Safran

RATING

SECTOR

Aerospace & Defense

WEBSITE

CONTACT

2, Boulevard du Général Martial Valin
Cedex 15, 75724 Paris
France

Tel: +33 (0) 1 40 60 80 80
Fax: +33 (0) 1 40 60 81 02

STOCK EXCHANGE

LISTING

  • #52 World’s Best Employers 2020. Forbes
  • #257 Global 2000 2020, Forbes
  • #263 Canada’s Best Employers 2019, Forbes
  • #226 Top Multinational Performers 2017, Forbes
  • Europe 120 Index constituents 2019, Vigeo Eiris
  • #7 France Best Employers 2019, Glassdoor
  • #4 France’s Top 500 Employers 2020, Capital Magazine
  • #4 “Students” Ranking 2019, Universum

EMPLOYEES

95,443

CHIEF SUSTAINABILITY OFFICER

Anne Cheurlin

AWARDS

  • The Safran institutional film “We Build the Future” earned the company the Best Director award, Education-Training category award, and Aviation-Space-Defense category award in 2020.
  • Three of Sagran Group’s subsidiaries, Safran Electronics & Defense, Safran Electrical & Power and Safran Nacelles received the Airbus Supplier Customer Support Award in 2019.

CONTENT SOURCE

FURTHER READING

Report created by Youmna Abdallah

Safran

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

 

Company Activity

Safran S.A is a French multinational aerospace and defense company headquartered in Paris, France. It engages in the design, manufacture and sale of aircraft, defense and communication equipment and technologies. Safran operates in 27 countries on every continent and is divided into three main branches:

  • The Aerospace Propulsion branch designs, develops, produces, and markets propulsion systems for commercial aircraft, military transport, training and combat aircraft, rocket engines, civil and military helicopters, tactical missiles and drones. 
  • The Aircraft Equipment, DefenseAeroSystems branch covers the full life cycle of systems and equipment for civil and military aircraft and helicopters. This segment is involved in landing gear, brakes, nacelles, reversers, avionics, security systems, onboard computers and fuel systems. 
  • The Aircraft Interiors branch engages in the manufacture of cabin interiors for all types of business and military aircraft. The sector designs, develops, manufactures and markets aircraft seats for passengers and crew, as well as cabin equipment, overhead bins, class dividers, passenger service units, cabin interior solutions, chilling systems, galleys, electrical inserts and trolleys and cargo.

Safran Group’s subsidiaries include Safran Aero Boosters, Safran Aerosystems, Safran Aircrafts Engines, Safran Cabin, Safran Electrical & Power, Safran Electronics & Defense, Safran Helicopter Engines, Safran Landing Systems, Safran Nacelles, Safran Passenger Solutions, Safran Seats and Safran Transmission Systems. Since its creation in 2005, Safran has expanded internationally with over 95,000 employees in 27 countries, making it a global player in the aerospace industry.

Company Sustainability Activity

Safran is keenly aware of its social and environmental responsibilities, and has an unyielding commitment to deliver the best products under demanding standards in terms of trade compliance, relations with customers, suppliers, subcontractors, and working conditions. Safran actively pursues corporate philanthropy initiatives in support of education, inclusion and culture, and constantly develops opportunities to advance the employees’ careers as part of the Group, which many of them are shareholders. 

Safran Group’s CSR policy is structured around six clear strategic priorities:

  • Develop pioneering products and processes while reducing their environmental impacts.
  • Excel in security and protection of people and property.
  • Develop human potential.
  • Involve suppliers and partners.
  • Establish integrity in the Group’s culture for the long term.
  • Build outstanding relations with stakeholders.

Safran intends to lead the way towards decarbonization of the aviation sector, through a climate strategy taking two focuses: reduction in CO2 emissions from its production methods, and, what constitutes its essential mission, reduction in CO2 emissions from its products.

Highlights

Targets

Environmental

  • Work towards low-carbon aviation by 2030-2035, towards carbon neutrality by 2050, by cutting down 50% of its CO2 emissions and purchasing 50% of carbon emission offsets
  • Reduce 8% of direct emissions and 18% of indirect emissions by 2025 (compared with 2018).

Some of the assets employed for Safran to meet its objectives are as follows:

  • Reducing sites’ energy consumption, chiefly by improving the energy efficiency of buildings.
  • Developing solutions for heat generation at their sites, by conversions such as replacing gas boilers with biomass boilers.
  • Choosing low-carbon energy sources, as with electricity suppliers in Mexico, with the signing of a solar power energy contract.
  • Substitute the use of kerosene with sustainable fuels such as e-fuels or biofuels.

Social

  • Receive a gold HSE rating by 2025 (internal Health, Safety & Environment Guidelines p.267) to 100% of the company’s production sites.
  • Improve the workforce gender balance by reaching a 41% women hiring percentage and 16% women in senior management roles by 2023.
  • Increase the percentage of people with disabilities to 6% of its workforce by 2023.

Progress

Environmental

  • Safran is currently developing lightweight design technologies for aircraft systems and cabin interiors, and electrification for new, ultra-efficient aircraft architectures, as a key player in the arrival of new low-carbon aircraft around 30% more energy efficient by 2035. A challenge summed up as ‘skip a generation’.
  • As part of this challenge, Sagran also improved the efficiency of the LEAP engine, which was designed with a reduction of CO2 emissions by 15% and NOx emissions by 50% in 2019.
  • Safran is also actively involved in all-electric and hybrid propulsion systems addressing applications in new short-haul aviation solutions such as lightweight urban, suburban or even regional transport.
  • Safran is targeting the development of technologies enabling engines to go above the present-day technical threshold of a 50% biofuel-kerosene mix, and is also examining the breakthrough option of cryogenic fuels such as liquid hydrogen, with a longer Research & Technology horizon and a step-by-step investment approach.

Social

  • 50% of the company’s production sites received the gold HSE rating in 2019 (internal Health, Safety & Environment Guidelines p.267).
  • Safran obtained renewal of the  GEEIS (Gender Equality European & International Standard) label at the European level in 2019, with 37% of new hires and 12% of senior management roles held by women.
  • Safran Announced in 2020 an international employee shareholding plan aimed at associating employees with the objectives, successes and performances of Safran, as well as strengthening the integration of employees joining the Group.

Certificates

United Nations Sustainable Development Goals

United Nations SDGs Compliance

SDG 3 

  • Safran applies a health, safety and environmental (HSE) policy based on guidelines covering all employees at all sites. Comprising 30 standards, these guidelines are used to audit HSE performance, which is rated bronze, silver or gold, according to the level of HSE maturity reached. 

SDG 4 

  • Safran promotes the professional integration of young people: 11.6% of recruitment across Europe in 2019 related to interns, work-study program participants and Ph.D. students. Initiatives and partnerships are run with educational establishments in all of Safran’s host countries.

SDG 5 

  • Safran sees gender equality at work as a driving force in business transformation, and this means developing a more inclusive corporate culture, enhancing employment attractiveness for women and increasing the proportion of women in executive positions. In 2019, Safran obtained the renewal of the GEEIS (Gender Equality European & International Standard) and took on ambitious objectives for 2023.

SDG 6 

  • Safran pays close attention to water, discharge and waste treatment at its sites. Sites that implement chemical processes such as surface treatments have brought in a specific organization for treating discharge. 

SDG 8 

  • Safran signed a global framework agreement on working conditions, CSR and sustainable development in 2017. It also operates a duty of care plan for suppliers and subcontractors on matters of health, safety, the environment and human rights. Signing Safran’s Responsible Purchasing Charter is one of the first commitments undertaken by all suppliers.

SDG 9 

  • Around 75% of Safran’s R&T budget goes to direct or indirect measures on reducing the environmental impact of air transport. In 2019, Safran filed more than 1,200 initial patent requests worldwide.

SDG 10 

  • Safran pursues an active policy on employment for people with disabilities, under its 2018-2022 disability agreement. People with disabilities accounted for 5.1% of the overall workforce in 2019.

SDG 12 

  • Safran’s low-carbon project sets a trajectory on reducing greenhouse gas emissions linked to its production methods. Targets for 2025 are an 8% reduction in direct emissions and an 18% reduction in indirect emissions compared with 2018.

SDG 13 

  • Safran sees the transition to sustainable aviation as an absolute priority and operates a climate strategy designed to bring down product-related and site-related greenhouse gas emissions. The Group’s policy is to ensure maximum protection of its sites against natural, technological and environmental risks.

SDG 15

  • Through its health, safety and environment policy, Safran is committed to preventing and minimizing pollution potentially caused by its activities.

SDG 16

SDG 17 

  • Safran develops many partnerships with the business community, the financial community, associations, the academic world and public partners to advance and share its knowledge and operations and their implementation.

Evaluation

Safran is paving the way to sustainable aviation through the implementation of clear objectives and goals to reduce the global aerospace industry’s climate impact, and the Group’s leading position as an employer both locally and internationally. 

With 75% of the company’s Research & Technology focused on reducing its environmental footprint, some of their notable initiatives to mitigate climate change include the development of innovative technologies to improve engine efficiency, thereby reducing aircraft emissions, and the substitution of existing jet fuel with sustainable fuels.

Safran implemented successful anti-corruption and gender equality policies in their workforce, which earned the company notable certificates such as the GEEIS (Gender Equality European & International Standard) and ADIT Anti-Corruption Certification

Safran complies with 12 of the 17 UN Sustainable Development Goals. Their efforts towards sustainability are noteworthy, and for these reasons, Safran Group has been rated a C.

Analyst Outlook: Positive

It is important to note that global aviation accounts for 2% of human-induced CO2 emissions, with the proportion expected to expand significantly as other sectors such as energy make more rapid progress to decarbonise. Whilst the company set ambitious goals to mitigate climate change, its progress towards a carbon-neutral aerospace industry remains moderate.

 

Key Points

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