Business

in Society

AIRBUS

Shireen Priyanka Lal

Msc Marketing Management Section B
Word Count :1245

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INTRODUCTION

Airbus is a division of the multinational Airbus Group SE. Headquartered in Toulouse, France, it
has an active workforce of approximately 55,000 employees and some 7,700 suppliers worldwide.
Its engineering centers are located throughout Europe, US, China, India and Russia.

PESTLE ANALYSIS

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KEY STAKEHOLDERS

INDUSTRY- PROBLEM FACED

For sustainability an alignment between Economic, Social and Environmental outcomes of the
firm is required. In terms of social and economic aspects, the benefits outweigh the drawbacks.
Being the only worldwide rapid transportation system it makes it essential for global business
and tourism. The problem arises when we look at the environmental impact.

The environmental impact of aviation occurs because aircraft engines emit heat, noise, waste,
particulates and gases which contribute to climate change and global dimming. Airplanes emit
particles and gases like carbon dioxide (CO2), water vapor, hydrocarbons, carbon
monoxide, nitrogen oxides, sulfur oxides and black carbon which interact among themselves and
with the atmosphere. The rapid growth of air travel in recent years contributes to an increase in

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total pollution attributable to aviation. The following data further proves the intensity of the
problem:
Worldwide, flights produced 781 million tonnes of CO2 in 2015, accounting for 2% of
global man-made CO2 emissions.
Aviation accounts for an estimated 5% of global warming
Air transports relative contribution has not increased in the past 20 years and is not
expected to increase beyond 3% by 2050 (IPCC)
The climate impact of non-CO2 emissions is ignored. The effects of NOx, contrails and
form cirrus clouds at high altitude. A liter of fuel burned in an aircraft at high altitudes
has a greater climate impact than a liter burned by surface transportation.
The figure of 3 or 3.5 liters per 100 passenger-kilometers assumes a full aircraft, that
is, a load factor of 100 percent. Thus, the number is representative of aircraft seat
rather than passenger.

CURRENT STARTEGY
Airbus Group incorporates social and environmental values in its core strategy and operations. It
aims to balance its strategy for growth with fulfilling duties to all stakeholders and addressing
material sustainability issues. Underlying this is a drive to deliver the best technology to serve
mobility and security.

ECONOMIC

Airbus has grown its aircraft product line to offer a complete solution that is highly competitive
on every level reinforced by the company's expanded service offer, as well as its increased
global footprint.

Additionally, Airbus' ambitious product policy ensures it stays ahead of the competition with
continuous improvement. Airbus exceeded its production targets for 2015 by achieving a new
company annual record of 635 jetliner deliveries, while logging 1,080 net orders during the year.
Wings from the UK, cockpit from France, fuselage from Germany, tail cone from Spain: Airbus
builds planes that harness expertise from across Europe. Airbus is an undisputed world leader in
the civil air transport marketplace.

SOCIAL

Social sustainability is about identifying and managing business impacts, both positive and
negative, on people. The quality of a companys relationships and engagement with its
stakeholders is critical.
Airbus Group is a signatory to the United Nations Global Compact (UNGC), the worlds largest
corporate sustainability initiative. It serves to align business strategies and operations with
universal principles on human rights, labour, environment and anti-corruption and to take
actions that advance societal goals. They use the G4 GRI (Global Reporting Index) guidelines for
their reporting.

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Through the Airbus Foundation, Airbus aims to fulfil its corporate philanthropy. This foundation
works with the global humanitarian community, partnering with key stakeholders, international
organizations and local communities to leverage their aerospace expertise to make a difference,
including organizing transport for relief supplies when disaster strikes and supporting youth
programmes in the communities. They also work with NGOs and airline customers in order to
transport goods utilizing what would otherwise be an empty fight. Whether it is a country hit by
a disaster, an under-equipped school in Africa or a hospital in Asia, the Foundations role is to link
an NGO with an Airbus customer and send the necessary supplies to the destination in need.
Another interesting partnership it has is with Red cross. This partnership aims at seeking to adapt
new technologies to disaster response.

ENVIRONMENTAL
Airbus Groups drive to improve eco-efficiency is reflected in their concrete progress across the
Divisions and their industrial facilities. The goal is to optimize eco-efficiency while maximizing
added value and minimizing their environmental footprint. Key reductions have been achieved
in energy and water consumption, waste production, VOC (volatile organic compounds) and CO2
emissions. The company also continues to develop collaboration across the supply chain to
address environmental challenges and regulations. They understand that reducing the
environmental impact of products and services differentiates their products and hence improves
efficiency. The maintenance of a robust ISO 14001 certified environmental management system
(EMS), covering the Groups operations is an indication of their efforts so far.

Other initiatives include:

Airbus Foundation Biodiversity Programme is a transnational initiative that engages
the Groups employees in biodiversity conservation, with a focus on India.
Airbus Sustainable Aviation Engagement Programme (2015), brings together Airbus,
airlines, air traffic providers, airports and sustainable fuels producers to work together
to reduce the environmental impact of aircraft in operations.
Blue5 programme, which supports the implementation of reduction projects for
energy, CO2, water, waste, and VOC, and covers all Airbus sites and functions in
Europe.
As part of Clean Sky 2, an extension of the original initiative that will run from 2014 to
2020, Airbus is applying its expertise to three main platforms:
o Advanced aircraft and engine configurations
o Innovative physical integration of cabins, systems and structures
o Next-generation electrical aircraft systems, cockpits and avionic
Innovative solutions resulting in greater fuel efficiency, reduced noise levels and lower
CO2 and NOx emissions
Improving air traffic management, with its subsidiaries and international partnerships.
This could reduce CO2 emissions by 10% per flight.
New aircrafts like the A380 emits 40% less CO2 per seat. The A350 XWB provides a
25% step-change in fuel efficiency and CO2 emissions. While the A320neo today offers

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a 15% fuel consumption and CO2 savings compared to other single-aisle jetliners on
the market, set to increase to 20% by 2020
Measurement of Ozone MOZAIC -2014
Investing in research and development of sustainable aviation fuels
Airbus's partnership with Siemens will see the two companies work to develop a
hybrid aircraft powered by electricity and conventional fuel by 2030.

RECOMMENDATIONS

In terms of environmental initiatives Airbus is working towards all major concerns that the
industry is faced with today. But, with emissions in the sector set to skyrocket by 250%. They
need to be more proactive in a low-carbon movement.
Secondly, there are a lot of controversies around the A380 model- though the thought process
behind the aircraft is justified many environmental groups and airline industry experts, have
questioned whether the A380 will be cost-effective. The problem lies in the implementation of
the idea. The fact that the additional seats are set aside for the high end consumer defeats the
purpose of carrying more people in one journey hence being more efficient.
Thirdly, in terms of employees there is scope for improvement. Sustainable workplace practices
go beyond what is required by law and ensure longevity and overall well-being of the workforce.
Airbus does provide all the important benefits like medical, career enhancement, safe working
environments etc but they could move beyond. These include examining employee carbon
footprint, offering occupational wellness programs and stress-reducing strategies.

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REFERENCES
Airbus undermining global aircraft fuel efficiency standard environmental NGOs- Blog
for Transport and Environment- Published on January 26, 2016
o https://www.transportenvironment.org/press/airbus-%E2%80%98undermining%E2%80
%99-global-aircraft-fuel-efficiency-standard-%E2%80%93-environmental-ngos-0
Air Transport Action Group : May 2016, - IATA Economics, ATAG Beginner's Guide to Aviation
Efficiency, IPCC, ICAO, United Kingdom Department for Transport, Aviation: benefits beyond
borders, Airbus, Boeing, ATAG Beginner's Guide to Aviation Efficiency, the Intergovernmental
Panel on Climate Change (IPCC), IATA, ATAG, BBC News, AERO modelling system, Qantas.
o www.atag.org
Operational Fuel Efficiency
o https://www.iata.org/

Airbus Official Website
o http://www.airbusgroup.com/

Aviation and the Environment-Prepared by: Ian Waitz, Jessica Townsend, Joel CutcherGershenfeld, Edward Greitzer, and Jack Kerrebrock (2004)
o http://web.mit.edu/aeroastro/partner/reports/congrept_aviation_envirn.pdf

Climate Change Impacts of the Aviation Industry- Oct 3rd, 2010 - Steven Taber
o

http://ehsjournal.org/http:/ehsjournal.org/steven-taber/climate-change-impacts-ofthe-aviation-industry-global-warming/2010/

Aviation Report How to get aviation emissions to 2005 levels by 2050

o http://www.theccc.org.uk/reports/aviation-report
o

https://www.theccc.org.uk/wp-content/uploads/2013/04/Aviation-factsheet.pdf

Reputation Leaders Network- 2015 Global CSR RepTrak 100

o

https://www.reputationinstitute.com/CMSPages/GetAzureFile.aspx?path=~%5Cmedia%5C
media%5Cdocuments%5C2015-global-csr-reptrakresults.pdf&hash=f375854351576541ae88db1e043e7417e9f057f83955bb3768454dd8e041
7353&ext=.pdf

Boeing Official Website

o

http://www.boeing.com/

Forbes Website
o

http://www.forbes.com/video/5166850157001/

O WTO Finds Airbus Destroyed U.S. Jobs, Stole Market Share Through Massive Pattern
Of Illegality- Sept 22, 2016- Loren Thompson

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O HTTP://WWW.FORBES.COM/SITES/LORENTHOMPSON/2016/09/22/WTOFINDS-AIRBUS-DESTROYED-U-S-JOBS-STOLE-MARKET-SHARE-THROUGHMASSIVE-PATTERN-OF-ILLEGALITY/#50197F36AA4E
o Airbus A380: The Death Watch Begins- JUN 6, 2016-Richard Aboulafia
o http://www.forbes.com/sites/richardaboulafia/2016/06/06/airbus-a380-thefinal-countdown/#3aa1b05f61b6
o In A Long-Running Debate Over Frequency vs. Size Airbus Chooses Wrong Once Again-
August 25, 2016- Dan Reed
o

http://www.forbes.com/sites/danielreed/2016/08/25/in-a-long-running-debate-overfrequency-vs-size-airbus-chooses-wrong-once-again/#7b3852877ea8

Greening the airways: How Airbus plans to make the airline industry sustainable- Sept 2012-
James Burgess
o

http://www.csmonitor.com/Environment/Energy-Voices/2012/0919/Greening-the-airwaysHow-Airbus-plans-to-make-the-airline-industry-sustainable

How the Airbus A380 Works- Ed Grabianowski

o http://science.howstuffworks.com/transport/flight/modern/a3806.htm