AAR Corporation.
AIR.US | Repair of machinery
AAR Corporation is a global aerospace and defense contractor. The company provides a range of products and services, including maintenance, repair, and overhaul (MRO) services for commercial and military aircraft; component repair and manufacturing; engineering services; and supply chain management....Show More
Better Health for All
0
AAR Corporation is an aerospace and defense contractor, and its core business activities do not involve health-related products, services, or research. Consequently, most KPIs related to health impact, harmful revenue, accessibility, innovation, externalities, equity programs, preventative measures, crisis response, mental health, pharmaceutical patents, nutrition, education, addiction, and clinical trials are not applicable to its operations, resulting in a score of 0 for these categories.
1
Evidence regarding a reduced rate of recordable injuries pertains to workplace safety, not user harm, and is therefore omitted.
2
Similarly, an expanded fellowship program and strengthened data privacy measures are not specified as being related to the healthcare workforce or health data, respectively, and are thus omitted.
3
Fair Money & Economic Opportunity
0
AAR Corporation is an aerospace and defense contractor, not a financial institution. The company does not offer lending, insurance, or deposit services to consumers, nor does it provide consumer credit products or manage customer finance data. Consequently, all KPIs related to financial services, products, and customer financial outcomes are not applicable to its core business model. While AAR engages in various community and diversity initiatives, these do not fall under the specific definitions of financial inclusion or fair money practices as outlined in the rubric for financial services companies.
Fair Pay & Worker Respect
0
AAR Corp.'s CEO to median employee pay ratio was 112:1 in 2024.
1
The company reported that 72% of its employees consider it a "great place to work," which is 15 percentage points higher than the average U.S. company.
2
In 2023, the company incurred one substantiated workplace safety or health violation, resulting in a $14,550 penalty from OSHA.
3
Fair Trade & Ethical Sourcing
0
AAR's Supplier Code of Conduct applies to all distributors, manufacturers, vendors, consultants, contractors, and other suppliers and third parties that engage in business transactions with AAR.
1
In July 2024, it was expanded to apply to suppliers’ subcontractors and independent contractors.
2
In fiscal year 2024, AAR's total procurement spend was $1.6 billion.
3
Of this, $32.2 million was directed to diverse suppliers, and an estimated $78.1 million was spent with local suppliers.
4
Honest & Fair Business
0
AAR Corp incurred $55,819,653 in ethics-related regulatory fines in the past three years
1
, including $55,599,653 in 2024 for Foreign Corrupt Practices Act (FCPA) violations that occurred between 2015 and 2020
2
, and $220,000 for an environmental violation in 2023
3
. The company self-reported the potential FCPA violations in 2019
4
and subsequently enhanced its global compliance program
5
. AAR maintains a robust Global Anti-Corruption Policy with zero tolerance for bribery and corruption
6
, prohibiting facilitation payments
7
, and requiring compliance with FCPA and UK Bribery Act
8
. This policy includes annual risk-based training for all team members
9
, quarterly business unit certifications
10
, annual anti-corruption risk assessments
11
, and annual internal audits of controls
12
. It also mandates risk-based due diligence, screening, contractual protection, and ongoing monitoring for third-party representatives
13
. Furthermore, AAR has a comprehensive Speaking Up and Non-Retaliation Policy, effective July 2023
14
, which applies to all entities and personnel
15
. It provides a 24/7 anonymous EthicsPoint Hotline, administered by an independent third-party vendor in multiple languages
16
. Reports receive a confirmation response within 48 hours
17
, and an Investigation Committee meets monthly, with summaries provided quarterly to the Audit Committee
18
. Retaliation for good-faith reporting is prohibited and subject to disciplinary action
19
.
Kind to Animals
0
No specific, concrete data points related to animal welfare, animal testing, animal-derived ingredients, habitat destruction, or humane practices for AAR Corporation were found in the provided articles. Therefore, no KPIs could be scored against the 'Kind to Animals' value.
No War, No Weapons
-60
AAR Corporation derived 29% of its Fiscal 2024 sales from Government/Defense customers.
1
This includes contracts with the U.S. Department of Defense and foreign governments, such as a $1.2 billion contract with the U.S. Navy for engine depot maintenance and another $1.2 billion for airframe maintenance.
2
The company also has a multi-year defense distribution agreement for global defense and military aftermarket sales
3
and a mobility solutions contract with the Defense Logistics Agency Troop Support valued up to $85 million.
4
Total lobbying expenditures for 2025 were $1,110,000,
5
with disclosed lobbying efforts supporting increased defense spending and military programs, including F-16 Service Life Extension Funding and the National Defense Authorization Act.
6
No lobbying for arms control is mentioned. The company's Supplier Code of Conduct includes policies on human rights and safe labor.
7
A trade compliance screening tool evaluates new suppliers for human rights, sanctions, and corruption risks.
8
AAR is committed to human rights policies in its Code of Conduct and Supplier Code of Conduct.
9
Its conflict minerals due diligence program aligns with OECD guidance.
10
A trade compliance screening tool evaluates new suppliers, and existing suppliers are audited, with remediation steps taken for non-compliance related to conflict minerals.
11
Planet-Friendly Business
-70
The company states it continues to evaluate its environmental inventory and consider strategies for managing its impact, but no SBTi-validated carbon reduction targets are mentioned. AAR recorded a significant environmental violation in 2023, resulting in a $220,000 penalty for Clean Water Act violations.
1
This violation involved 64 exceedances of permit limits for chlorine, temperature, and pH over a five-year monitoring period (2016-2021), averaging 12.8 exceedances per year.
2
An additional hazardous waste violation was recorded in 2025.
3
The company has not declared a net-zero carbon target year. AAR has published TCFD content indexes for fiscal years 2024 and 2025, indicating it uses TCFD guidance to assess climate-related risks.
4
Climate-related risks are integrated into the company’s strategic planning, risk management program, and internal processes, with oversight by the Board of Directors and its committees.
5
The Audit Committee Charter was amended in July 2023 to include oversight of quantitative environmental data and enterprise risk management processes related to environmental risk.
6
Respect for Cultures & Communities
0
AAR Corporation reported no cultural appropriation incidents or concerns during fiscal year 2024.
1
The company's operations, primarily in aerospace and defense MRO services, do not appear to involve activities that would necessitate Free, Prior and Informed Consent (FPIC) processes.
Safe & Smart Tech
10
AAR Corp has certified to the EU-U.S. Data Privacy Framework, the UK Extension to the EU-U.S. DPF, and the Swiss-U.S. Data Privacy Framework.
1
The company also references compliance with GDPR and CCPA, with no specific instances of non-compliance detailed.
2
There are no documented data breaches or unauthorized data use incidents.
3
Zero Waste & Sustainable Products
-40
AAR Corporation has implemented multiple waste reduction initiatives across its North American and European facilities
1
, utilizing digital tools to track environmental data, internal audits, and employee reports to inform long-term strategies
2
. No waste disposal violations were mentioned in the provided article
3
. However, the company has no specific waste reduction targets or timelines mentioned
4
, and no customer waste education programs were mentioned
5
. AAR's Supplier Code of Conduct has been expanded to include subcontractors and independent contractors
6
, requiring them to comply with environmental regulations and resource efficiency standards for water, waste, and energy
7
, and the company has implemented a 'right to inspect' suppliers' facilities
8
.