Leonardo (AO) | Buy | 2026 transition plan, solid achievements so far on ESG

Research evidence excerpt

Leonardo (AO) | Buy | 2026 transition plan, solid achievements so far on ESG

e down by 44% from 2020, while revenues were up by 41% since 2019. Since 2019,

external grid electricity purchases were cut by -32%, water withdrawals by 23% and waste by 22%.

79% of the group financing is ESG -linked.

64% of the group workforce holds STEM qualifications, with >37,000 employees trained in sustainability topics over the past year.

ESG ratings: efforts are being reflected in an above-average ESG rating across the board. MSCI is rating Leonardo A (sector

average: BBB), ISS ESG B- (sector: C-), CDP A and top 4% of >20,000 rated issuers globally (sector: C), Sustainalytics: 3.rd out of 113

A&D companies with a 22 ranking (average: 37.6), S&P 83 (sector: 66), Ecovadis 78 (sector: 53) and top 2% of the industry.

Looking forward: EUR1.2bn of initiatives related to climate change, and progress towards 2030 targets

The 2026 Transition Plan is built around three pillars - Ambition, Actions and Accountability - spanning climate strategy,

investments, natural resources and circularity, alongside a Just transition focused on skills, inclusion and people. Digital

transition acts as a core enabler across all areas, bringing data, technologies and skills together to deliver on the plan.

Breakdown of the EUR 1.2 bn initiatives related to climate change. Out of the EUR1.2bn investments planned in 2026-30 and

relevant for the climate transition, 68% relate fuel reduction (flying product efficiency to reduce weight, optimize transportation

and replace engine), 24% involve simulation (increase number and performance of simulators to unlock new mission-scenarios),

5% energy efficiency (activities to optimize energy consumption), 3% adaptation (solutions for emergency management and

prevention).