Israel Aerospace Industries (IAI) joins leading companies in Israel and abroad that now report regularly on economic, environmental, and social performance, with the publication of its first Sustainability Report which covers 2015. The report focuses on the core substantive issues facing the Company, and complies with the GRI-G4 international reporting standard of the Global Reporting Initiative. The report was generated as part of IAI’s discourse with the Company’s various stakeholders, including customers and partners, among them leading international defence and aviation companies.
Through a structured materiality process, 21 significant topics which form the strategic basis for sustainability management in IAI were identified. These falls into four main areas: Environment, Society, Economy and Corporate Governance. The report has been approved by the Company’s Management and is the first step in what will be from now on, an annual reporting procedure on the company’s sustainability issues..
Joseph Weiss, IAI’s President and CEO: Substantial portions of IAI’s activities, especially with regard to the company’s R&D processes, and those regarding production and sales, are based on already-existing sustainable principles of product innovation, environmental management, community concern, creation of an empowering work environment and ethical behavior. We believe that investing in sustainability will also support the Company’s business growth and development and this will make itself felt in IAI’s business results in the long-term. We are focusing on applying these values to all of IAI’s activities, while adding new aspects that will contribute to the company’s business and social capital. Because of its size, strength and many varied areas of activity, IAI is a significant factor influencing the various circles within which it operates, and we are aware of the responsibility resting on our shoulders which applies to all our actions in accordance with the principles of sustainability and social responsibility”.
John Byrne, Vice President, Boeing Commercial Airplanes Supplier Management: “The aerospace industry’s efforts to improve sustainability and reduce environmental impact support its long-term growth as well as communities where we operate. Boeing welcomes efforts by valued suppliers such as IAI to incorporate sustainability into their operations, supporting their development, their employees and their communities.”
The main topics of the report are as follows:
As a large government-owned company, IAI promotes local purchases with an emphasis on developing Israel’s non-central and peripheral regions. In 2015, IAI spent $1.2 billion, some 52% of IAI’s total procurement outlay, on procurement from 3,385 Israeli suppliers. IAI is also Israel’s largest government-owned employer, with 15,734 employees in 2015. In 2015, IAI recruited 864 new employees (409 students), of whom 66.1% were men and 33.9% women; in 2015 the percentage of women among company employees stood at 20%. This is in accordance with IAI’s ongoing efforts to advance women within the company.
Towards the end of 2015, Technological Education was chosen as a focus for social responsibility, community involvement and employee volunteer initiatives, with a target of 75% of the hours devoted to voluntary work being redirected towards this, and the remaining 25% of the time devoted to poorer populations and support for special needs groups. In 2015, a flagship project – ‘Women Engineers of the Future’ – was launched, to encourage teenage girls with high grades to choose science and engineering courses to support Israel’s national need for more women engineers and scientists.
As part of IAI’s Corporate Governance, computer-based training on IAI’s Code of Ethics was also launched in 2015. This course has already been completed by 89% of the workforce, and deals with topics such as employee maltreatment, environmental protection, conflicts of interest, bribery and corruption, and sexual harassment. Furthermore, an awareness program relating to Anti-Corruption and Bribery of Foreign Public Officials is being actively pursued within the company, and is updated regularly. IAI is also a member of two international transparency and ethics organizations that promote advanced Compliance procedures and processes in organizations and companies.
Energy and fuel: From May 2014, all of IAI’s power consumption was transferred to a private electrical power provider based 100% on natural gas. 2015 was the first calendar year in which the Company consumed electricity in this manner. Also in 2015, over 1,000 hours of professional training were given to the Energy Supervisors and Trustees. Since 2007, IAI has operated according to an orderly work plan to implement a variety of measures and solutions that reduce energy consumption and as of 2015, 23% of energy usage was saved, compared to a ‘business as usual’ scenario; this amounts to some 375 GWh. In 2015, fuel consumption for industrial use (hydrocarbons and diesel) stood at 72,751,935 MJ, and fuel consumption for transport (leased and pooled vehicles and jet aircraft fuel) stood at 13,158,362 MJ. IAI is currently implementing a comprehensive plan to control greenhouse gases, to help generate a complete picture of all of IAI’s activities in this regard, and provide opportunities for proactively making systematic reductions.
In 2015, 2,308 tons of hazardous waste was evacuated, of which 33% was either reused or recycled. Waste which had previously been sent abroad was transferred for recycling and energy recovery processes with the approval of the Ministry of the Environment. In 2015, 8,351 tons of non-hazardous wastes were evacuated, of which 51% was either reused or recycled. And in 2015, 321,475 cubic meters of water were consumed by IAI, and 230,473 cubic meters of waste water were generated in the process of production, maintenance and cleaning of plants. Based on internal monitoring processes, wastewater is transferred to pre-treatment facilities in the vicinity of IAI plants before transfer to external sewage treatment facilities.
