and reporting
• Airplane community noise
• Remediation and restoration
• Transparency in reporting
• Product end-of-service disassembly and disposal
• Non-greenhousegas emissions
• Biodiversity
• Impact of transportation infrastructure

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STRATEGY

Boeing launched its Global 2025 Strategy for Environmental Leadership in 2018. In 2019, we made progress by advancing several environmental initiatives. The strategy is guided by three overarching pillars: product innovation, sustainable operations and global collaboration.

Global 2025 Strategy for Environmental Leadership

Innovate for	Excellence in	Inspire Global
Performance	Sustainability	Collaboration

• Reduce product	• Reduce operations	• Advance global
lifecycle footprint	and supply chain	sectoral standards
• Accelerate technology	footprint	• Capitalize on
and biofuels	• Sustain environmental	focused investments
• Proactively manage	compliance and	• Advocate for
chemical restrictions	excellence	environmental
	• Remediate and	leadership
	restore at-risk sites

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STRATEGY

Boeing has a strong track record of designing, building and operating products that are environmentally progressive.

Innovate for Performance

Engineering and designing top- performing products reduces aviation's carbon footprint.

• Each new generation of Boeing airplanes are 15% to 25% more efficient than the airplanes they replace.
• We are working to achieve carbon-neutral growth starting in 2020 and a 50% reduction by 2050.
• Our 787 Dreamliners have saved 48 billion pounds of fuel, compared to the airplanes they replaced-vastly reducing the amount of carbon our products emit.
• The 777X will achieve 10% lower fuel use, emissions, and operating costs than the competition.

Excellence in Sustainability

Innovation also improves the environmental performance of our operations.

• We have achieved an absolute reduction of 29% in greenhouse gas emissions from manufacturing since 2007.
• Two of Boeing's largest factories (737 plant in Renton, WA and 787 plant in Charleston, SC) are powered with 100% renewable energy
• Boeing made progress in 2019 by reducing solid waste by 15% and water use by 7% from the 2017 levels. Boeing is leading with recycling and procuring renewable energy programs.

• Boeing is using lasers to remove paint from aircraft, which improves quality and accuracy while reducing hazardous waste by over 90% compared to other paint removal methods such as sanding or chemical processes.
• Boeing is the only aerospace company able to recycle up to 100% of its carbon fiber waste, with 11 Boeing manufacturing sites diverting up to 1 million pounds of solid waste from landfill.

Inspire Global Collaboration

We work with partners around the world to advance inventive solutions for local and global environmental needs.

• Boeing awarded 31 unique grants to support community- based environmental programs in 2019.
• Boeing is the 2019 recipient of the National Association of Manufacturers Sustainability Leadership Award for finding an innovative way to recycle up to a million pounds (453,000 kilograms) of carbon fiber per year, working in partnership with UK-based ELG.
• Boeing is a founding member of the Sustainable Aviation Fuel Users Group, the International Aerospace Environmental Group, and the Aircraft Fleet Recycling Association.
• Boeing offers airline customers new airplanes that can be flown using sustainable fuel, an option
  that reduces CO2 emissions by up to 80%.

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METRICS AND TARGETS

Boeing is on track to meet the aviation industry's emissions reduction goals. In 2019, all airlines worldwide flying international routes began formal monitoring and reporting of their emissions as part of the historic Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), adopted by the United Nations' International Civil Aviation Organization (ICAO) in 2016.

Commercial Aviation Carbon Reduction Goals

Goal	Progress Details
2010	Working toward carbon-neutral growth, commercial aviation
exceeded this goal, with an average 2.1% improvement per year.
Boeing's highly efficient airplanes, including the 787 Dreamliner
1.5% per year	family that reduces fuel use by 20% to 25% compared to the
fuel efficiency	models it replaces, helped enable this success. Airline operational
Working toward	efficiency also contributed significantly through greater seating
carbon-neutral growth	utilization, fuel conservation programs and other efforts.
2020	Since January 2019, all airlines flying international routes began
formal monitoring and reporting of their emissions as part
of the historic Carbon Offsetting and Reduction Scheme for
Carbon-neutral	International Aviation. The United Nations' International Civil Aviation
growth	Organization adopted CORSIA in 2016. With the program in place,
Implementation	the industry expects to offset 76% of the growth in global aviation
of global sectoral	CO2 emissions from 2020 onward, based on pre-COVID-19 flying
approach	trends. Boeing supports the program, including tools and services
	from Boeing Global Services to help our customers with their
	CORSIA reporting needs.
2050	Achieving this long-term goal requires continued research and
development in all areas of an airplane and its operation: from
sustainable aviation fuel to innovative new airframes, engines and
Reduce carbon	materials technology for airplanes of the future-including hybrid
emissions by 50%	and electric-poweredairplanes-to researching new pathways and
Half the net aviation	scaling up sustainable aviation fuel production. Boeing continues
CO2 of 2005	making technology and innovation investments and collaborating
	across the globe in all of these areas to reduce lifecycle emissions
	from the global fleet and achieve the goal.

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METRICS AND	Conserving Resources at
TARGETS	Factories and Worksites
	Boeing is making steady
	progress toward reaching its
	goals to reduce greenhouse gas
	emissions, energy use, water
	use, hazardous waste, and solid
	waste to landfill at its factories
	and worksites.
	The bright spots include reducing
	solid waste by 15% in 2019, and
	water use by nearly 7% from the
	2017 baseline. The 2025 target
	is reducing both by 20% over the
	baseline year of 2017.
	Greenhouse gas emissions were
	down 2.8% last year, with a slight
	increase, 0.3%, in overall energy
	use. The 2025 targets are a 25%

and 10% reduction, respectively. Hazardous waste reduction remains a significant challenge, with a 2.7% increase in 2019 over the 2017 baseline. The target is a 5% reduction over the baseline year of 2017.

Innovative recycling, such as turning excess composite material into consumer products, is expected to help further reduce solid waste in coming years. Renewable resources are increasingly displacing fossil fuels as the source of energy powering Boeing operations.

Progress Toward 2025 Goals in 2019 (from 2017)

2025 Reduction Goals	Progress Details
Reduce greenhouse	Reduced 2.8%
gas emissions by
25%
Reduce water	Reduced 7%
consumption by
20%
Reduce solid waste	Reduced by 15%
to landfill by
20%
Reduce energy	Increased 0.3%
consumption by
10%
Reduce hazardous	Increased 2.7%
waste by
5%

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METRICS AND TARGETS

Boeing is committed to reporting our greenhouse gas (GHG) emissions.

CDP's climate framework is the industry standard for environmental reporting. In 2019, CDP recognized Boeing with a B rating for our CO2 emissions reduction and transparent reporting. The GHG emissions reported to CDP represent 1,827 buildings in 44 countries where Boeing has operational control. These locations represent over 90% of Boeing operations, based on headcount. We report both location-based (reflecting the average emissions intensity of the grid) and market-based (reflecting the emissions intensity of the company's electricity purchases) Scope 2 emissions. Scope 3 includes emissions from business travel only. Calendar year 2019 emissions are shown below in

tons and metric tons of carbon dioxide equivalents (CO2e).

In addition to the emissions we report to CDP, we track a subset of emissions from natural gas combustion and purchased electricity associated with sites that represent the vast majority of Boeing's operations and are identified by the city in which the Boeing operation resides (the Core Metrics Sites). Our 2025 targets are set and assessed based on performance at these sites, to keep a consistent basis for measurement over time. As with the CDP data, we show both location-based and market-based information.

CDP Report GHG	Description	Tons	Metric Tons
Scope 1	On-site direct emissions	676,000	613,000
Scope 2	Emissions from purchased electricity
Location-based	- Based on regional factors for	960,000	871,000
	carbon content
Market-based	- Based on carbon content of actual	808,000	733,000
	purchased energy
Scope 3	Emissions from business travel	320,000	290,000
Core Metrics Sites GHG*	Description	Tons	Metric Tons
Location-based	Based on regional factors for	1,218,000	1,105,000
	carbon content
Market-based	Based on carbon content of actual	1,075,000	976,000
	purchased energy
*Natural Gas and Electricity

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GOVERNANCE AND	Boeing's governance includes
RISK MANAGEMENT	reviewing and assessing significant
	environmental challenges and risks
	to the company and industry, such
	as climate and policy change.
	The company's environmental
	strategy and policies are guided by
	the Environment, Health and Safety
	(EHS) Policy Council, composed of
	Boeing's Executive Council and led
	by the president and chief executive
	officer. Environmental matters are
	part of the value proposition of our
	airplanes.
	The EHS Policy Council ensures
	that strategy and performance
	targets are set and monitored.
	A team of executives across our
	businesses and product lines
	meets twice a month to advance
	our strategy and plan.
	Reviews by the EHS Policy Council
	and a functional review with the
	president and chief executive
	officer are conducted twice a year.
	Progress and status are reported
	through each of these venues in
	addition to other internal executive
	reviews across the company. In
	addition, The Board of Directors
	reviews top-level, strategic
	operational and compliance risks,
	which include environment-related
	risks.

One EHS Policy Council meeting each year is focused on setting targets that are aligned with corporate long-range business planning; another annual meeting focuses on detailed planning and reviewing the company's environmental and safety performance.

Environmental initiatives are embedded into every organization and function within Boeing. The EHS organization comprises functions focused on workplace safety and health, environmental performance and regulatory compliance. The EHS team also works with our business unit and operational leaders to drive an integrated, enterprise wide strategy that addresses our products, services, processes, operations, contractors and employees.

This highly integrated and coordinated approach drives continuous improvement in the environmental performance of our products and operations around the world.

Boeing named Chris Raymond its first Chief Sustainability Officer, effective Oct. 1.

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THE BOEING	Visit boeing.com/environment to
FAMILY OF REPORTS	view the full Environment Report
	as well as more information on
	how the people of Boeing are
	developing ways to promote a
	more sustainable future.
	Visit boeing.com/investors to
	view our Annual Report and to
	find additional information about
	our financial performance and
	Boeing business practices.
	Visit boeing.com/community to
	view our community investment
	information and other information
	about how Boeing is working to
	improve communities worldwide.

Visit boeing.com/ethics-and- compliance.page to view our Ethical Business Conduct Guidelines, a resource to help managers and employees discuss and practice ethical decision-makingskills.

Boeing is committed to making positive Environmental, Social and Governance (ESG) contributions. To learn more about Boeing's commitments in each area, visit boeing.com/ principles/esg.

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The Boeing Company

100 North Riverside Plaza

Chicago, IL 60606-1596

USA

Boeing offers airline customers new airplanes with sustainable fuel, an option that reduces CO2 emissions by up to 80%.

Carbon-fiber recycling at 11 Boeing work sites will reduce more than 1 million pounds of solid waste to landfill.

Over 230,000 commercial sustainable fuel flights to date,

a number that grows every day.

ecoDemonstrator program-tested vortex generator could save an airline, flying 100 jets, up to 3 million gallons of fuel

1. year-enough to take about 3,800 cars off the road during that time.

Sustainable packaging avoided 900+ tons of waste in 2019.

Boeing earned the

ENERGY STAR Partner of the Year Award, for the 10th consecutive year.

100% renewable energy-solar, wind or hydropower-runs Boeing's factories

in Renton, Wash. and Charleston, S.C., and a large data center in Arizona.

Boeing received a

2020 Sustainability Leadership Award from the National Association of Manufacturers for the innovative efforts to recycle aerospace carbon fiber.