Dassault Aviation

Dassault Aviation is headed by a Chairman and CEO and a Chief Operating Officer, both in their roles since 2013. The Board of Directors comprises the Chairman and CEO and seven other non-executive Directors, including one Director representing employees, with a Central Economic and Social Committee representative invited to each meeting. Three women sit on the Board out of seven members (excluding the employee representative), giving 43% women, above the 40% legal requirement. Three of seven Directors are independent (43%). Directors are aged 48 to 86, averaging 66. Directors bring experience from CAC 40, SBF 120 and international companies. A CSR Manager appointed by the Chairman and CEO oversees CSR policy within the Total Quality Management Department, supported by a network of CSR officers. Environmental standards fall under TQMD, ESRS S1 under Human Resources and the Ethics and Compliance Department, and G1 governance under several departments. The Audit Committee monitors preparation and verification of sustainability information.

Information about material impacts, risks and opportunities and related issues is provided to Executive Management throughout the year based on criticality. It covers the main areas of the CSR policy, actions and resources, priorities set by Executive Management, critical regulatory developments, significant stakeholder interactions, major risks through risk management procedures, and key performance indicators. The CSR policy rests on five pillars: improving the environmental performance of activities and products, offering an attractive employment model, ensuring a high-quality, safe and healthy work environment, adopting a responsible approach, and meeting regulatory and compliance obligations. A CSR letter signed by the Chairman and CEO was circulated to all entities in 2024. CSR results and objectives were presented to Executive Management, EXCOM and shareholders. The Board of Directors meeting of March 5, 2024 appointed the Audit Committee to monitor sustainability information. The first double materiality assessment was carried out at the end of 2023, thresholds were defined in the first half of 2024, and findings were presented to Executive Management in May 2024.

The principles of the compensation policy for the Chairman and CEO and the Chief Operating Officer were established by the Board of Directors. Their pay consists of a fixed component and a variable component, which includes performance shares. Ten percent of this variable compensation is tied to sustainability performance indicators. Further detail is provided in section 2.2.2 of the Corporate governance report.

Dassault Aviation defines due diligence as the process through which undertakings identify, prevent and mitigate the actual and potential negative impacts of their activities on the environment and affected populations, and report on how they address them. The statement maps the core elements of due diligence to specific paragraphs of the sustainability statement. Embedding due diligence in governance, strategy and business model is covered in GOV-2, GOV-3 and SBM-3. Engaging with stakeholders is covered in GOV-2, SBM-2, IRO-1 and various topical policies. Identifying and assessing adverse impacts is covered in SBM-3 and IRO-1. Taking action on negative impacts is covered in the climate, own workforce and customer action disclosures. Tracking effectiveness and communicating is covered through climate targets, energy and GHG metrics, health and safety metrics, and customer targets.

The double materiality assessment was carried out with the departments that have a good understanding of the interests and views of stakeholders. The information produced in the sustainability statement was analyzed and verified by the various contributing departments and ultimately by a central team responsible for approving the annual report. Dassault Aviation states that the production of sustainability information will be treated as a Company risk during the next update of the risk map.

Dassault Aviation is an aerospace company built on dual civil and military expertise, allowing it to serve complementary markets and reduce exposure to the economic environment. Since 1945 it has produced more than 5,800 military aircraft and more than 2,700 civil aircraft, over 8,500 in total, of which 64% were exported. In 2024 revenue split into Falcon (civil) at 36% and Defence at 64%. Employees are mostly located in France, with the rest mainly in the United States. Military products include the Rafale combat aircraft, a versatile aircraft covering air-to-air, air-to-ground and air-to-sea missions and a vector of French nuclear deterrence through the ASMP-A missile. Falcon business jets are recognized for handling, flexibility and low fuel consumption, with a current family range of 7,400 km to 13,890 km, plus multi-mission variants. The Rafale has been exported to eight countries since 2015. Dassault Aviation supports around 1,000 military aircraft and 2,100 Falcon jets in 90 countries. Military activities are strictly regulated by the French State, with export licenses overseen by the CIEEMG, SGDSN and DGA.

Dassault Aviation interacts with many stakeholders and maintains relationships through different forms of cooperation to take each stakeholder's interests, needs and expectations into account. The statement presents a table of stakeholder groups, their expectations and forms of cooperation. Company-level expectations include sovereignty, human rights and compliance, and environmental risk control, addressed through public hearings, external communication and codes of conduct. Customers expect product and service quality and environmental performance, addressed through quality audits, certification, contractual reviews and seminars. Employees expect value sharing, attractiveness, training, diversity and health and safety, addressed through union negotiations, occupational health services and internal communication. Shareholders and investors expect financial performance and CSR commitments, addressed through the Annual General Meeting and investor meetings. Suppliers expect equitable relationships and payment terms, addressed through commitment charters and faster payment, particularly for SMEs. Public and administrative authorities expect legal compliance and payment of taxes, addressed through declarations, audits and meetings with French and European institutions.

Dassault Aviation presents a table of material impacts, risks and opportunities across the value chain, with time horizons and the strategies used to manage them. Sovereignty is a positive impact and an opportunity for French national defence over the long term. Reduction in the carbon footprint and energy consumption is a negative impact contributing to climate change. Industrial and pollution risk control covers obsolescence linked to substance regulations, and materials use and circular economy covers non-availability of raw materials. Social matters include attractiveness and talent retention, training and skills, diversity and inclusion, employee health and safety, and quality of life and working conditions. Product safety covers aviation accident impacts and airworthiness risks. Cyber risk for IT systems and business ethics and compliance are governance risks, and management of relationships with suppliers is a positive impact. All IROs are covered through the ESRS in the statement, except Sovereignty, which is dealt with in section 4.1.8.

The double materiality assessment was overseen by the Company CSR manager with support from various departments and a consultancy firm, following a systematic approach. It covered the environmental, social and governance issues listed in ESRS 1, and voluntarily analyzed cybersecurity and sovereignty. IROs were identified and positioned across the value chain using guidance such as the SASB standards, and a dependencies analysis was carried out. Dassault Aviation did not interview external parties; their views were reflected through an internal panel of recognized experts in regular contact with stakeholders. Impacts were assessed on severity and likelihood, with severity based on scale, scope and irremediable character, each rated on a four-level scale with values of 1, 3, 6 and 10, and severity being the arithmetic mean. For human rights impacts, likelihood was treated as certain. Risks and opportunities were assessed on scale and likelihood in a collegiate manner. IROs were positioned on the Company risk matrix, and those in the blue zone are considered material. Results were presented to Executive Management.

The statement lists all Disclosure Requirements and where they appear. The material topical standards for which disclosure requirements are reported are ESRS E1 Climate change, E2 Pollution, E5 Resource use and circular economy, S1 Own workforce, S4 Consumers and end-users and G1 Business conduct, alongside the cross-cutting ESRS 2 General Disclosures. Following the double materiality assessment, ESRS E3 Water and marine resources, E4 Biodiversity, S2 Workers in the value chain and S3 Affected communities were assessed as not material. Facilities have sufficient access to water, biodiversity loss has not affected business continuity, and almost all tier 1 suppliers operate in countries with strict human and social rights laws, so value chain workers are not material. Climate change adaptation, both physical and transition risk, was assessed as non-material in the short and medium term. The statement also lists datapoints derived from other EU legislation and notes SBM-1 datapoint 40d as not applicable.

Tackling climate change is part of Dassault Aviation's Corporate Social Responsibility policy, and GHG emission reduction targets have been set for many years and are reviewed periodically. The Company states that it is pursuing a continuous improvement approach and does not have a transition plan for climate change.

The CSR policy is signed by the Chairman and CEO, implemented by the CSR manager, and publicly available on the Dassault Aviation website. It covers improving the environmental performance of activities and products, with the primary focus on reinforcing the low-carbon Company plan consistent with climatic challenges. Reducing the environmental footprint means factoring Environment, Health and Safety requirements into aircraft development programs, supplier and partner contracts, new processes and materials, infrastructure plans, and customer support. Key elements detailed later include the energy saving plan (energy efficiency plus self-generation of renewable energy), the vehicle allocation policy of French companies, the purchase of renewable energy, the Quality of Life and Working Conditions Agreement covering mobility, and the SAF plan. In July 2024, the CTOs of Dassault Aviation and six other aerospace players reiterated support for the 2050 net-zero target for the aviation sector.

Dassault Aviation has pursued a proactive environmental approach since 2007 using ISO 14001. Certified sites (Parent Company, Dassault Falcon Jet in Little Rock, Dassault Falcon Service in Le Bourget and Merignac) represent over 87% of global headcount. Actions improve Scope 1, 2 and 3 performance and cover aircraft footprint modeling via life-cycle analysis, eco-design, technological innovation, method and process optimization, in-operation flight optimization, Sustainable Aviation Fuel, energy consumption, and other GHG reduction actions. Aircraft use accounts for more than 95% of lifecycle GHG emissions. On SAF, all flights departing Le Bourget and increasing numbers to Merignac and Little Rock use physical SAF, typically 30% to 35% HEFA blends reducing the flight carbon footprint by about 24% to 30%. The Company aims to prepare aircraft in production for 100% SAF compatibility by 2030. The energy efficiency plan, launched in 2022, will reach full potential by 2026. At end of 2024, electric and hybrid vehicles made up 45% of the Parent Company fleet.

As part of its CSR policy and ISO 14001 certification, Dassault Aviation has set targets to reduce its environmental footprint, covering energy consumption, water consumption, air emissions and waste recovery. Because 2020 was disrupted by Covid-19, 2019 was chosen as the base year. For Scopes 1 and 2 GHG emissions, the Company has not set a measurable absolute target for 2025, instead seeking to improve efficiency through initiatives in energy efficiency and consumption reduction, fuel switching, electrification, and use of renewable energy. Despite the absence of a measurable absolute target for 2025, policies and actions are monitored through the carbon metric for the Parent Company scope, and qualitatively for subsidiaries through reporting of energy data and actions.

Dassault Aviation operates in a high climate impact sector (NACE 3030Z). Total energy consumption was 391,329 MWh in 2024, up 16% from 338,189 MWh in 2023 (401,723 MWh in 2019). Total fossil energy consumption was 268,242 MWh in 2024 (69% of the total), including 147,402 MWh from crude oil and petroleum products and 83,945 MWh from natural gas. Nuclear sources contributed 74,233 MWh (19%). Total renewable energy consumption was 48,854 MWh (12%), including 8,208 MWh of renewable fuels, 40,391 MWh of purchased renewable electricity, heat, steam and cooling, and 255 MWh of self-generated non-fuel renewable energy. Total energy consumption excluding kerosene was 241,780 MWh. Energy intensity was 62.7 MWh per million euros of net sales in 2024, down 11% from 70.4 in 2023.

Emissions are calculated using the GHG Protocol and expressed in tonnes of CO2 equivalent, with 2019 as base year. Gross Scope 1 emissions were 54,037 tCO2eq in 2024 (45,661 in 2023; 57,829 in 2019), or 19,434 tCO2eq excluding kerosene. Gross location-based Scope 2 emissions were 20,820 tCO2eq and market-based Scope 2 emissions were 8,946 tCO2eq, down 52% due to a carbon-free electricity contract at French and Little Rock facilities. Total GHG emissions were 74,857 tCO2eq location-based and 62,983 tCO2eq market-based. Since September 2024 French sites and Little Rock have used guarantees of origin and Renewable Energy Certificates. Scope 3 emissions were not published because Dassault Aviation was unable to meet the request. GHG intensity was 12.0 tCO2eq per million euros of net sales location-based and 10.1 market-based.

Dassault Aviation did not undertake any GHG removal or mitigation projects in 2024. Since 2023, it has contributed through patronage to the Maubuisson forest project in Val-d'Oise, which involves planting a million trees of thirty different species across 1,340 hectares of abandoned plain, benefiting a population of 100,000 people in seven neighboring communities as well as the twelve million inhabitants of the Ile-de-France region while helping to remove GHGs. In 2024, the Company began actively monitoring the potential role of GHG removal projects.

Internal carbon pricing has not been implemented in Dassault Aviation's processes. Nevertheless, a qualitative approach at the Parent Company level takes environmental criteria into account, including energy consumption and GHG emissions, for projects involving changes to or the creation of industrial installations, machinery, activities or new production processes.

In accordance with paragraph 137 of ESRS 1 (General Requirements), Dassault Aviation derogates from this disclosure requirement and does not report the anticipated financial effects from material physical and transition risks or potential climate-related opportunities.

Dassault Aviation explains that chemicals regulations, especially the EU REACh Regulation on the Registration, Evaluation, Authorisation and Restriction of Chemicals, significantly affect aeronautics products and processes that must meet airworthiness and reliability requirements. Through its CSR policy, signed by the Chairman and CEO, the Company sets priorities for regulatory compliance and environmental performance and aims to anticipate these constraints by working to replace carcinogenic, mutagenic or toxic for reproduction (CMR) substances and the most problematic products such as surface treatments, paints, sealants and adhesives. Resources and actions are monitored through reviews of the processes used by the affected departments. Because the topic concerns the whole industry, discussions continue with aerospace bodies including GIFAS in France, the Aerospace and Defence Industries Association (ASD) in Europe, and the International Aerospace Environmental Group (IAEG) internationally. Suppliers are contractually required to account for substance regulations and to manage obsolescence.

For several years Dassault Aviation has acted to limit the use of hazardous chemicals across its scope of activity. Regulatory oversight systems have been in place for more than 15 years to identify impacts and incorporate regulatory issues into strategy, with current and future French and European legislation (REACh, Ozone-Depleting Substances, Persistent Organic Pollutants, F-Gas III, RoHS, biocides Prior Informed Consent, and Classification, Labelling and Packaging) regularly analyzed against substances used. The Company commits to substitution plans to develop, qualify and implement alternative processes, investing in replacements for chromates in corrosion protection, terphenyl in sealants, bisphenol A in epoxy resins and adhesives, and lead in electronics, and it will address the PFAS restriction proposal. A validation process for new chemical products has run for more than ten years. Modernization of machinery and process changes optimize chemical quantities. When a supplier announces obsolescence, the Company finds new sources or builds inventories, and it informs customers of substances of very high concern via REACh Article 33 declarations and maintenance manuals.

Dassault Aviation states that it does not plan to set targets for the production, use or distribution of substances of concern and of very high concern, because such targets would not allow the associated risks and opportunities to be monitored. The Company explains that the material risk identified through its double materiality assessment relates to the obsolescence of regulated substances rather than to the risk of pollution itself. As a result, the policies and actions it has implemented focus on anticipating regulations and on substituting the most hazardous products rather than on formal pollution-reduction targets.

Dassault Aviation complies with REACh and maintains oversight of substances of concern and of very high concern. The Company states that the metrics it uses are designed to monitor substitutions and do not measure the impact on pollution, so it cannot produce the exact metrics required for this disclosure. Instead it presents an alternative metric based on progress in substitution. The effectiveness of substitution actions is tracked using progress metrics covering the number of substituted hazardous products and those affected by REACh. On this basis, the Company reports that since 2013 a total of 636 hazardous products have been removed, replaced or are being substituted.

Dassault Aviation reports that, in accordance with paragraph 137 of ESRS 1 (General Requirements), it derogates from the disclosure requirement on the anticipated financial effects from pollution-related impacts, risks and opportunities. The Company therefore does not provide quantified financial effects for this disclosure in its FY2024 sustainability statement, relying on the phase-in provision that allows this information to be omitted.

Dassault Aviation describes its policy on resource use and circular economy by reference to its management of relationships with suppliers (G1-2). Its Purchasing Policy, updated at the beginning of the year by the Senior Executive Vice-President, Procurement and Purchasing, aims in particular to secure the Company's supply chain. This focus on securing supply frames the Company's approach to sourcing the materials and resources needed for its products.

Dassault Aviation reports that some actions and resources are set out under its supplier relationship management (G1-2), with additional detail provided on raw materials. The Company is structured to identify and monitor non-availability risks through supplier structural assessment and contractual relationships, technical obsolescence oversight by the CINPA (Industrial Committee on Supply Unsustainability), and geopolitical relationships with government bodies and industry groups such as the French Ministry of Armed Forces and GIFAS. On raw materials specifically, it monitors the situation with government offices by analyzing its dependence on raw materials supply and participates in dedicated working groups such as OFREMI, the French Observatory of Mineral Resources for Industrial Sectors. When a risk is identified, it may build up inventories, seek new sources of supply, develop technical solutions such as lowering the buy-to-fly ratio, using additive manufacturing, and redesigning or switching materials from metal to composite components, and implement materials recovery and circular economy relationships with suppliers.

Dassault Aviation reports that it has prepared a list of at-risk materials, with the main objective of controlling their supply in order to secure production. The Company explains that this list of materials results from its own internal analyses combined with joint work carried out with the State. This work forms the basis of its target-setting approach for resource use, centered on securing the supply of the materials most critical to production.

Dassault Aviation addresses resource inflows by referring to the list of at-risk materials identified for securing production. The Company states that this list has been identified but is not detailed in the document, citing the reasons described in paragraph 4.1.1 of its report. In effect, it withholds the specific at-risk materials supply information as strategic and confidential rather than disclosing the underlying figures for this requirement.

Dassault Aviation reports that, in accordance with paragraph 137 of ESRS 1 (General Requirements), it derogates from the disclosure requirement on the anticipated financial effects from resource use and circular economy-related impacts, risks and opportunities. The Company therefore does not provide quantified financial effects for this disclosure in its FY2024 sustainability statement, relying on the phase-in provision that permits this information to be omitted.

Own workforce policies are the responsibility of each entity's Human Resources Department under a common guideline set by the Parent Company's HR Department. They cover attractiveness and talent retention, including cooperation with higher education, apprenticeship and internship programs, and a recruitment policy focused on anticipating skills needs and intergenerational balance. The compensation policy rewards loyalty and adapts to the economic environment; French companies use profit-sharing and incentive agreements benefiting 77.4% of employees, averaging three months' wages over five years at the Parent Company. All employees receive medical cover. Further policies address training and skills management, diversity, inclusion and equal opportunities, gender equality, employment and retention of persons with disabilities, careers of staff representatives, employee health and safety, and quality of life at work. Human rights commitments rest on the Code of Ethics, duty of care plan, and UN Global Compact membership since 2003. No forced labor or child labor risk was identified.

The Company's employee relations policy is built on trust, compromise and mutual respect. Trade unions are present in all French subsidiaries and DFJ Do Brasil, covering more than 77% of the workforce. In 2024, French companies signed 13 agreements and amendments covering wages, job and career management, quality of life at work, working time and the Company pension plan. Discussions with staff representatives take place in dedicated bodies, namely the Economic and Social Committee (CSE) and the Health, Safety and Working Conditions Committee (CSSCT), with agendas set beforehand. An annual agenda sets out mandatory and optional negotiations, and monitoring committees follow up on signed agreements. In 2024 the Parent Company continued half-yearly manager-employee meetings launched in 2022, holding more than 1,900 meetings. French companies have internal mechanisms and formalized procedures at the Parent Company and ExecuJet, covering nearly 75% of employees, to address harassment and discrimination. Whistleblowers receive legal protection.

Employees have multiple channels to report concerns. Their first option is their manager, whose role is to support the team, and members of the Human Resources function. Staff representatives also relay employee concerns to Management as part of social dialogue. Within the Parent Company, meetings and working groups allow employees to discuss difficulties they encounter in their jobs through a participatory, collaborative resolution process. Mediation procedures exist to resolve disputes between employees, most often performed by members of the HR function. When internal channels cannot resolve disputes, employees can refer the matter to an outside third party for resolution and, if necessary, remediation, such as courts, administrative bodies or defenders of rights. To prevent bullying, sexual harassment, sexist behavior, sexual assault and discrimination at work, French companies have introduced internal mechanisms for identifying and dealing with problematic situations. Communications are sent out regularly to remind employees of the channels available to them.

Actions are monitored by the various HR competence centers. For talent attraction and retention, the Company supports students through internships, work-study and the VIE program, participates in curricula consultations via GIFAS, and runs training programs for retraining leading to CQPM metallurgy certification, including the School of Mechanics at Argonay. In 2024 the Parent Company ranked in the Universum France Top 5 and held six Take-off Days for nearly 700 new hires (93% satisfaction); close to 230 employees attended the Dassault Defence Academy. French companies paid more than EUR 32 million (over 5% of payroll) to the Economic and Social Committee for social and cultural activities. On management, 1,730 managers took Dassault Institute courses. Health and safety actions strengthen a prevention culture, with six Parent Company facilities (81% of staff) at or near EHS maturity level three. A sustainable mobility scheme paid 584 bicycle bonuses. Psychosocial risk, ergonomics and medical monitoring actions continued.

The Company does not currently have any targets set for it as a whole. Each Dassault Aviation company has its own specific objectives based on its individual characteristics, so no group-wide targets related to managing material negative impacts, advancing positive impacts, or managing material risks and opportunities are disclosed.

As at December 31, 2024, the enrolled headcount totaled 14,589 employees, comprising the Parent Company (10,416), Dassault Falcon Jet (2,412), Dassault Falcon Service (568), ExecuJet (495), DABS (396) and Sogitec (302). By gender, there were 2,779 women and 11,810 men; women accounted for 22.2% of hires in 2024. By country, 11,286 employees were in France, 2,380 in the USA and 923 in the rest of the world. Of the total, 14,131 were on permanent (open-ended) contracts and 458 on temporary contracts, with no non-guaranteed hours employees. There were 14,154 full-time and 435 part-time employees. Nearly 97% of employees are on open-ended contracts. In 2024 there were 2,394 hirings and 1,366 departures (all reasons combined), giving a turnover rate of 10.1%. The resignation rate was 2.9% for Dassault Aviation and 1.1% for the Parent Company.

In accordance with paragraph 137 of ESRS 1 (General Requirements), Dassault Aviation derogates from this disclosure requirement and does not report the characteristics of non-employees. The report elsewhere notes that non-employees are defined to include self-employed people, temporary workers, interns, and young people participating in a job shadowing program, but the quantitative characteristics required by S1-7 are not disclosed.

By age group, employees are distributed as 2,250 under 30 years old, 7,691 aged 30 to 50 years, and 4,648 over 50 years old, totaling 14,589. Gender distribution at top management shows 31 women (10.3%) and 269 men (89.7%), for a total of 300. Top management is defined as employees in categories H16 and I of the metalworking industry collective bargaining agreement of February 7, 2022, applying to all French companies. For foreign subsidiaries not subject to the French provisions, top management is considered to be executives in the highest management roles, particularly regarding their level of responsibility, pay and freedom to manage their working time.

All Company employees are paid an adequate wage, in line with applicable benchmarks. The average annual pay of Dassault Aviation employees in 2024 was EUR 63,499. The average annual pay of Dassault Aviation's French companies, including profit-sharing and incentives, was EUR 73,399.

In accordance with paragraph 137 of ESRS 1 (General Requirements), Dassault Aviation derogates from this disclosure requirement and does not report social protection metrics for its own workforce.

At the end of 2024, Dassault Aviation employed 713 disabled workers, accounting for 4.9% of its headcount. Because this category accounts for 7.6% of their workforce, Dassault Aviation's French companies meet the statutory requirement according to which disabled people must make up at least 6% of the total headcount.

In accordance with paragraph 137 of ESRS 1 (General Requirements), Dassault Aviation derogates from this disclosure requirement and does not report training and skills development metrics for its own workforce.

Dassault Aviation derogates under paragraph 137 of ESRS 1 from disclosing the percentage of non-employees covered by a health and safety management system, the number of work-related accidents for non-employees, the number of occupational illnesses, and the number of days lost. It reports that 100% of employees are covered by a health and safety management system. There were 265 work-related accidents (with or without lost time) among employees, with a frequency rate of 11.9%. This metric concerns employees on open-ended, fixed-term, work-study and non-guaranteed hours contracts working at the Company during the year. The Company reports zero fatalities as a result of work-related accidents for both employees and other on-site workers (total 0). It states that it is not able to establish a connection between fatalities and occupational illness.

In accordance with paragraph 137 of ESRS 1 (General Requirements), Dassault Aviation derogates from this disclosure requirement and does not report work-life balance metrics for its own workforce.

The gender pay gap is 6.8% for Dassault Aviation, calculated as the difference between the average gross annual pay of male and female employees divided by the average gross annual pay of male employees, multiplied by 100. The French companies have a compiled gender equality score of 88 out of 100, well above the regulatory threshold of 75. For the Parent Company, this gap is 3.8%, and a study by the firm LHH found no significant difference between men's and women's wages for equivalent profiles by classification, age, experience, seniority, sector and position. The pay gap between highest and median pay is 95.5, calculated as the annual remuneration of the Dassault Aviation CEO divided by the median annual total remuneration of the Parent Company (excluding corporate officers); this median figure is limited to the Parent Company.

Incidents data is drawn from the annual whistleblowing performance dashboard produced by the Ethics and Compliance Department for the Parent Company only, using a single internal whistleblowing procedure. For 2024 there were 14 reports of HR-related non-compliance (harassment, sexist behavior and discrimination) and 0 reports of human rights non-compliance, for a total of 14 instances of non-compliance. The amount of fines, penalties and compensation was 0 for HR incidents and complaints, 0 for identified cases of severe human rights incidents, and 0 in total. The full details of the whistleblowing procedure are described in section 4.4.1 of the sustainability statement.

Dassault Aviation designs and manufactures military and business aircraft and provides operational support, treating customers (aircraft operators) as its consumers and end-users. Disclosures cover civil-sector customers only for confidentiality reasons. The Chairman and CEO reiterated a safety-first commitment in a letter to all departments at the end of 2024. A dedicated organizational structure monitors safety across design, production, operational support, maintenance and flight operations, built on an independent Executive Aviation Safety Officer reporting directly to the Chairman and CEO, a Safety Management System (SMS) meeting the highest international standards, and certifications for design, production and maintenance. The SMS supports continuous improvement of civil and military aircraft safety, with targets set annually, and was implemented in line with industry standard SM-0001 and ICAO Annex 19. It underpins aircraft certification and airworthiness monitoring under EASA Part 21, carried out for Falcon models in close coordination with EASA as lead certification authority.

Dassault Aviation has defined processes to engage customers about actual and potential impacts. For accidents or serious incidents involving a Falcon in service, any employee who is informed must immediately alert the Customer Service Department, and French-based undertakings involved in design, manufacture or maintenance must inform the technical investigation authority. The Flight Safety Department liaises with technical investigation authorities and the Technical Certification Department liaises with certification authorities; as type certificate holder, Dassault Aviation must report accidents or serious incidents to certification authorities. The Civil Aircraft Department liaises with Falcon customers and operators, including the owner of an aircraft involved, without disclosing investigation details. During normal operations, customers report unusual events to the Customer Service Department; the Technical Certification Department notifies EASA as lead authority, assesses airworthiness impact and proposes corrective actions. Before a sale, customers may raise specific safety questions, with all relevant departments supporting the Civil Aircraft Department.

Depending on the severity of impacts or risks, two procedures are possible: a technical (safety) investigation or a judicial investigation, both initiated by the competent authorities rather than by Dassault Aviation or the customer. Governments must launch a technical investigation after a civil aviation accident on their territory, led by a lead investigator, with the sole aim of improving safety and concluding with a report and safety recommendations. Within Dassault Aviation, a pre-appointed Accident Management Committee (AMC) meets to manage the situation, ensure a stable organization, escalate information, report periodically to Executive Management, control negative impacts including excessive media coverage, and provide factual communication. The AMC works to establish causes and define preventive or corrective measures, offering technical assistance to the investigation authority, usually the French BEA. A judicial investigation, governed by national law, determines fault or liability and can lead to criminal conviction and compensation for victims.

A dedicated organizational structure underpinned by the Safety Management System (SMS) implements the safety policy across all entities and the entire value chain, covering design, production, operational support, maintenance and flight operations. The SMS includes the structures, responsibilities, policies and procedures needed to identify aviation risks and keep them at an acceptable level. Dassault Aviation commits to continuous improvement by fostering a positive safety culture, enabling all employees to report perceived safety threats under a just culture with the option of anonymity, treating safety as managers' primary responsibility, and applying these principles to suppliers, sub-contractors and partners. EASA assessed this process in 2024. The Company holds design, production and maintenance certifications monitored by the DGAC, EASA and FAA. The Parent Company and subsidiaries DFJ and DFS are EN 9100, ISO 9001 and ISO 14001 certified, and audits by outside organizations in 2024 confirmed compliance with the standards.

In line with EASA recommendations following the 2024 audit, Dassault Aviation set specific goals from 2025 to improve the Safety Management System. These goals are to ensure training of all employees in Safety and SMS, to intensify promotion of a Just and Fair Culture and awareness of human and organizational factors by integrating the limitations of human performance, to check implementation of the Safety approach in the supply chain among suppliers identified as critical, and to establish a summary of the Safety risks of Dassault Aviation's most critical activities.

Dassault Aviation's Ethical Charter sets out its values and codes of conduct applied with customers, partners, suppliers and sub-contractors, supplemented by an Anti-Corruption Code and a Supplier Code of Conduct to be rolled out in 2025. The Company commits to acting in line with the OECD Convention, the United Nations Convention and national laws, and is a signatory to international anti-corruption commitments including the Global Compact, and a member of the IFBEC. Its global Business Conduct Policy covers anti-corruption compliance, duty of care, export control, trade compliance, GDPR and business ethics, addressing reputational, legal and financial compliance risks. It implements the anti-corruption system under the Sapin 2 law and the duty of care under the law of March 27, 2017. The Ethics and Compliance Department, created in 2021 and reporting to the Chairman and CEO, ensures overall consistency, supported by a network of about a dozen compliance ambassadors worldwide and evaluation by the Audit and Risk Department.

Due to the specific features of its sector, Dassault Aviation is committed to sustainability processes with its partners under its purchasing policy, updated at the start of the year by the Senior Executive Vice-President, Procurement and Purchasing, and aimed at securing the supply chain. A structural assessment, in place since 2007 and updated to cover Sapin 2, duty of care and cyber-security, is performed when referencing or monitoring suppliers across five components: financial health and social criteria, security, cyber-security, health, safety, environment and chemical products management, and compliance. Supplier monitoring runs through semi-annual campaigns or when a significant event occurs. The Parent Company carried out almost 500 structural analyses in 2024, including 100% of newly approved suppliers, particularly SMEs. Around 85% of the Parent Company's suppliers are French. The Company supports suppliers through the GIFAS Charter and the SME Defence Pact, whose update it signed in mid-2024, and provides a Purchasing Passport training course.

For many years Dassault Aviation has implemented strict internal procedures to prevent corruption and protect its integrity and reputation. Under the Sapin 2 law, it strengthened its process to prevent and detect corruption and influence peddling across the Parent Company and subsidiaries, led by the Chairman and CEO who promotes a zero-tolerance policy. The Ethics and Compliance Department deploys regularly updated risk maps that identify, analyze and prioritize exposure to corruption, taking account of internal processes, the civil and military activities and geographies. The Anti-Corruption Code, updated in 2024, defines proscribed behaviors using practical examples and is integrated into site rules, with a Supplier Code of Conduct to follow in 2025. A single whistleblowing system lets any employee report violations. Training includes specialized anti-corruption training for high-risk groups and a mandatory e-learning module. Third parties are evaluated before business, and accounting control procedures prevent books from masking corruption. Level 2 controls performed throughout 2024 confirmed evaluation procedures were in place and working.

In financial year 2024, no acts of corruption or influence peddling were brought to the attention of the Ethics and Compliance Department, and no fines were imposed on Dassault Aviation on that basis. The Company has not been convicted of any offense.

Pursuant to the law of December 9, 2016, Dassault Aviation reports its lobbying activities to the National Digital Register of Lobbyists maintained by the HATVP, the French High Authority for Transparency in Public Life, which is available for public consultation. Its lobbying aims to raise awareness of aerospace issues and export issues among public actors. On that basis, Dassault Aviation is a member of various professional bodies in the aerospace and metallurgy sectors, including Cercle de l'Industrie, CIGREF, GIFAS, MEDEF INTERNATIONAL and UIMM. Only people clearly designated by Executive Management engage in lobbying, acting in accordance with compliance and business ethics, and patronage and sponsorship actions follow a dedicated procedure monitored by the Ethics and Compliance Department. The Company also contributes to discussions within groups such as AFEP, France Industries, IAEG, EBAA and ASD, summarizing industry views on regulations in position papers sent to relevant authorities where necessary.

In application of the law, Dassault Aviation implemented procedures to pay suppliers within legal time frames and has begun digitizing the process. It uses IT solutions including an ERP system with a procure-to-pay module covering almost all purchases. Invoices are paid within applicable legal time frames based on supplier category, calculated from the date the invoice is received. Payment-terms measurement is reliable only for the Company's French entities. Dassault Aviation's French subsidiaries apply standard statutory payment terms of 45 days from the end of the month of invoice, representing 82% of the Company's invoices paid during the year, of which 88% were paid on time. In financial year 2024 the average payment term of French subsidiaries was 42 days against average statutory terms of 55 days, meaning they paid on average 13 days early. The Parent Company pays SMEs on average 16 days before the statutory date, with 95% of invoices paid on time. There are no ongoing legal proceedings relating to late payments.