Our mission is to exceed customer expectations through inspired teamwork
“Our Corporate Sustainability Report (CSR) is a culmination of everything we do to embody the values that help us meet our vision to provide exceptional aerospace services and our mission to exceed customer expectations. Our company values—integrity, safety and environmental sustainability, quality and service, continuous improvement, and others—are vital elements of our business strategy. In our view, caring for people and reducing our impact on the environment are common sense and practical approaches that are in all of our best interests.
In 2023, we made progress on the carbon emissions goals we established in 2022 by developing a detailed decarbonization road map that identifies the drivers of our company’s emissions, prioritizes actions to meet our goals, and provides StandardAero with what we believe is a strong framework and strategy for implementation. Additionally, we completed more than 300 continuous improvement projects for quality and safety and to reduce carbon emissions, and energy, water and waste across our enterprise.
Moving forward we aim to implement a sustainability strategy and governance structure to comply with regulatory requirements and to be a leader in the aerospace industry. Using our management system approach to day-to-day operations we aim to address customer requirements while reducing waste and cost, driving quality standards and safety, engaging employees from all backgrounds, and strengthening our workforce and industry leadership.”
Russell Ford
Chairman & CEO
The environment, social and governance (ESG) topics that we consider significant to our business were informed by a materiality assessment that places Product Quality and Flight Safety and Employee Health and Safety at the top of the ESG priority list. Success with products and people makes business and all of our other sustainability priorities possible!
Our approach is governed by the ESG Committee comprised of the company’s executive leadership and C-Suite officers. These executive leaders work to sustainably grow the enterprise by applying their industry experience to navigate risks and opportunities. The ESG Committee works closely with the ESG Operations Link comprised of operating sector Presidents to integrate sustainability priorities within operations in a manner that considers business, our employees and customers, and the environment. From there, business sector leaders and staff implement tactics to meet our priorities via functional networks and day-to-day work.
The Enterprise Vice President of Environment, Health, Safety and Sustainability directs our sustainability strategy and aligns the ESG and Operations Link Committees and sector functional networks to identify, track, and report key performance metrics, which allow us to measure progress on our priorities.
The ESG Committee is comprised of the company’s executive leadership and C-Suite officers working to sustainably grow the enterprise and manage risks and opportunities. They work closely with operating sector Presidents down through other leaders and staff to integrate our sustainability priorities throughout the business.
The Enterprise Vice President of Environment, Health, Safety and Sustainability (EVP EHS&S) chairs the ESG Committee, and champions the sustainability, strategy, governance structure, and measurement of key performance indicators. The EVP EHS&S also leads the GreenERmro™ Committee.
StandardAero leads and participates in numerous activities designed to enrich the experience of our employees, contribute to the communities in which we work, support professional development for young professionals in the aviation and aerospace industries, and stay connected as leaders in our industry. This is a sampling of activities in 2023.
True Blue Continuous Improvement Award
Quarterly and annual team award with individual financial recognition for success in reducing waste from defects, transportation, overproduction, inventory, waiting, motion, extra processing, and underutilizing talent; recognized 5 teams in 2023.
GreenERmro ™ Emerald Award (New in 2023!)
Awarded annually to a site for outstanding contributions to environmental sustainability including energy, water, waste and/or carbon emissions reductions; includes individual award and financial recognition for team members.
Life Preserving Standards Stop for Safety Award Coins
Ongoing award opportunity celebrating employees and contractors who identify significant quality/flight safety and environment, health, and safety risks and take action to reduce the danger; recognized 125 individuals in 2023.
Aviation Maintenance Technician Day
Celebrated at our sites in Dallas, Houston, and Springfield and others this year to honor the men and women throughout the aviation industry who keep our skies safe.
Almondbank Center of Excellence Family Day
One of several Family Day events across the company, employees’ and their families were treated to a barbeque, facility tour, and fun activities.
SOAR, ASCEND, F.L.E.E.T. (New in 2023!)
Employee professional and leadership development programs for senior and middle management and frontline leaders in manufacturing environments to teach the skills that make effective leaders and reinforce our values and culture; more than 100 trained in 2023.
Supporting Skilled Job Creation in Aviation and Aerospace
StandardAero supports the next generation of aviation and aerospace professionals; examples in 2023 include:
Basura Bash San Antonio, TX
StandardAero is a tributary leader and sponsor of this city-wide litter cleanup event. Thousands of volunteers remove 20+ tons of trash each year, helping to protect the San Antonio River, local aquifer and wildlife.
StandardAero has long sought to reduce the environmental impact of our operations around the globe by investing in efficiency improvements as part of our continuous improvement culture.
In 2022, we established goals to reduce our direct (Scopes 1 and 2) greenhouse gas emissions (also known as “carbon” in this report) by 45% by the year 2030 and to reach net-zero carbon by 2050. We also evolved our branded program, GreenERmro ™, to inspire more efficiency opportunities across our operations. We continued to make progress on these efforts in 2023 by developing a greenhouse gas inventory and decarbonization roadmap, securing green power, and implementing GreenERmro™ continuous improvement projects to reduce energy, water and waste, including engine test cell efficiency improvements.
Through business and industry partnerships that support the development of sustainable aviation products, we continued to monitor the progress of Sustainable Aviation Fuel and its availability as a feasible and scalable resource for our use. We similarly looked at trends and opportunities with other decarbonization strategies such as electrification, battery power storage systems, and carbon sequestration and offsetting.
Finally, we identified actions to take in 2024 to establish a better understanding of supply chain and logistics emissions and avoidance opportunities as decarbonization in these areas are also key to meeting our 2050 goal.
GHG Inventory and Decarbonization Roadmap
We developed an inventory for Scope 1 and 2 emissions and a decarbonization roadmap that outlines our emissions drivers and levers, and the governance and next steps needed to pursue reduction actions to achieve our goals. The roadmap is designed to be a living strategy and plan that is centrally coordinated by the ESG Committee and updated overtime. We expect that carbon reduction options and their impacts (carbon, financial, and operational) will evolve as StandardAero’s business grows, energy markets change, and new technologies become more commercially viable. In the near term, the roadmap puts emphasis on renewable and green power and efficiency in facilities and operations.
Renewable Energy
StandardAero has a substantial presence in Winnipeg, CA where low-emission hydro is the prevalent source of electricity, which is a benefit to our greenhouse gas inventory. In 2023, as part of our energy procurement hedging strategy, we evaluated and entered into four new contracts in the U.S. U.K., Singapore, and Ireland for 100% renewable energy in the amount of more than 15,500 megawatt hours (MWh). For our greenhouse gas inventory, this means a reduction in emissions equivalent to the carbon sequestered by an estimated 12,913 acres of US, forests in one year1 when all of the contracts go into effect by 2026.
An additional 4,000 MWh of solar power were added by our site in Springfield, IL as part of a power purchase agreement through a revised lease with the local airport to take advantage, along with other tenants, of the airport’s new 2.88 MW solar array set. As result of the agreement, we avoided an estimated $50,000 in utility bill costs in 2023 and in its first summer the solar array set covered more than 100% of the site’s consumption. The benefit to the environment is avoided emissions equivalent to more than an estimated 3,000,000 pounds of coal burned2.
GreenERmro™
This initiative launched in 2021 promotes and measures the implementation of continuous improvement activities that avoid energy, water, waste and associated costs in facilities and processes across our inventory. In 2023, sixty-four (64) GreenERmro™ continuous improvement projects were completed that are estimated to avoid $1M annually. The plan for GreenERmro™ expands to operations, engine testing, procurement, logistics, and products and services to reduce more forms of waste across our business. Our decarbonization roadmap identifies numerous opportunities to reduce emissions and create operational savings.
Examples of continuous improvement projects completed in 2023 include: light emitting diode (LED) and vacancy sensor retrofits; HVAC, chilled water, building management system, and compressed air system optimizations; new roof insulation and building envelope improvements; reduction and reuse of engine test oil; avoiding disposal of hazardous waste through cleaning and recycling; and projects to reduce and recycle water.
GreenERmro™: Test Cell Efficiency
Engines cannot be returned to service until they are tested. The fuel burned in this process is a significant source of cost and emissions for StandardAero. In 2023, our GreenERmro™ Test Facilities Engineering Team continued to implement an efficiency roadmap to reduce test cell operating time and reduce engine reprocessing. We strategically onboarded product lines for enhancements that involve our proprietary engine testing software to enable automated data quality checks and test operations. Consistent measurement of key performance indicators is another aspect of the roadmap. In 2023, all test cells were set up to measure first test pass rate, fuel burn per engine, and days on test. In combination, these metrics help test cell operators and engineers identify improvement opportunities.
*1, 2 According to the U. S. Environmental Protection Agency Greenhouse Gas Equivalencies Calculator as of March 8, 2024.
StandardAero’s value proposition to society increases when we reduce waste and harm by avoiding workplace accidents that involve our employees and/or the significant aspects of hazardous waste generation, air emissions, wastewater, and noise.
Our Environment, Health, Safety and Sustainability (EHS&S) organization is responsible for promoting a global culture of environmental compliance and occupational health and safety, with trained and certified staff at the corporate, sector, and site levels.
Our systematic approach focuses on tactical daily operations support such as conducting training and job safety and root cause analyses, required ongoing training for all employees, strategic planning and reporting as well as:
Employee Engagement and Recognition – Through regular leadership messages, meetings, and other communications, we promote StandardAero’s Life Preserving Standards and Stop For Safety campaign. In 2023, one-hundred and twenty-five (125) employees and contractors were awarded safety coins for identifying and taking action to reduce quality/flight safety and environment, health, and safety risks and 171 continuous improvement projects were completed.
ISO 14001 and 45001 Certifications – Over 20 years we have expanded the number of sites recognized by Bureau Veritas for environmental management systems and health and safety management systems to twenty (20) and three (3), respectively, and we work to increase certified locations annually.
Diverse team member contributions drive innovation, creativity, and competitiveness. With more than 100 years in business, our culture of strong teamwork and sense of camaraderie has helped us to succeed.
Success is built on the unique perspectives, experiences and talents of our employees, customers, partners, and stakeholders. Diverse team member contributions drive innovation, creativity and competitiveness. We are committed to fostering an environment which embraces multiple viewpoints and one that keeps an open dialog by:
Recruiting, developing and promoting employees from all backgrounds. Training and educating employees to understand and address unconscious bias, discrimination, and other barriers to inclusion. Partnering with community organizations, schools and other stakeholders to promote the aviation and aerospace industries to a wide demographic. Our Employee Handbook states our commitment to DEI and we hold ourselves accountable for creating a workplace that reflects the values of the organization. StandardAero does not discriminate in employment decisions on the basis of race, color, religion, national origin, sex (including pregnancy and related conditions, sexual orientation, or gender identity), age, disability, or genetic information.
StandardAero is passionate about doing business the right way and adhering to all applicable laws and regulations. How we treat people, handle challenges and approach opportunities is key for long-term success.
Ethics Program
Our Code of Ethics is the centerpiece of our Ethics Program. The Code of Ethics is intended to help our employees understand their personal and professional obligations in supporting StandardAero’s vision and values, and serve as a guide when they are faced with ethical decisions. It covers topics including but not limited to conflicts of interest; bribery and improper payments; protecting natural resources; workplace harassment; fair employment practices; and more.
Employees are trained that ethics and integrity is everyone’s responsibility and to speak up through multiple channels or the StandardAero anonymous Whistleblower Hotline. The Employee Code of Conduct is another key part of our program which makes it clear to employees the actions and behaviors expected of them when representing the organization. Suppliers doing business with StandardAero are expected to adhere to our Supplier Code of Conduct.
StandardAero also maintains:
Anti-Corruption Department and Program
Trade Compliance Department and Program
Human Resources Department and Program
Modern Slavery & Human Trafficking Statement
Our Information Security Policy commits us to a program that protects operations and people. Building a culture of security that is embraced by all employees is our program’s overarching objective.
StandardAero’s information security program is based on the following fundamental principles which guide decision making with regard to security architecture, operations, and resource allocation:
Defense in depth assumes that any given security control may fail. Controls in the system architecture are layered. Security is more effective because it doesn’t depend on a single control.
Least privilege is the principle that users and systems should be provisioned with the least amount of access and privilege to execute their assigned duties. This limits the negative impact that occurs when accounts are used inconsistently with their assigned role, whether innocent or malicious.
Separation of duties avoids conflicts of interest, either perceived or actual. In general, users should not be allowed to both operate a system and monitor its operation simultaneously. The objective is to create accountability for all users.
StandardAero aims to support products that accelerate and enable sustainable aviation. We engage with leading R&D and manufacturing companies and make investments to provide services for these advanced products.
In March 2023, we signed a 30-year agreement with CFM International to provide LEAP engine MRO services to airline operators. The LEAP engine is CFM International’s newest generation narrow body aircraft engine. This next generation engine provides up to 20 percent less fuel consumption and lower carbon emissions, as well as a significant improvement in noise compared to previous engines. We are making substantial investments in our facilities, equipment, and tooling to support the LEAP engine.
In 2023 we met major LEAP industrialization milestones including receipt of Operating Specification (OpSpec) approval from the Federal Aviation Administration (FAA), induction of our first customer engine, and graduation of the first class of trainees from our newly launched StandardAero Training Academy.
In June 2023, we entered into a teaming agreement with Boom Supersonic to support the design of its Symphony engine and provide engine MRO services to operators of its Overture aircraft. Boom’s Overture is the first commercial airplane designed for net-zero carbon operations, able to operate on 100% Sustainable Aviation Fuel (SAF), while meeting or exceeding applicable noise and emissions standards.
Boom has committed to purchase up to 10 million gallons of SAF annually to execute its flight test program on the Overture, and participates in numerous partnerships to promote SAF policy, supply, and use. Boom has committed to net zero carbon by 2025 and net zero greenhouse gas emissions by 2040.
We are also positioning ourselves to provide maintenance program design and services and product manufacturing solutions to Ampaire, magniX, and ZeroAvia as they develop and certify their lower emissions products.
These companies are major innovators in the hybrid-electric, battery-electric, and hydrogen-electric propulsion space.
Our Management System Policy outlines Quality and Flight Safety Objectives that systematically cascade through the business to identify, mitigate, and reduce risks. In 2023 we completed 140 continuous improvement projects in this area to improve customer satisfaction and reduce cost.
StandardAero’s Management System Policy includes Quality and Flight Safety Objectives to:
These objectives are cascaded down to sectors, business units, functional groups, cells and teams, and individuals through policies, procedures, work instructions, technical manuals, shop orders, specifications, blueprints, and more that constitute our Quality Management System.
The QMS is a comprehensive and standardized approach for meeting all customer and regulatory requirements and providing a safe and reliable product. QMS documentation must accurately reflect the work performed and is controlled by procedures to reduce variation and error and increase operational consistency. Employees are trained to stop and speak up if instructions are unclear.
Every employee affects the achievement of our quality objectives, which are measured by key performance indicators such as First Time Pass, controllable non-conformance, and turnaround time.
