ESG in the Aerospace & Defense Industry
In the face of global disruption caused by climate change, natural resource scarcity, social volatility, technological innovation, and geopolitical uncertainty, Environmental, Social and Governance (ESG) factors and the actions organizations are taking to address these issues have never been more important. Companies in Aerospace and Defense (A&D) are not immune to these factors and, in fact, have relatively high exposure to material ESG risk due to their concentration in highly regulated markets with high degrees of regulatory scrutiny. Industry participants would be well-served to take a proactive and integrated approach to communicating with multiple stakeholder groups about ESG progress and initiatives, particularly given the increasing focus of the Biden Administration and relevant government agencies. Doing so would ensure A&D companies are well-positioned to both manage and mitigate risk and capitalize on opportunities.
