Climate change stands as one of the greatest challenges of our time. We must take action now and commit to advancing the aviation sector. As part of this commitment to building a sustainable future, Embraer announced in 2021 new strategic goals and ambitious pathways to transform its operations carbon-neutral by 2040 and contribute to achieving zero-carbon aviation by 2050.
Aligned with the company's commercial strategy, the company's climate strategy is present in everything we do, from our processes and facilities to product development and engagement with our supply chain. The company collaborates with its key stakeholders, both internal and external, to develop decarbonization strategies and define indicators integrated into the business plan.
At Embraer, we recognize the urgency of the climate crisis and believe that transitioning to a low-carbon economy and adapting air transport to this new context can represent a significant opportunity. We have intensified our efforts to minimize our carbon footprint, remaining dedicated to innovative solutions that have a broader impact on our customers, our local communities, and our aircraft.
Our goal is to decarbonize our direct and indirect operations, focusing mainly on carbon reduction and efficiency. Excluding product use, it is estimated that our Scope 1 and 2 emissions account for about 75% of our company's carbon footprint, which is why we are prioritizing our efforts in these areas. When we consider emissions in the product use phase, the aircraft we design and build are responsible for significant carbon emissions, making it imperative that we innovate in new projects and technologies with sustainability in mind.
With this goal, we aim to bring the best aircraft in the category to the market at an accelerated pace to help customers and partners achieve their climate goals. This is a team effort, and we must work across industries and borders to address the climate crisis. See our commitments below.
• Carbon neutrality in operations by 2040 (Scope 1+2);
• 100% renewable energy by 2030 and an intermediate target of at least 50% renewable energy by 2025;
• Commence use of Sustainable Aviation Fuel (SAF) in operations from 2021 and reach at least 25% by 2040;
• Offset any residual emissions not reduced through efficiency projects, available alternative energy, or new technologies.
• Carbon-neutral growth from 2022;
• Commitment to limit carbon emissions to 2021 levels, even with operational growth.
• Zero-carbon aviation by 2050 (Scope 3) to be achieved with contributions in;
• Development of disruptive sustainable products, services, and technologies, including electrification, hybrids, biofuels including SAF, and other innovative alternative energies;
• Working together with suppliers to make our current aircraft compatible with 100% SAF use;
• Active engagement with the supply chain to scale up global SAF production;
• Continual improvement of the efficiency of our current aircraft until certification of new technologies;
• Launching zero-emission eVTOL aircraft by 2026.
We know that executing the climate strategy and achieving our commitments depend on a journey to be undertaken, together, by all areas of the company, with the collaboration of its external stakeholders. Therefore, multidisciplinary working groups (WG) have been created to lead strategic themes that will directly influence the results of this journey. They are: SAF (Sustainable Aviation Fuel), Energy, Technology and Innovation, Communication among others.
Each group meets with a frequency according to the need and stage of each project. Monthly, the leaders of these groups come together in the ESG Forum, where they share with the Vice-Presidency of People and ESG the main updates of all ongoing projects. In addition, there are the Quarterly Review Meetings (QRMs), are held 4 times a year, with the participation of the CEO and Vice-Presidents of the company.
The commitment to the environment permeates our entire value chain, from our facilities, passing through to product development and the supply chain. It is no coincidence that we were the first aviation industry in the world to achieve ISO 14001 certification. In 2002, we implemented an Environmental Management System in our main units, and since 2009, we have developed a Greenhouse Gas Inventory, which is annually certified under ISO 14064, and calculates Scope 1, 2, and 3 emissions.
Through the Environment, Health, and Safety Policy, we define clear guidelines, which are adopted by the entire Company worldwide, on topics such as eco-efficiency, supply chain engagement, product development (Design for Environment practices), and measures to minimize climate change.
The company's Energy Efficiency Management Program has long-term goals and intermediate targets; an Innovation pillar, Research and Development of new technologies; Project management through the Energy Efficiency WG; Progress assessment through the ESG Forum and QRM and has a communication pillar, focused on training for employee awareness and promotion of behaviors that collaborate with reducing energy consumption and efficient use of resources.
Goals
• 100% renewable energy by 2030 with an intermediate target of at least 50% renewable energy by 2025;
• Carbon neutrality in operations by 2040;
• Carbon-neutral growth from 2022.
The company's energy consumption is monitored monthly in the environmental management system (ISO 14.001:2015), being part of the objectives and goals of the operational units.
In addition, greenhouse gas emissions data (ISO 14064:2018) are also verified - both actions allow energy consumption-related information to be reliable and continuously monitored. The results are presented once a year to the company's senior leadership and CPESG*
*CPESG is the Advisory Committee of the Board responsible for the ESG theme within the company, the CPESG (People and ESG Committee). See more in the GOVERNANCE topic.
We believe that innovation is the key to lasting success. Therefore, we dedicate almost 10% of our annual revenue to research, development, innovation, and modernization of our industrial facilities. This strategy includes exploring new sources of renewable energy, seeking a more sustainable future for the planet and our company.
Sustainability at every stage: When building or renovating manufacturing units, we prioritize the use of clean energy and equipment with higher energy efficiency. This approach ensures more sustainable operations and contributes to mitigating climate change.
With the aim of using energy efficiently and responsibly, Embraer created Elux, a character to communicate with the company's more than 19 thousand employees in a playful way, providing quality information and promoting behavior change. Training is continuous and has 3 main communication channels. They are:
ESG Minute: Videos of up to 1 minute that inspire with real stories of people making a difference in the fight against climate change within the company;
Fun cartoons: A light and relaxed way to learn about the challenges and opportunities of energy transition in everyday life;
Ideas space: An open environment for sharing ideas and suggestions to save energy and reduce the environmental impact of the company and employees' homes.
Climate change represents growing risks for companies, affecting both operations and future prospects. Recognizing this reality, Embraer is dedicated to proactively assessing, measuring, and managing these risks as part of its climate strategy and is incorporating climate-related risk assessment into its Enterprise Risk Management (ERM) process.
In 2023, Embraer, in partnership with its insurance company, conducted a comprehensive study of climate-related physical risks. Combining expertise in data engineering, quantitative and qualitative analysis, and on-site visits to the company's units around the world, the study mapped acute and chronic physical risks that could affect the company.
The study considered three distinct climate scenarios (RCP 2.6, RCP 4.5, and RCP 8.5) at two temporal horizons (short-term - 2033 and long-term - 2050). For each Embraer unit, specific physical risks were identified, taking into account extreme weather events such as heavy rainfall, floods, windstorms, earthquakes, and frosts, events that are exacerbated by climate change.
One of the results of this study was the identification and assessment of the financial impacts of each of these risks for the company. Based on these analyses, individualized action plans were developed by the insurer, detailing the technical measures necessary for risk prevention and mitigation. Annual reports monitor the status of each action, ensuring the effectiveness of the measures implemented.
This was the second climate risk study conducted by Embraer. The first one, conducted by an external consultancy in 2019, evaluated, in addition to physical risks, the risks and opportunities of transitioning to a low-carbon economy, including political and legal, technological, reputational, and market aspects.
The results of these studies are serving as the basis for the elaboration of Embraer's climate mitigation and resilience plan. This plan will outline the company's actions to reduce its greenhouse gas emissions, adapt to the impacts of climate change, and ensure the long-term sustainability of the business.
In addition to the mentioned studies, the company has a specific Government Relations area, whose one of its responsibilities is to monitor emerging legislation and regulations that may affect the company's business, with climate-related issues being one of the topics followed.
Climate change has increasingly stimulated governments and sectoral associations from various regions of the world to create new legislation, standards, and regulations to encourage the private sector to adopt new technologies and ways of doing business aligned with a low-carbon economy.
In this regard, Embraer has been investing in new low and zero-emission technologies for several years to meet these new regulatory requirements, ensuring the business's continuity and contributing to zero-carbon aviation by 2050. Currently, the company operates the most efficient aircraft in the sector, the E2 jet family, which can contribute to a 25% reduction in emissions per seat compared to the previous generation of E-Jets and more than 30% compared to emissions per trip with jets between 150 and 200 seats, which often fly with low occupancy, resulting in high emissions per passenger transported. These jets comply with the European Taxonomy, a European Union standard that determines whether an activity or product is considered sustainable.
The first model of the E2 family went into operation in 2019 and, in 2023, the entire family already represents around 24% of the company's net revenue.
Embraer's climate strategy, as well as the entire Corporate Sustainability & ESG agenda, follows a solid governance structure with well-established rituals within the company. The company's senior leadership (CEO and Vice-Presidents) quarterly monitors the evolution of ESG commitments in ordinary meetings called QRM - Quarterly Review Meetings, contributes to strategic decisions on the subject, supervises climate-related risk and opportunity issues, and approves the disclosure, through the Annual Sustainability Report, of the results and progress achieved.
Additionally, these topics are brought to the Advisory Committee of the Board responsible for the ESG theme within the company, the CPESG (People and ESG Committee), 4 times a year. Learn more about Governance in the Annual Sustainability Report.
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