Eurosif's Aerospace & Defence report is 13th in a series of reports examining environmental, social and governance (ESG) challenges across various industry sectors, and the associated risks and opportunities these pose for long‑term returns.
The aerospace & defence industries are facing obstacles with new pressures mounting.
While cluster munitions financial investments already banned in some EU countries, sustainable fuel sources and supply chain issues are among the most pressing challenges faced by the sector.
Often situated in very different markets, the aerospace & defence sector experiences many of the same trends across the world with important ESG challenges, as Eurosif's latest report discusses. Jet kerosene accounts for 25% of total airline costs, therefore climate change and increasing oil prices are one of the key challenges for the aerospace industry. One of the most secretive sectors, in which corruption and bribery issues are likely, the defence sector faces flattening military budgets and controversial weapon international legislation to take effect in 2012.
Challenges examined include:
- Bribery, Corruption and Transparency
- Supply Chain Management
- Climate Change
- Controversial Weapons and Trade
- Product Quality and Safety
- Labour Relations